Yangzijiang Shipbuilding (Holdings)

[yogi]

Agreed. Ocbc has an updated research report, but there is no mention about the HtM, especially if the costs are recurring.

The next segment to watch will be property, and how well can they sell their higher end residential units in the backdrop of property curbs, and raising interest rate and seemingly oversupply.

The shipbreaking and steel fab is still making losses, that should be monitor in case it eats into profits ...

May be analysts also have no clue on the "cost", thus no coverage on the topic. The analysts briefing is normally held around the same time as AGM, but at different session.

I am optimistic with the company property venture, base on
- targeted market is within Jiangsu region
- financial strength of the company
- maiden project with the Old Jiangsu yard (premium location), with strong partner (Jiangsu Huaxicun).

(vested)

If I read correctly from AR, the land for residential property is valued in book at cost. Not sure when they bought it but I see upside for revaluation.

[CityFarmer]

If I read correctly from AR, the land for residential property is valued in book at cost. Not sure when they bought it but I see upside for revaluation.

The site is the old yard of YZJ, with site area of 20 hectare, and 800 m coastline. A premium location for residential/commercial property development.

YZJ has moved out from the yard, with relocation payment of RMB 720 mil from government, and a choice to participate on the development. It should be a good deal, IMO.

I am also quite positive on the development, but I didn't factor it into my valuation yet.

(vested)

[Greenrookie]

Reearch report from osk, the most shocking part is ren yuanlin mught retire in 3 year time?

Retire as chairman by stay as ceo? Or bye bye?
Yangzijiang: Low Tax Days Are Here Again (BUY, SGD1.07, TP: SGD1.58) Lee Yue Jer, +65 6232 3898 (yuejer.lee@sg.oskgroup.com) Jason Saw, +65 6232 3871 (jason.saw@sg.oskgroup.com) Yangzijiang (YZJ) announced that it has been awarded “High Tech Enterprise” status, which lowers its corporate tax rate from 25% to 15% over three years. Apart from this fundamentally positive development, other near-term re-rating catalysts are: i) the company exercising options for 10,000-TEU container vessels, and ii) receipt of deposit for two semi-submersible rigs. Maintain BUY, with a higher SGD1.58 TP. Back to lower taxes. YZJ has been accredited a “High/New Technology Enterprise” (HNTE), which will reduce its tax rate from the prevailing 25% corporate rate to a preferential rate of 15%. We had earlier flagged this as a likely development given YZJ’s market-leading position in building 10,000TEU vessels, offshore assets, and eco-friendly vessels, on top of its vessel design capabilities. Stock again oversold on margin fears and chairman’s potential retirement in 3 years. YZJ’s stock was sold down after its 4Q13 results owing to: i) the high tax rates in 4Q13; ii) high-margin vessels having been delivered; and iii) indications from chairman Ren Yuanlin that he will retire in three years. We note that YZJ’s margins have consistently outperformed street expectations, and that the currently full utilization at its yards will enhance margins. Meanwhile, vessel prices have risen 15-20% y-o-y while steel prices have been on a downtrend. HTM collateral 3.2x covered in land. Investors were also concerned about the default risks in Chinese property companies, to which YZJ lends 44% of its held-to-maturity (HTM) portfolio. We see two risk mitigation factors: i) 64% of its overall collateral is in land and only 9% in shares (which may not be shares in property developers), and ii) the coverage ratio for land is 3.2x. We believe that the company can easily recover its principal plus interest via sale of the land at a >50% discount. Maintain BUY, with higher SGD1.58 TP. We continue to like YZJ for being the strongest shipbuilder in China in a recovering industry. Other near-term catalysts are: i) exercising options for 10,000-TEU containerships, which will boost utilization and support margins; ii) receipt of deposits for two semi-submersible rigs, making the contracts effective. Maintain BUY, with higher SGD1.58 TP (from SGD1.55), raising the shipbuilding multiple to 9.5x vs 9x in our SOP valuation

[freedom]

Yangzijiang has been borrowing USD(or offshore RMB) and buying onshore RMB financial instruments in recent years. Recent RMB devaluation could have potential large financial effect on it.

Wonder what exactly its derivative positions are.

http://online.wsj.com/news/articles/SB10...1440182912

[CityFarmer]

Yangzijiang has been borrowing USD(or offshore RMB) and buying onshore RMB financial instruments in recent years. Recent RMB devaluation could have potential large financial effect on it.

Wonder what exactly its derivative positions are.

http://online.wsj.com/news/articles/SB10...1440182912

In fact the USD borrowing is one mean to manage currency exposure, rather than to increase the risk. The functional currency is RMB, but transaction currencies includes USD and EUR. There are minor exposure of SGD also.

Refer to AR2012, USD exposure (before USD debt) was 4500 mil in RMB, but mitigated by close to RMB 4300 mil of borrowings in USD, and RMB 500 mil equivalent of payable in USD. The net exposure was 3129 mil RMB, after currency forwards and forecasted transactions in USD. Interest rate swaps are other mean to manage the exposure, according to the AR

So I am not so worry on the USD exposure, definitely not on the USD borrowings.

