Yangzijiang Shipbuilding - DBS Research 2023-02-22: Under-Appreciated Growth Stock

• Yangzijiang (SGX:BS6) is due to release its FY22 results after market close on 22 Feb 2023. Consensus expects Yangzijiang to deliver ~Rmb1.45bn net profit in 2H22, representing ~25% h-o-h growth.
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Margins set to improve further.

• We expect Yangzijiang's gross margin to bottom out from ~14.6% in 1H22 to 18.6% in 2H22. We believe with the delivery of higher margin orders secured since 2021 and favourable steel cost (expected to hover in the RMB4,000- 5,000/t range) and forex, there is upside risk to our assumption of 20-23% in FY23-24F.

Expect 4-5 cents final dividend per share, translating to 3-4% dividend yield.

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40% of orderbook, based on our estimate.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-02-28 Yangzijiang Shipbuilding - Unwarranted Sell-off Is A Buying Opportunity.

Previous report by DBS:
2025-01-31 Yangzijiang Shipbuilding - A Promising Dividend-Paying Growth Stock.

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 Dividend Payout Dates & Corporate Actions,
Yangzijiang News