Yangzijiang Shipbuilding Earnings 2025: Buying YZJ Shares in Singapore

Yangzijiang Shipbuilding (Holdings) Ltd., or Yangzijiang Shipbuilding, is one of the largest privately owned shipbuilders in China, with shipbuilding and offshore engineering as its core business. In April 2007, Yangzijiang Shipbuilding was listed on the Main Board of Singapore Exchange under the symbol 'BS6'.

Buying YZJ shares (SGX: BS6) could be a very lucrative opportunity for investors in the Singapore stock market to gain exposure to the vibrant Chinese economy and the expanding global shipping industry. It also offers potential capital appreciation and stable dividend income. This article will guide you through the process of buying YZJ shares (SGX: BS6) in Singapore, including choosing a broker, conducting research, and implementing an effective investment strategy.

Introduction to Yangzijiang Shipbuilding Earnings and YZJ Share Price

Before delving into how to buy Yangzijiang Shipbuilding shares in the Singapore stock market, it's essential first to understand the company's earnings. A company's earnings are a key indicator of its financial health and growth potential, which can significantly influence investment decisions. It is worth noting that Yangzijiang Shipbuilding stock has increased by 83% over the past year.

(Source: Google)

One significant source of revenue for Yangzijiang Shipbuilding is charter hire income, particularly from its shipping segment, highlighting its importance in the company's financial performance. Here is an in-depth look at Yangzijiang Shipbuilding's earnings:

Earnings Overview and Market Cap

Yangzijiang Shipbuilding has shown strong financial performance in recent years, driven by its core shipbuilding business and related segments such as shipping and ancillary services. Its earnings trends reflect the company's ability to adapt to market conditions, technological advancements, and global trade dynamics.

If you want to stay updated on the earnings of more company earnings information, moomoo provides an earnings calendar. This useful tool lets you view the earnings release dates of a wide range of companies, helping you make more informed investment decisions by keeping track of important financial announcements.

2024 H1 Earnings Highlights

Total Revenue: In the first half of 2024, the company reported a total revenue of approximately 13 billion yuan, a 15.3% year-on-year increase from the 11.3 billion yuan in the same period the previous year. The growth was mainly due to increased activities in the shipbuilding industry, with a rise in construction volume and higher prices for new ships.

Gross Profit: Gross profit reached 3.5 billion yuan, a substantial 65.1% increase compared to the first half of 2023. The gross profit margin expanded by 8.1 percentage points to 26.7%. This expansion in the margin indicates improved cost-efficiency and pricing power within the company.

Net Profit Attributable to Shareholders: Net profit attributable to shareholders soared 77.2% year-on-year to 3.06 billion yuan, setting a new historical high. This significant growth in net profit showcases the company’s strong operational and financial management.

Business Segment Revenue

1. Core Shipbuilding Business: The core shipbuilding segment was the primary contributor to the company’s revenue, accounting for 95.0% of the total sales. Its revenue increased by 16.3% year-on-year to about 12.4 billion yuan. The delivery of 35 new ships during this period, along with the upward trend in new ship prices, contributed to this growth.

2. Shipping Segment: The shipping segment reported revenue of 604 million yuan, a 13.5% year-on-year increase. This growth was fueled by an increase in charter rates, demonstrating the company’s ability to capitalize on favorable market conditions in the shipping market. The charter hire income earned by the shipping segment is a significant contributor to the company's overall revenue.

3. Other Businesses: The revenue from other businesses, which includes terminal services, trade, ship design services, and investment properties, amounted to 46.2 million yuan.

What to Consider in Yangzijiang Shipbuilding Earnings?

When delving into the financial reports of Yangzijiang Shipbuilding, it is essential to zero in on three crucial aspects: revenue expansion, the state of profitability and financial well-being, and the returns provided to shareholders.

• Revenue Growth: The Baltic Dry Index (BDI) is a crucial indicator. Its changes reflect the industry's health. A rising BDI may boost shipbuilding demand, so we must monitor it constantly. Outstanding orders also matter. The number and value of undelivered orders can predict future revenue growth. A large backlog of high-value orders is good for the company's future finances.

• Profitability and Financial Health: Profitability metrics are key. The gross margin, ideally 15% - 30%, shows the company's resilience to industry cycles. The net margin, best at 12% - 25% and above the industry average, ensures strong profitability. For financial stability, the debt-to-asset ratio below 50% means manageable debt. A current ratio above 1 guarantees enough liquidity for short-term obligations.

• Cash Flow and Shareholder Returns: Cash flow is vital for a company's financial health. We need to watch free cash flow for stability. Growth in cash reserves shows financial strength. Regarding shareholder returns, dividend payouts are important. An increased dividend payout ratio means better returns for shareholders.

