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This is my concern - over building of vessels that result in depressed frieght rates which is negative for the shipping industry.

http://www.businesstimes.com.sg/premium/...t-20130415

Jack-up rigs: Chinese make presence felt
Their share of the global market is now about 30%, up from just 5% some 10 years ago

Yangzijiang CEO Ren is quoted for a few times, mainly for his comments about Singapore collaborating with CHina shipyards to take advantage of the cheap labour in China, and (China gaining the technical know how- my own view)

I seriously don't think SIngapore Yards will bite, given YZJ trouble with PPL.

(Vested)

After Sembmarine's experience with Cosco, I seriously doubt any local yards will be keen to share their knowledge. China labour is no longer cheap. With knowledge a terrible patent issue with Chinese companies, there is absolutely no way Singapore yards will keen to reveal their key competitive advantage.

Moreover, with rigs requiring quality in harsh operating environment, it can be quite doubtful if customers will dare to take on their quality. Costs alone here is not a paramount consideration IMO.

GG

(15-04-2013, 10:12 AM)Greenrookie Wrote: [ -> ]http://www.businesstimes.com.sg/premium/...t-20130415

Jack-up rigs: Chinese make presence felt
Their share of the global market is now about 30%, up from just 5% some 10 years ago

Yangzijiang CEO Ren is quoted for a few times, mainly for his comments about Singapore collaborating with CHina shipyards to take advantage of the cheap labour in China, and (China gaining the technical know how- my own view)

I seriously don't think SIngapore Yards will bite, given YZJ trouble with PPL.

(Vested)

Smokes and mirrors:

http://info.sgx.com/webcoranncatth.nsf/V...8005FADED/$file/YZJ_Pressrelease_1Q2013_final_Eng.pdf?openelement

Not Vested

(26-04-2013, 07:04 AM)greengiraffe Wrote: [ -> ]Smokes and mirrors:

http://info.sgx.com/webcoranncatth.nsf/V...8005FADED/$file/YZJ_Pressrelease_1Q2013_final_Eng.pdf?openelement

Not Vested

I find the results satisfactory, with a fair mix of goods and bad news.

Bads:
1) That the revenue, GP and NP will be down is already a foregone conclusion.
2) Another 2 shipbuilding contracts stopped.
3) Still too heavily relying on HTM to cushion the fall in profits.

Goods:
1) contract wins in Q1 (0.6 billion) exceed the whole of 2012
2) Margin still relative stable
3) "Others" segment contributing to GP, whereas in the 2012 AR, Others segment is having a loss of 89 million RMB.

Not sure how market view the report though, I view it midly positive...

There is a saying in shipbuilding in China, "if yangzijiang can't make a profit, no one else can."

As ren yuanlin has said before, " only bankrupted companies, no bankrupted industry". You can expect yangzijiang to stay long in the shipbuilding.

OCBC Investment Research on YZJ, TP $0.95, rating HOLD

Yangzijiang Shipbuilding: Results in line;
still a steady ship
Yangzijiang Shipbuilding (YZJ) reported a
22% YoY fall in revenue to RMB2.9b and a
30% drop in net profit to RMB717.2m in
1Q13, accounting for 24% and 26% of our
full year estimates, respectively. Results
were in line with our expectations, and we
note that gross profit margin from the
shipyard operations remained healthy at
25.9% vs 26.4% in 1Q12 and 24.1% in
4Q12. Due to the difficult business climate
faced by ship operators and an altered vessel
delivery schedule with the cessation of
previous orders, YZJ delivered nine vessels in
1Q13 vs 15 units in 1Q12. Still, the group
entered into eight new shipbuilding contracts
worth US$237m recently, bringing its order
book to US$3.31b currently. Pending an
analysts’ briefing later in the morning, we
maintain our HOLD rating but put our fair
value estimate of S$0.95 under review.
(Low Pei Han)

http://remisiers.org/cms_images/research...26-OIR.pdf

A rather interesting article on the shipping cycles. http://marinepedia.blogspot.sg/2009/09/s...s.html?m=1

In 2 more mths, the share sale restriction arising from the issue of new warrants to Citi will expire.

Quite a number of updates:

http://www.yzjship.com/en_news.asp

Of particular interest is their progress in their building of 10000 TEUs container ships. They mentioned it passes 2 tests, when I search online about the tests ships must go throu before they commissioned, it threw a blank...

Maybe I am naive, but I like management that recognised workers' contributions, but only those insiders who really worked for YZJ know whether its just a PR exercise...