Investment Rating - The report maintains an "Overweight" rating for the mechanical equipment and specialized equipment sectors [5]. Core Insights - The global nuclear fusion industry is accelerating, with significant advancements expected in the coming years, particularly with the BEST project set to demonstrate fusion energy generation [17][21]. - Over 70% of surveyed fusion companies believe that commercial applications of fusion energy can be achieved between 2031 and 2040, indicating a positive outlook for the industry [2][25]. - The Tokamak technology is considered the most mature among various fusion technology paths and is expected to lead the commercialization of fusion energy [18][34]. Summary by Sections Industry Overview - The nuclear fusion industry is experiencing robust growth, driven by policy support and technological advancements. Countries like the US, China, Europe, and Japan have established detailed strategic plans for fusion development [17][21]. - The BEST project in China is expected to be completed by 2027 and will be the first to demonstrate fusion energy generation, marking a significant milestone for China's fusion energy development [29][30]. Market Potential - The market for Tokamak devices is projected to exceed 90 billion yuan, with high-value components such as magnetic coils, first wall components, and vacuum parts being key beneficiaries [19][4]. - As of April 2025, there are 80 Tokamak devices globally, with 57 operational and 23 under construction, indicating a growing demand for fusion experimental reactors [19][4]. Technological Advancements - The Tokamak device operates by creating a closed helical magnetic field to confine high-temperature plasma, which is essential for achieving fusion reactions. The EAST device in China has already achieved a plasma confinement time of 403 seconds [18][34]. - The report highlights that advancements in high-temperature superconductors will enhance plasma stability and contribute to the commercialization of Tokamak technology [18][34]. Future Outlook - The report emphasizes that the nuclear fusion sector is on a path to commercialization, with ongoing projects and technological innovations paving the way for practical applications of fusion energy [20][21]. - The anticipated completion of the ITER project by 2025 will further solidify the foundation for future fusion energy developments [21][22].

1. Report Industry and Investment Rating - The report focuses on the power equipment industry, but no investment rating is provided [2] 2. Core Viewpoints - The company, Hailu Heavy Industry, has strong R & D capabilities in manufacturing - related products, accurate market positioning, and rich design and manufacturing experience. In the future, it will continue to deepen its main business, increase technological innovation and management efforts, strengthen management and cost control, and optimize resource allocation to improve profitability and market competitiveness [21] 3. Summary by Directory 3.1 Research Basic Situation - The research object is Hailu Heavy Industry, belonging to the power equipment industry. The reception time was on May 15, 2025, and the listed company's reception staff was Zhang Guoyi, the board secretary [16] 3.2 Detailed Research Institutions - Participating institutions include Ping An Fund (a fund management company with relevant personnel Liu Wenping and Yang Beisi), Guohai Securities (a securities company with relevant personnel Zhong Qi), Guolian Minsheng Securities (a securities company with relevant personnel Zhang Tianhao), and CITIC Securities (a securities company with relevant personnel Hua Pengwei) [17] 3.3 Research Institution Proportion - Fund management companies account for 25%, and securities companies account for 75% [19] 3.4 Main Content Data - **Company's Main Business**: The company's current main businesses include the manufacturing and sales of industrial waste - heat boilers, large and special - material pressure vessels, and nuclear safety equipment; environmental comprehensive treatment services for the treatment and recycling of pollutants such as solid waste and wastewater; and photovoltaic power station operation [20] - **Nuclear Power Business**: The company started manufacturing nuclear power equipment in 1998. It has completed multiple international and domestic first - piece (set) manufacturing tasks. Its nuclear safety equipment includes various components. The fourth - generation nuclear power equipment project is advancing orderly, which will help expand production capacity, optimize technology, and enhance profitability [20][21] - **Company's Future Strategic Plan**: The company will continue to deepen its main business, increase technological innovation and management efforts, strengthen management and cost control, and optimize resource allocation to improve profitability and market competitiveness [21]

Group 1: Company Overview - The company specializes in manufacturing industrial waste heat boilers, large and special pressure vessels, and nuclear safety equipment [1] - It provides environmental comprehensive governance services, including solid waste and wastewater treatment and recycling [1] - The company operates photovoltaic power plants [1] Group 2: Nuclear Power Business - The company has been manufacturing nuclear power equipment since 1998, with over 20 years of experience in the field [2] - It has completed several international and domestic first-piece manufacturing tasks in nuclear power projects [2] - The nuclear safety equipment includes various components such as emergency water tanks, boric acid storage tanks, and non-active residual heat discharge systems [1] Group 3: Future Strategic Planning - The fourth-generation nuclear power equipment project is progressing, which will alleviate current capacity bottlenecks and enhance production capabilities [2] - The company aims to strengthen its nuclear power business in line with national development policies, improving production capacity and profitability [2] - The company focuses on technological innovation, management enhancement, and resource optimization to boost profitability and market competitiveness [2]

