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]