For the first time, Merrill Lynch gave Rongsheng Heavy Industries (01101-HK) a neutral investment rating, with a target price of HK$2.6. Bank of America Merrill Lynch said that it is expected that next year will continue to be a difficult year for the global shipbuilding industry. It is estimated that ship utilization will decline, new orders will continue to be low, and new ship costs will also be under pressure. It is believed that it will be difficult to stand out even in a sluggish industry environment; the bank expects that it will not be until 2013 that the supply and demand situation in the market is balanced, which is conducive to the resumption of new orders. Rongsheng Heavy Industries closed at HK$2.40 on Friday.