CSSC Holdings(SH:600150) HTSC·2025-10-30 06:41Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company reported a significant increase in revenue and net profit for Q1-Q3 2025, with revenue reaching 107.40 billion RMB, up 17.96% year-on-year, and net profit of 5.85 billion RMB, up 115.41% year-on-year [1] - The successful completion of the merger and restructuring is expected to enhance the company's competitive advantage and order-taking capability, driving continuous performance growth [1][4] - The global shipbuilding industry is showing resilience despite short-term pressures, with the company maintaining a leading market share in China [3] Summary by Sections Financial Performance - For Q1-Q3 2025, the company achieved a gross margin of 12.56%, an increase of 1.94 percentage points year-on-year, attributed to improved delivery of civil ship products and effective cost control [2] - The total operating income for Q3 2025 was 34.76 billion RMB, a year-on-year increase of 4.76%, with net profit reaching 2.07 billion RMB, up 97.56% year-on-year [1] Industry Outlook - The global shipbuilding industry is facing short-term capacity release and order rhythm pressures due to geopolitical uncertainties, but the long-term growth potential remains promising as demand gradually recovers [3] - As of September 2025, China's shipbuilding completion volume accounted for 55.00% of the global total, indicating a strong market position [3] Strategic Developments - The merger with China Shipbuilding Industry Corporation has been successfully completed, enhancing the company's technological and production capacity, which is expected to lead to cost advantages and improved bargaining power in the global market [4] - The company is well-positioned to capitalize on the industry's shift towards high-end, green, and intelligent shipbuilding [4] Earnings Forecast and Valuation - The earnings forecast for 2025-2027 has been adjusted, with net profit estimates raised to 11.82 billion RMB, 16.67 billion RMB, and 22.01 billion RMB respectively, reflecting the integration of China Shipbuilding Industry Corporation [5] - The target price for the company is set at 48.62 RMB, based on a projected PE ratio of 22 times for 2026 [5]