Highlights

• YZJ made good progress in contract wins, having secured US$6.98b in new orders in 10M26, 55% above its US$4.5b 2026 target. Its orderbook reached a record US$26.3b as of end-Oct 26, extending revenue visibility into 2030.
   
• Further order wins remain possible in the near term. However, visibility on the 2027 order win outlook appears more limited at this juncture, given the lack of earlier delivery slots before 2030, and continued uncertainties related to the unresolved US-China port charge measures.
   
• We maintain our earnings forecasts for YZJ, projecting 21% and 17% yoy earnings growth in 2027 and 2028, respectively, underpinned by its strong orderbook, stable margins and capacity expansion.
   
• Maintain BUY with a lower target price of S$5.30 based on 9.0x 2028F PE.
   

Analysis

• Strong order wins of over US$5b in Aug-Oct 26... According to Yangzijiang Shipbuilding’s (YZJ) 3Q26 business update, the company secured US$6.98b in new orders in 10M26, or 55% above its US$4.5b full-year target. This implies that more than US$5b of orders were secured during Aug-Oct 26, a significant increase from the US$1.96b booked in 7M26. New wins were underpinned by ultra-large LNG dual-fuel containerships, which typically offer YZJ the highest margins among vessel types, and large bulk carriers.
   
• …bringing the orderbook to a new record-high US$26.3b, extending revenue visibility in 2030. Following these new orders, YZJ’s orderbook increased to US$26.3b as of end-Oct 26, from US$22.4b as of end-Jun 26. Management shared that most of YZJ’s 2030 delivery slots for large vessels have been taken up. The company is now focused on filling the remaining 2030 slots while opening delivery slots for 2031.
   
• Likely to secure further orders in the near term. Management shared that there are still contracts under active negotiation that could be signed later this year or early next year. This includes ongoing discussions with Seaspan to build six larger containerships.