Yangzijiang records $124.2m net profit in Q4

Thanks to the absence of impairment provision made in 2015.

Yangzijiang Shipbuilding reported a 76% YoY rise in revenue to RMB5.5b and a net profit of RMB607.8m ($124.2m) in 4Q16.

According to OCBC, this is compared to the net profit of RMB41.5m in 4Q15, with higher revenue and the absence of impairment provision of RMB369m made in 4Q15 boosting yields in the past quarter.

"For the full year, YZJ recorded net profit of RMB1.75b vs. our forecast of RMB1.84b, within expectations. Gross profit margin of 24.1% in FY16 was healthy, compared to 23.2% in FY15. The group has proposed a final dividend of $0.04/share compared to $0.045/share in FY15, translating to a yield of 4.3%, based on yesterday’s closing price of $0.925," OCBC said.