- Yangzijiang’s record performance in 1H23, with net profit up 47% y-o-y to RMB1.7b, was in line with estimates. While the contribution from the non-shipbuilding business fell y-o-y, this was more than made up for by its 17.7% shipbuilding margins that were better than our estimates.
- - Read this at SGinvestors.io -
- Maintain BUY on Yangzijiang with target price upgraded from S$1.65 to S$1.88.
Stellar 1H23 performance with shipbuilding driving top-line.
- Yangzijiang Shipbuilding (SGX:BS6) reported strong 1H23 revenue growth of 16% to RMB11.3b, translating to a 47.3% y-o-y increase in net profit to RMB1.7b. Its core shipbuilding business reached a record-high top-line contribution of RMB10.7b in 1H23 (+25% y-o-y), delivering 31 vessels with its run-rate ahead of its full-year target of 57 vessels.
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1H23 margins exceeded expectations.
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