COMEC (00317) rose over 4%, with a gain of 4.15% to HK$16.33 at the time of writing, and a turnover of HK$33.85 million.
Recent data from the Ministry of Industry and Information Technology on China's shipbuilding industry shows that from January to March 2026, China's shipbuilding completions reached 15.68 million deadweight tons, a year-on-year increase of 46.0%, with export vessels accounting for 96.1% of the total. New orders received amounted to 59.53 million deadweight tons, up 195.2% year-on-year. As of the end of March, the order backlog stood at 322.30 million deadweight tons, an increase of 43.6% compared to the same period last year.
Furthermore, Shenwan Hongyuan noted that the global order coverage period has extended to 4.23 years, with schedules stretching into 2030. Coupled with the concentrated delivery phase of high-value orders, the shipbuilding industry is currently experiencing a simultaneous rise in volume and price, leading to an acceleration in profit realization. The sector's valuation is expected to be revised upward as ship prices continue to climb.
The firm believes that shipbuilders' first-quarter performance generally exceeded expectations, entering a phase of accelerated profit release. COMEC reported a net profit attributable to shareholders of RMB 396 million for Q1 2026, a 115% year-on-year increase, with results near the midpoint of the pre-announced guidance range. The most heavily scheduled production year is currently 2028, with projected deliveries for 2026-2028 expected to increase by 1%, 6%, and 87% year-on-year, respectively. The current order backlog is approximately $9.5 billion, a 22% increase from the beginning of the year.
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