Yangzijiang Shipbuilding Performance Report
Shares of Yangzijiang Shipbuilding saw a notable rise following the company's latest financial report, showcasing higher profit and sales figures. The company also increased its guidance for new order wins in 2024, leading to a positive market response.
Financial Highlights
- Profit Surge: Net profit for the second half ended Dec. 31 surged by 65% to 2.36 billion yuan (US$327.9 million).
- Revenue Growth: Revenue increased by 17% to CNY12.79 billion, credited to the core shipbuilding segment.
- Profit Margin Expansion: Gross profit margins were positively impacted by lower raw material costs and a favorable foreign exchange rate.
Market Outlook
The progressive construction of larger vessels with enhanced pricing has contributed to the positive outlook for Yangzijiang Shipbuilding. Despite a decrease in deliveries in the second half compared to the previous year, the company remains optimistic about future demand.
Order Wins and Projections
In 2023, the company secured 97 new orders amounting to US$7.1 billion, with a significant portion dedicated to alternative-fuel vessels. Yangzijiang has raised its 2024 order-win target to US$4.5 billion, highlighting a strong order book and steady earnings visibility.
Analyst Insights
According to DBS analysts, the company's profit performance exceeded expectations, driven by shipbuilding margin expansion. They anticipate continued business momentum in 2024, with promising new order figures already recorded.
Future Growth Prospects
Yangzijiang is positioned as a key player benefiting from the ongoing trend of clean-fueled fleet rejuvenation. Analysts foresee further productivity enhancements, potential capacity expansion, and margin growth in the coming years.
DBS maintains a positive outlook on the stock, with a buy rating reaffirmed. The current target price of S$1.90 is under review, reflecting the company's promising trajectory.
For more information, please visit Yangzijiang Shipbuilding's official website.
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