Market Overview - The A-share market experienced narrow fluctuations, with the Shanghai Composite Index rising by 0.19% and the Shenzhen Component Index and ChiNext Index falling by 0.19% and 0.52% respectively. The total market turnover was 16,209 billion, a decrease of 2,200 billion from the previous day, with over 3,100 stocks rising [1] Company-Specific Events Baia Co., Ltd. - Baia Co., Ltd. faced significant stock price decline, nearing the daily limit down, following exposure on the CCTV "3·15" gala regarding the sale of substandard sanitary products. The stock fell by 9.36% [2][3] - The company issued a statement condemning illegal recycling and sale of substandard products and announced the establishment of a special investigation team to address the issues raised during the gala [4] - Baia Co., Ltd. primarily engages in the research, production, and sales of disposable personal hygiene products, with its main brands including "Free Point" for sanitary napkins and "Good" for baby diapers. The "Free Point" brand is the core product, contributing significantly to the company's revenue [4] Industry Trends Deep-Sea Technology - The deep-sea technology sector saw a surge in stock prices following its inclusion in the 2025 government work report, which emphasized the promotion of emerging industries including deep-sea technology [5][6] - The report highlighted the need for a modern marine city and the development of a marine technology innovation system, indicating strong government support for the deep-sea technology industry [7][8] - According to Dongwu Securities, the deep-sea technology market is expected to reach a scale of trillions, positioning it as a new growth driver for the economy [8] Three-Child Policy - Stocks related to the three-child policy experienced a collective rise, with companies like Panda Dairy and others seeing significant gains. This follows the release of the "Special Action Plan to Boost Consumption," which aims to enhance consumer spending and includes measures to support child-rearing [9][10] - The plan outlines various strategies to increase consumer spending, including financial incentives for families with children, which are expected to positively impact the birth rate and consumer demand in the long term [10]

Investment Rating - The industry investment rating is "Add" (Maintain) [1] Core Viewpoints - The government work report for 2025 officially includes "deep-sea technology" as a key area of emerging industries, marking its elevation to a national strategy [1] - The strategic value of deep-sea technology lies in economic security and geopolitical competition, with significant resources and military applications [4] - Future technological breakthroughs in deep-sea technology will focus on intelligence, localization, and ecological balance [4] - Investment opportunities are identified in deep-sea materials, equipment, and detection technologies, with a recommendation to focus on leading companies with high technological maturity and clear policy support [4] Summary by Sections Government Policy and Strategic Importance - Deep-sea technology has been integrated into the national top-level design framework, with policies supporting its development outlined in the "14th Five-Year Plan" and the "Deep Sea Law" [4] - The government aims to promote the safe and healthy development of deep-sea technology through national-level research projects and coordinated development across the entire industry chain [4] Technological Focus Areas - Key technological advancements will include the integration of AI in deep-sea data processing, the localization of core equipment and materials, and the balance between development and ecological protection [4] - Specific areas of focus include deep-sea engineering equipment, information technology, and special materials processing [4] Investment Opportunities - Significant potential for domestic substitution exists in deep-sea materials (titanium alloys), equipment (submersibles/drilling platforms), and detection technologies (acoustic communication) [4] - Recommended companies for investment include Baotai Co., Ltd., Zhongke Haixun, Hailanxin, China Marine Defense, Changying Tong, Dongfang Cable, and Deepwater Haina [4]

Investment Rating - The report maintains a "Recommendation" rating for the deep-sea technology industry, indicating a potential increase in stock prices relative to benchmark indices [5]. Core Insights - The introduction of "Deep Sea Technology" in the 2025 government work report highlights its importance as a new productive force, suggesting favorable development opportunities for the industry [1]. - The marine economy has surpassed 10 trillion yuan, with deep-sea technology expected to play a significant role in future growth, as evidenced by a 5.9% increase in marine GDP from the previous year [2]. - Deep-sea capabilities are becoming a crucial component of new domain combat forces, with significant investments from both the U.S. military and China's advancements in deep-sea exploration technologies [3]. Summary by Sections Government Policy - The 2025 government work report emphasizes the development of deep-sea technology as part of new productive forces, indicating a shift towards resource development and advanced communication technologies [1]. Economic Growth - The marine economy's total output reached 10.5438 trillion yuan in 2024, marking a 5.9% year-on-year growth, which is higher than the overall GDP growth rate [2]. Military and Strategic Importance - The U.S. military is investing heavily in deep-sea capabilities, with projected expenditures of approximately 110 billion USD for new submarines and advanced underwater drones [3]. - China is also focusing on deep-sea capabilities, with successful deep-sea exploration missions showcasing its technological advancements [3]. Investment Opportunities - The report identifies several segments within deep-sea technology for potential investment, including deep-sea information technology, engineering equipment, corrosion-resistant materials, and specialized material processing [4]. - Key companies in these segments include China Shipbuilding Group, China Aerospace Science and Technology Corporation, and various specialized material manufacturers [4].

