Dongwu Securities: Issue a Buy rating for CIMC Group

Dongwu Securities Co., Ltd. Zhou Ershuang and Wei Yijie recently conducted research on China International Marine Containers (Group) Co., Ltd. and published a research report titled “2025 Annual Report Review: Performance Meets Expectations, Offshore Engineering + Modular AIDC Opens Up Growth Space,” giving China International Marine Containers a buy rating.

China International Marine Containers (000039)

Investment Highlights

Net profit attributable to shareholders is affected by investment income and foreign exchange control, and offshore engineering profits have significantly improved.

In 2025, the company achieved total operating revenue of 156.6 billion yuan, a year-on-year decrease of 12%, and a net profit attributable to shareholders of 220 million yuan, a year-on-year decrease of 93%; in Q4, the revenue was 39.6 billion yuan, a year-on-year decrease of 19%, with a net loss attributable to shareholders of 1.3 billion yuan, consistent with the preliminary report. The decline in net profit attributable to shareholders is due to: ① in 2025, the joint venture China International Marine Containers sold assets, resulting in a decrease in investment income of 1.08 billion yuan; ② significant fluctuations in the US dollar exchange rate, with the company recognizing foreign exchange losses of 1.1 billion yuan and hedging losses of 140 million yuan in 2025. Among the core business segments, ① Containers: In 2025, the sales volume of dry containers was 2.22 million REU, a year-on-year decrease of 35%, with revenue of 43 billion yuan, a year-on-year decrease of 31%, and net profit of 1.9 billion yuan, a year-on-year decrease of 54%, all affected by a high base and US dollar depreciation. ② CIMC Vehicles: In 2025, achieved revenue of 20.2 billion yuan, a year-on-year decrease of 4%, and net profit of 930 million yuan, a year-on-year decrease of 14%. ③ Energy and Chemical Equipment (mainly Anrui Ke): In 2025, achieved revenue of 27.2 billion yuan, a year-on-year increase of 6%, and net profit of 1.04 billion yuan, a year-on-year increase of 42%. ④ CIMC Offshore (mainly Raafis): In 2025, achieved revenue of 17.9 billion yuan, a year-on-year increase of 8%, and net profit of 1.06 billion yuan, a year-on-year increase of 372%. ⑤ CIMC Finance and Offshore: In 2025, net loss of 1.4 billion yuan, reduced loss of 400 million yuan.

Gross margin and operating expenses remain stable overall.

In 2025, the company’s sales gross margin was 12.4%, basically flat year-on-year, with a net profit margin of 0.9%, down 1.5 percentage points year-on-year. Among the core business segments, the gross margin of offshore engineering improved significantly: ① Containers had a gross margin of 13.4% in 2025, down 2.2 percentage points year-on-year; ② Road transport vehicles had a gross margin of 15.9% in 2025, down 0.4 percentage points year-on-year; ③ Energy and chemical equipment had a gross margin of 14.8% in 2025, up 1.0 percentage points year-on-year; ④ Offshore engineering had a gross margin of 14.8% in 2025, up 5.7 percentage points year-on-year. In 2025, the company’s operating expense ratio was 8.8%, up 1.2 percentage points year-on-year. Among them, sales/management/finance/R&D expense ratios were 1.7%/4.0%/1.8%/1.3%, increasing year-on-year by 0.2/0.1/0.3/0.5 percentage points, with overall operating expenses remaining stable.

Container production and sales remain robust, and modular construction + offshore engineering opens up growth space.

We anticipate that the company’s performance will rebound from the bottom in 2026: (1) With the growth in trade volume and the replacement of old containers that have exceeded their service life, we estimate that the container industry will maintain around 4.5 million TEUs, laying a stable foundation for the company’s performance; (2) The core subsidiary CIMC Anrui Ke benefits from the upward trend in the natural gas industry chain, leading to improved operations; (3) As of the end of 2025, offshore engineering has orders on hand worth 5.1 billion USD, with delivery schedules extending to 2030, allowing for simultaneous capacity expansion and profit margin improvement; (4) The penetration rate of modular construction in the AIDC field is rapidly increasing, and the company has significant supply chain advantages and rich experience in modular projects, with orders expected to grow rapidly.

Profit Forecast and Investment Rating:

The company’s performance in 2025 is significantly affected by non-recurring factors. Considering the rapid improvement in offshore engineering profits and the elimination of non-recurring impacts, we expect the company’s profits to rebound sharply in 2026. We forecast the company’s net profit attributable to shareholders for 2026-2028 to be 3.5 billion (originally 3.3 billion)/4.9 billion (originally 4.3 billion)/6.0 billion yuan, with the current market value corresponding to PE ratios of 17/12/10X, maintaining a “buy” rating.

Risk Warning: Macro economic fluctuations, US dollar exchange rate fluctuations, rising raw material prices, etc.

The latest profit forecast details are as follows:

In the last 90 days, a total of 1 institution has given a rating for this stock, with 1 buy rating.

The above content is organized by Securities Star based on public information and generated by AI algorithms (Internet Information Office Registration No. 310104345710301240019), and does not constitute investment advice.