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https://www.theedgesingapore.com/news/corporate-moves/war-iran-not-bad-thing-yangzijiang-maritime
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War in Iran ?not a bad thing? for Yangzijiang Maritime
Frankie Ho
Fri, Mar 13, 2026 ? 11:50 AM GMT+08 ? 8 min read
Ren: A more reasonable share price for Yangzijiang Maritime should be about 90 cents. Photo: Albert Chua/ The Edge Singapore
Few industries react as quickly to geopolitical shocks as shipping.
The current war in Iran is once again putting global tanker markets on edge. Several commercial vessels have reportedly been struck in recent weeks as tensions intensify around the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world?s oil supply flows.
The result has been an immediate chill across the region?s shipping lanes. War-risk insurance premiums have surged and commercial traffic through parts of the Persian Gulf has slowed dramatically as shipowners reassess the risks of entering the region.
For oil tankers, though, geopolitical crises can produce a counterintuitive outcome: higher profits.
When oil cargoes are forced to travel longer distances or when ships avoid certain routes altogether, the effective supply of vessels shrinks. This can quickly push up freight rates, not to mention oil prices.
History offers several precedents. The so-called Tanker War in the 1980s saw Iran and Iraq attack hundreds of oil tankers and commercial vessels in the Gulf in a bid to cripple each other?s economies. Tanker freight rates jumped as shipowners demanded risk premiums and fewer vessels were willing to enter the conflict zone.
See also: Vietnam?s richest man names wife chair of taxi firm GSM ? report
Russia?s 2022 invasion of Ukraine similarly upended global oil shipping, as Western sanctions forced Moscow to turn to ageing, uninsured tankers to keep its crude flowing to willing buyers.
For Chinese billionaire Ren Yuanlin, the current situation in the Middle East represents a rare moment when geopolitical risk and market opportunity converge.
?The war in Iran is not entirely a bad thing for the shipping market. It?s not a bad thing for us,? Ren, Yangzijiang Maritime Development?s executive chairman and CEO, tells The Edge Singapore.
See also: Choo Chiang: A stock that makes boring look brilliant
?Demand for oil tankers has gone up, as seen from the jump in freight rates, and shares of listed tanker operators are soaring,? he says. ?I think it?s an opportunity for us to take some risks.?
Yangzijiang Maritime, an asset manager that deploys capital into vessels, maritime financing, and related industry services, announced a few months ago plans to build four medium-range tankers in China through a joint venture with a European shipowner.
Slated for delivery over the next two years, these tankers could fetch higher prices if the war in Iran becomes protracted, says Ren.
The company, which was spun off from Yangzijiang Financial Holding in November last year, also recently said it would sell four medium-range tankers currently under construction to a Marshall Islands-based shipowner for a total of US$180 million ($230 million).
In addition to oil tankers, Yangzijiang Maritime also owns gas carriers, containerships, offshore support vessels, and bulk carriers, all of which are available for charter or sale. But unlike other listed tanker owners or operators, it has barely roused investors? interest since the first wave of the joint attack on Iran by the US and Israel.
That partly reflects the company?s diversified fleet and business model. Investors tend to view the group less as a pure tanker play and more as a maritime investment platform spanning multiple segments of the shipping industry.
To be sure, Yangzijiang Maritime is only in the early stages of building out that platform. According to its strategic roadmap, the company will roll out a fuller suite of services over the next three to five years. These will range from vessel investment and financing to leasing, retrofitting and brokerage. The strategy reflects its ambition to become a hub connecting shipyards, shipowners, charterers, and capital markets.
To stay ahead of Singapore and the region?s corporate and economic trends, click here for Latest Section
A sense of déjà vu
?I can say frankly that our share price is undervalued,? says Ren. ?The current price is just like Yangzijiang Shipbuilding?s share price years ago.?
When Yangzijiang Shipbuilding listed on the Singapore Exchange in 2007, its shares traded for years without much excitement. Investors were uneasy about its dual exposure to shipbuilding and financial investments, particularly its lending activities in China, where there were concerns it could end up saddled with massive bad loans.
