3.6 billion net profit! China Money Making Shipyard shows transcripts

Net profit of 3.6 billion yuan, orders of 36 vessels of 1.5 billion US dollars, hand-held orders of 113 vessels reached 3.9 billion US dollars, still ranked first in China, in the past 2018, Yangzijiang Shipbuilding Group's performance continued to grow steadily, becoming Singapore Securities One of the stocks that have performed well on the exchange will continue to be "China's money-making shipyard" without any surprise. At the same time, the Yangtze River Shipping Group raised its 2019 order and targeted the LNG ship orders.

Net profit reached 3.6 billion yuan in 2018, ranking first in China in terms of hand-held orders

On March 1, Yangzijiang Shipbuilding Group released its full year financial results for 2018. According to financial report data, Yangzijiang Shipbuilding Group's revenue reached 23.2 billion yuan last year, an increase of 21% compared with 2017, and net profit reached 3.6 billion yuan. In the shipbuilding sector, Yangzijiang Shipyard delivered 46 new ships in 2018, and 33 ships in 2017. The gross profit margin of the core shipbuilding business is stable at 18%. As of December 31, 2018, the Yangtze River Shipping Group had a hand-held order volume of $3.9 billion.

According to financial report data, Yangzijiang Shipbuilding Group's core shipbuilding business revenue increased by 14% year-on-year to reach 14 billion yuan. With the increase in trading activity, the transaction business income increased from 5.4 billion yuan in 2017 to 7 billion yuan. Revenue from other shipping related businesses such as shipping logistics & chartering, ship design services and shipbreaking increased from 393 million yuan in 2017 to 581 million yuan. The increase in revenue was attributed to the acquisition of a wholly-owned subsidiary in 2018. There are ship charter rates and chartering income increases.

The data shows that the gross profit margin of the core shipbuilding business of Yangzijiang Shipbuilding Group remained at 18% in 2018, a slight increase compared to 2017. Group-level gross margins rose from 17% in 2017 to 19% in 2018. The net profit attributable to shareholders of the Yangtze River Shipping Group was 3.6 billion yuan, an increase of 23% compared with 2.9 billion yuan in 2017. Fully diluted earnings per share increased from 75.59 points in 2017 to 91.34 points.

In the last quarter of 2018, Yangzijiang Shipbuilding Group's revenue was about 4.945 billion yuan, down from 6.355 billion yuan in the same period of 2017; but the net profit was about 1.245 billion yuan, compared with 678 million yuan in the same period of 2017. It has increased by 84%.

The financial position of the Yangtze River Shipping Group was further strengthened in 2018. As of December 31, 2018, the total gearing ratio decreased from 18.4% on December 31, 2017 to 13.7%. As the borrowing continued to decrease, the Group's net cash increased from RMB 1.3 billion on December 31, 2017 to RMB 2.8 billion. Net asset value per share increased from 6.52 yuan on December 31, 2017 to 7.32 yuan.

In 2018, the Yangtze River Shipping Group received a total of 36 ships with a total value of 1.5 billion US dollars. These new ship orders include 5 12690TEU container ships, 3 2700TEU container ships, 2 2400TEU container ships, 2 1800TEU container ships, 3 83500 DWT combined ships, 15 82000 DWT bulk carriers, and 2 180,000 deadweights. Tons of bulk carriers and four 208,000 dwt bulk carriers.

As of December 31, 2018, the Yangtze River Shipping Group had 113 orders with a total value of 3.9 billion US dollars, ranking first in China and fifth in the world, ensuring the Group's shipyard facilities to maintain health utilization rate by 2021. Provide a stable source of income.

Received quality stocks in Singapore and are expected to receive more LNG ship orders this year

The Yangtze River Shipping Group said in its earnings report that the global shipbuilding market continued to recover in early 2018, but the recovery momentum was adjusted in 2018 due to continued trade tensions and the shipowner’s adjustment of the booking speed due to the entry into force of the 2020 global sulfur emission cap rule. It gradually weakened later in the year.

Although global economic growth and Sino-US trade tensions have brought uncertainty, research shows that the fundamentals of the shipping and shipbuilding market have improved in 2019. Under such expectations, the Yangtze River Shipping Group raised its orders for this year to US$2 billion, hoping to receive more orders for LNG ships and tankers.

In October 2018, the Yangtze River Shipping Group announced the establishment of a joint venture shipbuilding company with Japan's Mitsui E&S Shipbuilding and Mitsui & Co., Ltd., expanding its customer base with diversified ship types and new shipbuilding business areas, mainly LNG-related ships. The joint venture is expected to further enhance the shipbuilding capacity of the Yangtze River Shipping Group, upgrade the Group's ship product portfolio, and create possibilities for order growth. The joint venture company will be established at the Taicang Shipyard of the Yangtze River Shipping Group. In January of this year, the Yangtze River Shipping Group was one of the stocks that performed well on the Singapore Stock Exchange, with an average increase of 14.4%. Analysts at DBS in Singapore believe that the Yangtze River Shipping Group has a solid balance sheet. Through cooperation with Mitsui & Co., Ltd. and Mitsui E&S Shipbuilding, the Yangtze River Shipping Group plans to promote the LNG/LPG ship sector and enhance its long-term development prospects. DBS analysts pointed out that as South Korea promotes shipbuilding industry integration, it will help alleviate overcapacity and ease competitive pressures. Shipyards that survive the fierce market competition will have strong pricing advantages, and new shipbuilding prices may As a result, the Yangtze River Shipping Group has “good conditions” for shipbuilding integration and recovery.

Ren Yuanlin, chairman of the Yangtze River Shipping Group, pointed out: "The recovery of the shipbuilding market is accompanied by some uncertainties. After several business cycles, the Yangtze River Shipping Group has developed into an elastic entity that has always performed well under unstable market conditions. Recognizing our strength in the construction of container ships and bulk carriers, our handheld orders will continue to provide a stable source of revenue for the next few years."

Ren Yuanlin said: "We are also very pleased to establish a new joint venture with Mitsui E&S Shipbuilding and Mitsui & Co., Ltd. Combining our comprehensive advantages in shipbuilding, technology and customer network will lay the foundation for a strong enterprise to meet customers' high-tech green The demand for ships, especially in the LNG ship market. The joint venture will help us upgrade our product portfolio and take our growth prospects to new levels."