Yangzijiang Shipbuilding - DBS Research 2025-08-07: Sailing Ahead With Strong Margins & Orders

• Yangzijiang Shipbuilding (SGX:BS6)’s 1H25 net profit surged 37% y-o-y and 17% h-o-h to RMB4.2bn, 15-20% ahead of consensus’ and our estimate. The strong earnings growth was driven by an impressive 5.5ppt expansion in shipbuilding gross margin to 35.2% in 1H25 (from 25.9% in 1H24 to 29.7% in 2H24) on steady revenue.

Shipbuilding gross margin of 35.2% (+5.5ppts h-o-h) in 1H25 blew past expectations.

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• The high shipbuilding gross margins seem sustainable through 1H26 at least, with an upward trend likely to persist, supported by rising newbuild prices during 2022-2024. A slight softening may begin in 2025 due to weaker supply/demand dynamic.
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Decline in Shipping income.

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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/.

Previous report by DBS:
2025-02-28 Yangzijiang Shipbuilding - Unwarranted Sell-off Is A Buying Opportunity.

Price targets by 2 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