It was only after the shipbuilder spun off its investment arm, Yangzijiang Financial, in 2022 that investors began to view its business more clearly.
?A more reasonable price for Yangzijiang Maritime should be about 90 Singapore cents,? Ren figures.
The way he sees it, Yangzijiang Maritime?s profitability should strengthen as vessels ordered in recent years are delivered, creating scope to sell or charter out the ships and, in turn, drive the share price higher. The stock is currently trading near parity to the company?s latest reported net asset value of 46.57 US cents per share or 60 cents.
Strategy and financial firepower
The company?s competitive edge lies in keeping its costs as much as 20% below market levels without compromising quality, says Ren. It typically forms joint ventures with European shipowners, usually taking the controlling stake, and taps a network of small- and medium-sized shipyards in Jiangsu to build vessels, while supervising construction using experienced contractors.
A number of these shipyards are underutilised. This gives Yangzijiang Maritime leverage in price negotiations, allowing it to secure discounts on building costs while providing the yards with much-needed order flow.
The company has been actively reshaping its fleet portfolio, which now comprises more than 80 completed and yet-to-be-built vessels, in anticipation of opportunities across shipping cycles.
Fleet optimisation reflects its disciplined approach to capital allocation: acquiring or building vessels when asset prices and charter opportunities align, then selling or chartering them out as market conditions improve.
Given the current situation in the Strait of Hormuz, medium-range product tankers ? widely used in the refined petroleum trade ? are a natural fit for the company. If Middle Eastern oil flows are further disrupted, this segment could benefit as cargoes are rerouted across longer distances, potentially lifting demand for tankers.
The company is also positioning itself to ride the shipping industry?s shift toward cleaner vessels. Much of the global fleet still runs on conventional fuel, but tighter environmental rules are accelerating demand for ships powered by cleaner fuels and more efficient propulsion systems.
This combination of shipbuilding access in China and financing capability enables Yangzijiang Maritime to participate in both the construction and ownership of these next-generation vessels.
With about US$500 million in cash and no debt, the company has ample financial firepower to fund vessel acquisitions or new building projects without relying on external financing. It has an internal rate of return target of 10% to 15% on investments made without leverage. This could double to between 20% and 30% if it takes on debt to amplify investment returns.
Alongside its expansion strategy, Yangzijiang Maritime has also signalled its willingness to return capital to investors. Earlier this month, shareholders approved a mandate for the company to buy back up to 10% of its issued shares. The initiative is part of a broader capital management strategy that allows it to deploy excess cash when its share price falls below its intrinsic value.
The company also intends to return a meaningful portion of its earnings to shareholders. While it is cash-rich, dividends should be based only on profitability rather than its balance sheet reserves, which are intended primarily for operations and future investments, says Ren. ?Some people have asked whether we can give dividends from our cash reserves. We can?t.?
Between 40% and 50% of its annual profits will eventually be distributed as dividends, according to Ren. For 2025, the company has proposed a final dividend of 0.5 cent a share. Based on its 2025 earnings per share of 3.73 US cents, that translates into a payout ratio of just over 10%.
Tariffs and turbulence
Beyond capital management and the war in Iran, Ren is also watching broader forces shaping global trade. Chief among them is how the US tariff regime will evolve following the US Supreme Court?s recent ruling that President Donald Trump?s sweeping import duties were illegal.
For now, Ren believes the immediate impact on China?s exports ? and, by extension, on shipping demand ? may be limited. Existing US tariffs on Chinese goods are already higher than Trump?s newly proposed tariff rate of up to 15%, he notes. ?In that context, the new tariff rate is not that big a threat to China.?
Any further upward revision to US tariffs on Chinese goods will most likely not be well received by American consumers, who could take their dissatisfaction to the ballot box in the US midterm elections due in November, he lets on.
