■ YZJ is still able to take on orders for 2022-23 delivery with better pricing as seen in the latest win worth US$715m. Order book is at a record US$7.3bn.
■ To manage yard tightness, YZJ could subcontract portions of work to smaller
fabricators. Margin should be healthy as steel price pressure eases.
■ Our TP of S$1.63 is based on 1x P/BV or +1 s.d. from its 6-year average.
Stronger orders are catalysts while rampant order cancellation is a key risk.