COMEC (00317) rose more than 5% during early trading, with gains at 4.38% by the time of writing. The stock was trading at HK$16.92, with a turnover of HK$71.4297 million. The increase follows an announcement by China's Ministry of Commerce that it will place 20 Japanese entities, including Mitsubishi Shipbuilding Co., Ltd., on an export control list due to their involvement in enhancing Japan's military capabilities. Separately, COMEC's subsidiary Huangpu Wenchong recently signed a major shipbuilding contract valued between US$736 million and US$896 million. The vessels are scheduled for delivery by or between 2028 and 2030, which is expected to positively impact the company's cash flow and future operating performance. COMEC had previously issued a positive profit alert, forecasting a 150% to 197% year-on-year increase in net profit attributable to shareholders for 2025. According to Zhejiang Securities, the significant growth in 2025 is mainly due to increased revenue from shipbuilding products, improved production efficiency, better product margins, enhanced performance from affiliated companies, and higher dividend income from equity-accounted investees. Huangpu Wenchong, a subsidiary of COMEC, and Guangzhou Shipyard International, an associate company, are core enterprises in the shipbuilding sector.