CSSC Holdings(600150) 诚通证券·2025-02-19 05:53Investment Rating - The report maintains a "Strong Buy" rating for China Shipbuilding Industry Co., Ltd [12] Core Views - The merger between China Shipbuilding and China Shipbuilding Heavy Industry is expected to enhance operational efficiency and create synergies, positioning the company as a leading player in the shipbuilding industry [5][9][10] - The combined entity will control a significant market share, with a domestic order backlog of approximately 22.87% based on CGT (Compensated Gross Tonnage) [3][18] - The report anticipates a robust growth trajectory for revenue and net profit from 2024 to 2026, driven by an upward cycle in the shipbuilding industry and increasing demand for green ship types [11][28] Summary by Sections Shareholding Structure - After the merger, China Shipbuilding Industry Group will hold 26.71% of the shares, while China Shipbuilding Group will control 49.29% of the merged entity, maintaining the status of the State-owned Assets Supervision and Administration Commission as the ultimate controller [2][13][14] Market Position - As of early February 2025, the combined order backlog of China Shipbuilding and China Shipbuilding Heavy Industry amounts to approximately 2,049.1 million CGT, giving them a leading position in the domestic market [3][18] - The new order intake for 2024 is projected to be around 914.6 million CGT, representing a domestic market share of approximately 19.28% [22][23] Outlook - The merger is expected to facilitate internal synergies, improve product quality, and enhance operational efficiency, with a focus on value creation and brand premium [5][9][10] - The report suggests that high-quality assets, such as those from Hudong-Zhonghua, are likely to be injected into China Shipbuilding, further strengthening its market position [10][26] Financial Forecasts - Revenue projections for 2024, 2025, and 2026 are estimated at 826.59 billion, 925.07 billion, and 1,013.80 billion CNY respectively, with corresponding net profits of 38.42 billion, 75.41 billion, and 95.01 billion CNY [11][28] - The report indicates a significant increase in profitability, with net profit growth rates of 29.9%, 96.3%, and 26.0% for the same years [11][28]