- We visited Yangzijiang Shipbuilding (SGX:BS6)’s New Yard and Xinfu Yard in Jiangyin on 19 September. The yards are currently executing orders clinched in 2021.
- According to management, Yangzijiang targets to deliver 57 vessels in 2023 and 50 p.a. in 2024-25, with a variance of 2-3 vessels a year. Current staff strength at the yard including subcontractors stands at ~26k-28k (average pre-2020: 18k-19k). Its yard staff generally work 8-hour single shifts with reduced workload on weekends.
- - Read this at SGinvestors.io -
We now expect FY24-25F gross profit margin of 23-24%
- - Read this at SGinvestors.io -
- As Yangzijiang progressively executes orders from 2H21, when ship prices had just started to turn positive, we believe its core shipbuilding gross margin for FY24-25F could reach 24%. We lift our gross margin forecasts to 23% in FY24F and 24% in FY25F (previously: 21% in FY24-25F).
Deferrals a key downside risk
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2023-09-20
Read also CGS-CIMB's most recent report:
2023-11-03 Yangzijiang Shipbuilding - Pursuing High-value Oil Tanker Orders.
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
