Yangzijiang Shipbuilding (Holdings)

[CityFarmer]

Time for a review again, after the quarterly report. The trading biz seems booming. The government compensation for relocation, is delayed for quite a while. It should be already in the book, more than one year ago...

(vested)

Yangzijiang posts 16% decline in earnings for 3QFY2015

SINGAPORE (Nov 4): Yangzijiang Shipbuilding posted a 16% decline in earnings to RMB680.6 million ($150.2 million) for 3QFY2015.

Revenue grew 10% to RMB 3.7 billion, on the back of high revenue contributions from all its business segments. Revenue from its shipbuilding business grew 9% to RMB3.3 billion, owing to the nine  vessels delivered during the quarter, one more than in 3QFY2014.

Its trading business recorded a 74.7% surge in revenue to RMB375.8 billion, on the back of higher volumes of trading activities. The group also saw a three-fold increase in its shipping logistics, chartering and ship design services business revenue to RMB55.1 million.

The group also recognised a three-fold increase in other gains, boosted by the RMB557 million recognised of the compensation received from government for the relocation of the former shipyard at Jiangyin. The total compensation amount is RMB715 million, though the remainder will be recognised when certain conditions are met.
...
http://www.theedgemarkets.com/sg/article...s-3qfy2015

[CityFarmer]

I just noticed that two prominent global/regional investors are in the company shareholders list. I knew Blockrock is in the list, with its recent update announcement, but Value Partners is new to me...

BLACKROCK 4.99%
VALUE PARTNERS LTD 1.94%

PPT (page 35)
http://infopub.sgx.com/FileOpen/YZJ%203Q...eID=376444

(vested)

[krowten]

YANGZIJIANG: Wins prestigious "Shipbuilding & Repair Yard" Award
http://www.nextinsight.net/index.php/sto...yard-award

Yangzijiang edged out two other finalists, Keppel Corp and SembCorp Marine.

Yangzijiang normally ranks among the top-10 shipyards globally in terms of outstanding order book, and this healthy order book ensures good utilization of our yard capacity.

[CityFarmer]

An informative update on the company current status, and future trend. Chairman Ren forecasts at least three (3) more years of winter. He had wrongly forecasted a recovery in 2015/2016. I wish he is wrong again this time  

(vested as core)

Higher-value vessels to tide Yangzijiang over downturn
18 Dec 2015 09:00
By Tan Hwee Hwee

YANGZIJIANG Shipbuilding Holdings is aiming to keep itself on an even keel amid a continued industry downturn by taking on higher-value orders for specialised vessels in niche markets, says its executive chairman Ren Yuanlin.

Mr Ren told BT that the Singapore-listed Chinese shipbuilding group has benefited from a steady stream of commercial shipbuilding orders backed by new international regulations coming into force from 2016.

International Maritime Organisation has outlined measures including Tier III NOx (nitrogen oxide) controls for new ships from January 2016 for vessels sailing in existing NOx emission control areas. This spurred newbuild orders for containerships and dry bulk carriers even as margins for vessel operators in these segments took a beating.

The Chinese shipbuilding group in November announced 12 additional vessel orders totalling US$730 million for containerships ranging from 1,900 to 11,800 TEU and 84,000 cubic metre very large gas carriers for deliveries from 2017 through to 2018.

With the newbuilding upswing for commoditised vessels fed by new imminent regulatory demand now nearing its tail-end, YZJ has commenced talks with owners seeking newbuild possibilities for vessels designed for specific purposes such as for loading and unloading cargoes in the five lakes of Canada, according to Mr Ren.

A potential client is believed to be Algoma Central Corporation. Algoma said in a December press release that YZJ was commissioned in place of the now-bankrupt Nantong Mingde Heavy Industries to build two 740-foot self-loading bulkers. Mr Ren did not confirm the published details on the newbuild deal, but said the vessels would be priced at 30 per cent or more over comparable, commoditised dry bulk carriers.

YZJ is also looking at building momentum in the gas segment following a breakthrough order in February with JHW Engineering & Contracting, a Jaccar Holdings unit, to build two 27,500 cubic metre LNG carriers at US$135 million.

Competition for newbuild gas transportation vessels is restricted among selected yards with the required shipbuilding capabilities, Mr Ren said in support of the move into the gas segment.

The YZJ chairman also sees increased commitment towards greenhouse gas reductions particularly from China during the Paris Climate Change Summit as boding well for clean energy demand as well as newbuild requirements for gas transportation vessels.

