CSSC Holdings(SH:600150) Soochow Securities·2025-09-01 09:44Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - In Q2 2025, the company's net profit attributable to shareholders increased by 80%, aligning with market expectations, supported by a robust order backlog [2] - The gross margin improved significantly, with a sales gross margin of 12.2%, up by 4.0 percentage points year-on-year, indicating enhanced profitability [3] - The merger between the northern and southern shipbuilding companies is nearing completion, which is expected to strengthen the company's competitive position globally [4] Financial Performance Summary - For the first half of 2025, the company achieved total revenue of 40.3 billion yuan, a year-on-year increase of 12%, and a net profit of 2.9 billion yuan, up 109% [2] - The core business of shipbuilding and marine engineering generated revenue of 38.6 billion yuan, reflecting a 13% growth year-on-year [2] - The company’s order backlog as of June 2025 included 26.49 million deadweight tons valued at 233.5 billion yuan, representing a year-on-year increase of 12% and 17% respectively [2] Margin and Cost Control - The company reported a sales net profit margin of 8.3%, an increase of 4.3 percentage points year-on-year, showcasing effective cost control measures [3] - The operating expense ratio for the first half of 2025 was 5.0%, down by 0.3 percentage points compared to the previous year, indicating improved cost management [3] Market Outlook - The shipbuilding industry is supported by rigid supply and demand dynamics, with ongoing demand for fleet renewal due to stricter environmental regulations and aging vessels [4] - The global shipbuilding market remains stable, with new ship price indices maintaining high levels despite a slight year-on-year decline [4]