ZHESHANG SECURITIES·2026-03-31 13:48Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company's performance in 2025 met expectations, with a significant year-on-year increase in net profit attributable to shareholders of 167%, reaching 1.01 billion yuan [1] - The growth in 2025 is attributed to improved revenue and production efficiency in ship products, as well as a notable increase in investment income from joint ventures [1] - The shipbuilding industry is experiencing an upward cycle driven by replacement cycles, environmental policies, and tight capacity, which is expected to enhance profitability for shipyards [4] Financial Performance - In 2025, the company achieved a total revenue of 205.47 billion yuan, with a year-on-year growth of 6% [12] - The net profit attributable to shareholders for 2025 was 1.01 billion yuan, reflecting a 167% increase compared to the previous year [12] - The company expects net profits to grow to 1.47 billion yuan in 2026, 2.14 billion yuan in 2027, and 3.36 billion yuan in 2028, with compound annual growth rates (CAGR) of 50% [6] Business Segmentation - Revenue from ship products reached 18.47 billion yuan in 2025, up 10.44% year-on-year, while revenue from steel structure engineering grew by 26% to 1.04 billion yuan [2] - The company secured new orders worth 23.46 billion yuan in 2025, completing 134% of its annual target, with a total of 53 new ship orders across 10 types [2] - The company delivered 39 ships in 2025, totaling 1.1153 million deadweight tons, which is a 2.8% increase year-on-year [2] Order Backlog - The company has a total order backlog valued at approximately 60.6 billion yuan, with shipbuilding orders accounting for about 59.1 billion yuan [3] - The backlog includes 137 ship products and 2 offshore engineering equipment, totaling 4.5274 million deadweight tons [3] Industry Outlook - The global shipbuilding industry saw a 94% year-on-year increase in new orders in January-February 2026, indicating strong demand [4] - The supply side is constrained, with a significant reduction in the number of active shipyards and delivery volumes compared to the previous cycle, which may drive ship prices higher [4] - The company is positioned to benefit from the consolidation of assets within the China Shipbuilding Group, improving competitive dynamics and operational efficiency [4]