Core Viewpoint - The commercialization of nuclear fusion, often referred to as the "50-year paradox," is showing signs of potential acceleration due to recent breakthroughs in China's controlled nuclear fusion projects, particularly the BSET project in Hefei, which is expected to be completed by 2027 [2][3]. Group 1: Nuclear Fusion Commercialization - The "50-year paradox" suggests that nuclear fusion is always 50 years away from commercialization, but recent developments indicate a shift in this timeline [1][2]. - The BSET project in Hefei has achieved a key breakthrough with the successful delivery of the internal Dewar base, which may expedite the commercialization process [2]. Group 2: Energy Demand and AI - The increasing energy demands of the AI industry highlight the importance of nuclear fusion as a potential solution, with global data center energy consumption projected to reach 810 TWh by 2026, equivalent to the annual output of eight Three Gorges dams [3][4]. - Controlled nuclear fusion, also known as "artificial sun," is viewed as an ideal energy source capable of providing nearly limitless energy [4]. Group 3: Industry Chain and Key Players - The nuclear fusion industry chain consists of upstream materials like metal and high-temperature superconducting tapes, midstream equipment such as filters and superconducting magnets, and downstream applications in power and healthcare [4]. - Xibu Superconductor is a key player in the upstream segment, being the sole domestic supplier of low-temperature superconductors for the ITER project, which is the largest global collaboration in nuclear fusion research [7][9]. Group 4: Financial Performance of Xibu Superconductor - Xibu Superconductor has seen significant growth in its superconducting product revenue, increasing from 195 million to 1.304 billion from 2020 to 2024, with a 65.75% year-on-year growth in the first half of 2025 [11][12]. - The company’s high-end titanium alloy segment, which accounts for nearly 60% of its revenue in the first half of 2025, is crucial for its profitability, especially in the aerospace sector [14][19]. Group 5: Operational Challenges - Despite strong market positioning, Xibu Superconductor faces challenges with increasing inventory and accounts receivable, which reached 4.311 billion by the third quarter of 2025, representing 54.3% of total assets [20][24]. - The company’s accounts receivable and inventory levels pose risks for cash flow and operational efficiency, necessitating careful management [22][26]. Group 6: Future Outlook - Xibu Superconductor is well-positioned in the nuclear fusion and aerospace sectors, leveraging its dual strengths in superconducting products and high-end titanium alloys to drive future growth [25].

Investment Rating - The report suggests increasing attention to the military industry, focusing on elastic and thematic varieties, with a positive outlook for the sector as it enters a growth cycle driven by the 14th Five-Year Plan [4][5][6]. Core Viewpoints - The military industry is experiencing important marginal changes, with overall revenue and performance yet to recover. The industry saw a year-on-year revenue decline of 1.68% and a net profit decline of 10.95% for Q1-Q3 2025 [4][5][21]. - Profitability across various equipment sectors and industry chain segments has slightly decreased, but there is potential for improvement as scale effects become evident [4][5][23]. - Operational indicators show stable growth, indicating sustained industry prosperity, with significant increases in inventory and contract liabilities [4][5][26]. Summary by Sections 1. Revenue and Profit - The military industry reported a revenue of 483.6 billion yuan for Q1-Q3 2025, reflecting a year-on-year decrease of 1.68%. The decline is attributed to the need for recovery in industry demand [18][21]. - The aviation sector contributed the most to the industry's revenue and net profit, accounting for 46% and 58% respectively in Q1-Q3 2025 [38][42]. 2. Profitability Indicators - The overall gross margin and net margin for the military industry were 18.04% and 5.07% respectively, both showing a decline compared to previous years due to product price fluctuations and rising fixed costs [23][25]. - The military electronics sector maintained the highest profitability levels, while other sectors experienced slight fluctuations in margins [4][5][23]. 3. Operational Indicators - Key operational metrics such as inventory, accounts payable, and contract liabilities have shown significant year-on-year increases, indicating robust demand and production readiness [4][5][26]. - As of Q3 2025, the military industry had an inventory of 366.9 billion yuan, with a year-on-year increase of 13.19%, and contract liabilities of 220.4 billion yuan, reflecting a 30.96% increase [26][27]. 4. Key Companies to Watch - High-end combat capabilities: Companies such as AVIC Shenyang Aircraft Corporation, AVIC Chengdu Aircraft Industry Group, and others are highlighted as key players [6]. - New quality combat capabilities: Companies like Unisoc, Raycus Laser, and others are noted for their potential in the evolving military landscape [6].

