Yangzijiang Shipbuilding Shares Looks Like a Buy on Weakness — Market Talk

Yangzijiang Shipbuilding shares could face near-term pressure amid concerns over lower margins from new small- to mid-size vessel orders, Citi analyst Luis Hilado says in a note. The bank views the weakness as a buying opportunity as it expects 1H 2026 results to help calm earnings fears. Citi estimates its gross margin will decline to 31% in 2027 from 34% expected in 2026. Every additional 100bp cut in 2027 margins would reduce profit and Citi's P/E-based target price by 3%, the note says. Citi keeps its Buy rating and unchanged S$4.85 target price. Shares are down 2.5% at S$3.84. (venkat.pr@wsj.com)