Investment Rating - The report assigns a "Buy" rating to the company, marking its first coverage [6]. Core Insights - The company is a global leader in the anchor chain industry, with significant growth potential driven by the floating wind power sector [5][4]. - The company has a strong market position, benefiting from the increasing demand in shipbuilding and offshore platform investments [5][2]. - The company has shown impressive order growth, with a 68.1% increase in new orders for mooring chains in the first half of 2025 compared to the entire year of 2024 [3]. Company Overview - Jiangsu Yaxing Anchor Chain Co., Ltd. was established in 1981 and has developed into a leading manufacturer of ship chains and mooring chains, with a revenue composition of 71.6% from ship chains and 27.0% from mooring chains as of 2024 [1][26]. - The company has a production capacity of 350,000 tons, including 160,000 tons of ship chains and 110,000 tons of offshore platform mooring chains [26]. Industry Trends - The global shipbuilding industry is experiencing a growth cycle, with new ship orders increasing by 58.8% in 2024, and China's share of new orders rising to 66.9% [2][48]. - Offshore oil and gas exploration investments are projected to continue growing, with an expected investment of $220 billion in 2025, reflecting a 5.0% year-on-year increase [3]. - The floating wind power market is anticipated to see explosive growth, with a projected compound annual growth rate of 54.9% from 2024 to 2029 [4]. Financial Projections - The company is expected to achieve revenues of 2.25 billion, 2.61 billion, and 3.03 billion yuan from 2025 to 2027, with year-on-year growth rates of 13.3%, 15.7%, and 16.4% respectively [5][10]. - The net profit attributable to shareholders is projected to grow from 342 million yuan in 2025 to 488 million yuan in 2027, with growth rates of 21.1%, 19.9%, and 19.2% [5][10].

Core Viewpoint - The report from Zheshang Securities highlights that Yaxing Anchor Chain is a core supporting enterprise in "deep-sea technology," benefiting from the rising demand in the shipping and offshore oil and gas sectors, as well as the growth potential in floating wind power [1] Group 1: Project Overview - Currently, there are five connected floating offshore wind power projects, including the Three Gorges Leading No. 1, China Shipbuilding Fuyun No. 1, CNOOC Guanquan No. 1, State Power Sharing No. 1, and Mingyang Tiancai No. 1, all of which are demonstration projects [1] - Three actively promoted domestic projects include the Hainan Wanning commercial project (100MW), CNOOC Lufeng Oilfield Group clean energy power supply transformation demonstration project (16MW), and the Three Gorges 16MW floating offshore wind power project [1] Group 2: Market Potential - According to the Global Wind Energy Council, it is estimated that by 2030, the global installed capacity of floating wind power will increase by 1.03GW, with a CAGR of 70% from 2024 to 2030; by 2034, the new installed capacity will reach 5.724GW, with a CAGR of 63% from 2024 to 2034 [1] - The estimated market space for new mooring chains corresponding to the new installed capacity of floating wind power in 2034 is approximately 14.3 billion [1] Group 3: Company Outlook - Previously, the company's performance was mainly reliant on the contributions from ship anchor chains and offshore oil service mooring chains, which had limited market space; however, with the active expansion into the floating wind power sector and product matrix, the market space has opened up [1] - The company is positioned as a key player in the shipping sector and is recognized as a strong alpha logic stock among wind power component companies, with positive prospects in shipping, offshore engineering, and floating wind power [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The company is positioned as a core component supplier in "Deep Sea Technology," benefiting from the upturn in the shipbuilding and offshore oil and gas sectors, while floating wind power presents significant growth opportunities [1][2] - The floating wind power market is expected to enter a commercialization phase by 2030, with a projected compound annual growth rate (CAGR) of 70% from 2024 to 2030, and an estimated market space of approximately 14.3 billion in 2034 [2][3] - The offshore oil service sector has seen a significant increase in new orders, with approximately 39,500 tons of new orders in the first half of 2025, indicating a high order volume and favorable market conditions [3] - The shipbuilding industry is entering a mid-cycle upturn, driven by a combination of replacement cycles and environmental regulations, leading to increased demand for ship anchor chains [3] Summary by Sections Market Expectations - The floating wind power market's commercialization timeline remains uncertain, while the price elasticity of ship anchor chains is relatively low compared to new ship prices [2] Project Insights - Currently, there are five operational floating offshore wind projects, with three more in progress in China, indicating a growing interest in this sector [2] - The global floating wind power market is projected to add 1.03 GW of new installed capacity by 2030, with significant growth expected through 2034 [2] Financial Projections - The company is expected to achieve net profits of approximately 317 million, 399 million, and 485 million from 2025 to 2027, reflecting year-on-year growth rates of 13%, 26%, and 22% respectively, with a CAGR of 20% [6][13] - The price-to-earnings (P/E) ratio is projected to be 30, 23, and 19 times for the years 2025, 2026, and 2027 respectively [6][13] Unique Insights - The report highlights a shift in market perception regarding the company's revenue sources, now recognizing the potential of floating wind power alongside traditional ship and offshore oil service chains [5] - The company is positioned as a key player in the shipbuilding sector and a strong candidate in the wind power components market, suggesting a robust investment opportunity [5]

