Ge Long Hui A P P·2025-07-18 16:41Core Viewpoint - The largest absorption merger in A-share history is progressing, with the world's largest shipbuilding listed company emerging [1] Group 1: Merger Details - The China Securities Regulatory Commission (CSRC) has approved the absorption merger of China Shipbuilding Industry Corporation (CSIC) and China Shipbuilding Heavy Industry Company (CSIC) [2][3] - As of July 18, the total market capitalization of the two companies is 152.4 billion and 106.9 billion respectively, both exceeding 100 billion [2][3] - The share exchange ratio is set at 1:0.1335, meaning one share of China Shipbuilding Heavy Industry can be exchanged for approximately 0.1339 shares of China Shipbuilding [5][6] Group 2: Financial Performance - The combined net profit for the first half of the year for both companies is expected to reach between 4.3 billion and 4.9 billion, representing a year-on-year growth of approximately 121% to 152% [8] - China Shipbuilding's net profit is projected to be between 2.8 billion and 3.1 billion, an increase of 98.25% to 119.49% year-on-year, while China Shipbuilding Heavy Industry's net profit is expected to be between 1.5 billion and 1.8 billion, showing a growth of 181.73% to 238.08% [8] Group 3: Market Position - Post-merger, the total assets of China Shipbuilding will exceed 400 billion, with operating revenue surpassing 130 billion [9] - The total order backlog for both companies is 62.63 million deadweight tons, significantly higher than major competitors [9][10] - The merger positions the new entity as a global leader in terms of asset scale, revenue, and order volume [10] Group 4: Industry Context - The merger is the first major restructuring project following the new "National Nine Articles" policy, indicating a trend of increased activity in the A-share merger and acquisition market [8] - The merger is expected to facilitate rapid absorption of scarce technologies and market resources, driving industry upgrades and advancements in critical sectors [11]