CSSC Holdings(SH:600150) Hua Yuan Zheng Quan·2024-09-04 02:30Investment Rating - The report maintains a "Buy" rating for China Shipbuilding (600150.SH) [3] Core Views - The company achieved a net profit attributable to shareholders of 1.412 billion yuan in the first half of 2024, representing a year-on-year increase of approximately 155.33% [3] - High-value orders are gradually being delivered, accelerating performance realization, with the Clarkson newbuilding index showing a growth of 22.3%, 5.3%, and 10.2% from 2021 to 2023 [3] - The company is expected to deliver a significant portion of its orders from 2021 in 2024, with a higher proportion of high-value ship types being delivered compared to previous years [3][4] - The report forecasts revenue for China Shipbuilding to be 90.89 billion yuan in 2024, with net profit expected to reach 5.112 billion yuan, corresponding to a PE ratio of 33.57 [5] Summary by Sections Financial Performance - In Q2 2024, the company reported a net profit of 1.011 billion yuan, with a non-recurring net profit of 860 million yuan [3] - The company’s revenue for 2024 is projected to be 90.89 billion yuan, with a growth rate of 21.45% [5] - The net profit for 2024 is expected to be 5.112 billion yuan, reflecting a growth rate of 72.86% [5] Market Dynamics - The newbuilding price growth has shifted from market-driven to green renewal demand since Q4 2022, maintaining high order coverage despite a decline in the shipping market [4] - The report indicates that the order backlog extends to 2027-2028, with significant profit realization expected in 2024 [4] Valuation Metrics - The projected PE ratios for 2024, 2025, and 2026 are 33.57, 18.47, and 12.88 respectively, indicating a favorable valuation outlook [5] - The report anticipates a steady increase in return on equity (ROE) from 6.12% in 2024 to 19.40% in 2026 [5]