Despite the bright spots in gas transportation and other niche segments, shipbuilders are nonetheless in for a long winter that will last for three years or more, the head of the shipbuilding group acknowledged to BT. The number of shipyards in China - having shrunk to about 300 from 3000 - may fall below 50 in another three years, the executive had earlier projected.

Instead of shying from its core shipbuilding business, YZJ has doubled its market share as the domestic shipbuilding industry works through a multi-year consolidation.
...
Source: Business Times

[BlueKelah]

CF he is very likely right this time. There has been a long period of excessive credit in shipping due to cheap borrowing causing excessive ship building and shipping capacity. Global growth still very poor.

Yzj still has quite some debt as well as the financing part of their business still pretty significant. Not good if interest rates are rising.

But then again, those vested in this stock probably knew the risk they were taking buying a highly cyclical stock at its peak and one having an s.chip badge.

Too bad its not a SOE. I see this one tanking pretty soon, probably when they announce some rights or warrants issue to shore up their funding. Just like property stocks that have TOP this year, best days arr over for yzj.. with BDI hitting multi year lows again, we should see some effects after the 1 to 2 year lag period where there will be very little order book coming in...

sent from my Galaxy Tab S

[CityFarmer]

The order-book seems good up-to-date. The terminated contract has given an "extra" 10% income to the company...

(vested)

------------
UPDATE ON SHIPBUILDING CONTRACTS ENTERED BY THE GROUP

The Board of Directors (the “Board”) of Yangzijiang Shipbuilding (Holdings) Ltd (the “Group”
or the “Company”) is pleased to announce that, in addition to the new contracts announced
in third quarter results announcement on 4 November 2015, the Group had entered into
shipbuilding contracts for another eleven (11) vessels in the fourth quarter of year 2015, with
a total contract value of US$626 million including four (4) units of 11,800TEU containerships,
two (2) units of 1,668TEU containerships, two (2) units of 29,800DWT self-unloading vessels
and three (3) units of 83,500DWT combination carriers (collectively the “Contracts”).
There was a contract termination for one unit of 82,000DWT bulk carrier in 4Q2015, the
termination was replaced with new orders for 3 units of 83,500DWT combination carriers
stated above by the same customer, it was also agreed that the 10% deposit received for the
terminated contract will be taken as a compensation to the company. Taken in the effect of
the said termination, the net addition to our order book would be 10 vessels.
The Contracts are scheduled for deliveries in year 2018. Therefore, they do not have any
significant impact on the earnings of the Group for the financial year ending 31 December
2015.
In summary, year to date the Group had secured a total of thirty-seven (37) effective
shipbuilding contracts with an aggregate value of US$2.25 billion, with contract termination for
one unit of 82,000DWT bulk carrier. In addition, as of the announcement date, there are a total
of thirteen (13) outstanding options consisting of two (2) units of 1,668TEU containerships,
two (2) units of 1,900TEU containerships, three (3) units of 29,800DWT self-unloading vessels
and six (6) units of 83,500DWT combination carriers.
http://infopub.sgx.com/FileOpen/Announce...eID=382938

[Tiggerbee]

The order-book seems good up-to-date. The terminated contract has given an "extra" 10% income to the company...

(vested)

------------
UPDATE ON SHIPBUILDING CONTRACTS ENTERED BY THE GROUP

The Board of Directors (the “Board”) of Yangzijiang Shipbuilding (Holdings) Ltd (the “Group”
or the “Company”) is pleased to announce that, in addition to the new contracts announced
in third quarter results announcement on 4 November 2015, the Group had entered into
shipbuilding contracts for another eleven (11) vessels in the fourth quarter of year 2015, with
a total contract value of US$626 million including four (4) units of 11,800TEU containerships,
two (2) units of 1,668TEU containerships, two (2) units of 29,800DWT self-unloading vessels
and three (3) units of 83,500DWT combination carriers (collectively the “Contracts”).
There was a contract termination for one unit of 82,000DWT bulk carrier in 4Q2015, the
termination was replaced with new orders for 3 units of 83,500DWT combination carriers
stated above by the same customer, it was also agreed that the 10% deposit received for the
terminated contract will be taken as a compensation to the company. Taken in the effect of
the said termination, the net addition to our order book would be 10 vessels.
The Contracts are scheduled for deliveries in year 2018. Therefore, they do not have any
significant impact on the earnings of the Group for the financial year ending 31 December
2015.
In summary, year to date the Group had secured a total of thirty-seven (37) effective
shipbuilding contracts with an aggregate value of US$2.25 billion, with contract termination for
one unit of 82,000DWT bulk carrier. In addition, as of the announcement date, there are a total
of thirteen (13) outstanding options consisting of two (2) units of 1,668TEU containerships,
two (2) units of 1,900TEU containerships, three (3) units of 29,800DWT self-unloading vessels
and six (6) units of 83,500DWT combination carriers.
http://infopub.sgx.com/FileOpen/Announce...eID=382938

As analysts had expected, there will be more order cancellations in bulk carriers in 2016 as the BDI continue to tank and YZJ will try to get orders in container ships which is likely to be of lower margins to compete against the Japs and Koreans. All the ship yards will be fighting for scraps in the container ship market. Profit margins are going to be lower going forward.

