Summary of Controlled Nuclear Fusion Industry Conference Call Industry Overview - The controlled nuclear fusion technology is accelerating globally, with multiple countries actively promoting policies and industrial development. The U.S. Tokamak Energy plans to commercialize power generation by 2028, creating pressure for domestic research and development [1][2][3] - China has made significant progress in controlled nuclear fusion technology, with the Chinese Academy of Sciences' EAST device achieving 100 million degrees Celsius for 1,000 seconds, marking a new phase in combustion testing [1][4] Key Points and Arguments - **Technological Advancements**: AI technology enhances magnetic confinement control, accelerating the design iteration of Tokamak devices. Second-generation high-temperature superconducting materials significantly increase magnetic field strength by approximately 4 to 5 times while reducing construction costs [1][5] - **Global Project Progress**: Several global controlled nuclear fusion projects are advancing, including the U.S. Helion's plans to demonstrate gain effects, and the Spark project expected to achieve Q greater than one by 2025-2026. The ARC project by the Daejeon company is anticipated to start before 2030 [1][6][7] - **Investment and Market Impact**: The controlled nuclear fusion technology breakthroughs have led to rising stock prices for related companies, reflecting high capital market interest. However, the industry remains in its early commercial stage, with uncertainties in technology [3][12] - **Future Development Trends**: The controlled nuclear fusion industry is expected to transition from scientific research to engineering validation, indicating a shift towards practical application and construction phases [8][9][14] Important but Overlooked Content - **Key Projects and Investments**: The ITER project is set to be completed by 2027 with a total investment of approximately $15 billion, and the Spark project is expected to be completed by 2025-2026. The total investment in the controlled nuclear fusion industry is projected to account for about 70% of overall investments [3][11][9] - **Challenges and Risks**: The industry faces challenges such as technological uncertainties and the need for commercial applications. Key time nodes and catalytic factors, such as major technological breakthroughs or policy support, could present both risks and opportunities [13][14] - **Competitive Landscape**: Companies like Shanhai Intelligent and Yanjing Co. are positioned advantageously in the controlled nuclear fusion supply chain, with significant orders and technological collaborations [19] Conclusion The controlled nuclear fusion industry is poised for rapid development, driven by technological advancements and increasing investments. Stakeholders should monitor key projects, technological breakthroughs, and market dynamics to identify potential investment opportunities and risks in this evolving sector [20][21]

Investment Rating - The report maintains a "Buy" rating for the company [9] Core Views - The company reported a total revenue of 3.104 billion yuan in 2024, a decrease of 4.17% year-on-year, and a net profit attributable to shareholders of 241 million yuan, down 27.86% year-on-year. In Q1 2025, the company achieved revenue of 801 million yuan, an increase of 11.54% year-on-year, and a net profit of 116 million yuan, up 10.57% year-on-year [4][5] - The company is optimizing its industrial and product structure, focusing on new products with market potential and technical barriers, which enhances its core competitiveness and future growth potential [5] - The laser business is progressing steadily, with significant orders being released in Q1 2025. The company showcased its laser anti-drone equipment at an international defense exhibition, attracting over 70 potential clients [6] - The high-temperature superconducting business is successfully industrializing, with significant orders for superconducting equipment and projects related to nuclear fusion applications [7][8] Summary by Sections Financial Performance - In 2024, the company achieved total operating revenue of 3.104 billion yuan and a net profit of 241 million yuan. The revenue is expected to grow to 3.291 billion yuan in 2025, with a projected growth rate of 6.0% [11] - The net profit is forecasted to increase significantly to 625 million yuan in 2025, reflecting a growth rate of 159.3% [11] Business Development - The company is transitioning from traditional products to new products with higher market potential, leading to improved profitability [5] - The laser business is expected to see substantial growth due to the release of large orders and successful market engagement [6] - The high-temperature superconducting business is positioned for significant growth, with successful project bids and ongoing industrialization efforts [7][8] Earnings Forecast - The company is projected to achieve revenues of 3.291 billion yuan in 2025, 3.801 billion yuan in 2026, and 4.504 billion yuan in 2027, with corresponding EPS of 1.37 yuan, 1.61 yuan, and 2.25 yuan respectively [9][11]

Group 1 - China's nuclear power has entered a peak construction phase with 31 units having received construction permits and 13 units awaiting approval, indicating a higher construction scale than the total of other countries combined [1] - The global nuclear power sector experienced rapid growth from 1965 to 1980 with a CAGR of approximately 25%, but faced significant setbacks due to the Three Mile Island and Chernobyl accidents, leading to a slower growth phase from 1981 to 2023 with a CAGR of about 3% [1] - As of 2023, nuclear energy accounts for approximately 9% of global electricity generation, ranking behind fossil fuels at 62% and hydropower at 15% [1] Group 2 - Since the resumption of nuclear project approvals in 2019, China's nuclear policy has shifted from cautious control to active support, emphasizing the importance of nuclear power in achieving carbon neutrality goals [1] - The current energy generation structure in China is dominated by thermal power (69%), followed by wind and hydropower (11% each), and nuclear power at 5%, with projections indicating an increase in nuclear power's share to around 10% by 2035 [1] - The maturity of high-temperature superconducting technology has significantly reduced the costs and construction timelines for fusion experimental reactors, while AI advancements are enhancing the design and control efficiency of fusion devices [4] Group 3 - As of 2024, private fusion companies globally have accumulated financing of $7.12 billion, reflecting a 15% increase from 2023, with a total of 45 participating companies [4]