06 August 2014

Yang Zi Jiang Quarterly Result Summary - August 2014

Result Highlights

Revenue Breakdown

Balance Sheet

Order Book on Shipbuilding

Strategy Planning

Company Comment on Outlook

Source:  http://infopub.sgx.com/FileOpen/YZJ_2Q2014_Eng_Final.ashx?App=Announcement&FileID=308530

My Notes
  • YangZiJiang experienced marginal drop in revenue and gross profit, but net profit seen a hike due to one-off disposal gain of RMB130M interest income as well as one off tax refund of RMB349 million for new ship yard that enjoys 15% tax rate for the rest of FY2014 and FY2015. 
  • NAV is now RMB4.93, the ROE remains in healthy range thanks to the one off items. 
  • The group is now number one in China to capture the new shipbuilding orders this year. With the market is recovering slowly, the shipyards under the group are expected to be near fully utilization until year 2016.
  • It is also strengthening its financial position by diversifying into property development and finance sectors, although we do not see any significant impact at this moment. 
  • Just few weeks back, Yang Zi Jiang share price was hit by the speculation that the chairman Mr. Ren was involved in an illegal market manipulation in the shares that he bought through open market transaction. Although the share price rebound, it created public awareness that there might be higher risk in financial / property development sectors in China. 
  • Nonetheless, this is one of the S-Chips that performs well for a long run ( 5 years and more). I hope it can continue to be the leader among S-Chips and regain investor confidence in S-Chip. 

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