Yangzijiang Shipbuilding (Holdings) (BS6) AI Stock Analysis

• Market Cap: $8.89B
• Dividend Yield: 5.3%
• Average Volume (3M): 19.91M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.91
• Revenue Growth: 7.88%
• EPS Growth: 58.71%
• Country: SG
• Employees: 7,306
• Sector: Industrials
• Sector Strength: 85
• Industry: Aerospace & Defense
• EPS (TTM): 0.31
• Shares Outstanding: 3,974,076,700
• 10 Day Avg. Volume: 19,723,740
• 30 Day Avg. Volume: 19,913,689
• PEG Ratio: -0.38
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.41
• 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: $3.23
• Price Target Upside: 43.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: S$2.50 ▲(11.11%Upside)

Yangzijiang Shipbuilding's robust financial performance and attractive valuation are the primary drivers of its strong overall score. The company's solid balance sheet, low leverage, and impressive dividend yield enhance investor confidence. Technical indicators provide a mixed short-term outlook, but the stock's fundamental strengths outweigh these concerns.

Positive Factors

ESG and Cleaner Vessels

Yangzijiang's pivot towards cleaner vessels and improving corporate governance could attract more interest from ESG funds.

Order Book

Yangzijiang has a record-high order backlog providing revenue visibility through 2027, which is expected to propel earnings growth driven by revenue growth and margin expansion.

Position in Industry

Yangzijiang is the largest and best-managed private shipbuilder in China, with a wide economic moat to compete against Chinese and Korean peers.

Negative Factors

Currency and Material Costs

Every 1% depreciation in the USD could lead to a 1.5% decline in earnings, and a 1% rise in steel cost could result in a 0.7% drop in earnings.

Management Outlook

The CFO’s tone was decidedly bearish given his caution that new order wins may not substantially increase from 1Q25 levels.

New Order Wins

New order wins were weak at just 5.0% of its annual target, with management sounding cautious amid global tariff uncertainties.

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 generates revenue through various streams primarily centered around its shipbuilding operations. The company earns income from constructing and selling a diverse array of vessels tailored to the specifications of its global clientele. These vessels include containerships, bulk carriers, and LNG carriers, which cater to different segments of the maritime industry. Yangzijiang Shipbuilding also benefits from its shipbreaking services, wherein it dismantles and recycles older ships, extracting valuable materials such as steel. Additionally, the company operates in the shipping logistics and vessel chartering sectors, providing shipping services and leasing vessels to clients. These activities allow Yangzijiang Shipbuilding to capitalize on the growing demand for maritime transportation and logistics solutions. Partnerships with international shipping companies and strategic investments in advanced shipbuilding technologies further enhance its revenue potential.

Yangzijiang Shipbuilding (Holdings) Financial Statement Overview

Summary

Yangzijiang Shipbuilding exhibits strong financial performance across all verticals, with notable revenue and profitability growth. The balance sheet remains sturdy with low leverage, while cash flows are robust, underpinning the company's operational and financial health. The absence of EBIT data for 2024 is a minor limitation, but overall, the company is well-positioned financially.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
38.73B	26.54B	24.11B	20.71B	15.14B	14.84B
	Gross Profit
10.17B	7.61B	5.41B	3.20B	2.08B	4.22B
	EBIT
9.29B	6.93B	4.84B	2.79B	1.74B	3.59B
	EBITDA
6.69B	8.76B	5.31B	3.87B	3.23B	3.91B
	Net Income Common Stockholders
4.25B	6.63B	4.10B	2.81B	3.70B	2.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.26B	28.14B	16.58B	12.47B	28.58B	21.59B
	Total Assets
45.71B	54.56B	40.86B	32.97B	51.61B	44.91B
	Total Debt
6.05B	6.80B	5.59B	4.57B	4.46B	4.24B
	Net Debt
-16.20B	-21.32B	-10.97B	-6.21B	-7.91B	-2.39B
	Total Liabilities
23.01B	28.18B	19.72B	15.26B	15.55B	11.53B
	Stockholders Equity
22.63B	26.28B	20.94B	17.57B	35.92B	32.34B
Cash Flow		Free Cash Flow
16.55B	11.90B	7.18B	3.73B	5.47B	-905.76M
	Operating Cash Flow
18.52B	12.96B	7.97B	4.63B	6.14B	-611.54M
	Investing Cash Flow
-1.10B	-1.17B	-2.29B	-1.14B	315.39M	-1.04B
	Financing Cash Flow
-871.38M	-233.29M	99.08M	-5.08B	-728.21M	-1.90B

Yangzijiang Shipbuilding (Holdings) Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BS6, the sentiment is Neutral. The current price of 2.25 is above the 20-day moving average (MA) of 2.17, above the 50-day MA of 2.10, and below the 200-day MA of 2.43, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 74.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	80 Outperform	$8.89B	7.22	28.14%	5.30%	7.88%	58.71%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
SMBMF		$5.48B	51.16	2.48%	0.66%	―	―
5LY	66 Neutral	S$168.73M	7.89	11.57%	2.22%	-13.64%	-28.75%
A04	62 Neutral	S$59.28M	11.11	4.42%	―	-9.28%	-86.86%
BEZ		S$36.97M	3.13	75.59%	3.31%	―	―
F83	56 Neutral	S$284.38M	52.92	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.