Yangzijiang Shipbuilding Holds Steady Amid Global Trade Shifts

Refer to my earlier post of 16 July 2025 regarding "YZJ Shipbuilding: Where Value Meets Growth":

https://superphang.blogspot.com/2025/07/yzj-shipbuilding-where-value-meets.html

YZJ has entered into additional shipbuilding contracts for 22 vessels and the Group has secured a total of 35 effective shipbuilding contracts year to date with an aggregate value of US$1.46 billion.

Despite rising geopolitical tensions and new US trade measures, China’s Yangzijiang Shipbuilding is navigating 2025 with resilience and long-term strength. As part of efforts to boost domestic industry, the US Trade Representative has introduced higher port fees for Chinese-built vessels under Section 301 of the Trade Act, identifying China’s shipbuilding leadership as a strategic concern.

While this has led to temporary caution among global shipowners, Yangzijiang remains well-positioned. “Clients are waiting to see how the rules evolve,” says Ren Yuanlin, the company’s founder. Even so, with limited alternatives in South Korea and Japan due to labor shortages and rising costs, demand for China’s shipyards remains strong.

Shipbuilding remains a hands-on industry that can’t easily be automated, and Yangzijiang’s combination of technical know-how, capital, and skilled labor gives it a competitive edge. Ren is confident: “For every ship made in the US, I can make five in China. That’s our cost advantage.”

More importantly, Yangzijiang is leading the global shift toward greener shipping. Nearly 75% of its US$23.2 billion order book consists of eco-friendly vessels, driven by the International Maritime Organization’s goal of net-zero emissions by 2050. These orders, spanning delivery through 2030, offer solid revenue visibility and align with the global decarbonization agenda.

Analysts remain bullish. DBS and UOB Kay Hian both maintain “buy” ratings, highlighting the company’s strong order pipeline, high margins, and ability to turn signed intent letters into long-term contracts.

Despite near-term market uncertainty, Yangzijiang is charting a confident course—powered by green innovation, cost leadership, and global demand. As the industry evolves, it continues to sail ahead of the fleet.

Superphang
http://superphang.blogspot.sg

GME Group (HK:8188): 6-Week Performance Review - 15.2% ROI and Enhanced Dividend Yield

Refer to my earlier post on GME Group (HK:8188) dated 14 July 2025 where I recommended it when the price was at 92 cents:

https://superphang.blogspot.com/2025/07/gme-group-hk8188-deep-value-play-in.html

 

GME Group (HK:8188) closed at $1.06 today, 25 August 2025. The 1H2025 earnings declined by 5.2%, and the TTM P/E dropped to 6.13x from 5.92x, which still appears undervalued.

The company just declared a 5 HK cents dividend, with an ex-dividend date of 23 September and payment date of 31 October. This represents a 25% improvement over the 4-cent dividend for the same period last year.

The unrealised ROI since I recommended this stock approximately 1.5 months ago is now 15.2%. I will continue to hold this stock to collect the dividend and maintain my target price of HK$1.79 by July 2026.

Superphang
https://superphang.blogspot.com

Union Gas Soars 42% in a Day: Possible Privatization Ahead?

Union Gas surged from 39 cents to 55.5 cents on 4^th August, marking a 42.31% increase. The spike occurred during the post-market auction after 5 pm, as the stock had been hovering around 38 cents for most of the day before that.

I bought Union Gas on 2^nd July at $0.32 apiece, viewing it as a defensive play with a solid dividend yield—particularly attractive given its insulation from Trump’s reciprocal tariffs. My unrealized net ROI has now reached about 72.7% within about a month. I had not expected such a drastic surge in such a short time, especially since most of the gains happened in a single session.

Based on the chart, I estimate the next resistance level to be around 68 cents, calculated as the average between the recent trough and the peak on 28^th Jul 2021.

The company is 68% owned by the Teo family, and there is a possibility it may be taken private by them. As for me, I will sit back with some popcorn and wait for the price to approach that resistance level before deciding whether to divest.

Superphang
https://superphang.blogspot.com