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