Core Viewpoint - China Shipbuilding Defense (00317) has seen a significant increase in stock price, rising over 6% and currently trading at 16.67 HKD, with a transaction volume of 102 million HKD. This surge is attributed to the announcement of a merger with China Shipbuilding Industry Co., which is seen as a crucial step in internal resource integration within the China Shipbuilding Group [1]. Group 1: Merger Announcement - China Shipbuilding Heavy Industry Co. announced plans to absorb China Shipbuilding Defense through the issuance of A-shares, with the merger approved by the China Securities Regulatory Commission [1]. - Following the merger, China Heavy Industry will no longer have independent legal status and will be deregistered [1]. - The market perceives this merger as a significant move towards further integration of China Shipbuilding Defense, potentially leading to a "three-ship merger" structure [1]. Group 2: Profit Forecast Adjustments - Jianyin International has revised its profit forecasts for China Shipbuilding Defense, increasing the net profit estimates for 2025 to 2027 by 24% to 32% based on seasonal factors in the shipbuilding industry and more optimistic gross margin assumptions [1]. - The subsidiary Huangpu Wenchong currently holds approximately 54 billion RMB in new ship orders, which is expected to support an average annual compound growth rate of 70% in profits from 2025 to 2027 [1].