China Shipbuilding Defense (00317) rose more than 5%. As of press release, it rose 5.41% to HK$14.8, with a turnover of HK$384.13,700.
The Zhitong Finance App learned that China Shipbuilding Defense (00317) rose by more than 5%. As of press release, it had risen 5.41% to HK$14.8, with a turnover of HK$384.13,700.
Zheshang Securities pointed out that China Shipbuilding Defense is the only “A+H” platform under the China Shipbuilding Group and a core global shipbuilding enterprise. The bank pointed out that current market expectations: currently ship prices are at 96% of the historical peak, and there is insufficient momentum for subsequent ship price increases; military vessels account for a relatively high share of the company's product structure, and the gross margin of military ships is lower than that of civilian ships, so the company's profitability repair is limited, and performance flexibility is insufficient.
The bank believes that there has been a large increase in ship prices, but considering the increase in the average load tonnage of ships “the more they are built”, the apparent factors of dual-fuel upgrades, and hidden factors such as rising labor costs and inflation, there is still plenty of room for ship prices to rise. Furthermore, there is a large difference in the number of DWT between the military and civilian ship types produced by the company, so the production capacity of military and civilian shipyards is not shared. With the gradual delivery of high value+high added value+high gross margin ship models, the company's profitability will continue to improve. If ship prices continue to rise in the future, there is still room for improvement in civilian ships' production capacity; however, the PB valuation of China Shipbuilding Defense (H Shares) is significantly lower than that of comparable companies.