30-07-2013, 11:17 AM
I rather YZJ focus on their high margin money lending business. If they could grow it to a similar size like Hong Leong Finance, there is the juicy option of spinning it off one day like what Keppel did for K Green Trust.
(31-07-2013, 05:16 PM)freedom Wrote: [ -> ]if you look at the current price of various ships, there is not going to be any "super" profit in the near future(the 5 years Ren mentioned?).
Take a look at the margin of contracts pre-crisis and recent contracts. Recent 10K TEU container ships maybe can generate 10% operating margin, but it is nowhere near the margin of pre-crisis of more than 20%.
(31-07-2013, 05:50 PM)Greenrookie Wrote: [ -> ](31-07-2013, 05:16 PM)freedom Wrote: [ -> ]if you look at the current price of various ships, there is not going to be any "super" profit in the near future(the 5 years Ren mentioned?).
Take a look at the margin of contracts pre-crisis and recent contracts. Recent 10K TEU container ships maybe can generate 10% operating margin, but it is nowhere near the margin of pre-crisis of more than 20%.
hmm freedom,
How did you derived the cost of construction of the 10K Teu ships? since it is the first to be built by them, and the costs of steel, parts are so many to be tracked?
Or it is an big overall picture of margin in the good years and recent years?
given steel price has been falling and at a low from the past 2 years, maybe the cost has improved?
Need the quarter reports to check, but YZJ has managed to maintain decent margins so far, and subsequent quarters will the ones that are ordered at the off peak years
(05-08-2013, 10:01 AM)CityFarmer Wrote: [ -> ]A relevant news report...
China issues plan to overhaul troubled shipbuilding industry
BEIJING — China’s State Council has issued a three-year plan to upgrade and restructure its troubled shipbuilding industry through 2015, a further move to stabilise economic growth through reform, the official Xinhua news agency reported yesterday.
The sector faces “unprecedented, severe challenges” as a lack of new orders — due to weakness in the global shipping market — has exacerbated overcapacity in the industry, the news agency said, citing a government document. Concurrently, companies should be confident as “the potential in the domestic market remains relatively large”.
China, the world’s biggest shipbuilding nation, may see a third of its more than 1,600 shipyards shut down in about five years, according to Mr Wang Jinlian, head of the industry association. The sector is among those, including iron and steel, cement, electrolytic aluminium and flat glass, that must accelerate the phasing-out of overcapacity, according to a July 24 statement from the Ministry of Industry and Information Technology.
http://www.todayonline.com/business/chin...g-industry