Investment Rating - The report assigns a "Buy" rating to the company, marking its first coverage [6]. Core Insights - The company is a global leader in the anchor chain industry, with significant growth potential driven by the floating wind power sector [5][4]. - The company has a strong market position, benefiting from the increasing demand in shipbuilding and offshore platform investments [5][2]. - The company has shown impressive order growth, with a 68.1% increase in new orders for mooring chains in the first half of 2025 compared to the entire year of 2024 [3]. Company Overview - Jiangsu Yaxing Anchor Chain Co., Ltd. was established in 1981 and has developed into a leading manufacturer of ship chains and mooring chains, with a revenue composition of 71.6% from ship chains and 27.0% from mooring chains as of 2024 [1][26]. - The company has a production capacity of 350,000 tons, including 160,000 tons of ship chains and 110,000 tons of offshore platform mooring chains [26]. Industry Trends - The global shipbuilding industry is experiencing a growth cycle, with new ship orders increasing by 58.8% in 2024, and China's share of new orders rising to 66.9% [2][48]. - Offshore oil and gas exploration investments are projected to continue growing, with an expected investment of $220 billion in 2025, reflecting a 5.0% year-on-year increase [3]. - The floating wind power market is anticipated to see explosive growth, with a projected compound annual growth rate of 54.9% from 2024 to 2029 [4]. Financial Projections - The company is expected to achieve revenues of 2.25 billion, 2.61 billion, and 3.03 billion yuan from 2025 to 2027, with year-on-year growth rates of 13.3%, 15.7%, and 16.4% respectively [5][10]. - The net profit attributable to shareholders is projected to grow from 342 million yuan in 2025 to 488 million yuan in 2027, with growth rates of 21.1%, 19.9%, and 19.2% [5][10].

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 Insights - China's offshore wind power development is undergoing a historic transition, moving from nearshore to deep-sea projects, with cumulative installed capacity expected to exceed 41.27 million kW by May 2025, maintaining the global lead for four consecutive years [2] - The shift to deep-sea projects is driven by the need for advanced technology, particularly floating wind turbine technology, which is essential for water depths exceeding 50 meters [2][4] - Significant advancements in technology, such as the development of a 17 MW floating wind turbine and a 20 MW unit with enhanced stability, are positioning China as a global leader in floating wind power technology [4][5] Technological Breakthroughs - The floating wind turbine technology involves systemic innovations across materials science, fluid dynamics, and intelligent control [2] - The 17 MW turbine developed by Huaneng and Dongfang Electric features a rotor diameter of 262 meters and has been designed to withstand extreme weather conditions, including 17-level typhoons [4] - The introduction of dynamic cables with enhanced durability and reduced maintenance costs is crucial for deep-sea energy transmission [5] Economic Viability - The integration of wind power, hydrogen production, and energy storage is being exemplified by Huaneng's project in Shandong, which aims to reduce green hydrogen costs significantly [8] - The cost of floating wind power has decreased from 35,000 RMB/kW in 2021 to 22,000 RMB/kW in 2025, representing a 37% reduction [9] - A vertical integration model in the supply chain has led to a 25% reduction in logistics costs and a 40% decrease in delivery times [9] Commercialization Pathways - The offshore wind operation and maintenance sector is experiencing a shift towards intelligent monitoring systems, improving inspection efficiency and response times [10] - The market for offshore wind projects is expanding, with a reported 50% increase in order volume in early 2025 [11] - Innovative business models, such as the "green electricity premium + carbon trading" approach, are enhancing cash flow for projects [11] Global Positioning - China is transitioning from a follower to a leader in the floating wind power sector, expected to account for 40% of global new installations by 2025 [15] - The "wind-fish integration" model in Fujian is reducing ecological compensation costs, while large-scale projects are driving significant investments in the industry [15] - The advancements in floating wind technology are reshaping the global wind power landscape, with China holding a 70% market share in Southeast Asia [15]

Core Insights - The wind power industry in China has shown strong growth in the first half of the year, with a total bidding scale of over 107 GW, driven by both domestic and international markets [1][5] - Mingyang Smart Energy has emerged as a leader in the domestic wind turbine manufacturing sector, securing the largest bidding scale of 21,013.43 MW [1][3] Domestic Market Summary - The total bidding scale for domestic wind power projects reached 87,584.38 MW, with onshore projects accounting for 75,124.08 MW, offshore projects for 7,138 MW, and distributed projects for 1,184.3 MW [5] - Mingyang Smart Energy ranked second in domestic bidding with a total of 13,830.18 MW, leading in integrated projects with 1,475 MW [5] International Market Summary - Mingyang Smart Energy topped the international market with 7,183.25 MW in orders, including 3,955 MW for floating wind turbines, 2,088 MW for offshore wind turbines, and 1,140.25 MW for onshore wind turbines [3] - The company's international business spans key regions including Europe, Asia-Pacific, and the Middle East and North Africa, showcasing its global competitiveness in high-end wind power equipment [3] Competitive Landscape - The competitive landscape among leading wind power companies remains stable, with offshore wind and international markets acting as growth engines [7] - Mingyang Smart Energy has strong pricing power and stable supply chain costs, which may enhance its profitability through improved operational efficiency and increased self-supply of blades [7] - The company is well-positioned to benefit from advancements in floating wind turbine technology and has made significant progress in international projects in Europe and Japan [7]

