Yangzijiang’s net profit sinks by 16% to RMB680.7m

The oversupply situation continues to bug the company.

The shipbuilding company may have reported a 10% rise in its revenue to RMB4.1b, but it saw was obviously bugged by a lower gross margin for shipbuilding, which was down by 18%.

According to reports from OCBC, nine vessels were delivered in 3Q15 according to schedule, which was higher than the eight vessels delivered in 3Q14.

“Gross margin for shipbuilding, however, was slightly lower at 18% for 3Q15 vs. 21% in 3Q14,” OCBC said.

“Since the 2Q15 results announcement on 4 Aug, a total of 12 new shipbuilding orders worth US$730m became effective.,” OCBC added.
Meanwhile, OCBC warns that the oversupply situation for container ships and dry bulkers is expected to continue.