Friday, April 29, 2016


Yangzijiang: 1Q16 net profit (Rmb445m, -37%) missed, due to shipbuilding sales (-13.1%), absence of one-off gains from forfeited downpayments and widening associates losses.

- Low net gearing of 4.3%, boosted by operating cashflow from working cap changes.

-8 shipbuilding contracts cancelled in the quarter. One has not begun construction, 4 have found buyers. 10-30% downpayments collected will be recognized. Cancellations reflect industry downturn

- Yangzijiang is currently trading at 7.6x consensus forward P/E and 0.8x P/B. The street has 8 Buy, 2 Hold and 5 Sell ratings on the Chinese shipbuilder with a mean TP of $1.11.

No comments:

Post a Comment