Yangzijiang Shipbuilding (BS6) H1 2024 earnings summary

Executive summary

• Net profit for 1H2024 surged 77.2% year-over-year to RMB3.06 billion, reaching a record high, with EPS up to 77.42 RMB cents from 43.69.

• Revenue increased 15.3% year-over-year to RMB13.0 billion, driven by higher shipbuilding and shipping activity.

• Gross margin improved by 8.1 percentage points to 26.7%, reflecting better pricing and currency effects.

• Secured USD8.5 billion in new orders in 1H2024, surpassing the full-year target by 188%, with 79% of new orders for eco-friendly vessels.

• Outstanding orderbook reached USD20.2 billion for 224 vessels as of June 2024, providing revenue visibility through mid-2028.

Financial highlights

• Shipbuilding revenue increased 16.3% year-over-year to RMB12.4 billion; shipping revenue up 13.5% to RMB604 million.

• Gross profit margin for shipbuilding rose to 26% (from 18%), shipping margin to 41% (from 34%).

• Net profit margin improved to 23.4% in 1H2024, up from 13.0% in FY2023.

• EBIT and EBITDA margins improved to 21.7% and 30.5% respectively in 1H2024.

• Net cash position of RMB16.2 billion as of June 2024, with cash and equivalents at RMB22.2 billion and total borrowings at RMB6.0 billion.

Outlook and guidance

• Demand for clean energy vessels remains robust, with 79% of new orders in this category.

• The Group surpassed its FY2024 new order target in 1H2024, securing USD8.5 billion in new orders.

• Vessel delivery progress at 59% of FY2024 target, on track to meet full-year goal.

• Expansion plans include a new clean energy ship manufacturing base and conversion of a chemical terminal into an LNG terminal.

• Planned CAPEX of RMB3 billion for new manufacturing base and RMB1 billion each for LNG terminal and storage facilities over the next two years.