The market value of eight related companies will exceed 270 billion

Previously, after the merger of the "North-South Vehicle" into China's medium-sized vehicle, the merger of the "North-South Vehicle" is expected to rise. However, as market rumors continue to heat up, the news of the merger of the two vessels has not been confirmed.

Four years later, on the evening of July 1, 2019, the merger of the "North-South Ship" was confirmed by the announcement issued by eight companies. Shen Meng, executive director of Xiangsong Capital, told Securities Daily: "The merger of North and South Ships is a measure for the central enterprises to reform, optimize their structure and enhance their competitiveness in the international market. Currently, the main competition in shipbuilding industry is concentrated among countries. Therefore, the merger of North and South Ships will have more advantages for China's shipbuilding industry as a whole. Highlight it. On the evening of July 1, eight listed companies, including China Heavy Industries, China Coastal Defense, Jiuzhiyang, China Power, China Emergency Response, China Shipping Defense, China Shipping Science and Technology, and China Shipping, issued announcements saying: "On July 1, the company received a notice from the actual controller that China Shipping Heavy Industries is working with China's shipbuilding industry." Group Limited plans strategic restructuring, the relevant program has not yet been determined, the program also needs to be approved by the relevant competent authorities. The announcement also indicates that the strategic restructuring of the actual controller is in the planning stage and the related matters are uncertain. Investors should pay attention to the investment risk.

Yang Delong, chief economist of the former Open Source Fund of Haihai, told the Journal of Securities: "The merger of the two vessels is a good thing. In the light of the significance of the merger of the North and South Cars, the merger will help the company grow bigger and stronger. When the two companies merge into one company, they will increase their competitiveness, such as project research and development, foreign business negotiation and other aspects. Journalist

also found that after the news of the merger of the "North-South Ship" was confirmed, the stock prices of the listed companies under the two flags soared. As of yesterday's closing date, the total market value of the eight listed companies was about 272.1 billion yuan.

As of July 2, Jiuzhiyang and China's emergency closed at 27.35 yuan per share and 12.4 yuan per share.

In addition, China Ship's share price rose by 7.88%; China Heavy Industry's share price rose by 7.49%; China Ship Science and Technology's share price rose by 7.35%; China Ship Defense's share price rose by 6.27%; China Coastal Defense's share price rose by 4.65%; China Power's closing price was 25.26 yuan/share, up by 5.69%.

In fact, rumors of the merger of "North-South Ships" have been heard as early as 2015. Since March 25, 2015, when the news came that the chairman of China Shipbuilding Industry Group Corporation (hereinafter referred to as China Shipbuilding Group) had been transferred to China Shipbuilding Heavy Industry Group (hereinafter referred to as China Shipbuilding Heavy Industry), some market participants speculated that the transfer of senior and middle-level leadership positions in China Shipbuilding Group and China Shipbuilding Heavy Industry was to pave the way for the future merger of the two ships from north to south. 

Shipbuilding industry's two big men, China Shipping Group and China Shipping Heavy Industry, are now called "North-South Ships" in the market. With the spread of rumors of "North-South Ships" merger, the stock prices of "North-South Ships" have also risen sharply.

However, although the rumor of "North-South Ship" merger has been widely spread in the market, it has not received an official affirmative response from the "North-South Ship". "Securities Daily" reporters have called a number of companies under the "North-South Ship" to inquire about this matter, are silent, that can not answer the reporter's question. According to the announcement, the listed companies of "North-South Ship" clarified in March 2015 that they had no intention of merger.

Since then, although there have been many rumors of merger in the market, the "North-South Ship" has disappeared because it has not been proved. But market expectations for the merger of the two vessels remain unchanged.

In fact, Hu Wenming, chairman of China Shipping Heavy Industry, once told the media about the merger of the "North-South Ships" which was concerned by the market: "We all listen to the arrangements of the Central Committee." Hu Wenming believes that now our competitors have changed and are facing international competition, so we should focus more on international competition.

Guojin Securities points out that there are two main reasons for the merger of "North-South Ships". First, the merger of "North-South Ships" is needed to deepen cooperation and improve production capacity in China's military shipbuilding, while the integration of civilian ships is urgently needed to remove excess production capacity and improve international competitiveness. Second, the internal integration of "North-South Ships" is nearing the end. The merger of ships is everything.

The business or integration of the two companies

The insiders of the two companies disclosed to the Journal of Securities: "There are many similarities in the business of the companies under the North-South Ship, including the business of listed companies overlap." In response, Shen Meng told Securities Daily: "Both vessels have listed companies'platforms, so it is not excluded that the North and South vessels will integrate the repetitive business sectors through listed companies. In addition, the relevant business sector personnel will certainly be concentrated.

In fact, before the news of the merger of the "North-South Ship" came out, the "North-South Ship" had been integrated internally.

For example, China Heavy Industry of North Ship was built as a marine equipment assembly platform, China Power was built as a comprehensive power platform, China Coastal Defense was built as a marine information and ship electronic platform. In addition, China's emergency response under the flag of North Ship was mainly based on emergency traffic equipment business, and photoelectric equipment business in the long ocean. Among the four major shipyards of Nanchuan, Huangpu Wenchong Shipyard and Waigaoqiao Shipyard have passed China Ship Defense and China Ship Landing Capital Market respectively.

According to interviews with the above-mentioned companies, the efficiency of the reorganized and integrated listing platform has improved rapidly.