Zhi Tong Cai Jing·2025-08-04 02:53Core Viewpoint - China Shipbuilding Defense (中船防务) has announced a positive earnings forecast for the first half of 2025, expecting a net profit attributable to shareholders of RMB 460 million to RMB 540 million, representing a year-on-year increase of 213.25% to 267.73% [1] Group 1: Company Performance - The stock price of China Shipbuilding Defense rose over 5%, currently trading at HKD 15.69 with a trading volume of HKD 60.22 million [1] - Shenwan Hongyuan noted that the anticipated performance for the first half of 2025 exceeds expectations, confirming the profit release of domestic shipbuilding companies [1] - The company’s subsidiary, Huangpu Wenchong, holds approximately RMB 54 billion in new ship orders, which is expected to support an average annual compound growth rate of 70% in net profit from 2025 to 2027 [1] Group 2: Market Outlook - The report from Jianyin International indicates that the valuation of China Shipbuilding Defense is attractive, reiterating a "outperform market" rating with a target price of HKD 23.7, reflecting improved earnings visibility and easing trade tensions [1] - The forecast for net profit from 2025 to 2027 has been raised by 24% to 32% due to seasonal factors in the shipbuilding industry and more optimistic gross margin assumptions [1] - New ship order volume saw a year-on-year decline from January to June, but there was a month-on-month recovery in June, suggesting a potential upward trend in ship prices and order volumes [1]