Hot stocks: Yangzijiang and Jiutian Chemical down more than 5% over latest news

SHARES of Yangzijiang Shipbuilding and Jiutian Chemical are down 5.7 per cent and 5.8 per cent respectively since the start of trading on Tuesday (Nov 2).

Jiutian Chemical was the top traded counter and Yangzijiang was the third most traded counter on the Singapore Exchange by volume as at 10.03 am. Jiutian Chemical saw 68.4 million shares changing hands while Yangzijiang saw 32 million shares traded.

Yangzijiang shares hit a low of S$1.30, down 7.1 per cent or S$0.05 at 9.09 am. Jiutian Chemical shares reached a low of S$0.079, down 5.7 per cent or S$0.03 at 9 am.

No married deals were recorded for both counters, according to ShareInvestor data.

Gross profit for Yangzijiang had fallen 20.8 per cent in Q3 FY21, according to a business update filed after market close on Monday (Nov 1). This was despite revenue rising 25 per cent, as higher raw material costs squeezed shipbuilding margins.

Meanwhile, Jiutian Chemical's controlling shareholder, Anyang Chemical Industry Group, is currently undergoing an asset and debt restructuring exercise. The board in a bourse filing on Monday said the exercise would not affect the operation of the group.

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However, the exercise may result in an asset impairment for Jiutian Chemical due to a non-trade amount of 145 million yuan (S$30.5 million) from an associated company, Anyang Jiujiu Chemical Technology.

Read more:

• Yangzijiang gross profit down 20.8% in Q3 despite 25% revenue rise as raw material prices climb
• Jiutian Chemical posts record H1 earnings of 160.3m yuan