Yangzijiang Shipbuilding (Holdings) (BS6) AI Stock Analysis

• Market Cap: $13.55B
• Dividend Yield: 3.6%
• Average Volume (3M): 24.36M
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.08
• Revenue Growth: 0.42%
• EPS Growth: 40.48%
• Country: SG
• Employees: 7,306
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.19
• Shares Outstanding: 3,974,076,700
• 10 Day Avg. Volume: 23,542,280
• 30 Day Avg. Volume: 24,361,880
• PEG Ratio: 0.15
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 5.30
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 0.64
• Enterprise Value/Ebitda: 0.67
• 1Y Price Target: $3.83
• Price Target Upside: 14.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: S$4.00 ▲(20.12% Upside)

Yangzijiang Shipbuilding's strong financial performance and attractive valuation are the primary drivers of its high stock score. The positive technical indicators further support the stock's potential for growth. The absence of earnings call and corporate events data does not detract from the overall positive outlook.

Positive Factors

Strong Order Book

The robust order book with long-term contracts ensures steady revenue streams and strengthens market position, supporting long-term growth.

Financial Health

Prudent leverage and effective use of equity enhance financial stability, allowing for strategic investments and resilience against market fluctuations.

Revenue Growth

Consistent revenue growth indicates effective market penetration and product demand, supporting long-term business sustainability.

Negative Factors

Contract Termination

Contract cancellations can disrupt revenue expectations and indicate potential challenges in client relationships or market conditions.

Moderate Equity Ratio

A moderate equity ratio may limit financial flexibility, affecting the company's ability to leverage assets for growth opportunities.

Cash Flow Conversion

Lower cash flow conversion may indicate challenges in turning profits into cash, potentially impacting liquidity and investment capacity.

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

Yangzijiang Shipbuilding exhibits strong financial health with consistent revenue growth, high profitability margins, and effective cash flow management. The low leverage and high return on equity further underscore its solid financial foundation.

Income Statement

Yangzijiang Shipbuilding has demonstrated strong revenue growth with a 2.72% increase in 2024, building on consistent growth over previous years. The company maintains robust profitability, with a high net profit margin of 24.99% and an impressive EBIT margin of 31.28%. These metrics indicate effective cost management and operational efficiency, contributing to strong financial performance.

Balance Sheet

The company's balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.26, indicating prudent leverage management. The return on equity is strong at 25.24%, showcasing effective use of shareholder funds to generate profits. However, the equity ratio is moderate, suggesting room for improvement in asset financing.

Cash Flow

Yangzijiang Shipbuilding has shown significant improvement in cash flow, with a free cash flow growth rate of 2.69% in 2024. The operating cash flow to net income ratio of 0.52 and a high free cash flow to net income ratio of 0.92 highlight the company's ability to convert earnings into cash, supporting its financial flexibility and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.37B	26.54B	24.11B	20.71B	15.14B	14.84B
Gross Profit	8.57B	7.61B	5.41B	3.20B	2.08B	4.22B
EBITDA	8.26B	8.76B	5.31B	3.87B	3.23B	3.91B
Net Income	7.76B	6.63B	4.10B	2.81B	3.70B	2.52B
Balance Sheet
Total Assets	54.43B	54.56B	40.86B	32.97B	51.61B	44.91B
Cash, Cash Equivalents and Short-Term Investments	24.37B	28.14B	16.58B	12.47B	28.58B	21.59B
Total Debt	6.05B	6.80B	5.59B	4.57B	4.46B	4.24B
Total Liabilities	26.59B	28.18B	19.72B	15.26B	15.55B	11.53B
Stockholders Equity	27.74B	26.28B	20.94B	17.57B	35.92B	32.34B
Cash Flow
Free Cash Flow	5.68B	11.90B	7.14B	3.73B	5.47B	-905.76M
Operating Cash Flow	6.74B	12.96B	7.97B	4.63B	6.14B	-611.54M
Investing Cash Flow	-1.94B	-1.17B	-2.29B	-1.14B	315.39M	-1.04B
Financing Cash Flow	-2.69B	-233.29M	99.08M	-5.08B	-728.21M	-1.90B

Yangzijiang Shipbuilding (Holdings) Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3.33 is below the 20-day moving average (MA) of 3.38, above the 50-day MA of 3.27, and above the 200-day MA of 2.61, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.27 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	79 Outperform	$13.55B	9.51	30.76%	3.60%	0.42%	40.48%
5LY	71 Outperform	S$390.16M	18.25	11.57%	0.96%	-13.64%	-28.75%
5E2	65 Neutral	$7.40B	27.75	4.07%	0.70%	25.68%	―
A04	64 Neutral	S$257.26M	16.89	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEZ	62 Neutral	S$63.41M	10.34	28.37%	―	-4.17%	-54.26%
F83	53 Neutral	S$546.38M	46.92	1.18%	―	6.34%	160.00%

Yangzijiang Shipbuilding (Holdings) Corporate Events

Yangzijiang Shipbuilding Secures US$0.44 Billion in New Contracts

Yangzijiang Shipbuilding has secured new contracts for eight vessels, valued at US$0.44 billion, including containerships and bulk carriers, with deliveries scheduled between 2027 and 2029. This adds to a total of 44 contracts worth US$1.90 billion for the year, highlighting the company’s robust order book and strong industry positioning, particularly with long-term partner Seaspan Corporation.

Yangzijiang Shipbuilding Terminates $180 Million Oil Tanker Contracts

Yangzijiang Shipbuilding (Holdings) Ltd. announced the termination of contracts for four 50,000DWT MR oil tankers, valued at approximately US$180 million, due to the buyer’s involvement in a scheme to circumvent U.S. sanctions. Despite the termination, the company does not anticipate a significant impact on its net tangible assets or earnings per share for the financial year ending December 2025.

Yangzijiang Shipbuilding Secures New Contracts Worth $0.92 Billion

Yangzijiang Shipbuilding (Holdings) Ltd has announced the acquisition of additional shipbuilding contracts for 22 vessels, valued at US$0.92 billion. These contracts, which include containerships, gas carriers, and bulk carriers, are scheduled for delivery between 2027 and 2029. This brings the total number of shipbuilding contracts secured by the Group in 2025 to 36, with an aggregate value of US$1.46 billion. The new contracts are not expected to significantly impact the company’s earnings for the financial year ending December 2025.