Yangzijiang - a worthwhile look?

In this blogpost I decided to share on one of the other stocks that I think are worth consideration at its current price. As mentioned in the title, this blogpost will mainly cover Yangzijiang, a China-based with shipbuilding and offshore engineering as its main businesses. At its current trading price of $1.42, it has a dividend yield of ~4%, along with a price-to-book ratio of 1.2 and a PE ratio of around 7.
Despite the shipping industry facing one of its worst downturns in recent decades, Yangzijiang has been able to maintain its profitability and generate good positive free cash flow for its owners which are paid out in annual dividends. With the RMB strengthening against the SGD as well and most of its businesses seem to be based in China, this would increase the earnings of the company and also its dividends.

Despite the recent increase in the price of the share, the share still appears undervalued with its reasonably consistent earnings despite the industry-wide downturn. With the potential upside of an improving shipping industry as well as consolidation of the Chinese shipbuilding industry, which Yangzijiang stands to reap benefits from as it is able to maintain its profitability and increase its profits as other shipyards are closing down. This coupled with a strengthening RMB against the SGD make for a positive outlook for the company.

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