ZHESHANG SECURITIES·2025-04-15 01:40Investment Rating - The report maintains a "Positive" investment rating for the controlled nuclear fusion industry [5]. Core Insights - Controlled nuclear fusion is viewed as the ideal ultimate energy source for humanity, characterized by its abundant resources, cleanliness, safety, and efficiency [1][13]. - The industry is approaching a critical point, with engineering feasibility verification underway, and significant advancements expected in the near future [2][45]. - The global market for nuclear fusion equipment is projected to reach trillions, with a compound annual growth rate (CAGR) of approximately 23% from 2023 to 2035 [3][6]. Summary by Sections 1. Controlled Nuclear Fusion: The Ideal Ultimate Energy - Nuclear fusion involves the combination of two lighter atomic nuclei into a heavier nucleus, releasing substantial energy [1]. - Controlled nuclear fusion aims to harness this process under artificial conditions, making it a clean and sustainable energy source [1][13]. - The primary methods for achieving controlled fusion include magnetic confinement, inertial confinement, and gravitational confinement, with magnetic confinement being the focus of current research [1][19]. 2. Approaching Technical Singularity - The feasibility of nuclear fusion has been validated since the 1990s, and the industry is now in the engineering verification phase [2]. - If the engineering Q value exceeds 1, energy gain is possible; a Q value greater than 30 could lead to commercialization [2]. - Domestic and international efforts are catalyzing the industry, with significant milestones achieved recently, such as the "Circulation Three" project reaching high temperatures [2][45]. 3. Market Space Estimation - The global nuclear fusion equipment market is expected to see new additions worth trillions from 2031 to 2035, with a CAGR of about 23% [3][6]. - The domestic market for fusion equipment is projected to exceed hundreds of billions, with numerous projects planned and clear timelines established [2][3]. 4. Key Companies to Watch - The report highlights several key players in the midstream equipment sector, including: - Lianchuang Optoelectronics (high-temperature superconducting magnets) - Guoguang Electric (specialized microwave devices) - Antai Technology (divertors) [3][4]. - Upstream material suppliers such as Western Superconducting, Yongding Co., and Jingda Co. are also noted for their potential benefits from the industry [3].