On April 20, Songfa (603268) soared to its daily limit-up. As of the market close, the stock traded at $18.34, with total market capitalization approaching $17.88 billion. The share price has surged more than ninefold from approximately $1.79 in September 2024, earning the company the moniker of a "new titan" in China's private shipbuilding sector.

On April 17, Guangdong Songfa Ceramics , the listed entity housing Hengli Heavy Industries, announced a one-day trading suspension effective April 17. Trading resumed on April 20 concurrently with the removal of the delisting risk warning. The stock abbreviation was changed from "*ST Songfa" to "Songfa Co., Ltd.," while the ticker symbol 603268 remains unchanged.

The company had previously been subject to a delisting risk warning due to financial indicators for the 2024 fiscal year.

What underpins Songfa's removal of the delisting risk warning? The data provides the answer: According to audited financial statements, the company achieved revenue of $2.98 billion for fiscal year 2025, representing a year-on-year increase of 274.95%. Net profit attributable to shareholders reached $365 million, a year-on-year surge of 1083.05% .

The consolidation of Hengli Heavy Industries into the financial statements was the key driver behind Songfa's substantial performance growth in 2025.

On October 16, 2024, *ST Songfa announced its intention to acquire a 100% equity stake in Hengli Heavy Industries through a major asset swap and share issuance, along with a concurrent fundraising effort. This transaction marked a strategic exit from the household ceramics manufacturing sector, with Hengli Heavy Industries becoming a wholly-owned subsidiary of the listed company. Upon completion of the major asset restructuring, Songfa's principal business transitioned from traditional ceramics to shipbuilding.

The injected asset, Hengli Heavy Industries, delivered robust earnings growth for the company. The 2025 annual report indicates that Hengli Heavy achieved deducted non-recurring net profit of $355 million during the reporting period, fulfilling over half of the cumulative target of "deducted non-recurring net profit of no less than $660 million for 2025–2027" as stipulated in the prior Performance Compensation Agreement. Songfa stated plainly in its financial report: "At present, the company's orderbook is well-balanced, covering the three mainstream vessel types—containerships, bulk carriers, and tankers. Both order backlog and new order intake rank among the top tier of global large oceangoing vessel manufacturers."

In the first quarter of 2026, Hengli Heavy Industries secured contracts for 108 newbuilding projects, delivering 14 vessels during the period—achieving its best-ever first-quarter performance. Among the 108 newbuilding orders, the tanker segment accounted for 76 vessels, comprising 54 Very Large Crude Carriers (VLCCs) , 18 Suezmax tankers, and 4 LR2 product tankers. Furthermore, Hengli Heavy Industries recorded significant intake across other vessel categories, including 12 containerships, 16 bulk carriers, and 4 cryogenic vessels.

Zheshang Securities posits that the shipbuilding industry cycle remains on an upward trajectory. While containership orders have led the current cycle, tanker and dry bulk carrier orders are poised to follow. As an emerging force in China's private shipbuilding landscape, Songfa is well-positioned to benefit from the anticipated wave of new orders in the tanker and bulker segments.