CSSC Offshore & Marine Engineering (Group) Company Limited Class H (0317) AI Stock Analysis

• Rating: 61 Neutral
• Price Target: ―

CSSC Offshore & Marine Engineering's stock performance is supported by strong revenue growth and a stable balance sheet, reflecting resilience in the aerospace & defense industry. However, improvements in net profitability and cash flow consistency are needed. The technical indicators show mixed signals, and the valuation suggests limited attractiveness. These factors result in an overall moderate stock score.

CSSC Offshore & Marine Engineering (Group) Company Limited Class H Business Overview & Revenue Model

Company Description

CSSC Offshore & Marine Engineering (Group) Company Limited Class H (0317), a subsidiary of China State Shipbuilding Corporation, operates primarily in the shipbuilding and marine engineering industries. The company specializes in the construction and repair of ships, marine equipment manufacturing, and the development of offshore engineering projects. Its product portfolio includes commercial vessels, military ships, and a variety of offshore structures, catering to both domestic and international markets.

How the Company Makes Money

CSSC Offshore & Marine Engineering (Group) Company Limited generates revenue through several key streams. Primarily, the company earns money through the design, construction, and sale of commercial vessels and military ships. Additionally, it provides ship repair and maintenance services, which constitute a significant part of its earnings. The company also engages in the manufacturing and sale of marine equipment, contributing to its revenue. Moreover, CSSC has partnerships and long-term contracts with various governments and commercial entities, ensuring a steady flow of income through repeat business and large-scale projects in offshore engineering and shipbuilding.

CSSC Offshore & Marine Engineering (Group) Company Limited Class H Financial Statement Overview

Summary

CSSC Offshore & Marine Engineering shows promising revenue growth and an improved balance sheet. However, challenges in net profitability and inconsistent cash flow remain. Focus on operational efficiency and cash flow management is needed to enhance financial performance.

Income Statement

CSSC Offshore & Marine Engineering has demonstrated a steady increase in revenue over recent years, with a notable revenue growth rate of approximately 20% in 2023. The gross profit margin has also improved, reaching 7.76% in 2024, indicating better cost management. However, the net profit margin remains relatively low at 1.94%, reflecting challenges in translating revenue growth into net income. EBIT and EBITDA margins show moderate improvement but are still below industry averages, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet indicates a strong equity position, with an equity ratio of 33.26% in 2024. The debt-to-equity ratio stands at 0.27, highlighting a conservative capital structure with manageable leverage levels. Return on Equity (ROE) has improved to 2.12%, showing better utilization of equity compared to previous years. Overall, the balance sheet reflects financial stability and prudent management of liabilities.

Cash Flow

Free cash flow has been inconsistent, with a significant decline in 2024 due to absent operating cash flow data. The operating cash flow to net income ratio was positive in 2023, indicating effective cash generation relative to profits. However, the lack of current operating and free cash flow data limits a comprehensive assessment. The company's financing activities show a shift towards reducing leverage, but more consistent cash flow performance is needed for a higher score.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.24B	19.40B	16.15B	12.80B	11.67B	11.61B
	Gross Profit
1.64B	1.51B	980.27M	878.22M	1.19B	753.67M
	EBIT
585.27M	390.35M	70.16M	980.90M	276.48M	3.61B
	EBITDA
706.78M	985.31M	663.40M	1.28B	606.99M	4.21B
	Net Income Common Stockholders
546.35M	377.26M	48.07M	688.46M	79.39M	3.66B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.83B	15.26B	16.43B	14.84B	12.84B	9.82B
	Total Assets
50.84B	53.60B	50.86B	46.48B	44.27B	38.94B
	Total Debt
5.14B	4.80B	4.22B	6.69B	6.23B	7.15B
	Net Debt
-7.68B	―	-12.21B	-8.13B	-3.34B	-1.62B
	Total Liabilities
29.91B	32.43B	31.26B	27.73B	25.59B	21.39B
	Stockholders Equity
17.66B	17.82B	16.42B	15.59B	15.52B	14.43B
Cash Flow		Free Cash Flow
3.53B	―	2.76B	1.77B	4.07B	―
	Operating Cash Flow
-2.15B	―	3.31B	2.02B	4.37B	―
	Investing Cash Flow
1.90B	―	-3.10B	3.47B	―	―
	Financing Cash Flow
965.07M	807.70M	-1.62B	121.86M	―	―

CSSC Offshore & Marine Engineering (Group) Company Limited Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0317, the sentiment is Positive. The current price of 10.8 is above the 20-day moving average (MA) of 10.04, above the 50-day MA of 9.96, and below the 200-day MA of 11.38, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 63.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0317.

