Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [1] Core Viewpoints - In 2024, the 71 tracked military industry stocks achieved a total revenue of 566.27 billion, a year-on-year growth of 0.76%, while the net profit attributable to shareholders was 23.90 billion, a decrease of 26.24% [4][20] - The decline in profit is primarily attributed to a decrease in overall gross margin, which was 17.67%, down by 1.80 percentage points year-on-year [4][23] - The shipbuilding sector showed significant performance growth, with a revenue of 190.05 billion, up 11.25%, and a net profit of 6.55 billion, up 115.10% [4][37] Summary by Sections 1. Military Industry Performance in 2024 - The overall performance of the military industry in 2024 showed a slowdown in revenue growth and profit pressure [20] - The total gross profit for the 71 military stocks was 100.08 billion, a decrease of 8.53% year-on-year [21] - The overall four expense rate for the 71 military stocks was 12.24%, a slight decrease of 0.07 percentage points [26] 2. Q1 2025 Performance Analysis - In Q1 2025, the 71 military stocks reported a total revenue of 106.75 billion, a year-on-year decrease of 3.15%, and a net profit of 5.61 billion, down 4.40% [6][19] - The shipbuilding sector led in growth, achieving a revenue of 40.99 billion, up 9.81%, and a net profit of 2.05 billion, up 232.11% [6][38] 3. Contract Liabilities - As of the end of 2024, the total contract liabilities for the 71 military stocks reached 198.56 billion, a year-on-year increase of 5.91% [5][58] - The shipbuilding sector saw a significant increase in contract liabilities, growing by 27.14% to 157.05 billion, while the aviation sector's liabilities decreased by 36.69% [5][60] 4. Investment Recommendations - The report suggests focusing on two main investment themes: the ongoing demand for aerospace and the potential of new technologies, products, and markets [10][11] - Key companies to watch include those in the aerospace supply chain and missile industry, such as AVIC Shenyang Aircraft Corporation and AVIC Heavy Machinery [10][11]

Core Viewpoint - The article discusses the proposed share swap merger between China Shipbuilding Industry Corporation (CSIC) and China State Shipbuilding Corporation (CSSC), highlighting the potential benefits of eliminating competition and consolidating their operations in the shipbuilding industry [1][5]. Summary by Sections Merger Announcement - On May 8, CSIC announced its plan to merge with CSSC through a share swap, which is subject to approval from the Shanghai Stock Exchange and the China Securities Regulatory Commission [1][3]. Transaction Details - The merger involves CSIC issuing A-shares to all shareholders of CSSC at a swap price of 37.84 yuan per share. The dissenting shareholders of CSIC can sell their shares at a price of 30.27 yuan per share, based on the average trading price over the previous 120 trading days [3][4]. Financial Performance - CSIC reported a revenue of 78.584 billion yuan for 2024, a year-on-year increase of 5.01%, and a net profit of 3.614 billion yuan, up 22.21% [5][6]. CSSC achieved a revenue of 55.436 billion yuan, an 18.70% increase, and a net profit of 1.311 billion yuan, marking a return to profitability [6][7]. Share Structure Post-Merger - Before the merger, CSIC had approximately 4.472 billion shares, while CSSC had about 22.802 billion shares. The merger will result in CSIC issuing around 3.044 billion new shares, leading to CSIC Group holding approximately 2.007 billion shares, representing a 26.71% stake in the merged entity [4][5]. Industry Context - The shipbuilding industry in China is experiencing positive growth, with key indicators showing improvement. The merger aims to enhance the operational capabilities of the combined entity and promote high-end ship manufacturing [5].

