- Yangzijiang (SGX:BS6)’s shipbuilding related net profit rose 32% y-o-y to RMB1.17bn in 1H22, on revenue growth of 70% y-o-y. This formed ~48% of our full year estimate.
- There were 35 vessels delivered in 1H22, compared to 23 vessels in the same period last year, on track to make record deliveries of 70 vessels this year.
- - Read this at SGinvestors.io -
- Nevertheless, revenue and margins are expected to expand further, on execution of mostly higher value and margin new orders secured since end 2020 from 2H22 onwards especially into 2023 when Yangzijiang recognizes the bulk of the profits closer to delivery of these vessels. In addition, the recent favourable forex and steel cost also bode well for further margin expansion in 2H22. The bulk of these orders has factored in high steel prices of over RMB6000/t and the company has hedged its US$ exposure at RMB6.6-6.8.
- - Read this at SGinvestors.io -
- Shipping segment contributed meaningfully with gross profit growth of 26% y-o-y, driven largely by charter rate improvement and fleet expansion. Gross margin was firm at ~40%.
Yangzijiang - Earnings forecast revision
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Pei Hwa HO DBS Group Research | https://www.dbs.com/insightsdirect/ 2022-08-10
Read also DBS's most recent report:
2023-08-07 Yangzijiang Shipbuilding - Promising 1H23 Results; Steady Growth & Attractive Yield.
Previous report by DBS:
2023-02-24 Yangzijiang Shipbuilding - A Decent FY22; Compelling Growth Ahead.
Price targets by other brokers at Yangzijiang Target Prices.
Listing of research reports at Yangzijiang Analyst Reports.
Relevant links:
Yangzijiang Share Price History,
Yangzijiang Announcements,
Yangzijiang Dividends & Corporate Actions,
Yangzijiang News Articles
