Yangzijiang maintain margin 33%

GS report

YZJ also secured US$260mn new orders YTD (attractive down-payment terms of 55% for some), with US$830mn options outstanding. Looking ahead, YZJ expects: (i) US$2bn of new shipbuilding orders (GSe: US$2.3bn); (ii) to focus on niche mid-water floaters given the lower competition, but no given orders guidance (GSe: US$400mn); (iii) 2014 shipbuilding gross margins of 15-20%, but likely higher end (GSe: 18%); (iv) RMB720mn relocation fees to be paid by the government in 2014 for their old yard.
Expect to maintain 30% payout.

DBS research
2.7 times book-to-bill ratio