Core Viewpoint - The ship repair industry is crucial for supporting the global shipping sector, with its development closely linked to the global economy. The market has shown stable growth due to increasing international trade and shipping activities, although growth rates have fluctuated due to macroeconomic conditions [1][10]. Industry Overview - Ship repair involves maintaining and restoring the condition of vessels, including hulls, machinery, and equipment, to ensure safe operation. The industry is categorized into planned maintenance, accident repair, and basic restoration [3][4]. - The global ship repair volume is projected to increase from 13,127 vessels in 2017 to 39,002 vessels by 2024, although growth rates are expected to decline due to economic uncertainties [1][10]. Market Dynamics - The demand for ship repair services is closely tied to the shipping market, with increased shipping frequency and distance leading to higher maintenance needs. In 2024, China's waterway freight volume is expected to reach 9.811 billion tons, a 4.7% increase year-on-year [8][10]. - The proportion of repairs for older vessels is decreasing, while the share of repairs for vessels under 10 years old is rising, indicating a trend towards younger fleets [12][21]. Competitive Landscape - The ship repair industry in China is characterized by a diverse competitive landscape, dominated by three major state-owned enterprises, which collectively hold a 55.2% market share. Other private and joint-venture companies account for 44.8% [16][19]. - Major players include China Shipbuilding Industry Corporation, China State Shipbuilding Corporation, and China Merchants Industry Holdings, which leverage their technological and financial strengths to maintain competitive advantages [17][19]. Future Trends - The ship repair industry is expected to see increased demand for vessel upgrades and replacements, supported by government policies aimed at promoting the scrapping of older vessels [21]. - There is a clear trend towards digitalization and automation in the industry, with the adoption of AI, big data, and blockchain technologies to enhance maintenance efficiency and transparency [22]. - Market concentration is anticipated to rise, with larger firms likely to dominate the landscape, potentially leading to the elimination or consolidation of smaller players [24]. - Chinese ship repair companies are actively seeking to expand into international markets, particularly in line with the Belt and Road Initiative, necessitating compliance with international maritime regulations [25].

此次交易中，中国船舶为吸收合并方，中国重工为被吸收合并方。交易完成后，中国船舶实际控制人仍 为中国船舶集团有限公司、最终控制人仍为国务院国有资产监督管理委员会，未发生变更。 中国船舶最新市值达到1348亿元，中国重工最新市值接近1000亿元。两家千亿级企业换股吸收合并事 宜，备受市场关注。 中国船舶（600150）换股吸收合并中国重工（601989）事项有了新进展。5月8日晚，中国船舶公告，公 司收到上交所出具的《关于受理中国船舶工业股份有限公司发行股份购买资产申请的通知》，对公司发 行股份购买资产申请，上交所决定予以受理并依法进行审核。中国重工也同步披露了申请获受理的相关 公告。 2024年9月，中国船舶公告，为进一步聚焦国家重大战略和兴装强军主责主业、加快船舶总装业务高质 量发展、规范同业竞争、提升上市公司经营质量，中国船舶与中国重工正筹划由中国船舶通过向中国重 工全体股东发行A股股票的方式，换股吸收合并中国重工。该交易预计构成《上市公司重大资产重组管 理办法》规定的重大资产重组。 在多年发展中，中国船舶、中国重工下属骨干船厂已形成了各具独特竞争优势的产业与产品。中国船舶 在草案中表示，此次重组将统筹优化 ...

Core Viewpoint - The merger between China Shipbuilding (600150) and China State Shipbuilding Corporation (601989) marks a significant step in the consolidation of state-owned enterprises, with a transaction value of 115.15 billion yuan, representing the largest merger in A-share history over the past decade [3][5][8]. Company Overview - As of May 8, 2024, China Shipbuilding has a market capitalization of 134.8 billion yuan, while China State Shipbuilding's market cap stands at 98.96 billion yuan [3]. - The merger will result in China State Shipbuilding being delisted, with the surviving company projected to have total assets exceeding 400 billion yuan and combined revenues of 134 billion yuan in 2024, alongside a net profit of 4.925 billion yuan [6][7]. Merger Details - The merger will be executed through a share exchange ratio of 1 share of China State Shipbuilding for 0.1335 shares of China Shipbuilding, with adjusted share prices of 37.59 yuan and 5.032 yuan respectively [5]. - Post-merger, the total share capital of the combined entity will reach 7.516 billion shares, with significant changes in shareholder structure [6]. Industry Context - The merger addresses long-standing competition between the two companies and aims to create a complete industrial chain covering ship research, design, core components, and assembly [7]. - The combined entity is expected to capture over 20% of the global market share, enhancing its technological advantages and pricing power in high-value ship types such as LNG carriers and ultra-large container ships [7]. Market Dynamics - The global shipbuilding industry is currently experiencing an upward cycle, with new ship price indices rebounding nearly 50% from the 2020 low [7]. - Both companies have reported significant profit growth, with China Shipbuilding's net profit expected to rise by 22.21% to 3.614 billion yuan, and China State Shipbuilding's net profit surging by 266.6% to 1.311 billion yuan [7]. Strategic Implications - The merger reflects a shift in state-owned enterprise reform from "physical mergers" to "chemical reactions," emphasizing professional integration and value creation [8]. - The innovative "dynamic share exchange mechanism" allows for adjustments in share ratios based on profit distribution, demonstrating a focus on minority shareholder rights [8]. Broader Economic Impact - The merger is seen as a necessary response to global supply chain restructuring, with China’s shipbuilding industry capturing 57% of new global orders in 2024, while facing challenges from South Korean technology and U.S. trade investigations [9]. - The consolidation aims to eliminate internal competition and concentrate resources to build competitive advantages in green shipping and smart manufacturing [9].

