Stiff competition hits Yangzijiang Q3 gain

Singapore

YANGZIJIANG Shipbuilding emerged from a choppy third quarter with a 16 per cent year-on-year fall in net profit to 680.7 million yuan (S$150 million) despite a 10 per cent rise in revenue to 4.1 billion yuan on increased shipbuilding order.

The China-based yard was squeezed by poorer margin amid stiffer competition in the face of slower newbuild demand growth. Group cost of sales jumped 18 per cent resulting in an 8 per cent drop in gross profit to 976.6 million yuan.

For the three months ended Sept 30, YZJ delivered nine vessels, compared with eight for the last corresponding quarter. Revenue from the shipbuilding business rose 9 per cent to 3.34 billion yuan, but gross profit margin in this key segment fell three percentage po…