CSSC Offshore & Marine Engineering (Group) Company Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1919	80 Outperform	$265.92B	4.30	24.28%	5.67%	30.58%	―
1138	76 Outperform	$47.80B	6.73	9.73%	10.10%	3.41%	―
2343	75 Outperform	HK$9.51B	9.52	7.27%	5.97%	12.03%	20.45%
Sector *	64 Neutral	$4.46B	11.94	5.17%	249.36%	4.00%	-12.35%
2866	62 Neutral	HK$30.30B	7.69	5.72%	3.99%	74.12%	11.54%
0317	61 Neutral	€28.33B	26.03	3.19%	0.23%	17.51%	494.86%

CSSC Offshore & Marine Engineering (Group) Company Limited Class H Corporate Events

CSSC Offshore & Marine Engineering Announces 2024 AGM and Dividend Details

CSSC Offshore & Marine Engineering (Group) Company Limited has announced its Annual General Meeting (AGM) for 2024, scheduled to be held on May 27, 2025, in Guangzhou, China. The meeting will address several resolutions, including the approval of the 2024 Annual Report, profit distribution, interim dividend arrangements for 2025, and foreign exchange derivatives transactions. The company also detailed the closure of its register of members for AGM attendance and final dividend qualification, highlighting important dates for shareholders.

CSSC Offshore & Marine Engineering Declares Final Dividend for 2024

CSSC Offshore & Marine Engineering (Group) Company Limited announced a final cash dividend of RMB 0.7 per 10 shares for the financial year ending December 31, 2024. The announcement updates previous information regarding key dates for shareholders, including the date of approval, ex-dividend date, book closure period, and record date. The payment date is set for July 18, 2025, with further details on the Hong Kong dollar amount and withholding tax to be announced. This dividend declaration reflects the company’s financial performance and commitment to returning value to its shareholders.

CSSC Offshore & Marine Engineering Reports Significant Q1 2025 Growth

CSSC Offshore & Marine Engineering (Group) Company Limited reported a significant increase in its financial performance for the first quarter of 2025. The company’s operating income rose by 29.73% compared to the same period last year, and net profit attributable to shareholders increased by 1,099.85%. This impressive growth is attributed to improved operational efficiency and market demand, reflecting positively on the company’s industry positioning and providing a strong outlook for stakeholders.

CSSC Offshore & Marine Engineering Announces Board Meeting for Q1 2025 Results

CSSC Offshore & Marine Engineering (Group) Company Limited has announced a board meeting scheduled for April 29, 2025, to review and approve the unaudited first quarterly report for 2025. This meeting is significant as it will provide insights into the company’s financial performance for the first quarter, potentially impacting its market positioning and stakeholder interests.

CSSC Offshore & Marine Engineering Secures Significant New Orders in Q1 2025

CSSC Offshore & Marine Engineering announced that it secured new orders worth RMB12.502 billion in the first quarter of 2025, achieving 71.64% of its annual target. These orders, primarily for containerships and LNG bunkering vessels, are expected to positively impact the company’s cash flow and operating results, while not making the company overly reliant on specific customers. However, potential uncertainties such as regulatory changes and market conditions could affect order fulfillment.

CSSC Offshore & Marine Engineering Projects Significant Profit Surge in Q1 2025

CSSC Offshore & Marine Engineering (Group) Company Limited has announced an estimated significant improvement in its financial results for the first quarter of 2025. The company anticipates a net profit attributable to the owners of the parent company between RMB170 million and RMB200 million, marking a substantial increase from the previous year with a year-to-year rise of 1,005.77% to 1,200.91%. This impressive growth is expected to enhance the company’s market position and provide positive implications for its stakeholders.

CSSC Offshore & Marine Engineering Reports 2024 Financial Results with Focus on Stable Dividends

CSSC Offshore & Marine Engineering announced its audited financial results for the year ending December 31, 2024, reporting a turnover of RMB19.4 billion and a profit attributable to equity holders of RMB377 million. The company emphasizes a stable profit distribution policy, prioritizing cash dividends and ensuring that the cumulative profit distribution in cash over the last three years is not less than 30% of the average annual distributable profit, reflecting its commitment to shareholder returns and sustainable growth.

CSSC Offshore & Marine Engineering Declares Final Dividend for 2024

CSSC Offshore & Marine Engineering announced a final ordinary cash dividend of RMB 0.7 per 10 shares for the financial year ending December 31, 2024. The payment date is set for July 18, 2025, with other details such as the exchange rate and ex-dividend date to be announced later, indicating a stable financial performance and potential positive impact on shareholder value.

CSSC Offshore & Marine Engineering Holds Successful First EGM of 2025

The First Extraordinary General Meeting (EGM) of 2025 for CSSC Offshore & Marine Engineering was successfully held on March 3, 2025, where the proposed resolution was passed by the shareholders. The meeting was conducted in compliance with relevant laws and regulations, with significant shareholder participation, although the controlling shareholder, China Shipbuilding Group, abstained from voting due to its substantial shareholding. This meeting underscores the company’s adherence to governance protocols and reflects active shareholder engagement, potentially impacting its strategic decisions and stakeholder relations.

CSSC Offshore & Marine Engineering Announces Extraordinary General Meeting for 2025

CSSC Offshore & Marine Engineering (Group) Company Limited announced the convening of its first extraordinary general meeting of 2025, scheduled for March 3, 2025, in Guangzhou, China. During this meeting, a key resolution concerning the revision of the ‘Letter of Undertaking on Avoiding Horizontal Competition with COMEC’ will be presented for consideration. This move could have implications for the company’s strategic positioning and its relationship with its controlling shareholder. Shareholders of H Shares are required to complete necessary formalities to attend and vote, which might influence the company’s governance and future initiatives.