Embattled Yangzijiang Shipbuilding has received a major vote of confidence from a top Singapore brokerage, which has upgraded the stock to a buy.

UOB Kay Hian Holdings said the shares in the Singapore-listed company offer a potential 49% return for investors as it looks set to benefit from increased newbuilding demand.

Analyst Adrian Loh described concerns about corporate governance issues surrounding Yangzijiang chairman Ren Yuanlin as a “non-event in our view”.