Investment Rating - Industry Rating: Outperform the market (maintained rating) [6] Core Viewpoints - The report emphasizes the acceleration of marine defense equipment construction and the potential for marine resource exploration and development, driven by national policies aimed at high-quality marine economic development [2] - Deep-sea operations are becoming a global focus, with underwater equipment driving the construction of the industrial chain, as countries enhance their military presence in deep-sea areas [3] - The report anticipates that China's underwater defense system construction will accelerate, with ongoing advancements in underwater communication networks and unmanned submersibles, benefiting from defense system development demands [4] - The urgency of deep-sea resource development is highlighted, with various metal minerals and oil and gas resources at the ocean floor, necessitating enhanced capabilities for marine resource acquisition [5] Summary by Sections Marine Defense Equipment - The central government is pushing for high-quality development of the marine economy, which includes strengthening marine technology innovation and enhancing marine strategic capabilities [2] - The U.S. military is significantly investing in deep-sea capabilities, developing systematic and unmanned intelligent deep-sea combat equipment [3] Deep-Sea Resource Development - The report notes that China faces a severe situation regarding key mineral resource security, with high dependence on imports for nickel, cobalt, and lithium [5] - The report suggests that through policy support and technological advancements, China is poised to enhance its deep-sea resource exploration and development capabilities [5] Investment Recommendations - The report recommends focusing on the entire deep-sea technology industrial chain, particularly in marine security and resource sectors, with specific attention to defense equipment, deep-sea oil and gas, offshore wind power, and deep-sea mining [6] - Suggested companies for investment include China Marine Defense, Western Materials, and China National Offshore Oil Corporation, among others [6]

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]

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].