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
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