Suspension and Resumption - Huina Technology's controlling shareholder Zhang Hongjun is planning to transfer shares, and the company will continue to be suspended from trading [1] Buybacks and Increases - Sichuan Changhong plans to repurchase company shares worth between 250 million to 500 million yuan for equity incentives [2] - Hainan Development's controlling shareholder and its concerted parties intend to increase their holdings of company shares by 100 million to 200 million yuan [3] - Changhong Meiling plans to repurchase shares worth between 150 million to 300 million yuan [11] - Changhong Huayi plans to repurchase shares worth between 150 million to 300 million yuan [11] - AVIC High-Tech plans to repurchase shares worth between 100 million to 200 million yuan [11] Investment Cooperation and Operational Status - Ningbo Huaxiang is collaborating with Xiangshan Industrial Investment and Shanghai Zhiyuan to strengthen cooperation in the robotics sector [4] - Naipu Mining plans to subscribe for equity in Switzerland's Veritas Resources AG to indirectly participate in the development of the San Matias project Alacran copper-gold-silver mine in Colombia [4] - China Shipbuilding Industry Corporation intends to issue A-shares to all shareholders of China Shipbuilding Heavy Industry Group as part of a merger application that has been accepted [4] - Citic Bank plans to invest 10 billion yuan to establish a financial asset investment company [5] - China Merchants Bank plans to invest 15 billion yuan to establish a financial asset investment company [6] - Pinggao Electric has won a procurement project from the State Grid, with a total bid amount of 1.751 billion yuan [7] - Jinchengxin plans to invest 231 million USD in the Alacran copper-gold-silver mine project and intends to acquire 5% equity in Colombia's CMH company for 10 million USD to gain control [7] - Tangrenshen's pig sales in April increased by 37.98% year-on-year [8] - FAW Fuwi has secured a seat project from a well-known luxury brand manufacturer worth 1.39 billion yuan [9] Performance Changes - SMIC's net profit for Q1 2025 is 1.356 billion yuan, a year-on-year increase of 166.5%. The company expects a revenue decline of 4% to 6% in Q2, with a gross margin guidance of 18% to 20%. The capacity utilization rate in Q1 rose to 89.6%, an increase of 4.1 percentage points [10]

证券代码：601989 证券简称：中国重工 编号：临 2025-026 关于重大资产重组事项相关申请获得受理的公告 本公司董事会及全体董事保证公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 中国船舶重工股份有限公司（以下简称"中国重工"或"公司"）与中国船 舶工业股份有限公司（以下简称"中国船舶"）正在筹划由中国船舶向中国重工 全体换股股东发行A股股票的方式换股吸收合并中国重工（以下简称"本次交易"）， 中国船舶为吸收合并方，中国重工为被吸收合并方。 2025年5月8日，公司收到中国船舶转来的上海证券交易所（以下简称"上交 所"）出具的《关于受理中国船舶工业股份有限公司发行股份购买资产申请的通 知》（上证上审（并购重组）〔2025〕29号）。上交所依据相关规定对申请文件 进行了核对，认为申请文件齐备，符合法定形式，决定予以受理并依法进行审核。 本次交易尚需上交所审核通过，并经中国证券监督管理委员会予以注册及相 关法律法规所要求的其他可能涉及的必要批准、核准、备案或许可（如需）后方 可正式实施，能否实施尚存在不确定性，有关信息均以公司指定信息披露媒体发 布 ...

