Gf Sec research reports on September 26th pointed out that China CSSC (600150.SH) released a stock swap absorption and merger plan proposal. The bank's interpretation of the plan: 1. Stock swap ratio: calculated based on the pre-suspension closing price (China CSSC 34.90 yuan/share, China Shipbuilding Industry 4.98 yuan/share), the price at which China Shipbuilding Industry is absorbed and merged in this plan is approximately discounted by 6%-7% compared to China Shipbuilding Industry. 2. Cash option price: the exercise price is discounted by 20% based on the average trading price of the previous 120 days, with the core purpose of preventing the subsequent stock price from declining in a weak market environment, which might lead to an inversion between the stock price and the cash option price. 3. Emphasis on the merger in this round of the business cycle, focusing on the subsequent integration progress and results. Without considering this restructuring, the company is expected to have a net income of 4.45/8.21/10.63 billion yuan in 2024-2026, and a PB valuation of the net assets per share of China CSSC at 4 times in 2024, corresponding to a reasonable value per share of 46.3 yuan, maintaining a "buy" rating.