CIMC Raffles: Key takeaways from Investor Day at Yantai Shipyard

We attended the Investor Day held by CIMC Raffles (Not Covered), a key subsidiary of CIMC Group (2039.HK/000039.SZ, Not Covered) in Yantai, China. The Investor Day included a management discussion and a shipyard visit. In all, mgmt believes CIMC Raffles is well positioned to capture the prolonged offshore engineering upcycle, supported by robust project launches, rising FPSO demand and structurally tight supply (due to high entry barriers). Other key takeaways include: 1) Global offshore project launches are expected to remain elevated in 2026-30 per mgmt, supporting sustained order demand. 2) Mgmt expects FPSO new contracts should average at c.8 p.a. in 2026-30 (+14% vs. avg in 2020-25), led by Brazil, Africa and Asia. 3) Mgmt believes China will gain more offshore engineering market share from South Korea, which is constrained by capacity, and CIMC Raffles plans to expand its capacity by another 60-75% with new dock in 1H28. Mgmt expects the value of global offshore greenfield projec