Core Insights - The company aims to expand its overseas market business, targeting an additional overseas order scale of approximately 3GW in 2024, while continuing to implement its "two seas" strategy to enhance its international industrial ecosystem [1] - In 2024, the company reported a revenue of approximately 27.158 billion yuan and a net profit of about 346 million yuan, with significant growth in wind turbine sales and renewable energy projects [1] - The company is optimistic about the industry's growth prospects, supported by national policies and a significant increase in wind power bidding scale [2] Financial Performance - In 2024, the company achieved a revenue of approximately 27.158 billion yuan, with net profit attributable to shareholders of about 346 million yuan [1] - The wind turbine and related components sales revenue reached 20.833 billion yuan, with external wind turbine sales of 10.82GW, a year-on-year increase of 11.66% [1] - In the first quarter of 2025, the company reported a revenue of 7.704 billion yuan and a net profit of 302 million yuan, with wind turbine manufacturing sales revenue approximately 5.661 billion yuan, a year-on-year increase of 101.05% [1] Industry Trends - The renewable energy sector is rapidly developing, with a significant increase in wind power bidding scale, which is expected to grow by over 50% compared to 2023 [2] - The offshore wind power sector is experiencing a trend towards larger and more scalable projects, with a focus on deep-sea development as nearshore resources become saturated [3] - The government has provided clear policy support for deep-sea wind power development, specifying that new offshore wind projects should be located at least 30 kilometers offshore or in waters deeper than 30 meters [3] Technological Advancements - The company maintains a leading position in floating wind power technology, which is more suitable for deep-sea areas and significantly enhances wind energy resource utilization [4] - The launch of the world's largest floating wind platform, the 16.6MW "Mingyang Tiancai," showcases the company's technological advancements in the floating wind sector [4] - The company is also advancing in the hydrogen energy sector, with the successful ignition of the world's first 30MW pure hydrogen gas turbine, which addresses key technical challenges in hydrogen combustion [5]

Core Viewpoint - The company reported lower-than-expected annual performance for 2024, primarily due to delays in power station transfers and increased asset impairment losses, but maintains a strong position in the offshore wind sector and a leading layout in Europe, sustaining a "buy" rating [1] Group 1: Financial Performance - In 2024, the company achieved revenue of 27.158 billion yuan, a year-on-year decrease of 3.43%, and a net profit attributable to shareholders of 346 million yuan, down 8.12% year-on-year [1] - In Q4, the company reported revenue of 6.922 billion yuan, with year-on-year and quarter-on-quarter declines of 1.29% and 17.99% respectively, and a net profit of -462 million yuan, indicating a shift from profit to loss [1] - For Q1 2025, the company recorded revenue of 7.704 billion yuan, reflecting a year-on-year increase of 51.78% and a quarter-on-quarter increase of 11.30%, with a net profit of 302 million yuan, showing a year-on-year decrease of 0.70% but a significant quarter-on-quarter increase of 165.33% [2] Group 2: Market Outlook - The government has emphasized the development of offshore wind power and identified deep-sea technology as a strategic emerging industry, which is expected to support high growth in installed capacity [2] - The company is well-positioned as a domestic leader in offshore wind, with a strong order backlog expected to be gradually delivered, enhancing profitability through effective cost control and improved operational efficiency [2] - In Europe, increased policy support for offshore wind is anticipated to drive significant growth in installed capacity, with a forecast of 11.8 GW of new installations by 2030, corresponding to a CAGR of 28.6% from 2025 to 2030 [3] Group 3: Profit Forecast and Valuation - Due to potential impacts from new energy market entry and reduced grid electricity prices, the company has adjusted its assumptions for electricity prices and gross margins, leading to a downward revision of net profit forecasts for 2025-2027 [4] - The projected net profits for 2025, 2026, and 2027 are 2.206 billion yuan, 3.130 billion yuan, and 3.992 billion yuan, respectively, with reductions of 13.5% and 10.6% for 2025 and 2026 [4] - The company is assigned a target price of 13.58 yuan based on a 14x PE ratio for 2025, reflecting its solid leadership in offshore wind and advantageous positioning in the European market [4]