Group 1 - The defense and military industry sector continues to adjust, with the popular defense military ETF (512810) showing active buying despite fluctuations, indicating a potential turning point in fund flows [1] - From the end of October, the net subscription of the ETF has exceeded 22 million yuan over three consecutive trading days, reflecting positive market sentiment towards the sector's future [1] - Key stocks in the sector include Fushun Special Steel, which rose nearly 6%, along with Huali Chuantong, Shanda Shares, and Guorui Technology, while Guobo Electronics, Great Wall Military Industry, and Aerospace Science and Technology saw significant declines [3] Group 2 - The successful launch of the Shenzhou 21 manned spacecraft on October 31, 2025, marks a significant step in China's aerospace ambitions [3] - Major manufacturers like AVIC Shenyang Aircraft Corporation and Aero Engine Corporation of China reported significant growth in contract liabilities in Q3, indicating a sustained improvement in aerospace equipment orders and steady recovery in industry demand [3] - Analysts predict substantial growth in defense and aerospace equipment sectors driven by multiple catalysts, including the 14th Five-Year Plan, the centenary of the military, and rapid development in military trade [3] - The ETF tracks the CSI Military Industry Index, with top ten weighted stocks including China Shipbuilding, Guangqi Technology, AVIC Shenyang, and others [3]

Core Viewpoint - The company held a successful half-year performance briefing on October 29, 2025, with full interaction with investors, addressing 81 questions and achieving a 100% response rate. Group 1: Quantum Technology and Fusion Energy - The company's NbTi superconducting cables for quantum computers have met customer requirements and are being delivered [2][4] - The company has advanced research and production capabilities in superconducting materials, particularly for controlled nuclear fusion applications [3][4] - The company is actively involved in major fusion projects like CRAFT and BEST, ensuring product supply according to project progress [5][13] Group 2: Product Applications and Market Position - The company's superconducting products are utilized in high-energy accelerators, magnetic confinement fusion, medical MRI, and other advanced applications [4][43] - The company maintains a strong market position in the superconducting materials sector, with a significant share in the medical imaging market, approximately 40% globally and over 90% domestically [8][40] - The company is focused on enhancing its competitive edge through continuous innovation and quality management [4][50] Group 3: Future Development and Strategic Planning - The company plans to deepen its core business, enhance R&D innovation, and expand market applications to achieve sustainable growth [5][26] - The company is exploring new fields and products while aligning with national strategic needs in energy, healthcare, and aerospace [5][28] - The company is committed to maintaining a high level of interaction with investors and optimizing its response processes [2][19]

Investment Rating - The report maintains an investment rating of "Recommended" for the controllable nuclear fusion industry [2][3]. Core Insights - The controllable nuclear fusion industry is accelerating its industrialization process, transitioning from experimental validation to engineering demonstration, with a focus on key suppliers and core component manufacturers that have achieved domestic substitution [2]. - The overall domestic production rate of key nuclear fusion equipment exceeds 96%, with significant advancements in materials performance being a core bottleneck for the feasibility of the technology route [2]. - The industry is entering a new phase characterized by "multiple routes racing + capital resonance," with significant milestones expected, such as the BEST device demonstrating power generation by 2027 [2]. Industry Scale - The industry comprises 118 listed companies, with a total market capitalization of 2114.6 billion and a circulating market capitalization of 1755.9 billion [3]. Performance Metrics - The absolute performance over 1 month, 6 months, and 12 months is 3.2%, 27.0%, and 26.1% respectively, while the relative performance is -0.5%, 2.4%, and 6.9% [5]. Key Companies and Financial Indicators - Notable companies include: - Xibu Superconductor (688122.SH) with a market cap of 50.1 billion and a strong recommendation [7]. - Antai Technology (000969.SZ) also strongly recommended with a market cap of 22.3 billion [7]. - Jiu Li Special Materials (002318.SZ) with a market cap of 25.0 billion and a strong recommendation [7]. - Other companies such as Guoguang Electric (688776.SH), Hezhu Intelligent (603011.SH), and Lianchuang Optoelectronics (600363.SH) are also highlighted, though they do not have specific investment ratings [7]. Material Innovation - Material innovation is identified as the current core bottleneck and breakthrough point for industrialization, with extreme operational environments requiring materials with high melting points, radiation resistance, and thermal fatigue performance [6]. - Domestic companies like Antai Technology and West Superconductor have made breakthroughs in tungsten-copper filters and superconducting materials, overcoming foreign monopolies [6]. Market Opportunities - The industry chain is witnessing incremental market growth across multiple segments, with energy equipment leaders establishing significant layouts and core component manufacturers benefiting from clear development paths [6]. - Companies such as Guoguang Electric, Hezhu Intelligent, and Lianchuang Optoelectronics are positioned to benefit significantly from local support [6].

