HK Stock Market Move | Cssc Offshore & Marine Engineering (00317) rose more than 3%, with institutions pointing to its profit potential expected to be realized steadily with the delivery of high-priced vessels.

Cssc Offshore & Marine Engineering (00317) rose more than 3%, reaching 3.44% at the time of publication, to HK$10.84, with a turnover of HK$280.702 million. On the news front, Cssc Offshore & Marine Engineering achieved operating income of RMB 3.641 billion in the first quarter, an increase of 29.73% year-on-year; net profit attributable to shareholders of the listed company was RMB 184 million, an increase of 1099.85% year-on-year. The main reasons are the increase in ship product revenue and production efficiency, improvement in product gross profit, and the good performance of affiliate companies, leading to an increase in investment income. In addition, the company previously disclosed that it achieved new orders worth RMB 12.502 billion in the first quarter, completing 71.64% of the annual plan, mainly including contracts for the construction of 9200TEU container ships, 1900TEU container ships, special ships, and 20,000 cubic meter LNG bunkering vessels. The fulfillment of orders is expected to have a positive impact on the company's cash flow and future operating performance. Founder pointed out that Cssc Offshore & Marine Engineering is a large backbone shipbuilding enterprise under China Shipbuilding Group and a national core military production enterprise, with ample orders in hand, and profitability is expected to be stable with the delivery of high-priced ships. Huafu Securities emphasizes once again the strong internal attributes of military equipment, and the verification of China's strong military strength by the international situation may lay a long-term logic foundation for military trade. With multiple catalysts, the growth potential is huge in domestic and foreign demand from 2025 to 2027, and the development of the military industry is likely to be a top priority in the future.