Revenue, which came in at RMB12.8 billion, is broadly in-line at 45% of the pair’s FY2025 forecast.
CGS International (CGSI) analysts Lim Siew Khee and Megahna Kande are raising their target price on Yangzijiang Shipbuilding (YZJ) to $3.90 from $2.72 previously after the group’s 1HFY2025 ended June 30 results. The analysts have maintained their “add” call on the stock.
For the 1HFY2025, YZJ’s net profit of RMB4.18 billion ($750 million) exceeded Lim and Kande’s expectations, forming 60% and 57% of theirs and Bloomberg consensus FY2025 forecasts respectively. They attribute this to lower steel prices, which drove shipbuilding gross margin to 35%, against their estimate of 29%.
