CSSC Holdings(SH:600150) Soochow Securities·2025-07-13 07:41Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to achieve a significant increase in net profit for the first half of 2025, with a forecasted growth of 98% to 119% year-on-year, driven by the fulfillment of existing orders [3] - The merger with China Shipbuilding Industry Corporation is progressing, which is anticipated to enhance operational efficiency and profitability [4] - The long-term outlook for the shipbuilding industry remains positive, supported by ongoing demand for new vessels and environmental upgrades [4] Summary by Sections Earnings Forecast and Valuation - Total revenue is projected to grow from 748.39 billion RMB in 2023 to 1,141.67 billion RMB by 2027, with a compound annual growth rate (CAGR) of approximately 12.57% [1] - Net profit attributable to shareholders is expected to rise from 295.7 billion RMB in 2023 to 124.14 billion RMB in 2027, reflecting a substantial increase in profitability [1] - The earnings per share (EPS) is forecasted to increase from 0.66 RMB in 2023 to 2.78 RMB in 2027, indicating strong growth potential [1] Performance Highlights - As of May 2025, the company holds 322 vessels in its order book, equating to 24.61 million deadweight tons, with production capacity scheduled until 2029 [3] - The company’s performance is expected to exceed market expectations due to the release of previously suppressed demand and the synergistic effects of the merger [3][4] Market Position and Industry Outlook - The company is projected to capture approximately 15% of the global order book and over 14% of global shipbuilding completion volume post-merger [4] - The shipbuilding industry is expected to continue its upward cycle, supported by stringent environmental regulations and the aging of existing vessels [4]