?China?s goods will end up very expensive in the US. American consumers will object to this. Having said that, the tariffs have no direct impact on Yangzijiang Maritime?s business.?
The current global operating environment underscores a familiar truth about shipping: periods of uncertainty often create the most compelling investment opportunities. While conflicts, trade disputes and shifting energy routes can disrupt markets overnight, they also reshape global trade flows in ways that reward companies positioned to move quickly.
For Ren, getting Yangzijiang Maritime ready to capitalise on these dislocations is key. He is banking on the company?s growing fleet pipeline, substantial liquidity, and ready access to Chinese shipyards to do just that. If geopolitical disruptions continue to reshape global trade routes, the company could find itself on the right side of the turbulence.
For those without a subscription:-
War in Iran ?not a bad thing? for Yangzijiang Maritime
Frankie Ho
Fri, Mar 13, 2026 ? 11:50 AM GMT+08 ? 8 min read
Ren: A more reasonable share price for Yangzijiang Maritime should be about 90 cents. Photo: Albert Chua/ The Edge Singapore
Few industries react as quickly to geopolitical shocks as shipping.
The current war in Iran is once again putting global tanker markets on edge. Several commercial vessels have reportedly been struck in recent weeks as tensions intensify around the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world?s oil supply flows.
The result has been an immediate chill across the region?s shipping lanes. War-risk insurance premiums have surged and commercial traffic through parts of the Persian Gulf has slowed dramatically as shipowners reassess the risks of entering the region.
For oil tankers, though, geopolitical crises can produce a counterintuitive outcome: higher profits.
When oil cargoes are forced to travel longer distances or when ships avoid certain routes altogether, the effective supply of vessels shrinks. This can quickly push up freight rates, not to mention oil prices.
History offers several precedents. The so-called Tanker War in the 1980s saw Iran and Iraq attack hundreds of oil tankers and commercial vessels in the Gulf in a bid to cripple each other?s economies. Tanker freight rates jumped as shipowners demanded risk premiums and fewer vessels were willing to enter the conflict zone.
See also: Vietnam?s richest man names wife chair of taxi firm GSM ? report
Russia?s 2022 invasion of Ukraine similarly upended global oil shipping, as Western sanctions forced Moscow to turn to ageing, uninsured tankers to keep its crude flowing to willing buyers.
For Chinese billionaire Ren Yuanlin, the current situation in the Middle East represents a rare moment when geopolitical risk and market opportunity converge.
?The war in Iran is not entirely a bad thing for the shipping market. It?s not a bad thing for us,? Ren, Yangzijiang Maritime Development?s executive chairman and CEO, tells The Edge Singapore.
See also: Choo Chiang: A stock that makes boring look brilliant
?Demand for oil tankers has gone up, as seen from the jump in freight rates, and shares of listed tanker operators are soaring,? he says. ?I think it?s an opportunity for us to take some risks.?
Yangzijiang Maritime, an asset manager that deploys capital into vessels, maritime financing, and related industry services, announced a few months ago plans to build four medium-range tankers in China through a joint venture with a European shipowner.
Slated for delivery over the next two years, these tankers could fetch higher prices if the war in Iran becomes protracted, says Ren.
The company, which was spun off from Yangzijiang Financial Holding in November last year, also recently said it would sell four medium-range tankers currently under construction to a Marshall Islands-based shipowner for a total of US$180 million ($230 million).
In addition to oil tankers, Yangzijiang Maritime also owns gas carriers, containerships, offshore support vessels, and bulk carriers, all of which are available for charter or sale. But unlike other listed tanker owners or operators, it has barely roused investors? interest since the first wave of the joint attack on Iran by the US and Israel.
That partly reflects the company?s diversified fleet and business model. Investors tend to view the group less as a pure tanker play and more as a maritime investment platform spanning multiple segments of the shipping industry.
