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: Financial Performance and Projections - The carbon fiber gross margin is currently in a loss state, but price increases in March and May 2025 are expected to significantly improve performance [1] - The company has a production capacity of 600 tons/year for wet 3K carbon fiber and plans to increase capacity based on market conditions [2] - The revenue from viscose filament business is expected to remain high, with full production and sales in 2024, while carbon fiber revenue is projected to decline [6] Group 2: Market and Product Strategy - The company aims to expand its market share and improve service timeliness by leveraging regional resources and increasing R&D investment [4] - The company does not produce carbon fiber precursor yarn and has a total carbon fiber production capacity of 12,000 tons [2] - The company is actively exploring applications for carbon fiber in various fields, including wind power and aerospace [5] Group 3: Risk Management and Competitive Position - The company recognizes potential risks in the viscose and carbon fiber sectors and plans to implement strategies to mitigate these risks [3] - The company has achieved a significant increase in R&D investment, with a year-on-year growth of 502.56%, primarily focused on carbon fiber [5] - The chemical fiber industry is highly competitive, but the company has developed advantages in technology, talent, and market presence [6]

Core Viewpoint - Nanjing Julong (300644) has demonstrated significant growth in revenue and profit for 2024 and Q1 2025, driven by innovation and strategic investments in various sectors, including aerospace and low-altitude economy [2][5]. Financial Performance - In 2024, the company achieved operating revenue of 2.387 billion yuan, a year-on-year increase of 30.53%, and a net profit attributable to shareholders of 84.34 million yuan, up 16.25% from the previous year [2]. - Excluding the impact of share-based payments, the net profit reached 99.88 million yuan, reflecting a growth of 44.85% [2]. - For Q1 2025, the company reported operating revenue of 595 million yuan, a 32.48% increase year-on-year, and a net profit of 30.53 million yuan, up 33.56% [2]. Sector Performance - In 2024, sales in the automotive and new energy vehicle sector grew by 31.24%, while the communication and electronic sectors saw a 36.17% increase [3]. - The aerospace and low-altitude economy sectors experienced a remarkable sales growth of 263.80%, particularly in carbon fiber composite components and assembly [3]. R&D Investment - The company invested 95.64 million yuan in R&D in 2024, marking a 33.30% increase year-on-year, with Q1 2025 maintaining a 38.64% growth in R&D expenses [3]. - Key R&D focuses include high-performance modified plastics, thermoplastic elastomers, carbon fiber composites, and advanced technologies such as humanoid robots and 6G communication [3]. Strategic Development - Nanjing Julong aims to become a leading international new materials company by focusing on high-end equipment components, new energy, lightweight materials, and aerospace applications [4]. - The company has established a subsidiary, Nanjing Julong Composite Materials Technology Co., Ltd., which has successfully delivered high-quality drone assemblies and achieved significant revenue growth in the low-altitude economy sector [5]. Humanoid Robotics Initiative - The company plans to establish a humanoid robotics division to focus on high-performance materials for robotics applications, addressing material demands that are critical for the industry's growth [6]. - A project team has been formed to develop polymer materials suitable for robotics, with ongoing collaborations with various entities [6].

Financial Performance - In 2024, the company achieved a revenue of 2.387 billion CNY, a year-on-year increase of 23.87% [3] - The net profit attributable to shareholders was 84.34 million CNY, up 16.25% from the previous year [3] - In Q1 2025, revenue reached 0.305 billion CNY, a growth of 5.95% year-on-year [3] - The net profit for Q1 2025 was 30.53 million CNY, reflecting a 33.56% increase compared to the same period last year [3] Market Expansion - Sales in the automotive and new energy vehicle sector reached 1.782 billion CNY, growing by 31.24% [4] - The telecommunications and electronics sector saw a revenue increase of 36.17%, totaling 0.229 billion CNY [4] - The environmental building engineering sector grew by 30.45%, achieving 0.157 billion CNY in sales [4] - The aerospace and low-altitude economy sector experienced a remarkable growth of 263.80%, reaching 0.030 billion CNY [4] Research and Development - R&D investment in 2024 amounted to 95.64 million CNY, a 33.30% increase year-on-year [5] - The company holds 149 authorized patents, including 76 invention patents, enhancing its technological advantage [7] - Focus areas for R&D include high-performance modified plastics, thermoplastic elastomers, and carbon fiber composite materials [5] Strategic Direction - The company aims to become a leading enterprise in modified materials and a key player in the low-altitude economy and plastic wood sectors within the next three to five years [14] - The "4+2" strategic layout focuses on four core business segments and two key directions in precision processing and special material synthesis [14] - The mission is to provide personalized basic materials and comprehensive technical services for national key projects and pillar industries [14]

Core Viewpoint - Deep-sea technology has been included in the government work report for the first time during the 2025 "Two Sessions," indicating the high-level leadership's emphasis on deep-sea development. This sector is expected to receive supportive policies from local governments, similar to the development opportunities seen in low-altitude economy and commercial aerospace [1][2]. Policy Support and Development - The government work report emphasizes the promotion of deep-sea technology alongside commercial aerospace and low-altitude economy, highlighting its political, economic, technological, and military significance. The national marine production value is projected to exceed 10 trillion yuan in 2024, reaching 105.438 billion yuan, with a year-on-year growth of 5.9% [2][5]. - Local governments in coastal areas are anticipated to introduce related stimulus policies to support the development of deep-sea technology as a new productive force [2][5]. Key Policies - The "Shanghai Marine Industry Development Plan (2025-2035)" aims to promote high-quality development of the marine economy, focusing on deep-sea technology and marine observation network construction [5]. - The central government has established a 50 billion yuan fund to support deep-sea exploration, equipment manufacturing, and resource development [5]. - Various provinces are developing their marine industry frameworks, emphasizing deep-sea resource development, marine biotechnology, and high-end marine equipment manufacturing [6]. Development Pathways - The development of deep-sea technology focuses on three key areas: deep diving, deep drilling, and deep networking. High-performance manned and unmanned submersibles are becoming a priority for many countries, with China advancing significantly in deep-sea exploration [7][24]. - The deep-sea sector is characterized by high pressure and corrosion, making materials like titanium and carbon fiber composites essential for equipment development [13][14]. Investment Opportunities - Investment should prioritize core manufacturers across the deep-sea technology supply chain, particularly in deep-sea equipment, deep-sea information technology, and upstream materials [24][26]. - The demand for underwater communication technologies is expected to grow, with a shift towards multi-modal communication methods to meet various operational needs [13][19].