3 Top Singapore Stocks for July: Yangzijiang Shipbuilding

Yangzijiang Shipbuilding, or YZJ, is one of the largest shipbuilding companies in China.

The group owns four shipyards in Jiangsu province in China and produces a broad range of commercial vessels such as large containerships, bulk carriers and LNG carriers.

YZJ announced that it has secured repeat orders from Norwegian firm Klaveness Combination Carriers (KCC) for the construction of three fuel-efficient CABU vessels.

CABU vessels are combination carriers that can transport both wet and dry cargo, thereby increasing the odds of being deployed for both legs of their journey.

These new vessels can also reduce carbon dioxide emissions by 35% because of their fuel-efficient features and better cargo-carrying capacity.

This order is due for delivery in 2026 and YZJ had successfully delivered eight combination carriers to KCC from 2019 to 2021.

The group also announced that it had secured a contract with Maersk (CPH: MAERSK-B) to build six methanol dual-fuel containerships.

These vessels will be constructed in-house and delivered to the client between 2026 and 2027.

As of 26 June, the shipbuilder’s outstanding order book stood at a record high of US$14.6 billion for 180 vessels.