Dongwu Securities: Policy Incubates Deep Sea Technology Trillion Market Multi-dimensional Value Blue Ocean Circuit

The Zhitong Finance App learned that Dongwu Securities released a research report stating that according to the upstream and downstream relationships in the industrial chain, it is recommended to focus on the three major sectors of general marine equipment, resource extraction, and equipment manufacturing. The bank believes that (1) general marine equipment: as a rigid requirement for deep-sea development, definitive results have been achieved in the short to medium term; (2) resource extraction: immediate core resource requirements and strategic requirements, rapid EPS implementation; (3) deep-sea equipment manufacturing: long-term deep-sea development, deep-sea infrastructure and offensive and defense equipment requirements, benefiting from long-term valuation increases.

The main views of Dongwu Securities are as follows:

Deep Sea Technology appeared for the first time in a government work report, which has multi-dimensional value

On March 11, 2025, China clearly stated in the 2025 government work report that it will promote the development of emerging industries such as commercial aerospace, low-altitude economy, and deep-sea technology. For the first time, deep-sea technology was included as a national development priority, while many places responded positively to policy calls. Deep-sea science and technology have multi-dimensional strategic value such as resources, military, technology, and economy: (1) Resources: Deep-sea oil and gas have extractive value in various aspects of resources such as oil, gas, minerals, biology, space, etc.; (2) Military: Deep-sea resources are mostly located in high seas regions, and the intensification of global competition for deep-sea resources has accelerated the militarization development of deep-sea regions; (3) Scientific research: Earth's last “natural laboratory”: a key research site for the origin of life, geological evolution, and climate change; (4) Economy: In 2024, China's total marine economy surpassed 5.1 million yuan for the first time, an increase of 510 million yuan over the previous year. The deep-sea economy is expected to become An important engine for future economic growth.

The industrial chain covers basic materials to high-end equipment manufacturing, with a three-deep system as the core

From an upstream and downstream perspective, deep-sea technology covers three major industrial chain links: basic materials, high-end equipment manufacturing, and downstream applications. (1) Upstream: covers basic materials and core components, including special/basic materials, sensors and electronic devices, energy and power systems; (2) midstream: including deep-sea equipment manufacturing and system integration; (3) downstream: various deep-sea applications, including resource exploration and mining, deep-sea observation, national defense and security. From a technical perspective, deep diving, deep drilling, and deep networks form the core “three-depth” system of deep-sea technology. (1) Deep diving: including manned submersible vehicles (HOV) and unmanned submersible (UUV); (2) deep web: undersea observation systems based on infrastructure such as sensors, underwater robots, and undersea optical fibers; (3) deep drilling: using drilling vessels and drilling equipment to carry out undersea resource exploration and academic research, which is most difficult at “three depths”.

Deep-sea related tracks include the three major sectors of deep-sea resource development, deep-sea equipment manufacturing, and deep-sea attack and defense

(1) Downstream deep-sea resources development: a highly deterministic circuit. Resource development is closely related to China's actual needs and China's strategic needs. Deep-sea mineral mining has huge prospects: ① Oil and gas resources: By the end of 2024, China's deep-sea oil and gas reserves account for 67% of the country's total resources, while the mining rate is still less than 10%, and China's external dependence on resources is high, and there is huge room for development; ② Mineral resources: In 2022, China's strategic metals nickel, cobalt, and lithium are clearly listed as competitors of China., the future of our country Obtaining overseas mineral resources will face greater external risks, and deep-sea mineral mining is imperative; ③ Deep-sea biological resources: According to estimates by relevant agencies, the total global marine biotechnology market will reach 6.78 billion US dollars in 2024, and is expected to reach 13.59 billion US dollars in 2034. China has made significant progress in deep-sea biological laboratories, etc.

(2) Deep-sea equipment manufacturing: The four major sectors are three steps. The goal is to establish an initial and complete deep-sea equipment system by 2025; to build a technical system and equipment system integrating large-scale deep-sea manned equipment and intelligent unmanned systems to reach the world's advanced level by 2030; and to achieve genealogy and industrialized development of deep-sea equipment by 2035.

(3) Deep-sea attack and defense: As the international geological situation becomes increasingly serious, China's deep-sea border guards, led by the South China Sea, place higher demands on the construction of a deep-sea attack and defense system. The modern underwater attack and defense system covers various segments such as mobile equipment, fixed equipment, and deep-sea infrastructure. Currently, China has not yet formed a mature industrial chain in various segments such as unmanned military equipment and undersea observation networks.

Risk warning: Policy strength and implementation fall short of expectations, technological breakthroughs fall short of expectations, product commercialization progress falls short of expectations, and global geopolitical risks have intensified.