China CSSC Holdings Limited (600150) announced a significant contract involving its subsidiaries. On the evening of December 8, the company disclosed that its parent group, China State Shipbuilding Corporation, signed a shipbuilding agreement with China COSCO Shipping Corporation in Shanghai. The deal covers 87 vessels worth approximately 50 billion yuan, with cross-border RMB settlements accounting for 47 billion yuan. The projects will be undertaken by CSSC’s subsidiaries.
The company noted that due to the extended contract timeline and partial intent-based orders, the agreement will not materially impact current profits (subject to final audit). However, successful execution is expected to positively influence future revenue and profitability, enhancing long-term competitiveness.
In the first three quarters of 2025, CSSC reported revenue of 107.4 billion yuan, up 17.96% YoY, and net profit of 5.85 billion yuan, surging 115.41% YoY. Zhongyuan Securities highlighted that despite a dip in new orders, China’s shipbuilding industry maintains robust growth in deliveries and order backlogs. With high-value orders progressively fulfilled, the sector is poised for cyclical recovery, benefiting CSSC.
Separately, Alphabet (GOOG) hosted its "Android XR" launch event at 2 AM Beijing time on December 9, showcasing advancements in extended reality (XR), including smart glasses and head-mounted devices. Analysts view this as a key indicator for the XR industry’s trajectory.
In policy developments, Beijing Economic-Technological Development Area unveiled measures to accelerate XR smart terminal innovation, targeting a 50-billion-yuan industrial cluster by 2028. China Galaxy Securities projects the global XR market to reach hundreds of billions by 2025, with 130 million devices by 2035, driven by applications beyond entertainment.
Among XR concept stocks, Sai Microelectronics, BOE Technology, and Kingnet Network led with net financing inflows exceeding 100 million yuan since Q4 2025. Five stocks—Haige Communications, TCL Technology, Unilumin Group, Dongshan Precision, and Allwinner Technology—are forecast by analysts to double 2025 net profits. Others like Jeten and Ofilm are expected to post significant earnings growth.
Unilumin emphasized its leadership in XR virtual production, with projects recognized by Hollywood and Microsoft. Perfect World is leveraging AR/VR to enhance esports viewing experiences, with new games driving profitability. Brokerages maintain bullish ratings on these firms, citing strategic upgrades and market potential.
Disclaimer: Information is for reference only and does not constitute investment advice. Investors assume risks independently.
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