The plate index saw a maximum intraday increase of nearly 3% in the morning, with a cumulative increase of over 10% in the past two days. Against the backdrop of the overall market decline, China Shipbuilding Group's stocks are soaring against the wind.

As of the morning close on September 4th, the China Shipbuilding Group sector index closed up 0.91%, with the highest intraday increase reaching 2.92%. The previous day, the sector led the gainers with a 7.13% increase, ranking first on the daily gain list.

On the evening of September 2nd, China Shipbuilding (600150) and China Shipbuilding Heavy Industry (601989) announced simultaneously that China Shipbuilding plans to absorb and merge China Shipbuilding Heavy Industry by issuing A-shares. According to static data calculations, after the merger of the two giants, the total asset scale will reach 376.3 billion yuan, and the new order volume and the number of ship orders in hand will both rank first among global listed companies.

Liu Yunlong, a senior investment consultant at Guorong Securities, believes that the asset integration of China Shipbuilding Group is expected to enhance market expectations. The performance of China Shipbuilding after its resumption of trading can be anticipated, and the impact of the event on related listed companies may be short-term, with differentiation forming after a few days of rising.

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The China Shipbuilding Group sector index once surged by more than 10%

In the morning of the 4th, the Shanghai Composite Index opened low again and broke through 2,800 points, while China Shipbuilding Group once again saw a significant lift.

In the morning of that day, after a brief pullback, the China Shipbuilding Group sector quickly rose at 10:08, and by 10:27, the sector index had increased by nearly 2.92% at its highest. Among the constituent stocks, Kunming Ship Intelligent continued to lead the ChiNext board, with the highest increase of 15.94%, and China Shipbuilding Technology on the main board also performed strongly, with the highest increase of 9.17%.

The day before, on September 3rd, Kunming Ship Intelligent's increase reached 20%, China Shipbuilding Technology hit the daily limit, and China Shipbuilding Han Guang also showed performance, but fell back in the afternoon, ultimately closing up 9.09%. By the close, the China Shipbuilding Group sector reported a 7.13% increase, ranking first on the daily gain list. Calculated from the highest point during the morning of the 4th, the sector index's cumulative maximum increase reached 10%.

First Financial contacted the securities affairs department of China Shipbuilding regarding the reason for the merger. The staff member said that the merger was to fulfill the commitment to resolve competition within the same industry before 2026, which was announced in last year's annual report. The merger is beneficial for further strengthening the top-level coordination of the main business and effectively reducing competition within the same industry.

Liu Yunlong, a senior investment consultant at Guorong Securities, believes that the asset integration of China Shipbuilding Group is expected to enhance market expectations. The performance of China Shipbuilding after its resumption of trading can be anticipated, and if it is relatively good, it is expected to stimulate the performance of related stocks and the overall market.From a micro perspective, Liu Yunlong pointed out that the impact of the event on the related listed companies may be short-term, with a few days of rise followed by differentiation, and many individual stocks may face the pressure of a pullback, with more opportunities for medium and short-term operations.

However, the protagonists of the merger, China Shipbuilding and China Shipbuilding Heavy Industry, have been suspended from trading since September 3 and have not yet had the opportunity to perform. But on the day of the merger disclosure, the stock prices of both China Shipbuilding and China Shipbuilding Heavy Industry fell sharply. As of the close of trading that day, China Shipbuilding was reported at 34.9 yuan per share, down 9.04%, with a total market value of 156.1 billion yuan. China Shipbuilding Heavy Industry was reported at 4.98 yuan per share, down 6.39%, with a total market value of 113.6 billion yuan.

After the merger, the order volume will become the world's first.

Public information shows that China Shipbuilding Heavy Industry is a leading listed company in ship research and development, design, and manufacturing, covering five major fields: maritime defense, development, transportation, deep-sea equipment, and repair and modification. China Shipbuilding focuses on shipbuilding (military and civilian), ship repair, marine engineering, and mechanical and electrical equipment, with Jiangnan Shipbuilding and Waigaoqiao Shipbuilding.

China Shipbuilding and China Shipbuilding Heavy Industry are brother companies under the control of China Shipbuilding Group. The former's largest shareholder is China Shipbuilding Heavy Industry Group Co., Ltd. (referred to as China Shipbuilding Group), with a shareholding ratio of 44.47%; the latter's largest shareholder is China Shipbuilding Industry Group Co., Ltd. (referred to as China Shipbuilding Heavy Industry), with a shareholding ratio of 34.53%, and both companies are 100% owned by China Shipbuilding Group.

The history of China Shipbuilding Group and China Shipbuilding Heavy Industry can be traced back to 1999. At that time, China Shipbuilding Industry Corporation (referred to as "China Shipbuilding Corporation") was split into two major groups, China Shipbuilding Group and China Shipbuilding Heavy Industry, which are now the parent companies of China Shipbuilding and China Shipbuilding Heavy Industry. In 2019, the two groups merged to establish China Shipbuilding Group Co., Ltd.

According to the semi-annual report, in the first half of this year, China Shipbuilding's total assets, revenue, and net profit were 174.342 billion yuan, 36.017 billion yuan, and 1.412 billion yuan, respectively. China Shipbuilding Heavy Industry's total assets, revenue, and net profit were 201.974 billion yuan, 22.102 billion yuan, and 0.532 billion yuan, respectively.

Based on the above data, after the merger, the new company's total asset scale will reach 376.316 billion yuan, ranking first among the listed shipbuilding companies in the country.

In terms of market share, the new company after the reorganization will become the world's first shipbuilding listed company in terms of new order volume and the number of ship orders on hand.

According to Clarkson's recently released global top 30 shipbuilding group order ranking, in the first half of this year, China's shipbuilding industry led the global market, occupying 22 seats in the top 30. At the same time, China Shipbuilding Group's corrected total tonnage ranking is the first in the world, with new orders reaching 7.139 million CGT (179 ships) in the first half of the year, far exceeding the second place HD Hyundai by 2.2 times and 1.8 times. In terms of orders on hand, China Shipbuilding Group continues to lead with 26.441 million CGT (732 ships), with corrected total tons and order quantities being 1.4 times and 1.7 times that of the second place HD Hyundai.