Group 1: Marine Economy Development - The Central Economic Committee emphasizes the need for high-quality development of the marine economy as part of China's modernization strategy, aiming for a unique path of maritime strength [1] - The 2024 marine economy is projected to exceed 10 trillion yuan, accounting for 7.8% of GDP, with a production value of 105,438 billion yuan, reflecting a 5.9% increase from the previous year [1] Group 2: Deep Sea Resources and Technology - The deep sea is identified as a significant resource reservoir, containing polymetallic nodules, cobalt-rich crusts, and large amounts of combustible ice, which are potential clean energy sources [2] - The government report for 2025 highlights "deep sea technology" as a new industry alongside commercial aerospace and low-altitude economy, indicating a commitment to developing this sector [2] - The deep sea technology industry is expected to have a market capacity in the trillion-yuan range, with policies likely to stimulate continued investment and financing opportunities [2] Group 3: Companies Involved in Deep Sea Sector - Companies involved in deep sea equipment include Yaxing Anchor Chain, China Shipbuilding, and Zhenhua Heavy Industries, among others [3] - Deep sea exploration companies include China Marine Defense, Micro Light Co., and Tianhai Defense, focusing on detection equipment and deep-sea robotics [3] - Companies in deep sea information technology include Zhongtian Technology, Huatong Cable, and Hailanxin, which are involved in underwater data centers and related infrastructure [3]

Summary of Deep Sea Technology Conference Call Industry Overview - Deep Sea Technology is a key component of China's marine power strategy, expected to receive continued high-level attention, potentially boosting sector prosperity [1][2] - The marine economy is projected to reach 11 trillion yuan by 2025, with deep sea technology accounting for approximately 25%, or about 2.75 trillion yuan [1][4] Core Insights and Arguments - The importance of deep sea resources for China's energy and non-ferrous metal security is emphasized, especially in the context of the US-China trade war, which has intensified the need for China to develop deep sea technology and establish a comprehensive marine observation network [1][5] - The Chinese government has included deep sea technology in its work report for the first time, indicating it will be a strategically supported emerging industry, likely leading to increased sector focus and investment [2][6] - Deep sea mining primarily involves polymetallic nodules, cobalt-rich ferromanganese nodules, and hydrothermal sulfides, which are crucial for ensuring resource security as China's dependence on foreign sources for key minerals exceeds 70% [3][9] Key Areas of Focus - The deep sea technology sector should concentrate on three main areas: equipment manufacturing, exploration technology, and information technology [3][13] - Notable companies in the sector include Yaxing Anchor Chain, China Shipbuilding Industry Corporation, China Power, Zhenhua Heavy Industries, and others, which are involved in unmanned equipment, sensors, and cables [3][8][13] Policy Impact - The Chinese government is expected to implement policies from the central to coastal provinces following the work report, which will drive infrastructure investments and support the industrial chain, leading to a win-win situation for capital, industry, and the nation [6][8] Challenges and Urgency - China is currently about five years behind the US in deep sea mineral resource development technology, with the US already in the early stages of commercial mining [7][11] - The urgency for China to accelerate its deep sea mining development is heightened by the US government's recent actions to authorize commercial licenses for deep sea mining beyond national jurisdiction [10][11] Importance of Marine Observation Network - The marine observation network is a comprehensive monitoring system deployed on the seabed, essential for real-time monitoring of marine environments, geological activities, and biological ecosystems [12] - Accelerating the construction of the marine observation network is critical for China to advance into deep sea exploration and achieve its marine power goals [12] Investment Recommendations - Investment focus should be on equipment manufacturing, exploration technology, and information technology, with specific recommendations for companies involved in these areas [8][13]

