DBS initiates ‘buy’ on Yangzijiang Maritime, citing investments, shipbuilding opportunities

[SINGAPORE] DBS Group Research initiated a “buy” on maritime investment company Yangzijiang Maritime on Wednesday (Apr 8), given the group’s partnerships in the maritime ecosystem and accelerated capital deployment into new maritime investments.

Analyst Ho Pei Hwa set a target price of S$0.88, representing a 63 per cent upside from the company’s closing price of S$0.54 on Tuesday. The counter rose 9 per cent or S$0.05 to close at S$0.59 on Wednesday. 

Yangzijiang Maritime was spun off from the maritime investment division of Yangzijiang Financial and debuted on the Singapore Exchange’s mainboard on Nov 18, 2025.

The group benefits from Yangzijiang’s “global network of shipowners, Chinese and international yards, and financiers”, Ho said. She added that this has underpinned its “rapid build-up of an 80-vessel portfolio and over US$700 million of maritime investments deployed within two to three years”.

Ho also pointed to Yangzijiang Maritime’s pipeline of 50 new-build vessels, which she expects to be bought over or operated upon delivery by shipowners. 

The existing ecosystem, meanwhile, enables Yangzijiang Maritime to leverage “partnerships with operators and shipyards” instead of relying on fixed heavy assets. Ho noted that this allows “flexible capital deployment and optimised capital allocation” during cyclical fluctuations in the shipping industry.

Growth projections

DBS projects “15 to 20 per cent earnings growth, if not higher, over the next few years” for Yangzijiang Maritime.

The brokerage also expects the group’s earnings before interest, tax, depreciation and amortisation to increase to US$160 million and US$176 million in FY2026 and FY2027, respectively, from US$131 million in FY2025. 

Ho said that this will be driven by “higher-yielding maritime investments and new-build projects”, which are set to ramp up amid the replacement of an ageing global fleet.

Yangzijiang Maritime posted a net profit of US$66.2 million for the second half of FY2025, down 1 per cent from a year earlier.

Total income, however, rose 13 per cent year on year to US$87.7 million. This came on the back of higher income from maritime fund assets and higher net fair-value gains. 

Diversified vessel portfolio and income streams

Yangzijiang Maritime’s portfolio, which spans tankers, gas carriers and offshore support vessels, enables “smooth returns” through shipping and offshore cycles, Ho said.

She noted that the group is positioned to navigate International Maritime Organization-driven decarbonisation requirements, with 96 per cent of its fleet meeting or exceeding current standards. 

Ho added that Yangzijiang Maritime can withstand the maritime industry’s cyclicality due to “multi-engine earnings” from recurring shipping, ship financing, shipbuilding and shipbroking income.

The analyst also noted that the group has a “veteran Chinese shipbuilding figure at the helm”.

Alongside his position as chairman of Yangzijiang Shipbuilding, Ren Yuanli is also Yangzijiang Maritime’s executive chairman and chief executive officer.

“In an industry often marked by overcapacity and cyclicality, Ren’s track record of navigating shipping cycles and delivering through-cycle returns supports investor confidence,” said Ho.

Sector cyclicality and business risks

Commenting on the risks facing Yangzijiang Maritime, Ho said the group may see “slower-than-expected capital deployment… (and) execution risks around new-build projects”.

The group may also be exposed to volatility in the shipping and shipbuilding industries, where a downturn in freight rates, new-build demand or asset values can impact investment returns and project opportunities, she noted.

Nonetheless, she said the group may be positioned to navigate such volatility due to its “integrated business model”, which generates multiple income streams.