Is YZJ Shipbuilding (BS6) the Best Dividend-Growth Stock on the Market Right Now?

For context, please refer to my first post on YZJ Shipbuilding dated 16 Jul 2025 https://superphang.blogspot.com/2025/07/yzj-shipbuilding-where-value-meets.html in which I estimated a target price of $3.77 — a level that has since been surpassed.

YZJ Shipbuilding just announced FY2025 earnings growth of 30.2% for the full year ended 31 December 2025, compared to FY2024. 2H2025 earnings were 24.6% higher than in 2H2024. 

However, when comparing 2H2025 growth against 1H2025, the growth rate was only 7%, which annualises to 14.5% for the full year if this pace is maintained.

I believe YZJ Shipbuilding has established a trajectory of sustained earnings growth of at least 14.5% going forward. With improved productivity, growth could be as high as 30.2%.

Their massive order backlog, extending through 2030, not only ensures continuous production throughout the year but also gives management the confidence to invest in equipment upgrades to drive further productivity gains. 

Based on the above, I offer my estimated target prices (TP) within a one-year horizon:

• Conservative (14.5% growth rate): TP = $5.85
• Moderate (20% growth rate): TP = $8.10
• Optimistic (30.2% growth rate): TP = $12.20 

At the closing price of $3.85 on 25 Feb 2026, the 20-cent dividend translates to a yield of 5.19% — comfortably ahead of the CPF SA rate of 4% per annum. For my part, I intend to hold the stock for the coming year, targeting my TP of $8.10 while enjoying the dividend income along the way.

Prescientsuper
https://superphang.blogspot.com

Nameson Hldgs (1982.HK): A Cash-Generating Compounder at Single-Digit Multiple

Nameson Holdings is an established knitwear manufacturer serving leading international apparel brands. The group focuses on mid- to high-end knitwear products, operating integrated production facilities across Asia to deliver quality, scale and cost efficiency.

Unlike low-end OEM manufacturers competing purely on price, Nameson emphasizes product development, design collaboration and long-term customer relationships — supporting margin resilience and order visibility. 

Business Model & Competitive Positioning

Nameson operates as a vertically integrated knitwear manufacturer, covering product design, sampling, raw material sourcing and mass production.

Its customer base comprises well-known international apparel brands, with relationships often spanning many years. Such partnerships create operational stickiness due to:

·       Product development collaboration

·       Technical know-how in knitwear engineering

·       Quality consistency and compliance standards

·       Established supply chain integration 

The apparel sourcing landscape increasingly favours reliable, ESG-compliant and financially stable suppliers. Nameson’s scale and manufacturing footprint position it as a preferred vendor rather than a transactional supplier. As global brands rationalize supplier bases post-pandemic, larger and more reliable manufacturers tend to gain incremental share — a structural advantage for Nameson.

Solid Financial Metrics

Based on the current price of HK$1.19:

·       TTM P/E: 7.12x

·       Dividend Yield (TTM): 10.5%

·       Payout Ratio: 75.24%

·       1H2026 earnings Growth: +12.21% YoY

·       Expected FY2026 ROE: >18%

·       Gross Margin: 21.6%

·       Net Margin: 11.84%

·       Operating Cash Flow: Positive and improving 

Net margin at 12% is strong for an apparel OEM business, indicating effective cost control, operating leverage and disciplined execution. The 12.21% earnings growth in 1H2026 signals demand recovery and margin sustainability. Importantly, earnings growth is supported by improved operating cash flow — not accounting adjustments. 

Geographic Revenue Mix — Diversified Exposure Across Key Markets

Nameson’s revenue is well distributed across major global consumer markets:

·       Europe: 22.65%

·       North America: 20.47%

·       Japan: 17.72%

·       Mainland China: 17.07%

·       Southeast Asia: 12.05%

·       Others: 10.04% 

This balanced geographic mix provides meaningful diversification, with no single region dominating overall revenue. Exposure to developed markets such as Europe, North America, and Japan typically entails more stringent quality requirements, higher product specifications, and greater supply chain transparency. These characteristics often support stronger pricing power and more resilient margins.

