Yangzijiang Shipbuilding (Holdings) Ltd.'s (SGX:BS6) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?

Simply Wall St.06-11

Most readers would already be aware that Yangzijiang Shipbuilding (Holdings)'s (SGX:BS6) stock increased significantly by 44% over the past month. We wonder if and what role the company's financials ...

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We wonder if and what role the company's financials ...</p>\n\n<a href=\"https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-ltd-sgx-010204075.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance_sg","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Yangzijiang Shipbuilding (Holdings) Ltd.'s (SGX:BS6) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nYangzijiang Shipbuilding (Holdings) Ltd.'s (SGX:BS6) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-11 09:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-ltd-sgx-010204075.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Most readers would already be aware that Yangzijiang Shipbuilding (Holdings)'s (SGX:BS6) stock increased significantly by 44% over the past month. We wonder if and what role the company's financials ...</p>\n\n<a href=\"https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-ltd-sgx-010204075.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK6504","symbol_name":"工业制品概念","start_time":0,"source_url":"https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-ltd-sgx-010204075.html","article_id":"2442780120","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/YLn3ijIeE0eqFyPEk1KPDA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/1762e59d0031dd7c767b613ac375bc3b"],"rights":{"source":"yahoofinance_sg","url":"https://finance.yahoo.com/news/yangzijiang-shipbuilding-holdings-ltd-sgx-010204075.html","rn_cache_url":null,"customStyle":"","selectors":"article, body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2442780120","pubTimestamp":1718067724,"sourceInfo":{"source_id":"yahoofinance_sg","name":"Yahoo Finance"},"weMediaInfo":null,"summary":"Most readers would already be aware that Yangzijiang Shipbuilding 's  stock increased significantly by 44% over the past month. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to Yangzijiang Shipbuilding 's  ROE today.ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.So, based on the above formula, the ROE for Yangzijiang Shipbuilding  is:. Yangzijiang Shipbuilding 's Earnings Growth And 19% ROE. We then compared Yangzijiang Shipbuilding 's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 12% in the same 5-year period, which is a bit concerning.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK6504":"工业制品概念","BK6065":"建筑机械与重型卡车","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","BS6.SI":"扬子江船业","SG9999003826.SGD":"日兴资管新加坡股息基金 SGD","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SO7.SI":"YZJ Shipbldg CNY","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD"},"translate_title":"扬子江船业（控股）有限公司（新交所股票代码：BS6）的股票呈上升趋势：基本面能否推动这一势头？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BS6.SI":0.9,"SO7.SI":0.9},"content_text":"Most readers would already be aware that Yangzijiang Shipbuilding (Holdings)'s (SGX:BS6) stock increased significantly by 44% over the past month. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to Yangzijiang Shipbuilding (Holdings)'s  ROE today. \n ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital. \n View our latest analysis for Yangzijiang Shipbuilding (Holdings) \n How To Calculate Return On Equity? \n The formula for ROE is: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Yangzijiang Shipbuilding (Holdings) is:\n19% = CN¥4.1b ÷ CN¥21b (Based on the trailing twelve months to December 2023).\n The 'return' is the yearly profit. Another way to think of that is that for every SGD1 worth of equity, the company was able to earn SGD0.19 in profit. \n Why Is ROE Important For Earnings Growth? \n We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or \"retains\" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. \n Yangzijiang Shipbuilding (Holdings)'s Earnings Growth And 19% ROE \n At first glance, Yangzijiang Shipbuilding (Holdings) seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 7.7%. However, we are curious as to how the high returns still resulted in flat growth for Yangzijiang Shipbuilding (Holdings) in the past five years. Therefore, there could be some other aspects that could potentially be preventing the company from growing. These include low earnings retention or poor allocation of capital. \n We then compared Yangzijiang Shipbuilding (Holdings)'s net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 12% in the same 5-year period, which is a bit concerning. \n\n\n\n  SGX:BS6 Past Earnings Growth June 11th 2024\n \n\n Earnings growth is a huge factor in stock valuation. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is BS6 worth today? The  intrinsic value infographic in our free research report  helps visualize whether BS6 is currently mispriced by the market. \n Is Yangzijiang Shipbuilding (Holdings) Making Efficient Use Of Its Profits? \n Despite having a moderate three-year median payout ratio of 35% (meaning the company retains65% of profits) in the last three-year period, Yangzijiang Shipbuilding (Holdings)'s earnings growth was more or les flat. So there could be some other explanation in that regard. For instance, the company's business may be deteriorating. \n Moreover, Yangzijiang Shipbuilding (Holdings) has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 39%. Accordingly, forecasts suggest that Yangzijiang Shipbuilding (Holdings)'s future ROE will be 19% which is again, similar to the current ROE. \n Conclusion \n On the whole, we do feel that Yangzijiang Shipbuilding (Holdings) has some positive attributes. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2442780120"}