To be sure, Yangzijiang Maritime is only in the early stages of building out that platform. According to its strategic roadmap, the company will roll out a fuller suite of services over the next three to five years. These will range from vessel investment and financing to leasing, retrofitting and brokerage. The strategy reflects its ambition to become a hub connecting shipyards, shipowners, charterers, and capital markets.
To stay ahead of Singapore and the region?s corporate and economic trends, click here for Latest Section
A sense of déjà vu
?I can say frankly that our share price is undervalued,? says Ren. ?The current price is just like Yangzijiang Shipbuilding?s share price years ago.?
When Yangzijiang Shipbuilding listed on the Singapore Exchange in 2007, its shares traded for years without much excitement. Investors were uneasy about its dual exposure to shipbuilding and financial investments, particularly its lending activities in China, where there were concerns it could end up saddled with massive bad loans.
It was only after the shipbuilder spun off its investment arm, Yangzijiang Financial, in 2022 that investors began to view its business more clearly.
?A more reasonable price for Yangzijiang Maritime should be about 90 Singapore cents,? Ren figures.
The way he sees it, Yangzijiang Maritime?s profitability should strengthen as vessels ordered in recent years are delivered, creating scope to sell or charter out the ships and, in turn, drive the share price higher. The stock is currently trading near parity to the company?s latest reported net asset value of 46.57 US cents per share or 60 cents.
Strategy and financial firepower
The company?s competitive edge lies in keeping its costs as much as 20% below market levels without compromising quality, says Ren. It typically forms joint ventures with European shipowners, usually taking the controlling stake, and taps a network of small- and medium-sized shipyards in Jiangsu to build vessels, while supervising construction using experienced contractors.
A number of these shipyards are underutilised. This gives Yangzijiang Maritime leverage in price negotiations, allowing it to secure discounts on building costs while providing the yards with much-needed order flow.
The company has been actively reshaping its fleet portfolio, which now comprises more than 80 completed and yet-to-be-built vessels, in anticipation of opportunities across shipping cycles.
Fleet optimisation reflects its disciplined approach to capital allocation: acquiring or building vessels when asset prices and charter opportunities align, then selling or chartering them out as market conditions improve.
Given the current situation in the Strait of Hormuz, medium-range product tankers ? widely used in the refined petroleum trade ? are a natural fit for the company. If Middle Eastern oil flows are further disrupted, this segment could benefit as cargoes are rerouted across longer distances, potentially lifting demand for tankers.
The company is also positioning itself to ride the shipping industry?s shift toward cleaner vessels. Much of the global fleet still runs on conventional fuel, but tighter environmental rules are accelerating demand for ships powered by cleaner fuels and more efficient propulsion systems.
This combination of shipbuilding access in China and financing capability enables Yangzijiang Maritime to participate in both the construction and ownership of these next-generation vessels.
With about US$500 million in cash and no debt, the company has ample financial firepower to fund vessel acquisitions or new building projects without relying on external financing. It has an internal rate of return target of 10% to 15% on investments made without leverage. This could double to between 20% and 30% if it takes on debt to amplify investment returns.
Alongside its expansion strategy, Yangzijiang Maritime has also signalled its willingness to return capital to investors. Earlier this month, shareholders approved a mandate for the company to buy back up to 10% of its issued shares. The initiative is part of a broader capital management strategy that allows it to deploy excess cash when its share price falls below its intrinsic value.
The company also intends to return a meaningful portion of its earnings to shareholders. While it is cash-rich, dividends should be based only on profitability rather than its balance sheet reserves, which are intended primarily for operations and future investments, says Ren. ?Some people have asked whether we can give dividends from our cash reserves. We can?t.?
Between 40% and 50% of its annual profits will eventually be distributed as dividends, according to Ren. For 2025, the company has proposed a final dividend of 0.5 cent a share. Based on its 2025 earnings per share of 3.73 US cents, that translates into a payout ratio of just over 10%.
Tariffs and turbulence
Beyond capital management and the war in Iran, Ren is also watching broader forces shaping global trade. Chief among them is how the US tariff regime will evolve following the US Supreme Court?s recent ruling that President Donald Trump?s sweeping import duties were illegal.
