Yangzijiang Shipbuilding has reported earnings of RMB4.1 billion for FY2023, up 57% over the preceding FY2022.
Despite delivering fewer vessels, revenue in the same period was up 16.5% to RMB24.1 billion, as the company was contracted by customers to build larger and bigger ticket ships.
In FY2023, the company delivered 56 vessels, versus 67 completed in the preceding year.
For the year ended Dec 2023, the company achieved a higher net profit margin of 17%, up from 12.6% in FY2022.
The company plans to pay a final dividend of 6.5 cents, up from 5 cents per share paid for FY2022.
As of Dec 31, Yangzijiang has an order book of US$14.5 billion for 182 ships, which includes contracts for 97 vessels worth US$7.1 billion won in FY2023.
See also: Envictus reports profit turnaround with earnings of RM50.6 mil
Yangzijiang flags that a growing number of new orders are for so-called alternative-fuelled vessels, as the shipping industry gets on the sustainability trend in a bigger way.
"Our efforts in enhancing shipyard operational efficiencies and technical capabilities have proven to be a success. This has enabled us to improve our overall mix of products, producing vessels with a higher premium as evident during the period under review," says executive chairman Ren Letian.
"Maritime decarbonisation will remain the key growth driver for the industry in the mid-term. With the tightening of policies being more apparent now, ship operators are accelerating their vessel replacement plans to avoid potential financial impact from non-compliance," says Ren.
See also: PNE Industries reports earnings of $1.3 mil for FY2024, up 70.5% y-o-y
"With our technical capabilities, Yangzijiang Shipbuilding is well-positioned to ride on this upward trajectory and support the industry’s transition," he adds.
Yangzijiang Shipbuilding shares closed at $1.67 on Feb 27, down 1.18% for the day but up 29.46% over the past 12 months.
