The Zhitong Finance App learned that China Shipbuilding Defense (00317) rose more than 3%. As of press release, it had risen 3.01% to HK$15.04, with a turnover of HK$11.187,400.
According to the news, according to the China Shipbuilding Industry Association, from January to March 2024, the country's shipbuilding completed volume was 12.35 million DWT, up 34.7% year on year; 24.14 million new orders were received, up 59.0% year on year; by the end of March, the number of handheld orders was 154.04 million dwt, up 34.5% year on year. CITIC Securities said that the supply side continues to be tight and lacks flexibility to support the continuous rise in new ship prices. Reviewing the ship price trend in the past three-wheel shipbuilding cycle, judging that the new ship price index will be high at 240-250 points in this cycle. Currently, ship prices are still in the middle of the current upward cycle.
Zheshang Securities pointed out that the company is the only “A+H” platform under the China Shipbuilding Group and a core global shipbuilding enterprise; benefiting from the upward cycle of the shipbuilding industry and the improvement of the competitive landscape, the company's profits continue to recover. The bank said that although there has been a large increase in ship prices, 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.