For now, Ren believes the immediate impact on China?s exports ? and, by extension, on shipping demand ? may be limited. Existing US tariffs on Chinese goods are already higher than Trump?s newly proposed tariff rate of up to 15%, he notes. ?In that context, the new tariff rate is not that big a threat to China.?
Any further upward revision to US tariffs on Chinese goods will most likely not be well received by American consumers, who could take their dissatisfaction to the ballot box in the US midterm elections due in November, he lets on.
?China?s goods will end up very expensive in the US. American consumers will object to this. Having said that, the tariffs have no direct impact on Yangzijiang Maritime?s business.?
The current global operating environment underscores a familiar truth about shipping: periods of uncertainty often create the most compelling investment opportunities. While conflicts, trade disputes and shifting energy routes can disrupt markets overnight, they also reshape global trade flows in ways that reward companies positioned to move quickly.
For Ren, getting Yangzijiang Maritime ready to capitalise on these dislocations is key. He is banking on the company?s growing fleet pipeline, substantial liquidity, and ready access to Chinese shipyards to do just that. If geopolitical disruptions continue to reshape global trade routes, the company could find itself on the right side of the turbulence.
SSB begins!
Real or Not? Share buyback or just TACO.
.45 - .475 range would be good level to take a position in this. I think management will not execute SBB till it hits below .45 atleast.
TACO coming
heading to below 25 cents soon...
waiting for first share buy back...
Below 0.56 soon
cash growing in value. no need to do share buy back yet. use the money to buy equitties in small
batches of shares that has gone down a lot where their fundamental does not show such.
only market over reactions and rush for cash. wait a bit more. when next financial report shows gain
the share price will recover. also no need to stick to maritime. buy what will go up a lot later.
batches of shares that has gone down a lot where their fundamental does not show such.
only market over reactions and rush for cash. wait a bit more. when next financial report shows gain
the share price will recover. also no need to stick to maritime. buy what will go up a lot later.
SBB is welcome but there is mixed signals, in view of pre spin off mentioned of rights issue, as these 2 are in direct contrast of each other. SBB, you have excess cash to buy back shares that is below the intrinsic value. Rights issue, you have so much investment opportunities that you need more cash. So which is which? I can' t wait for AGM as I have many questions for both YZJF and YZJM. As it is, congratulations to YZJ for successfully separate YZJS from the rest, it has now indeed surge forward with shipbuilding focus businesses. Following the 1st spin off of YZJS to YZJF, YZJF was supposed to be investment focus but it faced challenges and old Ren came back to helm the company, and was instrumental in the pivot to maritime businesses and it was so successful that it led to the spin off of YZJM. So the 2 spin off have not really benefit YZJF yet with YZJS a success story and YZJM a yet to known story albeit with high potential of success. YZJF is the worse off of the 3 with the sereies of spin off corporate restructuring so far. Nonetheless, both YZJM and YZJF are cash rich with no debts and it would be prudent to adpot a wait and see attitude with regard to both F& M. I am sure both companies will face shareholders' questions in the upcoming AGMs and let' s see whether the companies can provide clarity and earning guidance so that shareholders can further assess the companies.
📊 YZJ Maritime Overall Outlook for 2026
1️ ⃣ Earnings outlook: Stable but not explosive
2026 earnings should normalize upward slightly once listing costs fade.
🚢 2️ ⃣ Growth driver: Expanding vessel portfolio
In Jan 2026, YZJ Maritime ordered 16 new vessels (6 firm + 10 options).
Types include:
💰 3️ ⃣ Strong balance sheet supports capital return
The global shipbuilding/shipping cycle is still favorable:
1️ ⃣ Earnings outlook: Stable but not explosive
- FY2025 net profit: ~US$129.7M (down ~5% YoY).
- H2 earnings slightly lower mainly due to:
- listing-related costs
- allowances for finance lease receivables.