Group 1 - The ocean economy is a significant driver of GDP growth, with the national marine production value expected to exceed 10 trillion yuan in 2024, accounting for 7.8% of the GDP, and contributing 11.5% to economic growth [1][8] - The government has highlighted "deep-sea technology" in its reports, indicating its importance alongside commercial aerospace and low-altitude economy, suggesting a rapid development potential in deep-sea equipment and exploration [1][8] - The deep-sea technology sector is identified as a key pillar for building a maritime power, encompassing three main areas: deep-sea materials, deep-sea equipment manufacturing, and deep-sea digital applications [3][17] Group 2 - Various provinces and cities are accelerating the development of marine economy, with policies focusing on high-end, intelligent, and green development, and establishing multi-level industrial systems [2][13] - Shanghai's marine industry development plan (2025-2035) proposes a "3+5+X" industrial system, while Guangdong's regulations emphasize support for eight emerging marine industry clusters [2][14] - The deep-sea materials sector is crucial for deep-sea technology, involving structural and buoyancy materials necessary for the development of marine resources, with a focus on high-performance steel, alloy materials, and composite materials [3][21] Group 3 - The deep-sea equipment sector is essential for supporting deep-sea development, facing challenges from complex underwater environments, with significant growth in China's shipbuilding industry, which saw a 13.8% increase in completed shipbuilding volume in 2024 [4][26] - The deep-sea digitalization and intelligence sector is a vital direction for deep-sea technology development, aiming to create a "digital ocean" that enhances marine decision-making and governance through advanced information technologies [5][17] - The report suggests focusing on marine engineering equipment manufacturing, marine equipment components, and marine observation instruments as key areas for investment [4][26]

Group 1 - The 20th China International Small and Medium Enterprises Expo (CISME) opened in Guangzhou on June 27, showcasing 30 quality enterprises from Hainan Province, highlighting the innovation achievements and development vitality of small and medium enterprises under the background of the Hainan Free Trade Port construction [3][5] - The Hainan exhibition team includes 13 national-level specialized and innovative "little giant" enterprises and provincial-level specialized and innovative enterprises, covering key industries such as deep-sea technology, artificial intelligence, biomanufacturing, green materials, and food processing [6] - The participating enterprises presented new technologies, products, and processes, gaining attention and recognition from domestic and international guests and professional audiences [3][4] Group 2 - The event also announced the third batch of pilot cities for the digital transformation of small and medium enterprises, with Danzhou City being selected, and Haikou and Danzhou both included in the national pilot list, which will significantly promote the transformation and upgrading of small and medium enterprises in Hainan [5] - The provincial industrial and information technology department emphasized that the selected enterprises, especially the specialized and innovative "little giant" enterprises, are the main force in cultivating new productivity in Hainan [5] - The expo, covering an area of approximately 80,000 square meters, serves as the largest and highest-standard international exhibition for small and medium enterprises in the Asia-Pacific region, providing a platform for international development and promoting innovation and high-quality development [5][6]

Market Overview - The total trading volume in the Shanghai and Shenzhen markets reached 1.6 trillion yuan, an increase of 188.2 billion yuan compared to the previous trading day [1] - The military, securities, internet finance, and insurance sectors saw the highest gains, while oil and gas, pesticides, film, and port sectors experienced the largest declines [1] - By the end of the trading session, the Shanghai Composite Index rose by 1.03%, the Shenzhen Component Index increased by 1.72%, and the ChiNext Index surged by 3.11% [1] Investment Strategy - The company has initiated a position in the reducer sector and is currently fully invested, planning to sell the liquor concept the following day based on post-market quantitative analysis [3] - Continuous evaluation of past operations is emphasized to identify areas for improvement, ensuring the investment strategy remains competitive [3] - The company plans to sell the liquor sector and buy into the deep-sea technology sector, indicating a clear and decisive strategy [6] Sector Analysis - The deep-sea economy has shown significant potential, with a notable increase in RPS (Relative Price Strength) metrics over time, indicating strong performance [7] - The deep-sea technology sector is gaining attention from policy levels, with expectations for future industrial policies and major project implementations [7] - The total value of China's marine economy surpassed 10 trillion yuan in 2024, highlighting deep-sea technology as a crucial emerging industry for economic growth [7] - The deep-sea industry has a long supply chain, contributing significantly to economic stimulation across various stages from upstream technology development to downstream application services [7]

