China’s Yangzijiang raises order win target for 2017

China’sYangzijiang Shipbuilding Holdings Ltd raised its 2017 order win target to $2 billion on Friday after exceeding its previous forecast and reporting a surge in third-quarter profit.

The company received new orders of 59 vessels with a combined value of $1.6 billion, year-to-date, it said in a statement on Thursday, above its previous $1.5 billion forecast and nearly double the 2016 figure.

Yangzijiang’s order book stood at $4.3 billion as of Sept. 30. It expects new orders worth $2 billion for 2018.

Yangzijiang is considering the acquisition of assets and technologies to build liquefied natural gas (LNG) and liquefied petroleum gas (LPG) vessels, Executive Chairman Ren Yuanlin told reporters on Friday.

Net profit rose to 866 million yuan ($130.5 million) in the third quarter, boosted by non-operating gains, from 281.2 million yuan ($42.4 million) a year ago, the company reported late on Thursday.

However, shipbuilding gross margins fell on exchange rate appreciation and an increase in raw material costs, both of which remain a concern for the company.

Shares of the shipbuilder, which has a market value of about $4.8 billion, were trading 4.5 percent higher on Friday, while the broader market was up 0.1 percent.
Source: Reuters