(Updates with closing share price in the second paragraph.)
June 10 (Bloomberg) -- Yangzijiang Shipbuilding Holdings Ltd. climbed the most in almost one month in Singapore trading after winning its first order to build 10,000-container vessels in a contract worth as much as $2.5 billion.
China’s third-largest shipyard outside state control rose 1.3 percent to S$1.55 at the 5:10 p.m. close of trading in Singapore, the stock’s biggest advance since May 13. The benchmark Straits Times Index dropped 0.6 percent.
The deal with lessor Seaspan Corp., announced yesterday, comprised firm orders for seven 10,000-container vessels, worth $100 million apiece, and options for 18 more. The contract was the first for such large vessels for a Chinese yard from overseas as the country challenges South Korean shipbuilders for deals to build more advanced and profitable ships.
“Securing these orders confirms our view that Yangzijiang will take leadership by moving into larger vessels,” Barclays Capital analysts led by Jon Windham wrote in a note today. The deal may mark “a shift in container shipbuilding in China, over the next five years.”
Chinese shipyards are targeting orders for larger container ships, liquefied-natural gas carriers and other advanced types of vessels as a glut of dry-bulk ships damps demand in their traditional market. The move may boost competition for Hyundai Heavy Industries Co. and Samsung Heavy Industries Co., the biggest South Korean yards.
Yangzijiang will deliver the first seven vessels to Seaspan in 2014 and 2015, according to a statement yesterday. The shipbuilder will use a new design that will help pare fuel usage and emissions, it said.
--Editors: Neil Denslow, Garry Smith.
To contact the reporters on this story: Jasmine Wang in Hong Kong at Jwang513@bloomberg.net
To contact the editor responsible for this story: Neil Denslow at firstname.lastname@example.org