Core Insights - The decline in discount rates is a key driver for the rise of the Chinese stock market and creates favorable conditions for thematic investments, with opportunities in both industrial and trading themes [1][2]. Investment Themes Overview - The article outlines ten investment themes focusing on emerging technologies, advanced manufacturing, and structural improvements, indicating a bullish outlook for China's "transformation bull market" by the second half of 2025 [2][6]. Theme 4: Low-altitude Economy and Commercial Space - China's low-altitude economy has officially entered the "manned era" with the issuance of the first operational certificates for manned civil unmanned aerial vehicles, and the market is expected to exceed 1 trillion yuan by 2026 [3][22]. - The demand for satellite launches is anticipated to rise significantly as multiple satellite constellations enter a dense networking phase, with plans to launch 15,000 satellites by the end of 2030 [3][29]. Theme 5: Deep Sea Technology - The government has emphasized deep-sea technology in its strategic goals, with the marine economy expected to exceed 10 trillion yuan in 2024, driven by rapid growth in marine engineering and equipment [4][37]. - The article recommends investments in deep-sea resource development, including offshore wind power and oil and gas extraction, as well as key deep-sea exploration equipment [4][39]. Theme 6: Self-Controlled Technology - The semiconductor sector is highlighted as a critical battleground in technology competition, with policies promoting mergers and acquisitions to deepen domestic supply chain collaboration [4][42]. - The article suggests focusing on leading semiconductor equipment and materials companies as well as domestic computing power supply chains [4][42]. Theme 7: Intelligent Driving - The penetration of advanced intelligent driving technologies is accelerating, with significant growth in the market for related components such as chips, cameras, and lidar systems [5][60]. - The article notes that the cost of related hardware is expected to decrease, further facilitating the adoption of intelligent driving solutions [5][60]. Market Dynamics - The article discusses the shift in investor sentiment towards a more optimistic view of the market, driven by a decrease in risk perception and a decline in risk-free interest rates [6][7]. - The Chinese stock market is seen as entering a historical turning point with increased liquidity and a focus on investor returns [7][10].

Group 1 - The deep-sea economy is emerging as a new economic form that encompasses the entire chain of resource extraction, circulation, and consumption, becoming a blue engine driving national economic growth and a key component of global sustainable development [2][3] - The Chinese government has set a grand goal of establishing a national marine economy development demonstration zone, with local governments implementing targeted plans to promote deep-sea technology and blue economy development [2][3] - Companies like Yantai Jereh Petroleum Service Group and Beijing Hailanxin Data Technology are focusing on high-end marine engineering equipment manufacturing and key system R&D, respectively, to align with national strategies in deep-sea technology [3][5] Group 2 - The deep-sea exploration journey is challenged by complex marine environments, monopolized core technologies, and high R&D costs, testing the resilience and intelligence of companies [4][5] - Companies are transforming challenges into opportunities by increasing R&D investment, strengthening core technologies, and accelerating industrialization and international standard recognition [5][6] - The development of green clean energy, particularly in offshore areas, is still in the exploratory phase, indicating a need for time to cultivate the market [4][5]

Core Viewpoint - The article emphasizes the optimistic outlook for China's stock market, highlighting the emergence of new technology trends and business models, a decrease in opportunity costs for stock investments, and improved economic policies that favor investor returns. This creates a favorable environment for thematic investments, particularly in frontier technologies, advanced manufacturing, and structural improvements, with a focus on investment opportunities for the second half of 2025 [1][6][11]. Group 1: Frontier Technologies - Theme 1: AI and Embodied Intelligence - Artificial intelligence is expected to follow a path of "information infrastructure construction," "basic software deployment," "online application explosion," and "restructuring offline industries," with AI becoming a key catalyst for commercialization and increasing demand for computing power [2]. - The application of embodied intelligence is accelerating in fields such as research, education, and healthcare, with a focus on specific robotic products like quadrupedal and exoskeleton robots [2]. - Theme 2: Bioeconomy and Brain-Machine Interfaces - Biotechnology is rapidly advancing, enabling traditional industries to upgrade, with synthetic biology and information crossover technologies opening new spaces in the bioeconomy [3]. - The brain-machine interface industry is in the exploratory phase, with several tech companies attempting breakthroughs in hardware and applications [3]. - Theme 3: 6G Communication - 6G technology is set to revolutionize communication with significant improvements in speed and latency, with research expected to start in 2025 and commercial systems planned for 2030 [4]. Group 2: Advanced Manufacturing - Theme 4: Low-altitude Economy and Commercial Space - The low-altitude economy is entering a "manned era," with market size expected to exceed one trillion yuan by 2026, driven by the establishment of non-controlled airspace and operational certifications [7]. - The commercial space sector is anticipated to see significant growth due to the increasing demand for satellite launches and the development of satellite constellations [7]. - Theme 5: Deep-sea Technology - The government has prioritized deep-sea technology, with policies accelerating the industrialization process and a projected marine production value exceeding ten trillion yuan by 2024 [8]. - Theme 6: Self-sufficiency - The semiconductor sector is becoming a focal point in the technology competition, with policies promoting mergers and acquisitions to deepen domestic replacements [9]. Group 3: Structural Improvements - Theme 7: Smart Driving - The penetration of advanced smart driving technologies is accelerating, with significant cost reductions expected in related hardware due to scale effects from companies like BYD [10]. - Theme 8: New Consumption Brands - The consumption recovery is showing a "K-shaped" divergence, with traditional consumption under pressure while new consumption is thriving, driven by digital economy and infrastructure changes [12]. - Theme 9: Price Cycle Products - Some cyclical industries are beginning to reduce capacity, with expectations for improved supply-demand dynamics leading to price recoveries in related sectors [13]. - Theme 10: Regional Economy - There is an increasing urgency to address regional development imbalances, with accelerated investment in western infrastructure and supportive policies for local industries [14].

