T Rowe Price cash in on Yangzijiang Shipbuilding following better than expected FY2023

This reduces its remaining stake in the China-based shipbuilder to 235.64 million shares, or 5.96%, down from 6.17% it held previously.

Yangzijiang shares changed hands at $1.67 just before the earnings announcement on Feb 27 and closed at $1.84 on March 8.

On Feb 27, Yangzijiang Shipbuilding reported earnings of RMB4.1 billion for FY2023, up 57% over the preceding FY2022. Revenue in the same period was up 16.5% to RMB24.1 billion,

It plans to pay a final dividend of 6.5 cents, up from 5 cents per share paid for FY2022.

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As at Dec 31, its order book reached US$14.5 billion, including US$7.1 billion won in FY2023. 

UOB Kay Hian's Adrian Loh, following the earnings report, raised his target price from $1.92 to $2.19, while Ho Pei Hwa of DBS Group Research deems the stock worth $2.10, up from $1.90.