SG Morning Highlights | Yangzijiang Shipbuilding Reports 77% Jump in H1 Profits Amid Strong Sales

Singapore shares opened higher on Tuesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.44 percent to 3249.64 as at 9:18 am.

$YZJ Shipbldg SGD (BS6.SG)$: Yangzijiang Shipbuilding has seen its first-half profits soar by 77% to reach 3.1 billion yuan, bolstered by robust sales and a significant increase in production revenue. The company's revenue rose by 15.3%, primarily driven by its core shipbuilding business, which contributed 95% of the total revenue. This impressive financial performance is attributed to a record order book of 224 vessels valued at US$20.2 billion, ensuring earnings visibility until mid-2028. Despite this positive outcome, shares of Yangzijiang Shipbuilding continued to decline for the third consecutive day following a tepid trading debut. The executive chairman and CEO, Ren Letian, highlighted the company's focus on eco-friendly shipbuilding and plans for capacity expansion to meet the growing demand for clean-energy vessels.

$PropNex (OYY.SG)$: PropNex has reported a 13.8% decline in its net profit for the first half of the year, with earnings falling to S$19 million from the previous year's S$22.1 million. The real estate agency has also announced a lower interim dividend of S$0.0225 per share, compared to S$0.025 in the prior year. This downturn is largely due to a 5.1% drop in revenue, affected by a decrease in commission from project marketing services amid fewer private new home sales and the impact of property cooling measures. Despite these challenges, the secondary market showed resilience, and PropNex remains cautiously optimistic about the private residential property outlook for 2024, anticipating potential market improvements from stabilizing home prices and easing borrowing costs.