Yangzijiang Shipbuilding (Holdings) (BS6) AI Stock Analysis

• Market Cap: $10.03B
• Dividend Yield: 2.24%
• Average Volume (3M): 18.10M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.91
• Revenue Growth: 7.88%
• EPS Growth: 58.71%
• Country: SG
• Employees: 7,306
• Sector: Industrials
• Sector Strength: 93
• Industry: Aerospace & Defense
• EPS (TTM): 0.16
• Shares Outstanding: 3,974,076,700
• 10 Day Avg. Volume: 24,981,100
• 30 Day Avg. Volume: 18,095,706
• PEG Ratio: -3.15
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.54
• Price Target Upside: 39.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: S$3.00 ▲(18.11%Upside)

Yangzijiang Shipbuilding's strong financial health and low valuation are major positives, supported by robust revenue growth, profitability, and a solid balance sheet. While technical indicators suggest bullish momentum, caution is advised due to potential overbought conditions.

Positive Factors

ESG Initiatives

Yangzijiang’s pivot towards cleaner vessels is drawing more interest from ESG funds, enhancing its growth prospects.

Order Book Strength

Yangzijiang's robust order book of USD23.2 billion provides revenue visibility up to 2028.

Negative Factors

Currency Fluctuation

Every 1% depreciation in the USD could lead to a 1.5% decline in earnings, posing a risk to financial performance.

Rising Costs

A 1% rise in steel cost could result in a 0.7% drop in earnings, challenging the company's margin stability.

Yangzijiang Shipbuilding (Holdings) Business Overview & Revenue Model

Company Description

Yangzijiang Shipbuilding (Holdings) Ltd., an investment holding company, engages in the shipbuilding activities in the People's Republic of China, Taiwan, Germany, Africa, North America, the United States, Malta, the Netherlands, Japan, Greece, Norway, Canada, British Virgin Islands, Korea, other Asian and European countries, and internationally. It operates through Shipbuilding, Shipping, and Others segments. The company produces a range of commercial vessels, such as containerships, dry bulk carriers, and liquefied natural gas carriers. It also engages in the production and processing of steel structures; offshore marine equipment construction and ship design; and vessel owning activities. In addition, the company facilitates the sale and export of ships for the ship builder; and trading in ship related equipment and shipbuilding related materials/supplies, as well as provides ship repairing services. Further, it engages in the architecture and marine engineering field, as well as owns and operates a tank terminal. The company was founded in 1956 and is based in Jingjiang, China.

How the Company Makes Money

Yangzijiang Shipbuilding primarily generates revenue through the construction and sale of commercial vessels, which are built to order for global shipping companies. The company has a robust order book, which ensures a steady stream of income as ships are completed and delivered. In addition to shipbuilding, Yangzijiang Shipbuilding also engages in ship finance leasing, providing an alternative financing solution for shipping companies that enhances its revenue streams. Furthermore, the company benefits from strategic partnerships with global shipping lines and consistent investments in technological advancements and production capabilities, which bolster its competitive position and ability to secure high-value contracts.

Yangzijiang Shipbuilding (Holdings) Financial Statement Overview

Summary

Yangzijiang Shipbuilding exhibits strong financial performance, highlighted by robust revenue growth, improved gross profit margins, and strong cash flow management. The balance sheet is solid with low leverage, although the absence of EBIT data for 2024 slightly limits analysis.

Income Statement

Yangzijiang Shipbuilding has demonstrated strong revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin has improved significantly, indicating efficient cost management and strong pricing power. However, the EBIT margin is not available for 2024, which limits complete analysis. The EBITDA margin remains robust, reflecting healthy operational efficiency.

Balance Sheet

The company's balance sheet is solid, highlighted by a low debt-to-equity ratio, suggesting financial stability and low leverage risk. The substantial increase in stockholders' equity supports a strong equity ratio, indicating a well-capitalized company. The return on equity has also improved, reflecting enhanced profitability relative to equity.

Cash Flow

Cash flow metrics show a positive trend, with strong free cash flow growth reflecting effective cash management and operational efficiency. The operating cash flow to net income ratio is healthy, indicating good conversion of profits into cash. The free cash flow to net income ratio is also robust, showcasing efficient capital expenditure management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.54B	24.11B	20.71B	15.14B	14.84B
Gross Profit	7.61B	5.41B	3.20B	2.08B	4.22B
EBITDA	8.76B	5.31B	3.87B	3.23B	3.91B
Net Income	6.63B	4.10B	2.81B	3.70B	2.52B
Balance Sheet
Total Assets	54.56B	40.86B	32.97B	51.61B	44.91B
Cash, Cash Equivalents and Short-Term Investments	28.14B	16.58B	12.47B	28.58B	21.59B
Total Debt	6.80B	5.59B	4.57B	4.46B	4.24B
Total Liabilities	28.18B	19.72B	15.26B	15.55B	11.53B
Stockholders Equity	26.28B	20.94B	17.57B	35.92B	32.34B
Cash Flow
Free Cash Flow	11.90B	7.18B	3.73B	5.47B	-905.76M
Operating Cash Flow	12.96B	7.97B	4.63B	6.14B	-611.54M
Investing Cash Flow	-1.17B	-2.29B	-1.14B	315.39M	-1.04B
Financing Cash Flow	-233.29M	99.08M	-5.08B	-728.21M	-1.90B

Yangzijiang Shipbuilding (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BS6, the sentiment is Positive. The current price of 2.54 is above the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.25, and above the 200-day MA of 2.41, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 77.86 is Negative, neither overbought nor oversold. The STOCH value of 89.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:BS6.

Yangzijiang Shipbuilding (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BS6	74 Outperform	$10.03B	8.15	28.14%	2.24%	7.88%	58.71%
Sector *	58 Neutral	HK$14.89B	4.75	-2.78%	5.07%	3.80%	-54.55%
SMBMF	―	$6.47B	54.78	2.48%	0.40%	―	―
5LY	76 Outperform	S$224.97M	10.53	11.57%	1.67%	-13.64%	-28.75%
A04	66 Neutral	S$68.17M	12.78	4.42%	―	-9.28%	-86.86%
BEZ	―	S$52.86M	4.40	75.59%	2.35%	―	―
F83	57 Neutral	S$564.29M	52.50	1.11%	―	-3.24%	200.00%

Yangzijiang Shipbuilding (Holdings) Corporate Events

Yangzijiang Shipbuilding Updates on Arbitration Appeal

Yangzijiang Shipbuilding (Holdings) Ltd. has announced that the English High Court has granted the Claimants leave to appeal on a legal question related to ongoing arbitration proceedings. The company is actively working with legal advisers on the appeal and advises shareholders to exercise caution in dealing with the company’s securities, emphasizing the importance of consulting professional advisers if needed.

The most recent analyst rating on (SG:BS6) stock is a Buy with a S$3.50 price target. To see the full list of analyst forecasts on Yangzijiang Shipbuilding (Holdings) stock, see the SG:BS6 Stock Forecast page.

Yangzijiang Shipbuilding Reviews 2024 Performance at AGM

Yangzijiang Shipbuilding (Holdings) Ltd. held its nineteenth Annual General Meeting, where the Executive Chairman and CEO, Mr. Ren Letian, presented the company’s business outlook and performance review for the financial year 2024. The meeting underscored the company’s appreciation for shareholder support and provided insights into its strategic direction and operational performance.

The most recent analyst rating on (SG:BS6) stock is a Buy with a S$2.86 price target. To see the full list of analyst forecasts on Yangzijiang Shipbuilding (Holdings) stock, see the SG:BS6 Stock Forecast page.