Group 1: Port Industry Insights - The port industry valuation has increased due to sentiment catalysts and re-evaluation factors, particularly after the sale of terminal assets by Cheung Kong, which achieved an EV/EBITDA of 11 times, while the industry average is between 6-8 times, indicating significant re-evaluation potential [1] - Xiamen Port Development, as the only listed platform under Fujian Port Group, leverages the strategic location of Xiamen Port (the 14th largest container port globally) to establish three core businesses: bulk cargo terminals, port logistics, and port services [1] - The company plans to expand into the container terminal sector through a major asset restructuring by 2025, enhancing its position as a comprehensive modern port logistics service provider [1] - With the gradual recovery of global trade and the ongoing Belt and Road Initiative, Xiamen Port's container throughput and domestic logistics demand are expected to continue growing [1] - Xiamen Port Development is well-positioned for long-term growth due to strong port resources, policy support, and market competitiveness, especially in the context of the overall re-evaluation of the port industry [1] - Investors are encouraged to pay attention to companies like COSCO Shipping Ports and China Merchants Port, particularly COSCO Shipping Ports, which benefits from being part of the world's largest container shipping alliance [1] Group 2: AI and Data Center Infrastructure - The demand for data center infrastructure (AIDC) is entering a new cycle as global internet giants, particularly Alibaba, ByteDance, and Tencent, increase their investments in AI capabilities [4] - North America's four major cloud service providers are expected to exceed $315 billion in capital expenditures by 2025, driven by AI-related demand, leading to significant expansion in the data center industry [4] - The demand for key IT power supplies in data centers is projected to double from 49 GW in 2023 to 96 GW by 2026, with 90% of this growth attributed to AI-related needs [4] - The global market for temperature control in data centers is expected to grow from approximately $7.7 billion in 2023 to $17.8 billion by 2028, with a CAGR of about 18.4% [4] - Liquid cooling technology is becoming increasingly important in data centers, with its market share expected to rise to 33% due to the trend of increasing server cabinet power [4] - Domestic brands are likely to replace foreign brands in the backup power supply segment within data centers, especially under tight supply-demand conditions [4] Group 3: Emerging Technologies and Market Trends - Deep-sea technology has been officially included in the national future industry development priorities in the 2025 government work report, indicating the rise of this emerging industry and gaining national policy support [10] - The deep-sea technology sector has significant industrial potential, aligning with national strategic needs and offering broad market prospects, potentially becoming a new growth area for the economy [10] - The industry requires the integration of various technologies, including oceanography, artificial intelligence, and bioengineering, to advance technologies such as bionic robots and deep-sea sensors [10] - The marine economy is expected to grow robustly, with China's marine economy projected to exceed 10 trillion yuan in total by 2024 [10] - AI technology can enhance sustainable development by using intelligent sensor networks and big data analysis to assess fishery resources and formulate protection strategies [10]

Group 1: Deep Sea Technology and Market Potential - The deep sea technology sector is recognized as a strategic emerging industry, with the government aiming to promote its safe and healthy development [1] - East Wu Securities estimates the deep sea technology market to be worth 10 trillion yuan, positioning it as a new economic growth driver [1] - The marine economy is projected to reach 10.54 trillion yuan in 2024, reflecting a 5.9% increase from the previous year, contributing 0.4 percentage points to national economic growth [1] Group 2: Electric Vehicle Charging Infrastructure Growth - As of January 2025, the total number of charging infrastructure in China reached 13.213 million units, a year-on-year increase of 49.1% [3] - In January 2025, the increase in charging infrastructure was 395,000 units, with public charging stations seeing a remarkable growth of 222.5% year-on-year [3] - The number of electric vehicle charging stations is expected to exceed 32 million by 2029, with a compound annual growth rate of 24.9% from 2024 to 2029 [3] Group 3: County-Level Charging Facilities Initiative - The government is implementing a pilot program to enhance charging infrastructure in rural areas, aiming to alleviate "range anxiety" and "charging anxiety" among electric vehicle users [4][5] - The "Hundred Counties, Thousand Stations, Ten Thousand Piles" initiative is in its second year, focusing on the planning and construction of charging facilities in key villages and towns [4][5] Group 4: Performance of Charging Station Stocks - A total of 54 charging station concept stocks are projected to achieve over 20% year-on-year net profit growth in 2024, with some companies expected to turn losses into profits [6] - Notable examples include Daotong Technology, which anticipates a net profit of 640 million yuan in 2024, representing a 257.34% increase [6] - Among the high-growth charging station stocks, 17 companies have a rolling price-to-earnings ratio (PE) below 40, with 10 of them having a price-to-book ratio (PB) below 3 [6]

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].