YZJ

YZJ: Results relatively in-line with expectations. Announced 1Q rev of Rmb3.7b +12.2% yoy -29.6% qoq with net profit at Rmb1.0b +6.6% yoy -1.9% qoq. In 1Q2012 15 vessels were delivered according to delivery scheduled and the Shipbuilding segment recorded Rmb3.4b in rev. Gross profit margin from the segment remained stable at 26.4% compared to 26.2% in 4Q2011 with gross profit at Rmb882.5m. Investment segment also recorded higher rev with held-to-maturity (HTM) invts recording gross profit of Rmb293.0m up from Rmb225.3m in 1Q11 and Rmb183.3m in prev quarter. Co also booked forex gains of Rmb191.5m compared to Rmb112.8m in 1Q11 and loss of Rmb107.4m in 4Q11. Held-to-maturity assets also decreased from Rmb10.5b to Rmb9.9b with 65.8% of such assets with maturity date in less than a yr. Co is also currently in a net cash position. Co’s orderbook as of 31 Mar 2012 stood at 96 vessels with a total value of US$4.5b. Its strategic plan remains to focus on moving up the value chain and develop new vessel types which are more fuel efficient and have higher capacity. YZJ currently trades at 5.9x trailing P/E and 1.8x P/B.