Core Insights - The Social Security Fund has disclosed its stock holdings for the third quarter, appearing in the top ten shareholders of 73 stocks, with 27 new entries and 20 increased holdings [1][2] - The total shareholding amounts to 337 million shares, with a market value of 18.639 billion yuan [1] - The fund's holdings are primarily concentrated in the electronics, machinery, and pharmaceutical industries [2] Group 1: Stock Holdings - The highest shareholding ratio by the Social Security Fund is in Andar Intelligent, accounting for 10.57% of circulating shares, followed by Sany Renewable Energy at 7.64% [2] - Eight stocks have over 10 million shares held by the fund, with Transsion Holdings having the largest holding of 32.7184 million shares [2] - The top three stocks by market value held are Transsion Holdings (3.082 billion yuan), Western Superconductor (1.34 billion yuan), and Times Electric (796 million yuan) [2] Group 2: Performance Metrics - Among the stocks held, 47 reported a year-on-year increase in net profit for the first three quarters, with Yuanjie Technology showing the highest growth of 19,348.65% [2] - The average performance of the stocks held by the Social Security Fund has seen a decline of 3.00% since October [3] - The best-performing stock is Foxit Software, with a cumulative increase of 41.07%, while the largest decline is seen in Lexin Technology, down 24.42% [3] Group 3: Shareholding Changes - The fund has reduced its holdings in 15 stocks while maintaining its position in 11 stocks [1] - New entries include Hehui Optoelectronics-U, Guanggang Gas, and Pumen Technology, which have significant shareholding volumes [1][2] - The fund's presence in three stocks, including Yingke Recycling, Kaili New Materials, and Foxit Software, indicates concentrated investments with multiple fund entries [1][2]

Investment Rating - The industry investment rating is "Overweight" [44] Core Insights - The demand for titanium materials in aerospace and naval applications is expected to approach 49,000 tons by 2027, driven by military aircraft recovery, advanced fighter jets entering service, and the delivery of domestic large aircraft [3][24] - The production capacity of high-performance low-cost titanium alloys still needs improvement, as current domestic products lag behind international standards due to equipment and process limitations [4][33] - Beneficiary companies include Baotai Co., Western Superconducting Technologies, Western Materials, and Jintian Titanium Industry [5] Summary by Sections 1. Titanium Material Demand - In 2024, China's titanium material consumption is projected to be 151,000 tons, with aerospace accounting for 21.3% and the shipbuilding sector growing rapidly, with a 32% year-on-year increase [19][28] - The titanium material usage in the aerospace sector is expected to grow steadily, with a compound annual growth rate (CAGR) of 6.7% from 2025 to 2027 [24][26] - The shipbuilding sector's titanium material consumption is expected to reach nearly 9,500 tons by 2027, driven by the development of deep-sea economy and large-scale naval equipment [28][30] 2. High-Performance Titanium Alloys - High-temperature titanium alloys are anticipated to become a new growth area in aerospace, with increasing demand for materials that can withstand extreme conditions [11][12] - The domestic production of high-performance titanium alloys is still in the early stages, with significant potential for development in underwater vehicles and other applications [16][19] 3. Beneficiary Companies - Baotai Co. is the largest specialized rare metal production and research base in China, with a production of 16,633 tons in the first half of 2025 [40] - Western Superconducting Technologies is advancing the development of new titanium alloys and low-cost preparation technologies, with a production of 8,134 tons in 2024 [40] - Western Materials has achieved breakthroughs in key technologies for aerospace applications, with a sales volume of 6,767 tons in 2024 [40] - Jintian Titanium Industry is focused on high-end titanium and titanium alloy materials, with ongoing expansion projects to increase production capacity [40]

