S63
is the winner for generating the best weighted return on equity (ROE) within this category. There is no winner in the profit after tax (PAT) growth category.
Yangzijiang Shipbuilding can trace its history back to 1956, when it was started as a shipbuilding cooperative. Following years of growth, the company has three giant dry docks and three large- and medium-sized slipways, with an annual shipbuilding production capacity of 7 million dwt. It manufactures large and medium-sized container ships, bulk carriers, oil tankers, liquid carriers and other clean energy ships, multi-purpose ships, and ocean engineering equipment too. Its shipbuilding output has earned it a top-five rank in China’s shipbuilding industry since 2009.
Yangzijiang Shipbuilding was listed on the Singapore Exchange S68
(SGX) in 2007, near the start of a listing wave of small China-based companies dubbed “S-chips”. However, the company differed from most S-chips because of the RMB5.5 billion raised back then, which put it in the big league and was included as a component stock of the Straits Times Index.
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Yf8
, with a book value of $4.3 billion as of December 2021, was listed on the Singapore Exchange. Under the listing terms, Yangzijiang Shipbuilding’s shareholders were entitled to a share of Yangzijiang Financial Holding for each share they held. For the three years under consideration, Yangzijiang Shipbuilding’s returns to shareholder grew at a CAGR of 40.7%.
According to Yangzijiang Shipbuilding, the spinoff would give the financial services unit an independent platform to raise more funds to grow its investing and wealth management services across the region instead of focusing mainly on debt which was the case before the spinoff. As for Yangzijiang, Shipbuilding, it would become a more pure-play shipbuilding and shipping business, making it more directly comparable to other global names.
ST Engineering, another index stock, with a weighted ROE of 23% in the three years under review in this year’s BDC, has been named winner of this category. In recent years, the company has undergone some internal restructuring so its new business units can better capture new markets. Its three key business areas now are defence and public security, commercial aerospace, and smart cities and urban solutions. To beef up its capabilities and to gain new beachheads, ST Engineering, in March 2022, completed its largest acquisition, paying US$2.7 billion for the US-based traffic management system TransCore.