Yangzijiang Shipbuilding (Holdings) Ltd (SGX:BS6) saw its stock price soar 9.09% in pre-market trading on Thursday, following the release of its full-year 2024 financial results. The company's earnings per share (EPS) exceeded analyst estimates, despite revenues falling short of expectations.
The shipbuilding giant reported a significant 62% increase in net income, reaching CN¥6.63 billion for the full year 2024. This translates to an EPS of CN¥1.68, surpassing analyst projections by 3.9%. The company's profit margin also saw a substantial improvement, rising to 25% from 17% in the previous year. These strong bottom-line results appear to have overshadowed the slight miss in revenue, which came in at CN¥26.5 billion, up 10% year-over-year but 6.8% below analyst estimates.
Investors seem particularly encouraged by Yangzijiang Shipbuilding's improved profitability and the positive outlook for the company. Analysts forecast a 15% per annum revenue growth over the next three years, outpacing the 9.9% growth projected for the Singaporean Machinery industry. Despite the stock's 20% decline over the past week, today's surge suggests that market participants are reassessing the company's value in light of its strong earnings performance and future growth potential.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.