Yangzijiang Shipbuilding (BS6) H1 2024 earnings summary

Executive summary

• Achieved record half-year profit attributable to equity holders (PATMI) of RMB3.1b, up 77% year-over-year, with revenue rising 15% to RMB13.0b and gross margin improving to 27%, driven by higher shipbuilding and shipping activity.

• EPS increased to 77.42 RMB cents from 43.69.

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

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

• Gross profit margin improved by 8.1 percentage points to 26.7%.

Financial highlights

• Shipbuilding revenue increased 16% year-over-year to RMB12,398 million; shipping revenue up 14% to RMB604 million.

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

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

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

• Net cash from operating activities was RMB7,367 million, up from RMB2,170 million.

Outlook and guidance

• Vessel delivery progress at 59% of FY2024 target, on track to meet full-year goal of 63 vessels.

• Industry demand outlook remains robust, especially for LNG and dual-fuel vessels, with oil tankers and gas carriers expected to drive new-build orders through 2029.

• Strategic focus on green vessels and LNG infrastructure expansion to capture energy transition opportunities.

• The Group surpassed its FY2024 new order target in 1H2024.