Core Viewpoint - The 2025 Government Work Report emphasizes the importance of deep-sea technology, indicating a potential increase in policy support and investment opportunities in this sector [2][8]. Group 1: Government Policy and Industry Development - The report introduces "deep-sea technology" as a new focus area, highlighting the government's commitment to the development of emerging industries such as commercial aerospace, low-altitude economy, and deep-sea technology [2][8]. - It is anticipated that both central and local governments will issue supportive policies and industry plans related to deep-sea technology, accelerating the construction of this sector and enhancing the investment value of key companies involved [2][3]. Group 2: Deep-Sea Resources - Deep-sea areas are defined as those with depths exceeding 200 meters, characterized by high pressure, low temperature, darkness, and complex geology. These regions are rich in mineral resources, including polymetallic nodules and hydrothermal sulfides [3]. - The deep-sea mining vessel "Nautilus New Era," launched in 2018, can operate at depths of 2,500 meters and has a cargo capacity of 39,000 tons, showcasing the potential for resource extraction in these depths [3]. Group 3: Technology and Material Requirements - Deep-sea perception and communication technologies primarily utilize acoustic methods due to the rapid attenuation of electromagnetic waves in seawater, with significant market growth expected for fiber optics and acoustic devices [4][5]. - The extreme water pressure at depths of 1,000 meters necessitates the use of titanium alloy for submersible hulls, as traditional materials like aluminum and high-strength steel are inadequate [5][6]. Group 4: Investment Opportunities - The introduction of "deep-sea technology" in the government report suggests a favorable environment for investment in related sectors, particularly in acoustic technology and titanium materials [8].

Core Viewpoint - The article highlights the ongoing market adjustments, with a focus on the potential growth in the deep-sea technology sector, which is expected to significantly contribute to China's marine economy by 2025 [3]. Market Overview - The market continues to adjust, with the Shanghai Composite Index showing relative strength supported by blue-chip stocks, while the Shenzhen Composite Index and the ChiNext Index both declined by around 1% [1]. - Recent hot sectors, particularly robotics and AI computing stocks, have weakened, indicating a noticeable retreat in short-term market sentiment [2][6]. Deep-Sea Technology Sector - The government work report has introduced the direction to accelerate deep-sea technology research and industrialization, projecting a market potential of 3.25 trillion yuan by 2025, making it a key growth area within the 13 trillion yuan marine economy [3]. - Deep-sea technology encompasses advanced technologies and disciplines for exploring, developing, and utilizing deep-sea resources, including deep-sea detection, resource development, communication, navigation, and engineering technologies [3]. - The marine economy is expected to surpass 10 trillion yuan in 2024, with deep-sea technology being a significant growth driver [3]. Investment Opportunities in Deep-Sea Technology - Companies involved in deep-sea technology and equipment are highlighted, including: - Baose Co., Ltd. (19.73 billion yuan market cap) is engaged in national key deep-sea titanium alloy equipment projects [5]. - Baotai Co., Ltd. (82.00 billion yuan market cap) is the largest titanium and titanium alloy production and research base in China [5]. - Other notable companies include Jushi Co., Ltd., Haimeite Technology, and Zhongke Haixun, all of which are involved in various aspects of deep-sea technology and equipment [5]. Coal Sector Recovery - The coal sector has shown a recovery, with the sector index rising over 6% in six trading days, driven by increased industrial demand and a potential stabilization in coal prices [7]. - Factors contributing to this recovery include: - Economic recovery leading to higher industrial production and coal demand [7]. - Market funds shifting towards stable investment options, with coal being a traditional resource sector with risk resilience [7]. - The coal sector's high performance, cash flow, and dividend attributes, maintaining its appeal as a high-yield investment [7][8]. Conclusion - The article emphasizes the potential of the deep-sea technology sector as a significant growth area in China's marine economy, while also noting the recovery of the coal sector as a stable investment opportunity amidst market adjustments [3][7].