Yangzijiang profit up 82%

Chinese firm Yangzijiang Shipbuilding is charging full steam ahead amid the gathering storm clouds over an industry facing slowing demand and oversupply. Executive chairman Ren Yuanlin said on Tuesday he believes the Chinese government's US$586 billion (S$893 billion) stimulus package will help the firm weather the economic downturn and boost demand for ships in China.
The firm, which reported an 82 per cent soar in net profit to 1.6 billion yuan, said it expects continued growth in 2009 as it ramps up the capacity of its new shipbuilding yard in China's Jingjiang city.
The firm's healthy order book stands at 155 vessels, with a value of US$6.9 billion as at Dec 31, which will keep it busy for the next four years, said Mr Ren.
Meanwhile, the firm has a strong net cash position of 3.1 billion yuan which will help it fund acquisitions of distressed assets, he said.
Revenue for the firm grew 91 per cent to 7.4 billion yuan with 27 vessels being delivered on schedule, up from 16 vessels in 2007.
The group's earnings per share for 2008 was 45.13 fen, up from 28.2 the previous year, while net asset value was 118.12 fen, down from 126.61 fen. It is proposing a final dividend of 1.8 cents per share.