The vessels will be financed through a mix of equity co-investments and debt, in line with its established capital deployment framework. Deliveries of these vessels are scheduled from 2027 to 2029.
With this latest order, the company's fleet will expand to 105 vessels including 53 under construction.
The latest order reinforces the group’s growth trajectory and enhances earnings visibility, says Ho, referring to the expanding fleet.
"The diversified vessel mix and eco-compliant designs position the fleet to capture charter demand amid tightening environmental regulations, while supporting premium asset values," says Ho.
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"The expansion aligns with Yangzijiang Maritime’s capital-cycling strategy, providing flexibility to monetise assets via chartering, leasing, or pre-delivery resale, sustaining returns and mitigating cyclicality across shipping markets," she adds.
The cost of the ten new orders were not disclosed by the company but Ho estimates the value to be around US$550 million.
Assuming an average of 85% stake and 40% equity, YZJ Maritime might need to pay around US$45 million per year in 2026-2029. Even so, net gearing should still be manageable at 0.1-0.2x.
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She estimates the company can enjoy potential earnings accretions of up to US$20 to US$30 million per year from charter income or divestment gains for these 10 vessels. If the vessels can be resold before delivery, that will be a key re-rating catalyst to watch, says Ho.
Yangzijiang Maritime Development shares closed at 68 cents on April 30, down 3.57%.