Core Viewpoint - Western Superconducting Technologies Co., Ltd. has experienced significant stock price fluctuations, with an 82.13% increase year-to-date, but a recent decline of 0.23% over the past five trading days [2]. Financial Performance - As of September 30, 2025, the company reported a revenue of 3.989 billion yuan, representing a year-on-year growth of 23.30%, and a net profit attributable to shareholders of 650 million yuan, up 7.62% year-on-year [3]. - Cumulative cash dividends since the company's A-share listing amount to 2.179 billion yuan, with 1.406 billion yuan distributed over the past three years [4]. Stock Market Activity - The stock price of Western Superconducting fell by 2.02% on November 3, 2025, trading at 76.62 yuan per share with a total market capitalization of 49.777 billion yuan [1]. - The company has seen a net outflow of 89.7322 million yuan in principal funds, with significant buying and selling activity in large orders [1]. Shareholder Structure - As of September 30, 2025, the number of shareholders increased by 37.95% to 37,100, while the average circulating shares per person decreased by 27.51% to 17,508 shares [3]. - Major shareholders include various ETFs and mutual funds, with notable changes in holdings among the top ten circulating shareholders [4]. Business Overview - Western Superconducting specializes in high-end titanium alloy materials, superconducting products, and high-performance high-temperature alloy materials, with revenue contributions of 57.59%, 29.34%, 9.01%, and 4.07% from these segments respectively [2]. - The company operates within the defense and aerospace equipment sector, with involvement in high-temperature alloys, magnetic levitation, nuclear fusion, superconducting concepts, and state-owned enterprise reforms [2].

Core Insights - The Social Security Fund has disclosed its stock holdings as of the end of the third quarter, appearing in the top ten circulating shareholders of 73 stocks, with 27 new entries and 20 increased holdings [1][2] - The total shareholding amounts to 337 million shares, with a market value of 18.639 billion yuan [1] - The fund's holdings are primarily concentrated in the electronics, machinery, and pharmaceutical industries, with 21, 13, and 10 stocks respectively [3] Summary by Category Stock Holdings - The Social Security Fund holds the highest percentage in Andar Intelligent, with a shareholding ratio of 10.57%, followed by Sany Renewable Energy at 7.64% [2] - Eight stocks have over 10 million shares held by the fund, with Transsion Holdings having the largest holding of 32.7184 million shares [2] - The top three stocks by market value held are Transsion Holdings (3.082 billion yuan), Western Superconductor (1.34 billion yuan), and Times Electric (796 million yuan) [2] Performance Metrics - Among the stocks held, 47 reported a year-on-year increase in net profit for the first three quarters, with Yuanjie Technology showing the highest growth of 19,348.65% [2] - The average performance of the stocks held by the fund has seen a decline of 2.52% since October, with the best performer being Foxit Software, which increased by 36.59% [3] Industry Focus - The Social Security Fund's investments are heavily weighted towards the electronics sector, followed by machinery and pharmaceuticals, indicating a strategic focus on technology-driven industries [3] - The fund's holdings in the technology sector reflect a broader trend of institutional investment in high-growth potential areas [3]

Core Insights - The Social Security Fund has disclosed its stock holdings as of the end of the third quarter, appearing in the top ten shareholders of 73 stocks on the Sci-Tech Innovation Board, with a total holding of 337 million shares valued at 18.639 billion yuan [1][2] Group 1: Stock Holdings - The Social Security Fund has newly entered 27 stocks and increased holdings in 20 stocks, while reducing holdings in 15 stocks, with 11 stocks remaining unchanged [1] - The stocks with the highest holdings by the Social Security Fund include Transsion Holdings with 32.7184 million shares, Hehui Optoelectronics-U with 26.7138 million shares, and Western Superconductor with 20.5809 million shares [2][3] - The highest percentage of shares held by the Social Security Fund is in Andar Intelligent, accounting for 10.57% of the circulating shares, followed by Sany Heavy Energy at 7.64% [2] Group 2: Financial Performance - Among the stocks held by the Social Security Fund, 47 companies reported a year-on-year increase in net profit for the first three quarters, with Yuanjie Technology showing the highest growth rate of 19,348.65% [2] - Other notable companies with significant net profit growth include Rongzhi Rixin and Sanyou Medical, with increases of 889.54% and 623.19% respectively [2] Group 3: Market Performance - The average decline of the Sci-Tech Innovation Board stocks held by the Social Security Fund since October is 2.52%, with the best performer being Foxit Software, which has increased by 36.59% [3] - The largest decline was seen in Lexin Technology, which dropped by 22.85% [3]