Yangzijiang Shipbuilding : BS6 +1.08% (Holdings) has posted a 32 per cent increase in net profit from continuing operations to nearly 1.2 billion yuan (S$244.7 million) for the first half ended June, from the year-ago figure of 884.6 million yuan, says an article published in Business Times.
Annualised Returns
The annualised return on equity rose to 14 per cent in H1 2022 from 9 per cent in H1 2021.
These figures, released by the group on Sunday (Aug 7), exclude earnings from investment segment, which was spun off to Yangzijiang Financial Holding in April.
Net Profits Declines
Inclusive of discontinued operations, Yanzijiang Shipbuilding’s net profit fell 17 per cent year on year to 1.4 billion yuan in H1 2022.
Net profit from discontinued operations declined 74 per cent year on year to 194.6 million yuan.
Greener Footprints
Yangzijiang Shipbuilding’s executive chairman and CEO Ren Letian said: “As one of the leading shipyards in China, we are determined to be a major part of providing greener solutions.
Our recent contract wins to build green vessels, like the 4 units of 8,000 TEU (twenty-foot equivalent unit) LNG dual-fuel container ships, showcase our growing footprint in a space that is traditionally dominated by the Korean shipyards”.
Walking Towards Space
“Our team has developed and acquired technology that has enabled us to compete in this space profitably.
Looking ahead, we are confident of moving up the value chain and building larger and more complex vessels.”
Revenue Expands
The group’s revenue from continuing operators expanded 70 per cent to 9.7 billion yuan in H1 2022 from 5.7 billion yuan in H1 2021, supported by higher contribution from all segments.
Gross profit rose 64 per cent to 1.4 billion yuan.
Shipbuilding Revenue
Giving a segmental breakdown of revenue, the group said that shipbuilding revenue climbed 78 per cent year on year to 8.5 billion yuan, the best-ever first-half showing.
This came as the group delivered a record 35 vessels in the first 6 months of this year, compared with 23 vessel deliveries in the year-ago period.
Gross Profit Margin
Gross profit increased 68 per cent year on year to 1.1 billion yuan, in line with the higher revenue and inclusive of a 123 million yuan net reversal of loss provision for onerous contracts.
However, gross profit margin for the segment dipped to 13 per cent in H1 2022 from 14 per cent in H1 2021, mainly due to rising raw material costs.
That said, the latest figure is higher than the 11 per cent gross profit margin in H2 2021, the group said.
Expanding Charter Fleet
Revenue from the shipping segment rose 37 per cent year on year to 561 million yuan, buoyed by an expanding charter fleet and higher charter rates.
Gross profit rose 45 per cent year on year to 226 million yuan, as improving charter rates for bulk carriers edged the gross profit margin to 40 per cent, from 38 per cent for H1 2021.
Other Business Revenue
Revenue generated by other business such as trading, ship design services and investments retained by the group subsequent to the spin-off, increased to 659 million yuan in H1 2022, including interest income from debt investments at an amortised cost of 79 million yuan (H1 2021: 43 million yuan).
The increase in revenue generated by other business was mainly due to the higher volume of trading business activities.
Higher Interest Income
Interest income from bank deposits and ship finance leases rose to 150.0 million yuan in H1 2022 from 125.1 million yuan in H1 2021, mainly attributable to higher interest income earned from ship finance leases this year.
Outstanding Order Books
Yangzijiang Shipbuilding said that in the year to date, the group has secured new order-wins of US$1.09 billion for 18 vessels, taking the total outstanding order book to US$8.13 billion for 134 vessels.
“The group, backed by its technology, quality and timely delivery, is well positioned to benefit from the ongoing upcycle for shipbuilding and extend its foothold to clean energy sectors,” it added.
Share Earnings
On a continuing operations basis, the group’s earnings per share climbed to 29.76 RMB cents for H1 2022 from 22.98 RMB cents in H1 2021.
The counter closed last Friday 0.54 per cent higher at 92.5 Singapore cents.
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Source: Business Times
