Yangzijiang Shipbuilding - DBS Research 2023-02-24: A Decent FY22; Compelling Growth Ahead

Yangzijiang Shipbuilding - A Decent FY22; Compelling Growth Ahead

  • Yangzijiang (SGX:BS6)’s net profit (ex-investment) rose 23% y-o-y to RMB1.44bn in 2H22, in line with expectations. Results could have come in 12% above the consensus estimate if not for the provision of RMB185m made for the jack-up rig. This brings full-year net profit (ex-investment) to RMB2.6bn, representing 33% y-o-y growth.
  • - Read this at SGinvestors.io -
  • Shipbuilding gross margin improves sequentially to 13.5% (would have been 15.3% ex-jack-up provision) from ~12.8% in 1H22, and 10.8% in 2H21 as Yangzijiang progressively executes the higher value and margin contracts secured in 2021.
  • - Read this at SGinvestors.io -
  • In addition, the favourable steel cost in 2H22 also bodes well for further margin expansion in 2023, as management has locked in the steel price for production this year. The bulk of these orders has factored in high steel prices of over RMB6,000/t (vs. average steel cost of RMB4,000-4,500/t in 2H22) and the company has hedged its US$ exposure at RMB6.6-6.8.

Secured US$910m in new orders since Nov

  • 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/ 2023-02-24

Read also DBS's most recent report:
2023-08-07 Yangzijiang Shipbuilding - Promising 1H23 Results; Steady Growth & Attractive Yield.

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


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