Investment Rating - The report indicates a strong investment interest in the deep-sea technology sector, particularly following the inclusion of "deep-sea technology" in the 2025 government work report, elevating its strategic importance alongside low-altitude economy and commercial aerospace [3]. Core Insights - The deep-sea technology market is projected to have significant growth potential, with China's marine economy expected to exceed 10 trillion yuan in 2024, marking a year-on-year growth of 5.9% [4]. - Deep-sea technology possesses both economic and national defense strategic value, with rich resources such as polymetallic nodules and rare metals expected to be increasingly sourced from deep-sea mining [5]. - There is substantial room for domestic substitution in the deep-sea technology sector, as the current localization rate is below 30%, indicating a significant opportunity for local manufacturers [6]. Summary by Sections Government Support and Market Potential - The 2025 government work report marks a pivotal moment for deep-sea technology, highlighting its transition from research exploration to industrial driving force, which is expected to resonate across military and civilian sectors [3]. - The marine economy's total value reached 10.5438 trillion yuan in 2024, contributing 7.9% to the national GDP, with specific sectors like marine shipbuilding and marine power showing growth rates exceeding 9% [4]. Industry Characteristics - Deep-sea technology focuses on three main areas: deep diving, deep drilling, and deep networking, which are essential for exploration and resource extraction [11][12]. - The industry chain includes upstream materials and core components, midstream deep-sea equipment manufacturing, and downstream application services, indicating a long chain with significant economic impact [13]. Technological Advancements - The report emphasizes the importance of specialized materials such as titanium alloys and carbon fiber composites, which are well-suited for the high-pressure and corrosive deep-sea environment [15]. - Energy systems in deep-sea applications are expected to utilize high-density lithium-ion batteries, which are crucial for the operational efficiency of deep-sea equipment [17]. Comparative Analysis - Deep-sea technology shares similarities with low-altitude economy and commercial aerospace in terms of military-civilian integration and economic spillover effects, with all three sectors being prioritized by national policy [23][24]. - The report outlines the high technical barriers in deep-sea technology, which includes advanced underwater communication systems and deep-sea mining technologies, distinguishing it from the relatively lower barriers in low-altitude and aerospace sectors [25]. Industry Players - The report provides a comprehensive overview of the deep-sea technology industry chain, highlighting key players across upstream materials, midstream equipment manufacturing, and downstream application services [29].

Group 1 - The report highlights ten investment themes focusing on advanced manufacturing, emerging technologies, and structural improvements, indicating a favorable environment for thematic investments in the second half of 2025 [1][4][10] - The report emphasizes the shift in investor perception towards a "transformation bull market" in China's stock market, driven by declining discount rates and a reduction in opportunity costs for equity investments [10][11] - The low-altitude economy is entering a "manned era," with the first operational certificates for manned civil unmanned aerial vehicles issued, indicating significant growth potential in this sector [2][34] Group 2 - The low-altitude economy market is projected to exceed 1 trillion yuan by 2026, with a growth rate of 33.8% year-on-year in 2023, driven by the manufacturing of low-altitude aircraft and operational services [36][40] - The commercial aerospace sector is expected to see a significant increase in satellite launch demand, with multiple satellite constellations entering a dense networking phase, highlighting a substantial gap in launch capacity [41][49] - The deep-sea technology sector is being prioritized under the "Marine Power" strategy, with a focus on developing key technologies and equipment, aiming to enhance China's capabilities in deep-sea resource exploration and utilization [55][64] Group 3 - The semiconductor industry is identified as a critical battleground in the technology competition, with a focus on domestic advancements in lithography technology and the promotion of mergers and acquisitions to strengthen the supply chain [3][64] - The report recommends investing in leading semiconductor equipment and materials companies, as well as domestic computing power industry chains, to capitalize on the growing demand for advanced semiconductor technologies [3][64] - The intelligent driving sector is experiencing accelerated penetration, with the report suggesting investments in key components such as intelligent driving chips, cameras, and lidar systems, as well as smart transportation software and hardware companies [3][64]