Yangzijiang Shipbuilding continues earnings rally, shares up as much as 9.3%
The counter rises to S$4.59 as at 10.17 am on Tuesday
The Yangzijiang Shipbuilding counter finished 9.3 per cent higher at S$4.66, with a trading volume of 77 million shares worth S$350.6 million. The stock rose from S$4.59, adding S$0.39 by 10.17 am, and ended the day 11 per cent or S$0.46 higher. The rally followed a 6.6 per cent increase on Friday, which came after the shipbuilder reported a 28.4 per cent jump in net profit to 5.4 billion yuan for its first half.
The profit surge resulted from higher shipbuilding revenue driven by the construction of vessels secured at higher contract prices. A shift in product mix towards ultra-large liquefied natural gas dual-fuel container ships and very large ethane carriers also played a significant role. The start of shipbuilding activities at the new Hongyuan yard further contributed to the earnings growth.
Earnings per share for the half year reached 136.4 fen, up from 106.02 fen the previous year, while revenue increased by 36.2 per cent to 17.5 billion yuan. Citi raised its target price for the stock by 6 per cent to S$5.16 and maintained a "buy" recommendation, expecting a higher-priced batch of orders in the second half of the year.
CGS International also increased its target price to S$5.75 and reiterated an "add" rating, citing stronger gross margin assumptions and visibility backed by pending high-value orders. Analyst Luis Hilado cautioned that the positive share-price momentum would depend on securing significant order wins in the near future.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
