CSSC Holdings(600150) 国金证券·2024-10-31 00:11Investment Rating - The report maintains a "Buy" rating for China Shipbuilding (600150.SH) [1] Core Views - The company has shown improvement in its order structure and a steady increase in gross margin, with a gross margin of 11.62% in Q3 2024, up by 4.4 and 2.8 percentage points from Q1 and Q2 respectively [1] - The widening gap between shipbuilding prices and steel prices is expected to enhance the company's profitability in the future [2] - The merger with China Shipbuilding Industry Corporation is anticipated to strengthen the company's leading position and profitability through synergy and scale effects [3] Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved revenue of 561.69 billion RMB, a year-on-year increase of 13.12%, and a net profit attributable to shareholders of 22.71 billion RMB, a decrease of 11.35% [1] - The company reported a net profit of 8.58 billion RMB in Q3 2024, down 57.26% year-on-year, but the non-recurring net profit turned positive at 7.73 billion RMB [1] Market Position - In the first nine months of 2024, China's shipbuilding industry saw a completion volume of 36.34 million deadweight tons, an increase of 18.2% year-on-year, and new orders of 87.11 million deadweight tons, up 51.9% year-on-year [2] - The company and China Shipbuilding Industry Corporation together accounted for 14.3% of the global market share in ship deliveries [3] Profitability Forecast - Revenue projections for 2024-2026 are estimated at 835 billion RMB, 932 billion RMB, and 1,040 billion RMB respectively, with net profits of 44.88 billion RMB, 82.50 billion RMB, and 112.14 billion RMB, corresponding to P/E ratios of 39, 21, and 15 times [3]