Summary of Yaxing Anchor Chain Conference Call Industry and Company Overview - Yaxing Anchor Chain operates in the deep-sea technology sector, focusing on core components for the shipping and offshore oil and gas industries, benefiting from an upturn in these sectors and the growth potential from floating wind power and mining chains, with expectations of doubling performance over three years [2][5][6] Key Points and Arguments - **Market Position**: Yaxing holds over 50% global market share in ship anchor chains, with even higher domestic market share, and is expanding into cast steel products, potentially doubling the value per ship to a market space of 4 billion RMB [2][10] - **Offshore Oil Service Growth**: The company’s mooring chain business is benefiting from increased utilization of drilling platforms and a new investment cycle in oil fields, with new orders in the first half of the year reaching 39,500 tons, exceeding last year's total [2][7] - **Floating Wind Power Potential**: Floating wind power is projected to enter commercialization by 2030 and mature by 2034, with a market size of approximately 14-15 billion RMB, significantly expanding Yaxing's growth potential as a mooring chain supplier [2][8][11] - **Mining Chain Market**: The mining chain market is estimated at around 2 billion RMB, currently dominated by foreign companies. Yaxing has secured multiple orders, indicating a shift towards domestic alternatives and future revenue growth [2][8][12] Additional Important Insights - **Underestimated Market Position**: The market has undervalued Yaxing's high market share in ship anchor chains and the performance elasticity from product diversification, alongside the growth potential from floating wind power and mining chains [2][9] - **Future Growth Projections**: Revenue growth is expected to be between 15% and 20%, with profit growth between 20% and 26%. The current valuation corresponds to a PE ratio of 23 for 2026 and 19 for 2027, indicating strong investment value [3][13] - **Government Support**: The company is positioned to benefit from government initiatives aimed at promoting high-quality development in the marine economy, as highlighted in recent government reports [4][6][11] Conclusion Yaxing Anchor Chain is well-positioned for significant growth in the deep-sea technology sector, with strong market shares, expanding product lines, and favorable government policies supporting its business model and future performance potential [2][5][9][13]

Group 1 - The report summarizes key insights from the macro strategy team regarding the manufacturing sector, focusing on cyclical reversals, growth opportunities, military trade expansion, and overseas development [1] - The core investment targets identified include companies such as Yokogawa Precision, Zhejiang Rongtai, Shanghai Yanpu, and Sany Heavy Industry, among others [2][3] - The report highlights the strong investment value of leading companies in the engineering machinery sector and notes the significant valuation of the humanoid robot startup Figure at $39 billion [4] Group 2 - The performance of various sectors in the manufacturing industry is tracked, with coal, electric equipment, electronics, and automotive sectors showing positive growth rates of 4% to 3% [5][27] - The industrial gas sector led the manufacturing indices with a 9% increase, followed by the Yangtze Engineering Machinery Index at 6% and the National New Energy Vehicle Index at 4% [5][29] - The report emphasizes the growth potential in the domestic chip market, particularly in FPGA technology, with a projected market size increase from $2.5 billion in 2024 to $4.7 billion by 2030, reflecting a CAGR of 11% [10] Group 3 - The report discusses the strategic partnership between Aolide and BOE Technology Group, which aims to enhance growth in the AMOLED sector through collaboration on equipment and materials [12][13] - Aolide's revenue for the first half of 2025 reached 6.61 billion yuan, marking a 14.92% year-on-year increase, with a significant rise in net profit attributed to improved operational cash flow [12][16] - The solid-state battery equipment sector is highlighted as a new growth area, with the market expected to grow from 2.06 billion yuan in 2025 to 33.62 billion yuan by 2030, indicating a CAGR of 74.8% [14] Group 4 - The report identifies the cooling and air conditioning components business as a key revenue driver, with a 25.49% year-on-year increase in revenue for the first half of 2025, driven by global climate demands [15][16] - The automotive components business also showed growth, with revenue increasing by 8.83% in the same period, supported by a diversified customer base including major automotive manufacturers [16] - The report notes the strategic focus on liquid cooling and robotics as emerging growth areas, with significant potential in data center applications and robotic actuator manufacturing [16][17] Group 5 - The report highlights the potential of the deep-sea technology sector, particularly in floating wind power, with a projected market growth rate of 70% CAGR from 2024 to 2030 [17][18] - The company is positioned to benefit from the increasing demand for mooring chains in the offshore oil and gas sector, with a strong order intake in 2025 [17][20] - The report emphasizes the importance of government policies in promoting deep-sea technology, which is expected to drive growth in the sector [18][20]

