COMEC (00317) surged over 5%, rising 5.63% to HK$15.58 at the time of reporting, with trading volume reaching HK$85.91 million.
On the news front, analysts recently initiated coverage on COMEC with a "buy" rating. The company is expected to benefit from the global shipbuilding cycle upturn and its own capacity expansion, with projected net profit attributable to shareholders of 1.1 billion, 1.7 billion, and 2.8 billion yuan for 2025-2027 respectively, corresponding to PE ratios of 18x, 11x, and 7x. The current market capitalization to order book ratio stands at 0.42x, significantly below the 10-year average of 0.53x and at historical lows. Combined with accelerated delivery of high-value orders, sufficient demand for vessel replacement, and expectations for resolution of industry competition issues, the company has ample room for earnings flexibility and valuation recovery.
Securities analysts note opportunities in the "15th Five-Year Plan" period, focusing on military trade and new quality fields. Regarding equipment procurement, expectations for the "15th Five-Year Plan" are positive, with order-driven momentum expected to begin in Q4 2025. Meanwhile, focusing on the important milestone of the centenary of the People's Liberation Army in 2027, batch production and delivery of new main battle equipment and explosive demand in new quality combat capability fields will drive sustained high industry prosperity.
Comments