Towards Financial Freedom
Yangzijiang - 2Q13 Results Outperform On Higher HTM Income
Yangzijiang (YZJ)'s 2Q13 earnings of CNY812m were 8% weaker y-o-y due to a lower shipbuilding margin, but the results beat our expectations owing to stronger held-to-maturity (HTM) income. We raise our FY13F-FY14F EPS by 9%-14% as we now expect a slower decline in HTM investments. We remain NEUTRAL amid improving ship demand vis-à-vis still-weak pricing, with our revised TP at SGD1.00.
- HTM income higher than forecast. YZJ's 2Q13 net profit fell 8% y-o-y to CNY812m, mainly owing to shipbuilding margin shrinking from 24.2% in 2Q12 to 20.6% in 2Q13. Its 1H13 net profit of CNY1.53bn made up 56% of our forecast. In 2Q13, the company's shipbuilding revenue rose 12% y-o-y, or 63% q-o-q, thanks to its recognition of larger vessels and higher contribution from its ship-breaking business (+61% y-o-y).
- Confidence in winning more orders. YZJ has a net orderbook of USD3.24bn comprising 29 container ships and 42 bulk carriers. YTD, it has secured USD1.01bn in new orders for 27 ships, and Management is confident of winning another USD1.0bn-USD1.5bn for 2H13. We think this is achievable as YZJ has 47 options valued at USD2.54bn with various buyers, which we expect will translate into firm orders.
Source: OSK
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Towards Financial Freedom
Duty Free International Ltd. - A duty-free giant in the making
Created by kiasutrader | Oct 17, 2016
Cityneon Holdings - 'Avengers' showcasing in the Land Down Under
Created by kiasutrader | Jun 07, 2016
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
New Update. Discover investment communities that resonate with your ideas
Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!
Latest Videos
Apps
Top Articles
1
STE's Stocks Investing Journey
2
CEO Morning Brief
3
CEO Morning Brief
DBS Shares’ 43% Rally Seen Having More Legs as Wealth Fees Rise
4
CEO Morning Brief
Singapore Post Shares Slide After CEO Fired Over Whistleblower Report
5
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