(vested)

[CityFarmer]

Reearch report from osk, the most shocking part is ren yuanlin mught retire in 3 year time?

Yes, it is new to me too. It is very likely a "hot" topic in upcoming AGM.

[Greenrookie]

Source: Hellenics shipping news
YZJ pass 10000 TEU test. Seaspan accept ship


Seaspan Corporation announced that it accepted delivery of a 10000 TEU containership, the Hanjin Buddha, which was constructed using Seaspan's fuel-efficient SAVER design. The new containership, which was constructed by Jiangsu New Yangzi Shipbuilding Co., Ltd., is Seaspan's first SAVER design vessel in the company's operating fleet.

The Hanjin Buddha will commence a ten-year, fixed-rate time charter with Hanjin Shipping Co. Ltd. ("Hanjin"). The ship is the first of a total of three vessels to be chartered by Seaspan to Hanjin, and expands Seaspan's operating fleet to 72 vessels.

Gerry Wang, Chief Executive Officer, Co-Chairman and Co-Founder of Seaspan, commented "The delivery of the Hanjin Buddha is an important milestone for our Company, as it marks the first SAVER design containership in our fleet and the first Seaspan vessel to be chartered to Hanjin. We look forward to adding another four 10000 TEU SAVER design vessels to our operating fleet during 2014, two of which will be chartered to Hanjin. We continue to see strong interest from liner companies in our SAVER design and are committed to expanding our fleet and providing leading liner companies with state-of-the-art, fuel efficient containerships."
Source: Seaspan Corporation

[CityFarmer]

Source: Hellenics shipping news
YZJ pass 10000 TEU test. Seaspan accept ship


Seaspan Corporation announced that it accepted delivery of a 10000 TEU containership, the Hanjin Buddha, which was constructed using Seaspan's fuel-efficient SAVER design. The new containership, which was constructed by Jiangsu New Yangzi Shipbuilding Co., Ltd., is Seaspan's first SAVER design vessel in the company's operating fleet.

The Hanjin Buddha will commence a ten-year, fixed-rate time charter with Hanjin Shipping Co. Ltd. ("Hanjin"). The ship is the first of a total of three vessels to be chartered by Seaspan to Hanjin, and expands Seaspan's operating fleet to 72 vessels.

Gerry Wang, Chief Executive Officer, Co-Chairman and Co-Founder of Seaspan, commented "The delivery of the Hanjin Buddha is an important milestone for our Company, as it marks the first SAVER design containership in our fleet and the first Seaspan vessel to be chartered to Hanjin. We look forward to adding another four 10000 TEU SAVER design vessels to our operating fleet during 2014, two of which will be chartered to Hanjin. We continue to see strong interest from liner companies in our SAVER design and are committed to expanding our fleet and providing leading liner companies with state-of-the-art, fuel efficient containerships."
Source: Seaspan Corporation

This should be no surprise with the statement in FY2013 end-year report

"we are pleased to announce that our first 10,000TEU containership has successfully undergone its trial voyage in the month of February, and the ship-owner is satisfied with its performance and quality."

One technical milestone done. The next one is the jack-up rig, before the semi-submersible rigs. In fact, I am worry that it may be progresses too fast...

(vested)

[Greenrookie]

German pair bag Exim cash


German pair bag Exim cash

Beijing: The state’s willingness to support its ailing shipbuilding industry has been shown once again by news from Xinhua that the Export-Import Bank of China (EximBank) will lend $1.2bn to German owners Peter Dohle and Bernhard Schulte.
The EximBank loan deal was signed during Chinese President Xi Jinping’s state visit to Germany on Friday.
Both owners will build in China. Finance for foreign owners has been made readily available by Beijing for the last four years for those willing to build in China and keep the nation’s bloated shipyard scene afloat. [31/03/14]

Source: sino shipping news

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IiRC Peter Dohle used to be one o the major customers of YzJ, and have signed a letter of intent in 2010 to build 10000 TeUs from YZJ. Not sure if it is still valid.

Wonder wil YZJ get customer from PD and diversify from seapan

[Clement]

Seaspan Corporation has exercised options to construct four 10,000 teu containerships at China's Jiangsu New Yangzi Shipbuilding and Jiangsu Yangzi Xinfu Shipbuilding.

The newbuildings are scheduled for delivery in 2016. Financial details of the deal were not disclosed.

New York-listed Seaspan expects to sign long term time charters for these vessels with one of the major container liner companies in the near future.

The shipowner added that the newbuildings will be constructed using Seaspan's fuel efficient SAVER design.

“We are contemplating adding another four to six 10,000 teu ships to meet the requirements of our charterers,” Wang said in a conference call in March.

http://www.seatrade-global.com/news/amer...ships.html