Yangzijiang Shipbuilding has reported earnings of RMB6.63 billion ($1.22 billion) for the FY2024 ended Dec 31, 2024, up 62% y-o-y from the RMB4.1 billion reported in the same period a year ago.
For the 2HFY2024, earnings came in 51% higher y-o-y at RMB3.58 billion.
Earnings per share for the FY2024 stood at 167.91 RMB cents per share, up from the 103.82 RMB cents per share declared in the same period a year ago.
The group reported a revenue of RMB26.5 billion for the FY2024, up 10.1% y-o-y. Revenue for 2HFY2024 similarly grew 5% y-o-y to $13.5 billion.
This increase was driven by growth in both shipbuilding and shipping segments. Yangzijiang’s core shipbuilding business contributed about 95% of total revenue in FY2024, in which it saw a 10.7% y-o-y increase in revenue. This was driven by vessel construction and higher newbuild prices.
The group delivered 64 vessels in FY2024 and added three to its own fleet.
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In its shipping business, revenue grew 21.6% y-o-y in FY2024 from improved charter rates and fleet expansion. The group secured six-36 months charter contracts for 60% of its fleet during the shipping upcycle in 1HFY2024.
Gross profit for FY2024 grew 25% y-o-y to RMB7.6 billion. Gross profit margin rose 6.3 percentage points (ppts) to 28.7%. Most notable is the gross profit margin for shipbuilding segment which expanded due to a favourable exchange rate of US dollar against RMB and lower material costs.
Gross profit margin for the shipping segment climbed 8.9 ppts due to improved charter rates for bulk carriers.
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Share of results of associated companies and joint ventures more than doubled to RMB559 million driven by Yangzi-Mitsui Shipbuilding Co. It delivered 14 vessels in FY2024 compared to 11 in the previous year.
The group’s total orderbook closed at US$24.2 billion for 245 vessels as at Dec 31, 2024, and delivered span from 2025 to 2030.
The board has recommended a final dividend of 12 cents per share.
While several tailwinds have led to shipbuilding newbuild orders to record highs in the last two years, the US Trade Representative has proposed additional levying services fees on ships with China exposure on Feb 21, 2025.
These downside risks may impact shipowners’ willingness to place new orders in the near term, says Yangzijiang Shipbuilding.
Shares in Yangzijiang Shipbuilding closed 2 cents lower or 0.74% down at $2.68 on Feb 26.
