Shares of Singapore-listed Chinese firm Yangzijiang Shipbuilding (YAZG.SI) rose as much as 2.5% to its highest in more than three years after it said it clinched US$415.3 million ($534.6 million) worth of shipbuilding contracts.
By 9:30.m., Yangzijiang shares were up 2% at $2.05. Yangzijiang said on Wednesday it had won 15 shipbuilding contracts worth a total of US$415.3 million in the last four months of 2010.
CIMB Research also raised its target price for Yangzijiang to $2.69 from $2.57 and kept its “outperform” rating.
The brokerage raised its order book expectations for Yangzijiang in 2011 to US$1.5 billion from US$1 billion, as the strong order momentum in the fourth quarter should spill into this year.
“We also expect Yangzijiang to benefit from the rebound in containership orders,” CIMB said in a report.
