Yangzijiang Shipbuilding (BS6) H2 2024 earnings summary

Executive summary

• Achieved record profit attributable to equity holders (PATMI) of RMB6.6b, up 61.7% year-over-year, and record revenue of RMB26.5b, up 10.1% year-over-year, driven by higher newbuild prices and improved shipping revenue.

• Gross margin improved by 6.3 percentage points to 28.7% year-over-year.

• New order wins reached USD14.6b, more than tripling the annual target, with 82% classified as eco-friendly vessels.

• Outstanding orderbook rose 68% to USD24.4b for 245 vessels, with 74% eco-friendly vessels by value, providing revenue visibility up to 2028.

• Dividend per share increased 84.6% to SGD0.12, with a payout ratio of 38.6%.

Financial highlights

• Revenue grew to RMB26.5b, gross profit to RMB7.6b (up 40.6% year-over-year), and PATMI to RMB6.6b for FY2024.

• EBIT and EBITDA margins exceeded 30%, with EBIT at RMB8.8b and EBITDA at RMB8.3b.

• Return on equity (ROE) reached 25.2%, up from 19.6% in FY2023.

• Maintained a robust net cash position of RMB21.3b as of year-end.

• Shares of results from associates and joint ventures more than doubled to RMB559.0 million, led by higher contributions from YAMIC.

Outlook and guidance

• Order-win target for FY2025 raised to USD6.0b, reflecting confidence in green fleet renewal trends.

• Vessel delivery target for FY2025 set at 56, lower due to construction of larger, more complex vessels and reclassification of two LNG carriers as inventory.

• Cautiously optimistic on long-term demand driven by maritime decarbonization and regulatory changes, despite downside risks from potential US trade actions and a growing backlog of newbuild orders.

• Focus remains on timely contract fulfilment and securing high-quality newbuild orders to enhance revenue visibility.