Core Viewpoint - The maritime equipment sector experienced a 1.67% increase on September 22, with Hailanxin leading the gains, while the Shanghai Composite Index rose by 0.22% and the Shenzhen Component Index increased by 0.67% [1] Group 1: Market Performance - The closing price of Hailanxin was 19.48, reflecting a 7.51% increase with a trading volume of 778,700 shares and a transaction value of 1.479 billion yuan [1] - Other notable performers included Zhongmoxing, which closed at 48.37 with a 3.24% increase, and China Shipbuilding, which closed at 35.77 with a 1.59% increase [1] - The overall net inflow of main funds in the maritime equipment sector was 212 million yuan, while retail investors saw a net outflow of 16.3169 million yuan [1] Group 2: Fund Flow Analysis - Hailanxin had a net inflow of main funds amounting to 1.89 billion yuan, but retail investors experienced a net outflow of 126 million yuan [2] - China Shipbuilding also saw a net inflow of 1.37 billion yuan from main funds, while retail investors had a net outflow of 11.586 million yuan [2] - The majority of stocks in the sector experienced net outflows from retail investors, indicating a trend of selling among this group [2]

Core Viewpoint - The report from Zheshang Securities highlights that Yaxing Anchor Chain is a core supporting enterprise in "deep-sea technology," benefiting from the rising demand in the shipping and offshore oil and gas sectors, as well as the growth potential in floating wind power [1] Group 1: Project Overview - Currently, there are five connected floating offshore wind power projects, including the Three Gorges Leading No. 1, China Shipbuilding Fuyun No. 1, CNOOC Guanquan No. 1, State Power Sharing No. 1, and Mingyang Tiancai No. 1, all of which are demonstration projects [1] - Three actively promoted domestic projects include the Hainan Wanning commercial project (100MW), CNOOC Lufeng Oilfield Group clean energy power supply transformation demonstration project (16MW), and the Three Gorges 16MW floating offshore wind power project [1] Group 2: Market Potential - According to the Global Wind Energy Council, it is estimated that by 2030, the global installed capacity of floating wind power will increase by 1.03GW, with a CAGR of 70% from 2024 to 2030; by 2034, the new installed capacity will reach 5.724GW, with a CAGR of 63% from 2024 to 2034 [1] - The estimated market space for new mooring chains corresponding to the new installed capacity of floating wind power in 2034 is approximately 14.3 billion [1] Group 3: Company Outlook - Previously, the company's performance was mainly reliant on the contributions from ship anchor chains and offshore oil service mooring chains, which had limited market space; however, with the active expansion into the floating wind power sector and product matrix, the market space has opened up [1] - The company is positioned as a key player in the shipping sector and is recognized as a strong alpha logic stock among wind power component companies, with positive prospects in shipping, offshore engineering, and floating wind power [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The company is positioned as a core component supplier in "Deep Sea Technology," benefiting from the upturn in the shipbuilding and offshore oil and gas sectors, while floating wind power presents significant growth opportunities [1][2] - The floating wind power market is expected to enter a commercialization phase by 2030, with a projected compound annual growth rate (CAGR) of 70% from 2024 to 2030, and an estimated market space of approximately 14.3 billion in 2034 [2][3] - The offshore oil service sector has seen a significant increase in new orders, with approximately 39,500 tons of new orders in the first half of 2025, indicating a high order volume and favorable market conditions [3] - The shipbuilding industry is entering a mid-cycle upturn, driven by a combination of replacement cycles and environmental regulations, leading to increased demand for ship anchor chains [3] Summary by Sections Market Expectations - The floating wind power market's commercialization timeline remains uncertain, while the price elasticity of ship anchor chains is relatively low compared to new ship prices [2] Project Insights - Currently, there are five operational floating offshore wind projects, with three more in progress in China, indicating a growing interest in this sector [2] - The global floating wind power market is projected to add 1.03 GW of new installed capacity by 2030, with significant growth expected through 2034 [2] Financial Projections - The company is expected to achieve net profits of approximately 317 million, 399 million, and 485 million from 2025 to 2027, reflecting year-on-year growth rates of 13%, 26%, and 22% respectively, with a CAGR of 20% [6][13] - The price-to-earnings (P/E) ratio is projected to be 30, 23, and 19 times for the years 2025, 2026, and 2027 respectively [6][13] Unique Insights - The report highlights a shift in market perception regarding the company's revenue sources, now recognizing the potential of floating wind power alongside traditional ship and offshore oil service chains [5] - The company is positioned as a key player in the shipbuilding sector and a strong candidate in the wind power components market, suggesting a robust investment opportunity [5]

