CSSC Holdings(600150) 东吴证券·2024-12-23 13:34Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next 6 to 12 months [32][224]. Core Insights - The global shipbuilding market has entered an upcycle since 2021, with new ship prices and order volumes increasing significantly. The demand for ship replacements and environmental regulations are key drivers of this cycle, which is expected to last until 2030 [32][35]. - The company is positioned as a leading player in the global shipbuilding industry, benefiting from a high volume of orders and the injection of quality assets from its parent group [32][35]. - The company has seen a substantial increase in its net profit, with projections for 2024-2026 indicating a rise to 39 billion, 79 billion, and 108 billion yuan respectively, reflecting a strong recovery from previous downturns [32][220][224]. Summary by Sections Company Overview - The company is the largest comprehensive shipbuilding enterprise in China, focusing on military and civilian shipbuilding, repair, marine engineering, and electromechanical equipment [32][35][149]. - The company has undergone several rounds of asset injections and restructuring, enhancing its operational capabilities and market position [32][35][149]. Market Dynamics - The shipbuilding industry is characterized by long production cycles and significant capital requirements, with the current cycle driven by a combination of demand for new ships and stricter environmental regulations [32][35][171]. - As of 2023, China's shipbuilding completion volume and new orders accounted for 50% and 67% of the global total, respectively, solidifying its position as the world's largest shipbuilding nation [32][35][185]. Financial Performance - The company reported a total revenue of 562 billion yuan in the first three quarters of 2024, a year-on-year increase of 13%, with a significant rise in net profit margins [32][220]. - The report forecasts steady revenue growth for the company, with expected revenues of 825 billion, 938 billion, and 1,048 billion yuan for 2024, 2025, and 2026, respectively [32][244]. Order Backlog and Production Capacity - The company has a robust order backlog, with hand-held orders extending into 2028, indicating strong future revenue potential [32][218]. - The production capacity of the company's four major shipyards is fully utilized, with some orders scheduled for delivery as far out as 2029 [32][218]. Strategic Developments - The company plans to absorb and merge with China Shipbuilding Industry Corporation, which is expected to enhance its competitive position and operational synergies [32][135][224]. - The ongoing restructuring efforts aim to reduce competition within the industry and improve overall efficiency [32][135][224].