- Total income increased 13%, driven by higher returns from maritime fund assets and fair value gains.
2026 earnings should normalize upward slightly once listing costs fade.
🚢 2️ ⃣ Growth driver: Expanding vessel portfolio
In Jan 2026, YZJ Maritime ordered 16 new vessels (6 firm + 10 options).
Types include:
- 40k DWT bulk carriers
- ~50k DWT product tankers
- 2027 ~ 2029
- Minimal earnings impact yet
- But NAV and future charter income visibility improves
💰 3️ ⃣ Strong balance sheet supports capital return
- Cash: ~S$500M
- Net assets: ~S$2B.
- Share buyback up to 10% of shares
- Dividend of 0.05 cents.
- management believes shares are undervalued
- strong liquidity for future vessel investments
The global shipbuilding/shipping cycle is still favorable:
- Fleet replacement demand remains strong
- Global newbuild orders rose 27% YoY entering 2026.
- aging global fleet
- stricter emissions rules
- transition to greener ships.
Yangzijiang Maritime Development gets shareholder approval for share buyback at EGM
The group will purchase up to 10% of all its issued shares
[SINGAPORE] Maritime financial solutions provider Yangzijiang Maritime : 8YZ 0% announced on Friday (Mar 6) that a proposed share buyback mandate has been approved by its shareholders.
The resolution to approve the proposed share buyback mandate was passed at the group&rsquo s in-person extraordinary general meeting on Friday at Capital Tower along Robinson Road.
The resolution received favourable votes from shareholders with a shareholding of around 1.6 billion or 99.9 per cent of shares represented at the meeting.
The share buyback was first announced in January. Through it, mainboard-listed Yangzijiang Maritime will purchase up to 10 per cent of all its issued shares, which can be bought through on-market and off-market purchases.
The group&rsquo s chief executive and chairman, Ren Yuanlin, previously said that the company would focus on capital allocation, including through share buybacks, after its initial public offering in 2025.
Yangzijiang Maritime Development
The group will purchase up to 10% of all its issued shares |
Management in today EGM seemed less confident in biz ?
the lost is yzjfh nothing to do with yzj maritime. in fact good opportunity for yazj maritime
to buy yzjfh aat good discount to nta. later can get the cash to leverage for the irr.
ship lease benefits surge in demand due to longer trip round africa.
to buy yzjfh aat good discount to nta. later can get the cash to leverage for the irr.
ship lease benefits surge in demand due to longer trip round africa.
The hinging issue is not the loss but the issue creating the loss that arise from the impaired of debts of S$290.50 million.
This impairment translated into RMB 1.450 BILLION.
This is incredible since there was no mention of such impairment in 2024.
Has the economic and real estate environment gone so bad in 2025 as compared to 2024?
The Board has lots to answer!!!
This impairment translated into RMB 1.450 BILLION.
This is incredible since there was no mention of such impairment in 2024.
Has the economic and real estate environment gone so bad in 2025 as compared to 2024?
The Board has lots to answer!!!
Winnertakeall ( Date: 03-Mar-2026 11:44) Posted:
|
The Edge Singapore
YZJ Financial reports $5.2 mil loss in FY2025 on ECL allowances
YZJ Maritime makes net profit of US$129.7 mil
https://www.theedgesingapore.com/capital/results/yzj-financial-reports-52-mil-loss-fy2025-ecl-allowances-yzj-maritime-makes-net
YZJ Financial reports $5.2 mil loss in FY2025 on ECL allowances
YZJ Maritime makes net profit of US$129.7 mil
https://www.theedgesingapore.com/capital/results/yzj-financial-reports-52-mil-loss-fy2025-ecl-allowances-yzj-maritime-makes-net
SGX shortsell volume yesterday 2/3/2026
was 4,886,000
was 4,886,000
Dividend declared is $0.005 (half a cent)
PiRPiR ( Date: 02-Mar-2026 14:31) Posted:
|