Zhi Tong Cai Jing·2025-11-21 03:00Core Viewpoint - China Shipbuilding Defense (中船防务) has seen a significant stock price increase of over 5%, currently trading at 15.55 HKD, with a trading volume of 198 million HKD. This surge is influenced by recent data indicating a decline in global new ship orders, with China maintaining a dominant market share in new orders [1]. Group 1: Industry Overview - According to Clarkson Research, global new ship order volume in October was 2.91 million compensated gross tons (CGT), a 38% decrease from 4.71 million CGT in the same month last year [1]. - Chinese shipyards secured 98 new ship orders totaling 2.13 million CGT, capturing a 73% share of the global market, ranking first [1]. Group 2: Company Insights - According to a recent report by Zhongtai Securities, the uncertainty in geopolitical situations is expected to increase attention on the military industry sector [1]. - Shenwan Hongyuan noted that shipbuilding stocks are generally undervalued, with China Shipbuilding (中国船舶) and China Shipbuilding Defense (中船防务 H) holding order amounts of approximately 56 billion and 7 billion USD respectively, with market capitalization to order ratio at 0.65 and 0.36, indicating historical low levels [1]. - Previous analysis by Founder Securities highlighted that China Shipbuilding Defense is a major shipbuilding enterprise under China Shipbuilding Group and a core military production enterprise, with sufficient orders on hand and profitability expected to stabilize with the delivery of high-priced ships [1].