Yangzijiang Shipbuilding - DBS Research 2023-08-07: Promising 1H23 Results; Steady Growth & Attractive Yield

• Yangzijiang Shipbuilding (SGX:BS6)’s net profit rose 26% y-o-y to RMB1.73bn in 1H23, ahead of expectations of around RMB1.5- 1.6bn, thanks to the stronger revenue growth of 16% and 4.9ppt h-o-h margin expansion. Results were also boosted by RMB90m gains from vessel disposal.
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Shipbuilding gross margin expanded to 17.7% in 1H23

• Shipbuilding gross margin expanded to 17.7% in 1H23, from 13.5% in 2H22, and trough of 10.8% in 2H21. This is attributable to favourable forex and steel cost.
• Yangzijiang has progressively executed the higher value and margin contracts secured since 2021. Revenue and margins are expected to expand further as it recognizes the bulk of the profit margin closer to delivery of these vessels.
• - Read this at SGinvestors.io -
• Yangzijiang's management believes that 20% gross margin could be achievable.

Lower Shipping income.

• 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