EBSCN·2025-10-23 11:27Investment Rating - The report maintains a "Buy" rating for the controlled nuclear fusion industry, highlighting its potential for significant growth and investment opportunities [4]. Core Insights - The controlled nuclear fusion industry is entering a capital expenditure expansion phase, driven by the strategic value of fusion energy and increased financing activity [1][2][11]. - The global fusion energy sector has seen a substantial increase in financing, with a total of $9.7 billion raised by July 2025, indicating strong investor interest [1][50]. - The industry is characterized by diverse technological pathways, with a focus on magnetic confinement fusion and inertial confinement fusion, reflecting a competitive landscape among major economies [24][57]. Summary by Sections Section 1: Global Trends and Strategic Value - Fusion energy is positioned as a key solution to long-term energy supply challenges, with its high energy density and safety profile making it a viable alternative to fossil fuels and renewable energy sources [21][23]. - The demand for clean energy is expected to grow significantly, with projections indicating that clean energy sources will dominate by 2050, creating opportunities for fusion energy [21][27]. Section 2: Domestic Developments - China is transitioning from a participant in the ITER project to a leader in the fusion industry, with significant investments exceeding 150 billion yuan in planned or ongoing projects [2][24]. - The domestic fusion industry is expected to enter a construction phase for experimental reactors around 2027, further expanding investment and project scale [2][11]. Section 3: High-Value Components Analysis - Key components such as magnet systems, vacuum chambers, and power systems are expected to benefit significantly from increased capital expenditures, with their cost contributions being 28%, 25%, and 15% respectively [3][11]. - The report emphasizes the importance of high-temperature superconductors in magnet systems, which are anticipated to see widespread application [3][11]. Section 4: Key Companies and Investment Recommendations - The report recommends several companies that are well-positioned to benefit from the industry's growth, including: - 合锻智能 (HGD Intelligent) - Positioned in the vacuum chamber segment with potential for increased value [12]. - 应流股份 (Yingliu Co.) - Benefiting from a strong order book and deep reserves in fusion and aerospace sectors [12]. - 冰轮环境 (Ice Wheel Environment) - Expected to see growth from rising demand for temperature control equipment in data centers [12]. - 王子新材 (Wangzi New Materials) - Anticipated breakthroughs in fusion applications for its film capacitor products [12]. - 派克新材 (Parker New Materials) - A key supplier of precision forged components for high-value fusion applications [12]. Section 5: Market Dynamics and Future Outlook - The report highlights the increasing competition in the fusion sector, with major economies investing heavily in domestic fusion projects while also participating in international collaborations like ITER [24][26]. - The expected timeline for commercial fusion energy is set around 2035, with a significant number of companies anticipating operational demonstration plants by then [61].