WST(SH:688122) Xin Lang Cai Jing·2025-11-05 12:15Core 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].