Will Weakness in Yangzijiang Shipbuilding (Holdings) Ltd.'s (SGX:BS6) Stock Prove Temporary Given Strong Fundamentals?

Simply Wall St.11-18

It is hard to get excited after looking at Yangzijiang Shipbuilding (Holdings)'s (SGX:BS6) recent performance, when its stock has declined 5.2% over the past week. However, a closer look at its sound ...

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However, a closer look at its sound ...</p>\n\n<a href=\"https://finance.yahoo.com/news/weakness-yangzijiang-shipbuilding-holdings-ltd-035815078.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>Will Weakness in Yangzijiang Shipbuilding (Holdings) Ltd.'s (SGX:BS6) Stock Prove Temporary Given Strong Fundamentals?</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\">\nWill Weakness in Yangzijiang Shipbuilding (Holdings) Ltd.'s (SGX:BS6) Stock Prove Temporary Given Strong Fundamentals?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-18 16:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/weakness-yangzijiang-shipbuilding-holdings-ltd-035815078.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It is hard to get excited after looking at Yangzijiang Shipbuilding (Holdings)'s (SGX:BS6) recent performance, when its stock has declined 5.2% over the past week. However, a closer look at its sound ...</p>\n\n<a href=\"https://finance.yahoo.com/news/weakness-yangzijiang-shipbuilding-holdings-ltd-035815078.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":"SG9999000343.SGD","symbol_name":"Schroder Singapore Trust A Dis SGD","start_time":0,"source_url":"https://finance.yahoo.com/news/weakness-yangzijiang-shipbuilding-holdings-ltd-035815078.html","article_id":"2484699997","we_media_id":null,"thumbnails":[],"rights":{"source":"yahoofinance_sg","url":"https://finance.yahoo.com/news/weakness-yangzijiang-shipbuilding-holdings-ltd-035815078.html","rn_cache_url":null,"customStyle":"","selectors":"article, body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2484699997","pubTimestamp":1731918280,"sourceInfo":{"source_id":"yahoofinance_sg","name":"Yahoo Finance"},"weMediaInfo":null,"summary":"It is hard to get excited after looking at Yangzijiang Shipbuilding 's  recent performance, when its stock has declined 5.2% over the past week. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Particularly, we will be paying attention to Yangzijiang Shipbuilding 's  ROE today.Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits.So, based on the above formula, the ROE for Yangzijiang Shipbuilding  is:. A Side By Side comparison of Yangzijiang Shipbuilding 's Earnings Growth And 24% ROE. We then performed a comparison between Yangzijiang Shipbuilding 's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 12% in the same 5-year period.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","BK6504":"工业制品概念","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","LU0164939612.USD":"HSBC GIF ASIA EX JAPAN SMALLER CO. \"AC\" ACC","SG9999013478.USD":"利安新加坡股息基金","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","LU0620787316.HKD":"HSBC GIF ASIA EX JAPAN EQUITY SMALLER COMPANIES \"AD\" (HKD) INC","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","LU0082770016.USD":"HSBC GIF ASIA EX JAPAN SMALLER CO. \"AD\" INC","BK6065":"建筑机械与重型卡车","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","BS6.SI":"扬子江船业","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SGXZ27511609.SGD":"NIKKO AM SINGAPORE DIVIDEND EQUITY \"SGD\" (SGD) ACC","SG9999003826.SGD":"日兴资管新加坡股息基金 SGD","SGXZ58947870.SGD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (SGDHDG) INC","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","LU0082770016.SGD":"HSBC GIF ASIA EX JAPAN EQUITY SMALLER COMPANIES \"AD\" (SGD) INC"},"translate_title":"鉴于基本面强劲，扬子江船业（控股）有限公司（新交所股票代码：BS6）股票的疲软是否是暂时的？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BS6.SI":0.9},"content_text":"It is hard to get excited after looking at Yangzijiang Shipbuilding (Holdings)'s (SGX:BS6) recent performance, when its stock has declined 5.2% over the past week. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Particularly, we will be paying attention to Yangzijiang Shipbuilding (Holdings)'s ROE today.Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits.How To Calculate Return On Equity?The formula for ROE is:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' EquitySo, based on the above formula, the ROE for Yangzijiang Shipbuilding (Holdings) is:24% = CN¥5.4b ÷ CN¥23b (Based on the trailing twelve months to June 2024).The 'return' is the income the business earned over the last year. Another way to think of that is that for every SGD1 worth of equity, the company was able to earn SGD0.24 in profit.Why Is ROE Important For Earnings Growth?Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.A Side By Side comparison of Yangzijiang Shipbuilding (Holdings)'s Earnings Growth And 24% ROEFirst thing first, we like that Yangzijiang Shipbuilding (Holdings) has an impressive ROE. Additionally, the company's ROE is higher compared to the industry average of 7.6% which is quite remarkable. Probably as a result of this, Yangzijiang Shipbuilding (Holdings) was able to see a decent net income growth of 10% over the last five years.We then performed a comparison between Yangzijiang Shipbuilding (Holdings)'s net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 12% in the same 5-year period. SGX:BS6 Past Earnings Growth November 18th 2024The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Yangzijiang Shipbuilding (Holdings)'s's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.Is Yangzijiang Shipbuilding (Holdings) Making Efficient Use Of Its Profits?Yangzijiang Shipbuilding (Holdings) has a three-year median payout ratio of 34%, which implies that it retains the remaining 66% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.Additionally, Yangzijiang Shipbuilding (Holdings) has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. 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 36%. Accordingly, forecasts suggest that Yangzijiang Shipbuilding (Holdings)'s future ROE will be 24% which is again, similar to the current ROE.SummaryOverall, we are quite pleased with Yangzijiang Shipbuilding (Holdings)'s performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. 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.","kind":"highlight","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":"4.29.3","shortVersion":"4.29.3","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/2484699997"}