Amidst a backdrop of consistently low gross profit margins hovering around 2%, Xiamen Xiangyu (600057.SH)'s shipbuilding segment has garnered significant investor attention due to its relatively high profitability.
At the performance briefing held today, Liao Jie, the board secretary of Xiamen Xiangyu, stated that as of the end of May 2025, the company had 88 orders on hand, including 46 63,500 DWT bulk carriers and 25 stainless steel chemical tankers, with production schedules extending to 2029. The company has recently secured new orders for two 210,000 DWT Newcastlemax bulk carriers, marking a breakthrough in large bulk carrier orders.
Regarding deep-sea equipment, Liao Jie mentioned that this year, the company has signed a construction contract with Zhongtian Technology Group's Shanghai Yuanwei Construction Engineering Co., Ltd. for a 16,000-ton submarine cable-laying vessel, which is currently the largest self-propelled, purely electric-driven cable-laying vessel in China.
Xiamen Xiangyu is a major commodity supply chain service provider. Due to the nature of the industry, its overall gross profit margin is relatively low. According to Choice data, the company's gross profit margins for commodity trading and logistics services from 2022 to 2024 were 1.90%, 1.53%, and 1.88%, respectively.
The company's shipbuilding business has experienced rapid growth in recent years. The company began disclosing detailed data in its annual financial reports from 2023. In 2023 and 2024, it achieved revenues of 4.737 billion yuan and 5.9 billion yuan, with YoY growth rates of 42.62% and 24.76%, respectively, and gross profit margins of 22.56% and 18.13%, respectively.
The company stated in the investor relations activity record released on April 22 that it had previously acquired the core assets of Jiangsu Hongqiang Shipbuilding Heavy Industry Co., Ltd. through asset auctions and expected to resume production by mid-2025. Combining this with the company's 2024 financial report information, it is anticipated that upon commencement of production, the company's overall shipbuilding capacity will increase by 40%-50%.
It is worth mentioning that when Chairman Wu Jie discussed industry development trends, he noted that in recent years, global commodity price fluctuations have intensified. Top-tier enterprises, relying on their advantages in resources, services, and risk control, have actively expanded their channel networks, seized more market share, and demonstrated significant counter-cyclical expansion capabilities. According to cargo volume calculations, the market share of China's top five major commodity supply chain enterprises (CR5) increased from 4.81% in 2021 to 5.26% in 2024 (estimated).
In terms of performance, Xiamen Xiangyu achieved revenues of 366.671 billion yuan and 97.135 billion yuan in 2024 and Q1 2025, respectively, with YoY changes of -20.12% and -7.11%. Net profits for the same periods were 1.419 billion yuan and 509 million yuan, respectively, with YoY changes of -9.86% and 24.88%.
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