Yangzijiang's net profit up 13% to $753.9m in FY14

On back of healthy shipbuilding margins.

Yangzijiang reported that its net profit grew 13% year-on-year to $753.9m (RMB3.48b) in FY14, on back of its robust shipbuilding gross margin.

Full year shipbuilding gross margin stood at 20%, though it moderated slightly in the fourth quarter due to the maiden recognition of a jack-up project.

According to DBS, Yangzijiang is set to outperform peers with 5- to 10-ppt higher margins through better newbuild prices, payment terms and efficiency as well as active cash management.

Yangzijiang also offers relatively stable profits with upside potential from the recognition of relocation fees from the government and profits from disposal of previously cancelled vessels.