Core Viewpoint - The maritime equipment sector experienced a decline of 0.43% on September 19, with Guorui Technology leading the losses. The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1]. Sector Performance - The following table summarizes the performance of key stocks in the maritime equipment sector: - Zhongla Defense (600685) closed at 26.50, up 0.84% with a trading volume of 87,600 shares and a transaction value of 232 million yuan - China Shipbuilding (600150) closed at 35.21, down 0.11% with a trading volume of 675,700 shares and a transaction value of 2.383 billion yuan - Tianhai Defense (300008) closed at 6.30, down 0.94% with a trading volume of 525,500 shares and a transaction value of 334 million yuan - China Marine Defense (600764) closed at 30.28, down 1.66% with a trading volume of 85,800 shares and a transaction value of 263 million yuan - Hailanxin (300065) closed at 18.12, down 2.00% with a trading volume of 325,800 shares and a transaction value of 598 million yuan - Asia Anchor Chain (601890) closed at 9.77, down 2.01% with a trading volume of 401,000 shares and a transaction value of 394 million yuan - Jianglong Shipbuilding (300589) closed at 12.69, down 3.13% with a trading volume of 115,300 shares and a transaction value of 148 million yuan - Wuyijun (300810) closed at 46.85, down 3.60% with a trading volume of 65,300 shares and a transaction value of 311 million yuan - Yuanrui Technology (300600) closed at 15.49, down 4.15% with a trading volume of 136,300 shares and a transaction value of 216 million yuan [1]. Capital Flow - The maritime equipment sector saw a net outflow of 501 million yuan from main funds, while retail investors contributed a net inflow of 477 million yuan. Speculative funds recorded a net inflow of 24.11 million yuan [1].

Market Overview - On September 18, the marine equipment sector declined by 1.74%, with China Shipbuilding Defense leading the drop [1] - The Shanghai Composite Index closed at 3831.66, down 1.15%, while the Shenzhen Component Index closed at 13075.66, down 1.06% [1] Stock Performance - Notable stock performances included: - Yaxing Zhaolian (601890) increased by 5.28% to close at 9.97 [1] - Zhongke Haixun (300810) rose by 1.38% to 48.60 [1] - Jianglong Shipbuilding (300589) gained 0.85% to 13.10 [1] - China Marine Defense (600764) increased by 0.79% to 30.79 [1] - Hailanxin (300065) decreased by 0.59% to 18.49 [1] - Tianhai Defense (300008) fell by 1.55% to 6.36 [1] - Guorui Technology (300600) dropped by 1.64% to 16.16 [1] - China Shipbuilding (600150) declined by 2.27% to 35.25 [1] - China Shipbuilding Defense (600685) fell by 2.38% to 26.28 [1] Capital Flow - The marine equipment sector experienced a net outflow of 1.15 billion yuan from institutional investors, while retail investors saw a net inflow of 954 million yuan [1] - Detailed capital flow for selected stocks included: - Yaxing Zhaolian had a net inflow of 126 million yuan from institutional investors [2] - China Marine Defense saw a net inflow of 32 million yuan from institutional investors [2] - Zhongke Haixun had a net inflow of 18 million yuan from institutional investors [2] - Jianglong Shipbuilding recorded a net inflow of 15 million yuan from institutional investors [2] - Hailanxin had a net inflow of 9 million yuan from institutional investors [2] - Tianhai Defense experienced a net outflow of 19 million yuan from institutional investors [2] - China Shipbuilding Defense had a net outflow of 33 million yuan from institutional investors [2] - China Shipbuilding recorded a significant net outflow of 1.3 billion yuan from institutional investors [2]

Market Overview - The Shanghai Composite Index closed at 3893.95 points, above the six-month moving average, with an increase of 0.45% [1] - The total trading volume of A-shares reached 17203.25 billion yuan [1] Stocks Breaking Six-Month Moving Average - A total of 67 A-shares have surpassed the six-month moving average today [1] - Notable stocks with significant deviation rates include: - Suzhou Longjie: 6.72% - China Automotive Research: 5.94% - Yaxing Anchor Chain: 5.84% [1] Stock Performance Details - The following stocks showed notable performance: - Suzhou Longjie: Increased by 7.59% with a turnover rate of 9.42% [1] - China Automotive Research: Increased by 8.73% with a turnover rate of 2.87% [1] - Yaxing Anchor Chain: Increased by 6.44% with a turnover rate of 6.55% [1] Additional Stocks with Positive Movement - Other stocks with positive movement include: - New Nuo Wei: Increased by 7.50% [1] - Fulede: Increased by 6.07% [1] - Sanlisi: Increased by 3.74% [1] Summary of Deviation Rates - Stocks with smaller deviation rates that just crossed the six-month line include: - Baosteel: Just above the six-month line [1] - Sichuan Jiuzhou: Just above the six-month line [1] - Changan Automobile: Just above the six-month line [1]

