YZJ's 1H22 results preview and earnings outlook
- We expect Yangzijiang Shipbuilding (SGX:BS6) to report net profit of at least RMB1.2bn (20% y-o-y increase) for 1H22, on revenue growth. We see room for upside surprise and earnings upgrade post results.
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- Yangzijiang Shipbuilding’s gross margins had fallen from ~25% in 2H220 to 13.5% in 1H21 and 10.8% in 2H21 due to lower newbuild prices and activity level owing to low order flows at the beginning of the COVID pandemic in 2020. The declining trend is set to reverse from 1H22, and we estimate that margins could rebound from ~10% towards mid-teens level.
- - Read this at SGinvestors.io -
Shipbuilding demand remains firm
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