HK Stock Market Move | Cssc Offshore & Marine Engineering (00317) rose more than 5% against the market trend, indicating a positive outlook for the shipbuilding industry. Institutions are optimistic about the increase in attention to the military industry sector.

Cssc Offshore & Marine Engineering (00317) rose in midday trading, now up over 5%, rising 5.14% to HK$15.55 by the time of publication, with a trading volume of HK$1.98 billion. On the news front, according to the latest data from the well-known shipbuilding and shipping research institution Clarkson Research, in October this year, the global new ship orders amounted to 2.91 million corrected gross tons (CGT), a 38% decrease compared to the same period last year of 4.71 million CGT. Among them, Chinese shipbuilders received orders for 98 vessels totaling 2.13 million CGT, with a global market share of 73%, ranking first. In addition, Zhongtai recently pointed out in their research report that with increasing geopolitical uncertainties, the attention on the military industry sector is likely to rise. Shenwan Hongyuan Group recently stated that shipbuilding targets are generally undervalued. China CSSC and Cssc Offshore & Marine Engineering hold orders worth approximately USD 56 billion and USD 7 billion, with a market value to order ratio of 0.65 and 0.36, respectively, at historically low levels. Founder had previously mentioned that Cssc Offshore & Marine Engineering is a large-scale backbone shipbuilding enterprise under China Shipbuilding Group and a core national defense industry enterprise, with ample orders on hand and profit potential expected to be stabilized by the delivery of high-priced ships.