Despite net profit for the period falling by 30% to CNY 717.2m($116m) in tough conditions, the result surprised analysts thanks to higher revenueand strong margins.
Cheaper steel plus the execution of the remaining high-valuecontracts secured before the global financial crisis (GFC) preserved theSingapore-listed outfit’s shipbuilding margins, Lim Siew Khee, an analyst atthe Singapore-based bank said in a report.
Nine vessels handed over in the three months to 31 March achieveda gross margin of 26% and orders secured in 2010-11 are still enjoying about18%, CIMB says.