Group 1 - The first floating photovoltaic platform in deep sea, "Huang Hai No.1," has successfully completed its upgrade and debugging work, integrating vertical axis wind turbines with floating photovoltaic technology [1] - Domestic offshore wind power is expected to see a significant increase, with new installations projected to exceed 12GW by 2025, representing a year-on-year doubling [1] - The European offshore wind market is anticipated to enter a new growth cycle from 2025 to 2030, despite a 30% year-on-year decline in new installations in 2024 [1] Group 2 - The demand for subsea cables and wind turbine foundations is expected to rise significantly as offshore wind power moves towards deep sea and large-scale development [2] - By the end of 2024, China will have built five floating wind power demonstration projects with a total installed capacity of 40MW, accounting for 14.3% of the global total [2] - Investment recommendations include companies such as Dongfang Cable, Dajin Heavy Industry, Times New Material, and Goldwind Technology, which are positioned to benefit from the rising demand in the floating wind power sector [2]

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]

Investment Rating - The report maintains an "Accumulate" rating for the mechanical equipment industry [1] Core Insights - The government work report has introduced "deep-sea technology" for the first time, indicating a potential acceleration in industry development. Policies supporting marine economy and deep-sea technology have been rolled out in various regions [1] - Deep-sea resources are abundant, and the shift from shallow to deep-sea economic development is a definitive trend. The report highlights the significance of oil and gas resources, particularly in deep water, where the breakeven points for deep and shallow oil fields are $43 and $37 per barrel, respectively [1] - The marine economy is projected to reach a total production value of 10.5 trillion yuan in 2024, with a year-on-year growth of 5.9%, accounting for 8% of the national GDP. The shipbuilding industry is expected to grow by 15% year-on-year, while marine engineering equipment is projected to grow by 9% [2] Summary by Sections Government Policy and Industry Development - The introduction of "deep-sea technology" in the government work report is expected to enhance support for innovation and technology iteration in related industries [1] - Various regions have begun implementing policies to support the development of the marine economy and deep-sea technology [1] Resource Potential and Economic Trends - Deep-sea technology encompasses complex applications across various disciplines, with significant military-civilian integration [1] - The report emphasizes the rich resources in deep-sea areas, including oil and gas, mineral resources, and biological resources, which are becoming increasingly important as land and near-shore resources become depleted [1] Investment Opportunities - The report suggests focusing on high-quality marine equipment companies with solid fundamentals, such as China Shipbuilding, CIMC, and others, which are expected to benefit from the accelerating industry development [2] - Specific recommendations include companies involved in FPSO, drilling platforms, and deep-sea robotics, among others [2]