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1Q20 weak performance due to COVID-19 impact Yangzijiang (YZJ) announced its 1Q20 results on 29 April. Its 1Q20 revenue declined by 44% YoY to CNY3.5bn while earnings dropped a more hefty 51% to CNY404m. At this current run-rate, annualized earnings are expected to be at CNY1.6bn compared to the street estimate of approx CNY2.8bn prior to the latest announcement. I suspect that the street will be making pretty hefty earnings cut for FY2020 post this latest set of results which has likely underperformed their expectations. Granted that the weak shipbuilding revenue this quarter was due to production shut-down as a result of COVID-19. Nonetheless, Yangzijiang (YZJ) shipbuilding revenue should trend below average over the coming quarters as a result of a weak order backlog. Shipbuilding gross margins could remain at single digit ahead In my previous Yangzijiang post relating...