Core Viewpoint - The domestic controlled nuclear fusion projects are making significant progress, with mainstream technology expected to enter the demonstration phase by 2035 and achieve commercial power generation around 2050 [1][6][14]. Group 1: Industry Progress - The controlled nuclear fusion sector has seen a surge in stock prices, with the concept stocks rising by 6.11% on May 6, 2023, following positive developments in the industry [1]. - The Hefei compact fusion energy experimental device (BEST) project has commenced its assembly work two months ahead of schedule, aiming for completion by 2027 [1]. - The International Thermonuclear Experimental Reactor (ITER) has completed the construction of all components of its superconducting magnet system, marking a significant milestone in fusion research [1][6]. Group 2: Technological Developments - The "Xuanlong-50U" spherical hydrogen-boron fusion device achieved high-temperature, high-density plasma currents exceeding 15 million degrees Celsius, surpassing the core temperature of the sun [2][5]. - New Hope Group has invested 4 billion yuan in fusion research since 2017, aiming to achieve engineering feasibility before 2035 [5]. - The industry is focusing on three main technical challenges: maintaining plasma at over 100 million degrees Celsius, ensuring materials can withstand neutron bombardment for commercial operation, and addressing the production of tritium [11]. Group 3: Investment and Market Dynamics - The global fusion industry attracted $7.1 billion in investment in 2023, with a significant portion coming from private capital [16]. - China has formed three main forces in fusion research: market-driven startups, national research teams, and private enterprises like New Hope Group, which plans to invest nearly 10 billion yuan in the next five years [16][17]. - The market for fusion devices is projected to reach 2.26 trillion yuan between 2030 and 2035, indicating substantial investment potential in components like high-temperature superconductors [18].

截至5月6日收盘，可控核聚变概念上涨6.32%，位居概念板块涨幅第1，板块内，54股上涨，中洲特 材、久盛电气等20%涨停，海陆重工、雪人股份、合锻智能等涨停，鑫宏业、哈焊华通、常辅股份等涨 幅居前，分别上涨15.36%、14.23%、13.54%。 今日涨跌幅居前的概念板块 | 概念 | 今日涨跌幅（%） | 概念 | 今日涨跌幅（%） | | --- | --- | --- | --- | | 可控核聚变 | 6.32 | 重组蛋白 | 0.77 | | 稀土永磁 | 5.45 | 超级品牌 | 0.92 | | 华为盘古 | 5.28 | 赛马概念 | 0.99 | | 脑机接口 | 5.04 | 中特估100 | 1.15 | | 华为欧拉 | 4.73 | 社区团购 | 1.22 | | 鸿蒙概念 | 4.48 | ST板块 | 1.24 | | 数字货币 | 4.45 | 猪肉 | 1.25 | | 华为海思概念股 | 4.36 | 青蒿素 | 1.29 | | 液冷服务器 | 4.36 | 创新药 | 1.29 | | 华为手机 | 4.30 | 芬太尼 | 1.29 | 资金面上看，今日可控核 ...

Core Viewpoint - The controlled nuclear fusion sector is experiencing significant growth, driven by recent advancements and investments in fusion technology, particularly highlighted by the completion of the world's largest superconducting magnet system by the ITER organization [3]. Group 1: Market Performance - On May 6, the controlled nuclear fusion sector saw strong performance, with stocks such as Jiusheng Electric rising by 20%, and companies like Hailu Heavy Industry, Xue Ren Co., and others also experiencing significant gains [1]. - Notable stock performances included: - Heguang Intelligent: +10.00% with a market cap of 5.33 billion - Jiusheng Electric: +19.97% with a market cap of 3.46 billion - Other companies also reported gains exceeding 10% [2]. Group 2: Industry Developments - The ITER project, a major international collaboration involving multiple countries, aims to explore the commercial viability of controlled nuclear fusion technology, marking a significant milestone in the field [3]. - There is a growing trend of collaboration between leading IT and transportation companies with nuclear energy firms to develop small reactors for powering data centers and other applications [3]. Group 3: Institutional Insights - The nuclear fusion sector is recognized as a burgeoning industry, with increasing government support and capital investment, attracting long-term investments from major companies like Amazon and Microsoft [4]. - The Tokamak nuclear fusion market is projected to reach 681 billion by 2025-2030, with potential growth to 3 trillion by 2030-2035 as commercial reactors become operational [4]. - In China, nuclear power equipment investment is expected to grow from 25.7 billion in 2023 to a peak of 87.5 billion by 2028, indicating a compound annual growth rate (CAGR) of 26.91% [4].