[BlueKelah]

CF doesnt it sound fishy that an order for big ship was cancelled and 3 more slightly bigger ships ordered? Wont it make more sense to just modify the order if construction has not begun. Or if it has , modify the dry bulk into a combination one?

It would be interesting to find out which company ordered those ships..

sent from my Galaxy Tab S

[Boon]

CF  doesnt it sound fishy that an order for big ship  was cancelled and 3 more slightly bigger ships ordered? Wont it make more sense to just modify the order if construction has not begun. Or if it has , modify the dry bulk into a combination one?

It would be interesting to find out which company ordered those ships..

sent from my Galaxy Tab S

Klaveness orders more specialized vessels
16.12.2015

Klaveness, through a wholly owned subsidiary of Klaveness Ship Holding AS, has entered into a contract with Jiangsu New Yangzi Shipbuilding Co., Ltd in China for an order of three 83,500 DWT combination carriers.

 The vessels will be delivered during the second half of 2018. The contract includes options for further vessels. Klaveness already has three 80,500 DWT combination carriers under construction at Zhejiang OuHua Shipbuilding Co. Ltd. in China which will be delivered late 2016 and early 2017, and operates a fleet of six combination carriers in the Pacific and Atlantic Oceans.

The deal with Jiangsu New Yangzi Shipbuilding Co., Ltd includes cancellation of the second of two 82,000 DWT Kamsarmax vessels under construction at the yard. The first Kamsarmax vessel will be delivered in February 2016.

“This transaction is in line with our strategy to invest in specialized vessels with a substantial value creation in terms of energy efficiency”, says Lasse Kristoffersen, CEO of Torvald Klaveness.

MOA signed for sale of selfunloader vessels
In November 2015 it was announced that a subsidiary of Klaveness Ship Holding AS had reached an agreement to sell its five selfunloading vessels. All parties have now lifted their subjects and Memorandum of Agreements have been signed. Closing and transfer of the vessels to the sellers will take place early in 2016.

http://www.turkishmaritime.com.tr/klaven...24771h.htm
______________________________________________________________________________________________________________________

[BlueKelah]

CF  doesnt it sound fishy that an order for big ship  was cancelled and 3 more slightly bigger ships ordered? Wont it make more sense to just modify the order if construction has not begun. Or if it has , modify the dry bulk into a combination one?

It would be interesting to find out which company ordered those ships..

sent from my Galaxy Tab S

Klaveness orders more specialized vessels
16.12.2015

Klaveness, through a wholly owned subsidiary of Klaveness Ship Holding AS, has entered into a contract with Jiangsu New Yangzi Shipbuilding Co., Ltd in China for an order of three 83,500 DWT combination carriers.

 The vessels will be delivered during the second half of 2018. The contract includes options for further vessels. Klaveness already has three 80,500 DWT combination carriers under construction at Zhejiang OuHua Shipbuilding Co. Ltd. in China which will be delivered late 2016 and early 2017, and operates a fleet of six combination carriers in the Pacific and Atlantic Oceans.

The deal with Jiangsu New Yangzi Shipbuilding Co., Ltd includes cancellation of the second of two 82,000 DWT Kamsarmax vessels under construction at the yard. The first Kamsarmax vessel will be delivered in February 2016.

“This transaction is in line with our strategy to invest in specialized vessels with a substantial value creation in terms of energy efficiency”, says Lasse Kristoffersen, CEO of Torvald Klaveness.

MOA signed for sale of selfunloader vessels
In November 2015 it was announced that a subsidiary of Klaveness Ship Holding AS had reached an agreement to sell its five selfunloading vessels. All parties have now lifted their subjects and Memorandum of Agreements have been signed. Closing and transfer of the vessels to the sellers will take place early in 2016.

http://www.turkishmaritime.com.tr/klaven...24771h.htm
______________________________________________________________________________________________________________________

good data mining power!!

Went through the financials of Klaveness, their debt has doubled since 2011 and revenue shrinking a bit but otherwise still profitable and likely be able to pay YZJ for their orders.