Core Viewpoint - China Shipbuilding Industry Corporation is planning a share swap merger with China Heavy Industry, where China Shipbuilding will issue A-shares to all shareholders of China Heavy Industry [1] Group 1: Transaction Details - The transaction involves China Shipbuilding issuing A-shares to acquire China Heavy Industry through a share swap [1] - On May 8, 2025, China Heavy Industry received a notification from the Shanghai Stock Exchange regarding the acceptance of the application for asset acquisition by China Shipbuilding [1] - The Shanghai Stock Exchange has verified that the application documents are complete and in legal form, deciding to accept and review the application [1] Group 2: Regulatory Approval - The transaction is subject to approval from the Shanghai Stock Exchange and registration by the China Securities Regulatory Commission [1] - Additional necessary approvals, permits, or filings may be required as per relevant laws and regulations before the transaction can be officially implemented [1] - There is uncertainty regarding the implementation of the transaction pending the necessary approvals [1]

Group 1 - The China Securities Military Industry Index (399967) has shown a strong increase of 4.24% as of May 7, 2025, with notable gains in constituent stocks such as AVIC Chengfei (302132) reaching a 20% limit up, and Zhongyun Drone (688297) rising by 16.37% [1] - The leading military ETF (512680) has also increased by 4.23%, marking its third consecutive rise, with a trading volume of 87.04 million yuan and a turnover rate of 2.31% [1] - The latest scale of the military ETF has reached 3.686 billion yuan, a new high for the year, with the latest share count at 3.544 billion, also a six-month high [1] Group 2 - The top ten weighted stocks in the China Securities Military Industry Index as of April 30, 2025, include China Shipbuilding (600150) and Guoke Technology (002625), accounting for a total of 37.03% of the index [2] - Positive signals have emerged in the military sector since 2024, with expectations of increased contract announcements and related transaction amounts in 2025, indicating a recovery in the military fundamentals [2] - According to GF Securities, the EU's defense industrial strategy is shifting towards self-sufficiency, aiming for 50% of defense equipment procurement to be sourced internally by 2030, which may benefit qualified Chinese companies with production capacity [2]

Core Insights - China Shipbuilding Industry has shown a significant recovery in performance, with a reported annual revenue of 55.436 billion yuan in 2024, marking an 18.7% year-on-year increase, and a net profit of 1.311 billion yuan, reversing previous losses [1][3] - The company has maintained a strong order backlog, with contract liabilities reaching 66.01 billion yuan by the end of Q1 2025, reflecting a 37.75% increase year-on-year [1][5] Financial Performance - In Q1 2025, the company achieved a revenue of 12.216 billion yuan, a 20.12% increase year-on-year, and a net profit of 519 million yuan, representing a remarkable 281.99% growth [1][4] - The net profit for 2024 showed a significant improvement, with a core profit (deducting non-recurring items) of 613 million yuan, also indicating a turnaround [3] Operational Highlights - The company secured 103 new ship orders totaling 15.8995 million deadweight tons in 2024, a 90.4% increase, and delivered 62 ships totaling 5.4858 million deadweight tons, a 13.4% increase [3] - As of the end of 2024, the company held 216 ships in its order book, amounting to 30.3097 million deadweight tons, a 53.2% increase year-on-year [3] Research and Development - R&D expenditures have been on the rise, with investments of 1.432 billion yuan in 2022, 1.515 billion yuan in 2023, and 2.002 billion yuan in 2024, totaling 4.949 billion yuan over three years [2][7] - In Q1 2025, R&D expenses further increased by 13.68% to 356 million yuan, reflecting the company's commitment to innovation [7] Financial Stability - As of Q1 2025, total assets stood at 225.2 billion yuan, with a debt-to-asset ratio of 62.18% and cash reserves of 81.49 billion yuan, a 12.62% increase year-on-year [8] - The company has maintained a positive financial expense trend, with financial costs remaining negative for nine consecutive years, and a reduction of 31.78% in Q1 2025 [8] Shareholder Returns - The company announced a cash dividend of 0.018 yuan per share for 2024, totaling 410 million yuan, which is 31.31% of its net profit [8] - Since its listing in 2009, the company has distributed cash dividends 11 times, amounting to a total of 5.341 billion yuan [8]