Understanding YZJ Share Price Trends and Movements

Before you embark on the journey of buying Yangzijiang Shipbuilding shares (SGX: BS6) in the Singapore stock market, it is crucial to gain a comprehensive understanding of its share-price trends and movements. These insights can help you make more informed investment decisions and manage your risk effectively.

Historical Performance of YZJ Share Price

YZJ's share price has been influenced by a variety of factors over the years. In periods of strong global economic growth and rising trade volumes, the company has often witnessed an upswing in its share price. For example, during times when there is high demand for shipping services, such as the recovery from the post-financial crisis in certain regions, YZJ's share price has shown positive momentum. This is because as the demand for ships increases, so does the order book of shipbuilding companies like YZJ, leading to improved financial performance and, consequently, higher share prices.

Industry Factors Influencing YZJ Share Price

The shipbuilding industry is highly cyclical, and YZJ's share price is closely tied to these cycles. New building demand is influenced by factors such as the age of the existing fleet, technological advancements, and environmental regulations. When the average age of the global merchant fleet is high, there is usually an increased demand for new, more efficient ships. YZJ, with its focus on innovation and quality, can benefit from such trends, potentially leading to an increase in its share price.

Environmental regulations, such as the International Maritime Organization's (IMO) emissions standards, also play a significant role. As shipowners are required to upgrade or replace their vessels to meet these standards, YZJ can secure new orders for eco-friendly ships. If the company is successful in this regard, it can positively impact its financials and share price.

Market Sentiment and YZJ Share PriceMarket sentiment towards the shipbuilding industry and YZJ, in particular, can profoundly impact its share price. Positive news about the company, such as winning large-scale contracts, technological breakthroughs, or strategic partnerships, can boost investor confidence and drive up the share price. On the other hand, negative news, like project delays, cost overruns, or management-related issues, can lead to a decline in share price as investors become more risk-averse.

In addition, broader market sentiment towards emerging markets and the shipping sector can also influence YZJ's share price. For example, if investors are generally bullish on emerging market stocks, YZJ, being a well-known company in this space, may see an increase in demand for its shares.

Singapore STI Index New High: Impact on YZJ Share Price in 2025

The Straits Times Index (STI) is a key stock market index in Singapore, which tracks the top 30 companies listed on the Singapore Exchange (SGX). The Straits Times Index (STI) experienced a significant increase of 16.9% by December 31, 2024, climbing to its highest level since 2007. The growth of the STI was mainly spurred by the performance of Singapore's Big Three banks, yet other remarkable performers such as Yangzijiang Shipbuilding also furnished investors with excellent returns.

In this section, we will talk about how STI's increase might influence the share price of YZJ throughout the year 2025.

(Source: SGX, Data as of Dec 26)

A new high in the Straits Times Index (STI) typically fosters a bullish market mood, which in turn can attract more investors to Yangzijiang Shipbuilding (YZJ). As investor interest in YZJ grows, the demand for its shares also increases, potentially driving up the share price.

While the STI's new high presents opportunities for YZJ's share price to increase, a complex web of factors will determine the actual impact in 2025. Investors need to closely monitor both the broader market trends as represented by the STI and YZJ's internal and external operational factors to make informed investment decisions.

Why Invest in Yangzijiang Shipbuilding Share in Singapore?

YZJ Shipbuilding has a proven track record of creating value for shareholders. With a landscape filled with numerous investment opportunities, understanding why Yangzijiang Shipbuilding shares could be a smart addition to one's portfolio is crucial. Here are some reasons why investing in YZJ stock (SGX: BS6) could be a smart move:

Strategic location

Based in China, YZJ benefits from the country's economic growth and government support for the maritime industry. China is a major player in global trade and YZJ's strategic location puts it in a good position to capitalize on this trend.

Diversified Product Portfolio: Offshore Marine Equipment Construction

Yangzijiang Shipbuilding offers a wide range of shipbuilding services, including the construction of bulk carriers, container ships, and offshore vessels. The company also produces various commercial vessels such as containerships, oil tankers, and gas carriers, catering to both domestic and international markets. This diversification helps to reduce the risks associated with any single market segment.

Strong Financial Performance

YZJ has consistently reported strong financial performance with a healthy balance sheet and relatively stable revenue growth. The company's first-half revenue rose 15 percent to CNY13.05 billion, while profits jumped 77 percent to CNY3.06 billion. Earnings per share for the same period rose to RMB0.7742 from RMB0.4369 a year earlier.

Attractive Dividend

With an uninterrupted history of dividend payouts from 2008 to the present, YZJ can provide investors with a steady income stream. The company's dividend yield of 2.55% is attractive compared to many other stocks in the market.

Future Orders in Overseas Markets

According to a document filed with the Singapore Exchange on 11 November, YZL's new orders this year are worth US$11.6 billion (S$15.4 billion), of which US$3.1 billion were placed between September and November, bringing the company's total to US$1.6 billion. Strong business volumes and expansion trends are expected to make the company more lucrative in the future.

