Yangzijiang Shipbuilding 1Q13 Net Profit Down 30%

Yangzijiang Shipbuilding (YZJ) reported a 22% YoY fall in revenue to RMB2.9b and a 30% drop in net profit to RMB717.2m in 1Q13, accounting for 24% and 26% of our full year estimates, respectively, according to OCBC Investment Research.

YZJ delivered only nine vessels in 1Q13, compared to 15  in 1Q12.

OCBC noted though that gross profit margin from the shipyard operations remained healthy at 25.9% vs. 26.4% in 1Q12 and 24.1% in 4Q12.

Still, the group entered eight new shipbuilding contracts totaling $237 million recently, bringing its current order book to $3.31 billion.