Core Insights - Deep-sea resource development focuses on areas deeper than 200 meters, encompassing strategic resources such as minerals, energy, and biological resources, which are crucial for overcoming land resource limitations and ensuring national security [1][2] - The Chinese government has integrated deep-sea development into its national security strategy, designating it as a strategic emerging industry in the 2025 government work report, supported by a special fund of 50 billion yuan for marine economy [1][5] - The industry is projected to reach a scale of 3.25 trillion yuan by 2025 and exceed 5 trillion yuan by 2030, driven by significant growth in oil and gas development, mining, and biopharmaceutical sectors [1][9] Industry Overview - Deep-sea resource development involves exploration, extraction, and utilization of resources in deep-sea areas, aiming to acquire strategic resources through advanced technologies [2][3] - The sector is categorized into five main types: deep-sea mineral resources, oil and gas resources, biological resources, energy resources, and spatial resources [3] Development Drivers - National strategy and policy support are key drivers, with deep-sea development included in China's national security framework and significant funding allocated to support technological advancements [5][6] - The high dependency on foreign oil and gas, with over 70% reliance, necessitates deep-sea oil and gas development as a strategic solution to energy security [5][6] - Technological breakthroughs and domestic equipment manufacturing have positioned China to lead in deep-sea resource development, enhancing its global competitiveness [6][7] Current Industry Status - The deep-sea economy is rapidly growing, with the marine economy reaching 10.54 trillion yuan in 2024, driven by significant demand in deep-sea oil and gas and biological resource development [8][9] - The deep-sea oil and gas sector has seen substantial advancements, with the first ultra-deepwater gas field "Deep Sea No. 1" entering production, marking China's entry into the global first tier of deep-sea oil and gas development [10][11] Corporate Landscape - Major companies in the deep-sea resource development sector include China National Offshore Oil Corporation, China Shipbuilding Industry Corporation, and others, forming a comprehensive ecosystem from resource development to equipment manufacturing [13][14] - The industry is characterized by a full-chain ecosystem that integrates resource development, equipment manufacturing, technological innovation, and regional collaboration [13][14] Future Trends - The industry is expected to evolve towards technological integration and intelligence, with AI and quantum sensing driving automation and efficiency in exploration and extraction processes [15][16] - Environmental sustainability will become a core focus, with the adoption of eco-friendly technologies and the establishment of monitoring systems to minimize ecological impact [16][17] - Expansion into ultra-deepwater and polar regions will reshape the competitive landscape, necessitating international cooperation and standard-setting to address high costs and technical challenges [17][18]

Market Performance - The marine equipment sector experienced a significant increase of 40.79% on September 16, with Zhongke Haixun leading the gains [1] - The Shanghai Composite Index closed at 3861.87, up 0.04%, while the Shenzhen Component Index closed at 13063.97, up 0.45% [1] Individual Stock Performance - Zhongke Haixun (300810) closed at 47.27, with a rise of 6.34% and a trading volume of 87,900 shares, amounting to a transaction value of 404 million yuan [1] - Hailanxin (300065) closed at 68.81, up 1.23%, with a trading volume of 374,300 shares and a transaction value of 694 million yuan [1] - Tianhai Defense (300008) closed at 6.53, with a slight increase of 0.62% [1] - Jianglong Shipbuilding (300589) closed at 13.13, up 0.54% [1] - Yaxing Anchor Chain (601890) closed at 9.52, up 0.42% [1] - Guorui Technology (300600) closed at 16.22, down 0.31% [1] - China Marine Defense (600764) closed at 30.21, down 0.56% [1] - Zhongchuan Defense (600685) closed at 26.74, down 2.05% [1] - China Shipbuilding (600150) closed at 37.04, down 3.82% with a significant trading volume of 1,449,700 shares and a transaction value of 5.41 billion yuan [1] Fund Flow Analysis - The marine equipment sector saw a net outflow of 1.063 billion yuan from institutional investors, while retail investors contributed a net inflow of 932 million yuan [1] - The detailed fund flow for individual stocks indicates varying levels of net inflow and outflow among different companies, with Zhongke Haixun experiencing a net inflow of 31.29 million yuan from institutional investors [2] - Other stocks like Tianhai Defense and Guorui Technology faced net outflows from institutional investors, while retail investors showed positive net inflows for several stocks [2]