Yangzijiang Shipbuilding, China’s largest private shipbuilder, has reported a significant 37% year-on-year increase in net profit for the first half of 2025, reaching RMB4.2 billion. This impressive performance was driven by a 5.5 percentage point rise in shipbuilding gross margins to 35.2%, surpassing market expectations, DBS Group Research said in a note. DBS Group Research attributes this success to effective cost control and the execution of high-value contracts secured since 2021.
The shipbuilder’s order book, valued at approximately $23.2 billion, provides earnings visibility through 2027. With 69% of its orders comprising high-margin containerships, Yangzijiang anticipates an earnings compound annual growth rate of 17% over the next two years. The company is also eyeing a potential yard expansion of 15-20%, which could further boost its earnings.
Yangzijiang’s strategic pivot towards cleaner vessels, such as dual-fuel containerships and gas carriers, which now make up 74% of its order book, is expected to attract increased interest from ESG-focused funds. The company has also raised its earnings forecasts for FY25 and FY26 by 16% and 12%, respectively, due to improved profit margins.
Despite a slowdown in order wins in the first half of 2025, Yangzijiang remains optimistic about securing over $2 billion in new orders in the coming months. The company has already secured 14 shipbuilding contracts worth $0.54 billion in 1H25 and an additional $200 million in July.
Yangzijiang’s strong financial position, with net cash of SGD0.86 per share as of June 2025, supports its growth ambitions. The company is also set to complete its first LNG carrier by the end of 2025, marking a significant milestone in its expansion into the LNG market.
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