Innovative Practices

The company is committed to innovation and sustainability, investing in advanced technologies and environmentally friendly practices. This forward-thinking approach ensures that YZJ remains competitive in an ever-evolving industry.

How to Buy Yangzijiang Shipbuilding Share in Singapore

In the dynamic world of global finance, investing in the shares of a well-established company like Yangzijiang Shipbuilding (YZJ) in the Singapore stock market presents an alluring opportunity. Buying YZJ shares (SGX: BS6) in Singapore involves a few simple steps:

Choose a Broker

Choose a reputable stockbroker who offers a wide range of investment opportunities, including the Singapore and China stock markets. Moomoo SG stands out as the top choice in Singapore, with over 1 million Singapore users putting their trust in it. It boasts a user-friendly interface, in-depth market analysis tools, and competitive commission rates, enabling investors to easily navigate investment options.

Open a Trading Account

Complete the account opening process by providing the necessary documentation and personal information. Make sure you understand the terms and conditions of the trading platform.

With Moomoo SG, you can enjoy the remarkable benefit of 0-commission* trading when investing in Singapore stocks, allowing you to maximize your returns by eliminating this significant cost factor in your investment journey.

*T&Cs and other fees apply.

Fund your Account

Transfer funds to your trading account using the available payment methods. Most brokers accept bank transfers, credit/debit cards, and e-wallets.

Research YZJ Shares

Conduct thorough research on YZJ Shipbuilding before making a purchase. Analyze the company's financial statements, recent news, and market trends to make an informed decision.

Place an Order

When you are ready to place an order to buy YZJ shares (SGX: BS6) through your broker's trading platform, you can choose between a market order, limit order, or stop-loss order based on your investment strategy.

Monitor your Investments

Monitor the performance of your YZJ stock regularly and keep up to date with company and market news. Adjust your portfolio as necessary to meet your investment objectives.

Strategies for Investing Yangzijiang Shipbuilding Share in Singapore

Investing in Yangzijiang Shipbuilding stock (SGX: BS6) can be a profitable investment, but it requires a well-thought-out strategy to manage returns and control risk. Below are several strategies that different types of investors can consider, along with their characteristics and benefits:

Fundamental Analysis

Assess the intrinsic value of YZJ by analyzing financial statements, industry trends, and economic conditions. This helps to identify undervalued stocks with long-term growth potential and provides a deeper understanding of a company's financial health and future prospects. This strategy is suitable for individuals looking for companies with strong growth potential, as well as those wishing to build a portfolio of high-quality stocks.

Technical Analysis

Uses charts and technical indicators to identify trends and patterns in the price of YZJ shares (SGX: BS6), helping investors determine the best time to buy and sell shares based on historical price action and volume data. Technical analysis helps investors make quick profits from short-term price movements and relies on quantitative data to reduce emotional bias. Change strategies are suitable for active traders and investors who have a good understanding of technical indicators and chart patterns.

Long-term Investment Strategy

Hold YZJ shares (SGX: BS6) for the long term, usually several years, to take advantage of capital appreciation and regular dividends, and to benefit from the company's ongoing performance by avoiding short-term market volatility. This strategy is suitable for conservative investors, such as retirees and beginners, who prefer a low-risk, steady growth approach.

Dollar Cost Averaging (DCA)

Diversify over time by investing a fixed amount of money in YZJ shares at regular, pre-determined intervals, regardless of the share price.DCA reduces the risk of buying at the wrong time by averaging the purchase price and also encourages disciplined investment habits. This strategy is used by those who want to participate in the market but are wary of short-term volatility, such as working-class people who can set aside a portion of their monthly income for investment and those saving for long-term goals such as retirement or education.

Dividend Reinvestment Plan (DRIP)

Automatically reinvests dividends received from YZJ shares (SGX: BS6) to purchase additional shares, increasing the number of shares held over time and accelerating portfolio growth through compounding.DRIPs typically offer lower transaction fees than manual purchases. The DRIP strategy is suitable for those who wish to increase their holdings over time without active management, as well as for individuals who prefer a reliable source of passive income.

Yangzijiang Shipbuilding Company Overview

Established in 1956 and headquartered in Jinjiang, China, Yangzijiang Shipbuilding (Holdings) Ltd. is a prominent investment holding company specializing in agency services for shipbuilding and related activities. Over the decades, it has grown to become a key player in the maritime industry, leveraging its strategic location and extensive experience.

The company operates through four main segments: Shipbuilding, Investment, Trading, and Other. These diverse segments enable Yangzijiang Shipbuilding Holdings to cater to a wide range of market needs, both in domestic and overseas markets. By conducting its business across various regions, the company ensures a robust presence in the global maritime industry, adapting to different market dynamics and customer requirements.

