Yangzijiang Financial H2 earnings soar to S$197.3 million

INVESTMENT management firm Yangzijiang Financial reported a net profit of S$197.3 million in the second half ended Dec 31, 2024, an increase of about four times from S$39.3 million a year ago.

Its second-half revenue came in at S$164.9 million, up 16 per cent from S$142.3 million, the group said in a bourse filing on Monday (Feb 24).

Earnings per share stood at S$0.0562, compared with S$0.0108 in the year-ago period.

The group’s topline growth came from higher contributions from its fund investment and cash management businesses, the group said.

For the full year, it reported a net profit of S$304.6 million, up 51 per cent from the S$201.8 million recorded in FY2023.

“Key developments over the past year include a 12 per cent growth in cash and yield enhancement products, reaching S$1,807.1 million, and a 150 per cent increase in maritime fund assets, which rose to S$579.3 million,” it added.

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In particular, income from maritime fund assets increased by nearly 1.5 times, rising to S$57.8 million, from S$23.3 million in FY2023.

Full-year revenue dipped 6 per cent to S$326.2 million, from S$348.4 million.

This was largely due to a decline in interest income from the group’s debt investments business in China.

Yangzijiang Financial said that it continues to diversify, reducing its exposure to China to 46 per cent of total assets under management (AUM), and lowering its debt investments to 29 per cent of AUM.

“This achievement successfully met the group’s mid-term targets of reducing China exposure (to) below 50 per cent and debt investments (to) below 30 per cent, ahead of schedule,” it said.

The board proposed a final dividend of S$0.0345 per share, at a dividend yield of 6.1 per cent.

“With a more balanced portfolio, the group is better positioned to navigate the risks associated with Chinese debt investments while simultaneously strengthening its overall resilience.

“Looking ahead, the group will continue refining its sector rotation strategy by limiting new loan exposure to underperforming industries, particularly real estate and related sectors. At the same time, the group will actively manage non-performing loans through restructuring initiatives and legal recourse,” it said.

The maritime sector continues to present attractive investment opportunities, driven by stricter environmental regulations and increasing demand for alternative financing solutions, it added.

Over time, the group plans to progressively reallocate cash towards maritime-related investments, as well as private credit funds in South-east Asia, in alignment with its long-term investment strategy.

“Yangzijiang Financial has steadily expanded its maritime portfolio, which now includes vessel portfolios, finance leases, loan services, and joint ventures in ship chartering, brokerage and import-export activities. This expansion further strengthens the group’s diversification and income generation.”

Shares of Yangzijiang Financial closed flat at S$0.565 on Monday.