Jump in YZJ Shipbuilding shares helps propel STI to new peak

Local bourse crosses 4,300; firms with Indonesia exposure resilient amid unrest

- Tay Hong Yi

Yangzijiang Shipbuilding did well last week, with its shares jumping around 7 per cent at the start of the week to a six-month high of $3.10, before regaining ground from a 1.3 per cent slip over the week to close at the same price.

The Chinese shipbuilder, a component stock of the Straits Times Index (STI), also helped propel the Singapore blue-chip index to a fresh record of above 4,314 points on Sept 5.

Yangzijiang Shipbuilding announced on Aug 29 after the market closed that it had received new orders comprising 22 vessels worth US$920 million (S$1.18 billion), bringing total orders added in 2025 to nearly US$1.5 billion.

This was despite the softer demand outlook for the shipbuilding sector amid ongoing trade uncertainties and anticipated port fees for Chinese-built cargo ships calling at US ports in mid-October.

The company reckons limited building capacity outside of China, as well as a bumper crop of new orders in 2024, will help it weather the impact of these headwinds.

YANGZIJIANG: GOOD AT TWO, BETTER IN THREE?

Meanwhile, developments are unfolding at another Yangzijiang unit: mainboard-listed investment management company Yangzijiang Financial.

At a Sept 4 extraordinary general meeting (EGM), shareholders voted overwhelmingly in favour of hiving off Yangzijiang Financial's maritime fund and investments business under a new group to be separately listed on the Singapore Exchange (SGX).

Following its listing by way of introduction, Yangzijiang Maritime Development will function as a dedicated maritime investment platform.

It is expected to list on the mainboard in November.

Yangzijiang Financial, which was itself spun off from Yangzijiang Shipbuilding in 2022, will continue to run the investment management business, comprising mostly debt and real estate investments in China.