At the same time, the broad regional spread helps mitigate concentration, currency, and geopolitical risks. It also smooths cyclical demand fluctuations across markets, contributing to more stable earnings and reduced volatility over time. 

Conclusion

The stock currently trades at just 7.12x earnings — a valuation that typically reflects cyclical pessimism toward apparel exports. I believe the market will soon re-rate the stock to a more normalized, yet still conservative, 12x P/E. On that basis, Nameson’s share price could reach HK$2 within the next 12 months.

Prescientsuper
https://superphang.blogspot.com

Infinity Dev (ZBA.SI): Growth + Yield + Value — A rare combination

Infinity Development (HKEX: 640 | SGX: ZBA) is dual-listed on the Hong Kong and Singapore stock exchanges. The group operates in a specialized segment of the chemicals industry — supplying high-performance adhesives, primers and related products primarily to the global footwear manufacturing sector.

Unlike broad-based commodity chemical producers, Infinity focuses on technically demanding, service-intensive applications. This niche positioning supports structurally higher margins and deeper customer relationships.

Business Model & Competitive Positioning

Infinity serves approximately 200 footwear manufacturers, including suppliers to major global brands such as Nike, Adidas, and Puma. Its products are embedded in customers’ production processes, which creates operational stickiness and high switching costs.

Several customer relationships have spanned more than 30 years — a testament to product reliability, technical support, and consistent performance.

Importantly, Infinity Dev is investing in next-generation, water-based and low-VOC adhesive solutions. As global footwear brands emphasize sustainability and ESG compliance, environmentally friendly adhesives are becoming increasingly critical. This strategic R&D focus positions the company to capture higher-value demand over time. 

Solid Financial Metrics

Based on the last traded price of S$0.42 (13 February 2026):

• TTM P/E: 5.83x
• FY2025 ROE: 20.17%
• Gross Margin: 37.94%
• Net Margin: 14.63%
• Dividend Yield: 7.40%
• Payout Ratio: ~50%

For a specialty industrial business, a 20% ROE combined with high-30% gross margins signals strong pricing power and operational discipline.

Revenue grew 13.4% year-on-year, while EPS surged 143%. Such divergence suggests meaningful margin expansion and/or normalization of prior cost pressures — an encouraging indicator of operating leverage.

At under 6x earnings, the valuation appears undemanding relative to profitability and return metrics. 

Balance Sheet Strength

Infinity maintains a conservative capital structure:

• Current ratio above 3
• Very low debt levels
• Positive operating and free cash flow
• Substantial net cash position

This financial flexibility allows the company to fund expansion, capex, and strategic growth initiatives without heavy leverage or equity dilution risk. 

Industry Tailwinds

Asia remains the global hub for footwear manufacturing and exports. As production scales in emerging markets, demand for specialized adhesives rises in tandem.

Additionally, ESG-driven procurement standards favor higher-value, environmentally compliant adhesives — precisely the segment Infinity is developing.

These structural trends provide medium-term demand visibility. 

Recent Developments

Infinity recently completed a dual primary listing on both Hong Kong Stock Exchange and Singapore Exchange, raising approximately S$13.7 million via placement.

This move broadens its investor base, improves trading liquidity, and provides capital to support regional expansion.

Management is expanding manufacturing capacity and strengthening its presence in Indonesia and India. Establishing local production reduces logistics friction and positions the company closer to high-growth footwear clusters.

Sales contribution from India has historically been small, but this is expected to scale meaningfully as new facilities come online. 

Investment Thesis

Infinity combines:

• Undemanding valuation (sub-6x P/E)
• Strong ROE and margin profile
• Healthy balance sheet and cash flow
• Attractive 7%+ dividend yield
• Structural niche positioning with customer stickiness
• ESG-aligned product roadmap
• Regional expansion optionality

Given its earnings momentum and expansion plans, a re-rating toward a more normalized multiple appears plausible.

At my target price of S$0.84, the stock offers approximately 100% upside potential within 12 months, supported by both earnings growth and multiple expansion.

Prescientsuper
https://superphang.blogspot.com