Business Segments

Yangzijiang Shipbuilding Holdings Ltd’s operations are structured into four primary segments, each contributing to the company’s overall success and stability.

Investment Segment

The Investment segment consists of micro-financing and investments in financial assets. This segment plays a crucial role in Yangzijiang Shipbuilding Holdings Ltd’s business model by providing a steady source of income and helping to diversify the company’s revenue streams. Through debt investments at amortized cost and other financial ventures, the investment segment ensures financial stability and growth, complementing the company’s core shipbuilding activities. This strategic diversification allows Yangzijiang Shipbuilding Holdings to mitigate risks and capitalize on various financial opportunities, reinforcing its position in the industry.

Opportunities and Risks for Investing Yangzijiang Shipbuilding Share

Investing in Yangzijiang Shipbuilding (YZJ) involves both significant opportunities and potential risks. Understanding these factors can help you make a more informed investment decision.

Opportunities for YZJ Share Investment

Economic Growth and Trade Expansion

China’s strong economic growth and increasing global trade volumes have created a favorable environment for shipbuilding companies such as YZJ, driving demand for shipping services and setting the company up for long-term growth. Additionally, YZJ's Shipping segment generates charter hire income from vessel-owning companies, further enhancing its revenue streams.

Government Support and Incentives

The Chinese government offers a variety of incentives and policies to support the maritime industry, including tax breaks and infrastructure development, which can significantly improve YZJ’s competitiveness and operational efficiency.

Technological Advancement and Innovation

YZJ's commitment to innovation and sustainable practices, coupled with ongoing R&D efforts, ensures that the company remains at the forefront of the industry, meeting future market demands and maintaining a competitive edge.

Risks for YZJ Share Investment

Market Volatility

Equity markets can be volatile and YZJ share prices may fluctuate in response to macroeconomic, geopolitical and market factors, creating challenges for short-term investors and requiring a long-term perspective to navigate effectively.

Regulatory Changes

Changes in government regulations and policies, such as environmental standards and trade policies, may affect YZJ's operations and profitability, requiring ongoing compliance and potential adjustments to business strategy.

High Competition

The shipbuilding industry is highly competitive and YZJ faces intense competition from domestic and international players, which may affect pricing, market share, and profitability, requiring continuous innovation and cost management.

Supply Chain Disruptions

Disruptions in the global supply chain can affect the availability of raw materials and components, resulting in increased production costs and delays, which may affect YZJ's operational efficiency and financial performance.

Buy Yangzijiang Shipbuilding Share with Moomoo Singapore

Using Moomoo Singapore to explore Yangzijiang Shipbuilding (YZJ) shares (SGX: BS6) offers several distinct advantages, particularly when considering the characteristics of YZJ and the broader manufacturing industry. Here are the key benefits:

1. Competitive Pricing: Moomoo SG offers competitive commission rates, and new traders enjoy a commission-free period for trading SG Stocks, ETFs, and REITs. And 0% commission forever for trading US stocks. In addition, there are no hidden fees and a completely transparent fee structure.

2. User-Friendly Platform: Moomoo's intuitive and user-friendly interface simplifies the process of buying YZJ shares. Whether you are a beginner or an experienced investor, the platform provides easy navigation, clear market data, and straightforward order placement, ensuring a smooth and efficient trading experience.

3. Advanced Research Tools: Moomoo offers a wide range of advanced research tools and real-time market data, which are crucial for making informed decisions about YZJ shares (SGX: BS6). These tools include financial reports, analyst ratings, and technical indicators, helping investors stay ahead of market trends and make well-informed investment choices.

4. Secure and Reliable: Moomoo SG is a trusted and regulated broker, ensuring that your investments are secure. The platform uses advanced security measures like encryption to protect your financial information and transactions, giving you peace of mind when investing in YZJ shares (SGX: BS6).

5. Educational Resources: Moomoo offers a wealth of educational resources, including articles, webinars, and tutorials, which can help investors deepen their understanding of the manufacturing industry and YZJ's business model. These resources are invaluable for both new and experienced investors looking to improve their knowledge and skills.

Conclusion: Investing in Yangzijiang Shipbuilding Shares

An investment in Yangzijiang Shipbuilding shares (SGX: BS6) may be a valuable addition to a Singapore investor's portfolio, providing exposure to the strong shipping industry and the growing Chinese economy. By understanding the company's strengths, market dynamics, and investment strategy, investors can make informed decisions. The powerful trading platform moomoo provides you with all the tools and resources you need to invest in YZJ stock (SGX: BS6).

Remember always to do your research and choose an investment strategy that best suits your financial goals. In addition, you can reduce the overall risk of your portfolio by diversifying your investments across different sectors and asset classes.