Yangzijiang Shipbuilding (Holdings) (BS6) AI Stock Analysis

• Market Cap: S$17.50B
• Dividend Yield: 3.46%
• Average Volume (3M): 24.36M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.09
• Revenue Growth: 0.42%
• EPS Growth: 40.48%
• Country: SG
• Employees: 7,306
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.21
• Shares Outstanding: 3,974,076,700
• 10 Day Avg. Volume: 23,542,280
• 30 Day Avg. Volume: 24,361,880
• PEG Ratio: 0.30
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 28.35
• 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: S$4.83
• Price Target Upside: 11.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.44
• Revenue Forecast (FY): S$33.04B

• Rating: 74 Outperform
• Price Target: S$5.00 ▲(15.21% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by strong profitability and a conservative balance sheet, offset by notably volatile cash flow in 2025. Technicals show a clear uptrend but are overextended (high RSI/Stoch), while valuation looks supportive with a modest P/E and a mid-single-digit dividend yield.

Positive Factors

High profitability and improving margins

Sustained, materially higher margins signal structural improvements in pricing, cost control and project execution. Higher operating margins create durable earnings power, enabling reinvestment, dividends or balance-sheet strengthening even if revenue growth slows.

Conservative leverage and solid balance sheet

Low and falling leverage gives the company flexibility to fund large shipbuilding projects, absorb cycle downturns, and pursue opportunistic investments without stressing liquidity. A conservative capital structure reduces refinancing risk across cycles.

Strong returns and steady revenue expansion

High ROE alongside multi-year revenue growth indicates efficient capital allocation and competitive yard productivity. This combination supports durable shareholder returns and signals the firm can convert bookings into profitable deliveries over time.

Negative Factors

Volatile cash generation

Sharp FCF swings and weaker cash conversion versus profit reflect working-capital timing and project payment variability. Persistent volatility can constrain capex, dividend reliability and debt repayment, and raises the need for extra liquidity buffers.

Uneven revenue growth history

An uneven growth profile reflects dependency on lumpy ship orders and periodic soft patches. That reduces revenue predictability, complicates capacity planning and can produce periods of underutilization or margin pressure despite longer-term growth.

Cyclicality tied to global newbuilding cycle

Fundamentally exposed to shipping market cycles and input-cost swings (steel, equipment). Structural demand shifts or freight-rate weakness can materially reduce new orders and backlog value, making earnings and cashflows sensitive across a multi-year horizon.

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 primarily through the construction and sale of ships to shipping companies and other maritime operators. The company typically enters into contracts for new shipbuilding projects, which can span several years, providing a steady stream of income upon delivery of the vessels. Key revenue streams include the construction of different types of vessels, after-sales services, and maintenance contracts. Additionally, Yangzijiang may also benefit from partnerships with global shipping firms and financial institutions for financing projects, which can enhance its profitability. The company may also engage in joint ventures or collaborations to expand its market reach and leverage complementary expertise.

Yangzijiang Shipbuilding (Holdings) Financial Statement Overview

Summary

Strong profitability and improving margins (net margin rising to ~30% by 2025; EBIT margin ~31% in 2024–2025) and a conservatively levered balance sheet (debt-to-equity ~0.17 in 2025) support a high score. The main offset is volatile cash generation, with free cash flow dropping sharply in 2025 and weaker cash conversion versus net income.

Income Statement

Profitability and margins are a clear strength: net profit margin improved from ~13.6% (2022) to ~30.3% (2025), alongside stronger operating profitability (EBIT margin ~31% in 2024–2025 vs ~16.5% in 2022). Revenue has also expanded steadily from 2021–2025, with 2025 showing solid growth (~6.8%) after a near-flat 2024 growth rate. The main weakness is some historical volatility (notably the revenue decline in 2020) and the pace of revenue growth has been uneven, even as margins have surged.

Balance Sheet

Leverage looks conservative and improving: debt-to-equity is low (~0.17 in 2025) and down from ~0.26–0.27 in 2022–2024, giving the company balance-sheet flexibility. Equity and total assets are sizable and have grown versus 2022–2023 levels, and returns on equity are strong (~26.5% in 2025). A watch item is that equity was unusually high in 2021 relative to later years, which creates some historical noise in comparisons, but current leverage and returns remain healthy.

Cash Flow

Cash generation is the weak spot due to volatility. While 2023–2024 free cash flow was very strong (and closely tracked earnings in those years), 2025 saw a sharp drop in free cash flow (down ~53.7%) and lower conversion of profit into cash (free cash flow at ~57.7% of net income). Operating cash flow also fell meaningfully in 2025 versus 2024, indicating working-capital or project-timing swings. Positively, cash flow has demonstrated the ability to rebound strongly in prior years, but consistency is not yet proven.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.17B	26.54B	24.11B	20.71B	15.14B
Gross Profit	9.65B	7.61B	5.41B	3.20B	2.08B
EBITDA	9.35B	8.76B	5.31B	3.87B	3.23B
Net Income	8.54B	6.63B	4.10B	2.81B	3.70B
Balance Sheet
Total Assets	58.37B	54.56B	40.86B	32.97B	51.61B
Cash, Cash Equivalents and Short-Term Investments	26.17B	28.14B	16.58B	12.47B	28.58B
Total Debt	5.50B	6.80B	5.59B	4.57B	4.46B
Total Liabilities	26.09B	28.18B	19.72B	15.26B	15.55B
Stockholders Equity	32.16B	26.28B	20.94B	17.57B	35.92B
Cash Flow
Free Cash Flow	2.63B	11.90B	7.14B	3.73B	5.47B
Operating Cash Flow	4.56B	12.96B	7.97B	4.63B	6.14B
Investing Cash Flow	-2.53B	-1.17B	-2.29B	-1.14B	315.39M
Financing Cash Flow	-4.00B	-233.29M	99.08M	-5.08B	-728.21M

Yangzijiang Shipbuilding (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.34
• 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 4.34 is above the 20-day moving average (MA) of 3.54, above the 50-day MA of 3.51, and above the 200-day MA of 3.04, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 79.43 is Negative, neither overbought nor oversold. The STOCH value of 84.89 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
5LY	77 Outperform	S$604.98M	9.94	27.61%	0.60%	-0.58%	23.33%
BS6	74 Outperform	S$17.50B	10.89	30.76%	3.46%	0.42%	40.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEZ	63 Neutral	S$78.37M	13.41	28.37%	2.11%	-4.17%	-54.26%
A04	61 Neutral	S$319.00M	10.70	―	0.78%	―	―
F83	60 Neutral	S$532.94M	49.58	1.18%	―	6.34%	160.00%
5E2	56 Neutral	S$7.89B	25.10	4.07%	0.70%	25.68%	―