Huaxin Securities·2025-06-03 05:21Investment Rating - The report maintains a "Buy" rating for Lianchuang Optoelectronics (600363.SH) and an "Increase" rating for Xinyuan Technology (688521.SH) [15][33]. Core Insights - China's new generation artificial sun, "China Circulation No. 3," has achieved a record of one million amperes and one billion degrees H mode, indicating significant progress in controlled nuclear fusion technology [4][13]. - Siemens' EDA division may suspend support for mainland China, which highlights the increasing importance of domestic EDA and IP service providers in the face of geopolitical tensions [5][14][6]. Market Performance - From May 26 to May 30, the electronic industry rose by 0.17%, ranking 24th among the primary industries, with a P/E ratio of 57.64 [23][26]. - The semiconductor sector is experiencing a mixed performance, with passive components, printed circuit boards, and integrated circuit manufacturing showing the highest gains [26][30]. Company Focus - Key companies to watch in the controlled nuclear fusion equipment and components supply chain include Lianchuang Optoelectronics, Yongding Co., Hefei BEST, Guoguang Electric, and others [4][13]. - In the EDA sector, domestic companies such as Huada Jiutian, Guangliwei, and others are recommended for attention due to the potential supply disruptions from major EDA providers [5][6][14]. Valuation and Earnings Forecast - The report provides earnings per share (EPS) and price-to-earnings (P/E) ratios for various companies, indicating significant variations in valuation across the sector [15][33]. - For instance, Lianchuang Optoelectronics is projected to have an EPS of 1.37 in 2025 with a P/E of 44.50, while Xinyuan Technology is expected to have an EPS of 0.02 with a P/E of 4365.50 [15][33].