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Yangzijiang reports 38% rise in 1Q earnings to $167 mil on higher revenue

PC Lee
PC Lee • 2 min read
Yangzijiang reports 38% rise in 1Q earnings to $167 mil on higher revenue
SINGAPORE (Apr 29): Yangzijiang Shipbuilding, the shipbuilder based in China, reported 1Q19 earnings of RMB824 million ($167 million), up 38% from earnings of RMB595 million a year ago.
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SINGAPORE (Apr 29): Yangzijiang Shipbuilding, the shipbuilder based in China, reported 1Q19 earnings of RMB824 million ($167 million), up 38% from earnings of RMB595 million a year ago.

Fully diluted earnings per share was RMB20.88 cents for 1Q19, compared to RMB14.99 cents for 1Q18.

Group’s total revenue increased by 27% to RMB6.3 billion in 1Q19. In the shipbuilding related segment, as 15 vessels were delivered in 1Q19 compared to nine vessels in 1Q18 while core shipbuilding revenue increased by 17% to RMB3.4 billion.

In line with the higher volume of trading activities, trading business generated revenue of RMB2.2 billion in 1Q19, compared to RMB1.6 billion in 1Q18.

Revenue generated by other shipbuilding related businesses such as shipping logistics & chartering and ship design services was RMB122 million in 1Q19, compared to RMB88 million in 1Q2018, thanks to the charter income from the vessels owned by the group’s wholly-owned subsidiary that it acquired in 2018.

The group’s debt investment at amortised costs increased to RMB16.4 billion as at March 31. Interest income from investment segment was RMB589 million in 1Q19, compared to RMB311 million in 1Q18.

Gross profit margin for core shipbuilding business was at 16% for 1Q2019, compared to 17% for 1Q2018. Gross profit margin at group level was 19% in 1Q19, compared to 17% in 1Q18.

In its outlook, Yangzijiang says global new shipbuilding orders declined substantially in the first three months of 2019 compared to a year ago. This was due to several factors, including less-bullish outlook on economic and trade growth, lower charter rates and uncertainties associated with the forthcoming IMO rules on emissions.

Year to date, the group secured new orders for three vessels with total contract value of US$116 million ($168 million).

Shares in Yangzijiang closed 1 cent higher at $1.58 on Monday.

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