For the Financial Year of 2015, Yangzijiang (BS6) continues to show resiliency amid some challenging headwinds. As you may know, the oil & gas and shipping industry are at its all time lows. Many of the smaller peers in the industry have either consolidated or have impairments that are sustainable in the long term.

Despite the low shipping demand, low shipping rates and overcapacity, YZJ has managed to maintain a strong order book till 2018 and finds diversification by adding the LNG Carrier to its portfolio, providing shareholders with value by distributing 4.5 cents dividend per share for the FY15/16. 

YearTotal Amount (SGD$)
20160.045
20150.055
20140.05
20130.05
20120.055
20110.045
20100.035
20090.018
20080.02565

In its latest financial report, revenue increased 4% yoy, of which, the Shipbuilding Related Segment contributed 91.7% to the Group’s revenue, whilst the Held-to-Maturity and Micro Finance Business under Investment Segment contributed 8.3% in total. However, the net profit attributable to shareholders had dropped by 29% yoy.

The drop in net profit could be attributed to several impairments to the shipbuilding arm and the increased financial costs of borrowing in USD (Due to the strengthening of USD in the recent year). Still, this metric is worth a closer look especially if the market continues to be in a prolonged state of slump.

I will be looking forward to receiving the $405 from the 9 lots of  Yangzijiang, to be paid on 13-MAY-2016.


Yours,
Dream Chaser

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