Core Viewpoint - Tianhai Defense experienced a decline of 1.07% in stock price on September 17, with a trading volume of 319 million yuan, indicating a potential shift in investor sentiment and market dynamics [1] Financing Summary - On September 17, Tianhai Defense had a financing buy amount of 27.81 million yuan and a financing repayment of 38.10 million yuan, resulting in a net financing outflow of 10.29 million yuan [1] - The total financing and margin trading balance for Tianhai Defense reached 587 million yuan, accounting for 5.51% of its market capitalization, which is above the 50th percentile level over the past year, indicating a relatively high financing level [1] - The company had no shares repaid in margin trading on September 17, with 21.25 million yuan in margin balance, also exceeding the 50th percentile level over the past year [1] Business Performance - For the first half of 2025, Tianhai Defense reported a revenue of 1.843 billion yuan, representing a year-on-year growth of 22.00%, and a net profit attributable to shareholders of 126 million yuan, reflecting a significant increase of 106.69% year-on-year [2] - The company's main business revenue composition includes 92.05% from shipbuilding and marine engineering, 1.97% from design services, and smaller contributions from energy and defense equipment sectors [1] Shareholder Information - As of September 10, the number of shareholders for Tianhai Defense was 130,100, a decrease of 5.47% from the previous period, while the average circulating shares per person increased by 5.78% to 12,661 shares [2] - Notable institutional holdings include the Guotai CSI Military Industry ETF as the third-largest shareholder with 16.03 million shares, and several other ETFs as new shareholders, indicating growing institutional interest [3]

Core Viewpoint - The company reported strong financial performance in the first half of 2025, with significant revenue and profit growth driven by accelerated order deliveries and increased EPC construction business revenue [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 1.843 billion yuan, a year-on-year increase of 22.00%, and a net profit attributable to shareholders of 126 million yuan, up 106.69% year-on-year [1]. - The gross margin for H1 2025 was 19.67%, an increase of 2.80 percentage points year-on-year, while the net profit margin was 6.85%, up 2.59 percentage points year-on-year [2]. - The company’s Q2 2025 revenue reached 1.097 billion yuan, reflecting a year-on-year increase of 30.95% and a quarter-on-quarter increase of 46.88% [1]. Operational Efficiency - The company delivered 14 vessels in total for design and construction, 39 vessels for design, and 9 vessels for supervision in H1 2025, showing an increase in delivery speed compared to H1 2024 [3]. - The EPC business revenue reached 1.697 billion yuan, a year-on-year increase of 32.33%, driven by improved production efficiency through enhanced coordination and new processes [3]. Order Backlog and Market Position - As of the end of H1 2025, the company had a substantial order backlog, including 1.31 billion yuan for marine engineering design, 470 million yuan for supervision, and 14.143 billion yuan for construction, indicating a 1.3% increase compared to the end of 2024 [3][4]. - The company is positioned as a leader in the ship design and research industry, benefiting from government support for deep-sea technology and the growing demand for green ships due to international maritime organization policies [3][4]. Profit Forecast and Valuation - The company’s net profit forecasts for 2025-2027 have been raised to 218 million yuan, 288 million yuan, and 334 million yuan, reflecting increases of 15%, 16%, and 17% respectively [5]. - The target price has been adjusted to 8.21 yuan, based on a projected PE ratio of 65 times for 2025, indicating confidence in the company’s ability to leverage its order backlog and operational efficiencies [5].