Market Performance - The controllable nuclear fusion concept sector declined by 0.87%, ranking among the top losers in the concept sector, with *ST Lihang hitting the limit down [1] - Among the stocks in this sector, 27 stocks saw price increases, with Xinhongye, Yingliu Co., and HuoDuan Intelligent leading the gains at 6.83%, 3.70%, and 3.20% respectively [1] Capital Flow - The controllable nuclear fusion concept sector experienced a net outflow of 277 million yuan, with 35 stocks seeing net outflows, and 16 stocks with outflows exceeding 10 million yuan [1] - The stock with the highest net outflow was XueRen Co., with a net outflow of 47.1 million yuan, followed by LanShi Heavy Industry, China Energy Construction, and China Nuclear Power with net outflows of 40.3 million yuan, 36.3 million yuan, and 32.4 million yuan respectively [1] Top Gainers and Losers - The top gainers in the controllable nuclear fusion concept sector included Shanghai Electric, HaiLu Heavy Industry, and Yingliu Co., with net inflows of 50.2 million yuan, 31.7 million yuan, and 28.6 million yuan respectively [1][3] - The top losers included XueRen Co. (-3.24%), LanShi Heavy Industry (-5.64%), and China Energy Construction (-0.45%) [2][3]

Core Viewpoint - The company ensures the authenticity, accuracy, and completeness of its quarterly report, with all board members and senior management taking legal responsibility for the information disclosed [2][3]. Financial Data Summary - The quarterly report has not been audited [8]. - The company does not require retrospective adjustments or restatements of previous accounting data [3]. - There are no non-recurring profit and loss items applicable for the reporting period [3]. - The company has provided a detailed analysis of changes in asset composition, profit structure, and cash flow for the reporting period [4][5]. Shareholder Information - There are changes in the freeze termination dates of shares held by significant shareholders, specifically Wu Weiwen and Jubao Holdings Group Co., Ltd. [5]. - The company confirms that there are no changes in the top ten shareholders or their shareholding status due to securities lending activities [5]. Financial Statements - The company has prepared consolidated financial statements, including the balance sheet, income statement, and cash flow statement, as of March 31, 2025 [6][7]. - The net profit of the merged entity prior to consolidation remains at 0.00 yuan for both the current and previous periods [6]. Accounting Standards - The company will not apply the new accounting standards for the first time in the current reporting period [8].

Group 1 - The core point of the article is that Hailu Heavy Industry (002255) reported its Q1 2025 revenue and net profit figures, indicating a slight revenue growth and significant profit increase [1] Group 2 - The company's revenue for Q1 2025 was 467 million yuan, representing a year-on-year growth of 0.33% [1] - The net profit for the same period was 73.7489 million yuan, showing a substantial year-on-year increase of 62.37% [1]

Financial Performance - The company's operating revenue for Q1 2025 was ¥466,891,117.16, a slight increase of 0.33% compared to ¥465,376,644.65 in the same period last year[5] - Net profit attributable to shareholders increased by 62.37% to ¥73,748,906.36 from ¥45,419,615.41 year-on-year[5] - Basic and diluted earnings per share rose by 64.75% to ¥0.0888 from ¥0.0539 in the same quarter last year[5] - The total comprehensive income for Q1 2025 was ¥73,774,187.60, reflecting a 76.93% increase from ¥41,696,867.12 in the same period last year[11] - Net profit for the current period was ¥73,768,842.45, compared to ¥42,969,607.58 in the previous period, indicating an increase of approximately 71.6%[23] - The company achieved a total comprehensive income of ¥73,774,187.60, compared to ¥41,696,867.12 in the previous period, representing an increase of about 76.5%[24] Cash Flow - The net cash flow from operating activities improved significantly to ¥31,448,145.03, compared to a negative cash flow of ¥31,240,963.14 in the previous year, marking a 200.66% increase[5] - The net cash flow from operating activities was ¥31,448,145.03, a significant improvement compared to a net outflow of ¥31,240,963.14 in the previous period[25] - Net cash flow from investment activities was -$23,492,965.24, indicating a decrease compared to the previous period's -$24,782,337.25[26] - The net cash flow from financing activities was -$9,902,073.33, compared to -$4,902,485.55 in the previous period[26] - Cash flow from operating activities was not detailed in the provided content, but the overall cash and cash equivalents decreased by $1,195,964.09[26] Assets and Liabilities - Total assets at the end of Q1 2025 were ¥6,925,564,022.70, a marginal increase of 0.02% from ¥6,924,203,732.36 at the end of the previous year[5] - The company's current assets totaled CNY 5,147,007,163.95, compared to CNY 5,110,557,941.90 at the start of the period, indicating a growth in liquidity[19] - The total liabilities decreased to ¥2,779,566,896.77 from ¥2,851,980,794.07, showing a reduction of approximately 2.5%[21] - Total current liabilities decreased from CNY 2,691,275,735.85 to CNY 2,615,558,679.17, a reduction of approximately 2.81%[20] - The company's long-term investments slightly decreased from CNY 43,147,649.65 to CNY 42,155,352.57[20] Financial Ratios and Returns - The company's weighted average return on equity increased to 1.82% from 1.23% year-on-year[5] - The company reported a decrease in financial expenses, with a net financial income of -¥5,819,789.93 compared to -¥3,980,514.68 previously[22] Tax and Investment Income - The company reported a 39.70% decrease in taxes and surcharges, down to ¥4,182,789.10 from ¥6,936,428.78, attributed to a reduction in value-added tax[11] - Investment income showed a significant decline of 370.24%, resulting in a loss of ¥780,664.65 compared to a loss of ¥166,013.03 in the previous year[11] Other Information - The company did not undergo an audit for the first quarter report[27] - The company plans to implement new accounting standards starting in 2025[27]