Hot stock: Yangzijiang soars 6.7% on new orders worth US$1.3b

SHARES in Yangzijiang Shipbuilding rallied on Tuesday after the Chinese shipbuilder said it had recently bagged agreements to build and deliver 29 vessels worth some US$1.3 billion.

This includes orders from the group's joint venture arm, Yangzi-Mitsui Shipbuilding Co, the mainboard-listed company announced on Monday night.

As at 10.25am on Tuesday, the counter had jumped 6.5 Singapore cents or 6.7 per cent to S$1.04. Some 57.1 million shares changed hands, making it the most heavily traded counter by volume in early trade.

No married deals were recorded, though several large trades - each with a value exceeding S$150,000 - were done in the morning session, according to ShareInvestor data.

Shares in Yangzijiang closed at S$1.04 on Tuesday, up 6.5 Singapore cents or 6.67 per cent, with 80.7 million shares changing hands.

In its press statement on Monday, Yangzijiang noted that of the 29 vessels, 22 are containerships worth US$1.13 billion and are expected to be delivered progressively from the third quarter next year.

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Ren Letian, Yangzijiang's executive chairman and chief executive, noted that the group is beginning to see a recovery in market sentiment and demand.

"Our current order book is expected to keep our yard facilities busy and at healthy utilisation rates with revenue visibility for at least two years," he added.

The latest orders also come shortly after the group in December announced that it has entered into an agreement with Hong Kong container shipping firm SITC International Holdings Co to build and deliver six 2,600 twenty-foot equivalent unit containerships for some US$162 million.

READ MORE: Brokers' take: Analysts reiterate 'buy' on Yangzijiang after contract wins