Summary of Superconducting Materials and Nuclear Fusion Industry Conference Call Industry Overview - The superconducting materials industry is divided into low-temperature and high-temperature superconductors, with low-temperature superconductors already commercialized for applications like MRI, but reliant on expensive liquid helium. High-temperature superconductors are used in magnetic levitation, quantum computing, and nuclear fusion, but face challenges in large-scale production, requiring cost reduction and performance enhancement [1][4][5]. Key Points and Arguments - **Production Techniques**: High-temperature superconducting tapes are multi-layered structures, with common production methods including IBAD, PVD, and CVD. PVD is noted for producing smooth films, while other methods like PLD, MOCVD, and MOD each have their advantages and disadvantages affecting conductor performance [1][7][10]. - **Market Demand**: Domestic high-temperature superconducting material production capacity is approximately 7,000 kilometers, but actual output is limited by yield. The demand for the Xinghuo No. 1 project is estimated to be between 15,000 to 20,000 kilometers, indicating a tight supply-demand situation. Shanghai Superconductor plans significant capacity expansion in the coming years [3][15][16]. - **Nuclear Fusion Applications**: Superconducting materials are widely used in Tokamak devices, with the ITER project’s magnet investment accounting for about 28% of total investment. Domestic projects like EAST have substantial magnet investments, indicating a growing application of superconductors in nuclear fusion [11][12]. - **Industry Growth**: The nuclear fusion industry is accelerating, supported by policy and technological advancements. The planning and initiation of experimental and engineering demonstration reactors are expected to lead to increased capital expenditures. The superconducting materials segment is under pressure due to tight processing steps and rising demand [12][14]. Additional Important Insights - **Technological Routes**: Different companies adopt various high-temperature superconducting technologies, leading to differences in tape yield, length, and width. For instance, Shanghai Superconductor and Shengchi Technology use PLD, while Yongding Holdings' Dongbu Superconductor and Superpower use MOCVD [10][17]. - **Future Trends**: High-temperature superconductors are expected to significantly impact nuclear fusion devices by enabling higher current and stronger magnetic fields, thus enhancing power output and reducing construction costs. Projects like Spark in the U.S. and domestic initiatives are moving towards full high-temperature superconducting technology [13][19]. - **Key Players**: Major domestic companies include Shanghai Superconductor, which holds a significant market share and plans to quadruple its production capacity by 2027-2028. Other notable companies include Dongbu Superconductor and West Superconductor, which are also expanding their capabilities in the superconducting materials market [16][18]. - **Investment Opportunities**: Investors should focus on companies with strong order potential and development space, such as Jinda Co., Yonglin Co., and West Superconductor, as well as related firms like Guoguang Electric and Antai Technology, which play crucial roles in equipment and components [19].

Investment Rating - The report maintains a "Positive" investment rating for the superconducting materials industry [3]. Core Insights - The superconducting materials industry is experiencing a tight supply-demand situation, driven by the acceleration of nuclear fusion projects, which significantly increases the demand for superconducting materials [7][85]. - Superconductors are critical for generating strong magnetic fields necessary for maintaining and controlling high-temperature plasma in nuclear fusion devices, thus enhancing energy efficiency and reducing energy consumption [44][59]. Summary by Sections Section 1: Superconducting Materials - Diverse Types and Wide Applications - Superconducting materials are categorized into low-temperature superconductors (LTS) and high-temperature superconductors (HTS) based on their critical temperature [16]. - LTS materials include NbTi and Nb3Sn, while HTS materials include YBCO and BSCCO, which have practical applications in various fields [22][24]. - The report highlights the unique properties of superconductors, such as zero electrical resistance and complete diamagnetism, which are essential for their applications in advanced technologies [11][12]. Section 2: Superconductors as Key Technologies in Accelerating Nuclear Fusion - Superconducting magnets are essential components of Tokamak devices, used to create the strong magnetic fields required for plasma confinement [38][44]. - The ITER project exemplifies the application of LTS materials in its magnet systems, which account for approximately 28% of the total cost of the device [44]. - The report discusses the potential of HTS materials to improve efficiency and reduce operational costs in next-generation fusion devices like SPARC [59][62]. Section 3: Tight Supply-Demand Dynamics in the Industry Chain - The supply of superconducting materials, particularly in the form of wires and tapes, is currently tight due to the increasing demand from nuclear fusion projects [85]. - Key companies in the superconducting materials sector include Shanghai Superconductor Technology Co., Ltd., which specializes in the production of high-temperature superconducting tapes, and other firms like YD and Lianchuang Optoelectronics, which are involved in various aspects of superconducting technology [85].

Summary of Yongding Co., Ltd. Conference Call Company Overview - **Company**: Yongding Co., Ltd. - **Date**: June 10, 2025 Industry Focus - **Key Industries**: Superconducting wire materials, optical chips, traditional optical products, and overseas power engineering projects Core Insights and Arguments 1. **Expansion in Superconducting Wire Materials**: Yongding is actively expanding its superconducting wire materials business, establishing partnerships with various enterprises and research institutions. The market demand is rapidly increasing, particularly in the controlled nuclear fusion sector, with plans to expand production capacity to 20,000 kilometers to meet this demand [2][7][13] 2. **Optical Chip Factory Completion**: The optical chip factory was completed in June 2023, and the company has established connections with leading domestic manufacturers. Sales are expected to see breakthroughs in the second half of this year and next year [4][2] 3. **Stable Traditional Business**: The traditional business segments, including optical rods, fibers, and cables, are maintaining stability. Overseas projects, such as the Bangladesh power grid renovation project valued at $1.14 billion, are expected to contribute to sales [6][2] 4. **Broad Market Prospects for Superconducting Materials**: The superconducting wire market has vast potential, with applications in controlled nuclear fusion, maglev transportation, MRI medical technology, and military sectors. However, domestic production capacity is currently insufficient [7][2] 5. **High Technical Barriers**: The technical barriers in superconducting materials are significant, primarily due to R&D investment and intellectual property accumulation. Yongding has invested heavily and developed core processes, making it one of the few manufacturers capable of large-scale production globally [10][2] 6. **Future Development Strategy**: The company plans to accelerate capacity expansion to meet growing market demand while continuing to push for technological advancements. The focus will be on developing optical chips and superconducting wire materials [8][9][2] Additional Important Points 1. **Market Demand Growth**: The demand for superconducting wire materials in the controlled nuclear fusion field has significantly increased, with requirements growing from several kilometers to potentially hundreds of kilometers in the coming years [3][2] 2. **Challenges in Material Development**: The compact design of devices poses challenges for internal materials, and while the issue of quenching has not been fully resolved, existing superconducting materials meet current design requirements [12][2] 3. **Production Capacity and Profitability**: Yongding aims to achieve a production capacity of 5,000 kilometers by the end of 2025, with current capacity exceeding 2,000 kilometers. The company plans to rapidly expand to 18,000 to 20,000 kilometers by 2026 [13][2] 4. **Diverse Applications Beyond Fusion**: The company is also making significant progress in various superconducting applications, including magnetic levitation technology and military applications, while also planning to promote superconducting cables and power applications [14][2] 5. **Strategic Layout in Optical and Electrical Fields**: Yongding's strategic layout focuses on enhancing its supply chain in both optical and electrical fields, with an integrated solution in the optical sector and increased investment in electric vehicle wiring and superconducting power [15][2]

Group 1: Industry Developments - The successful testing and acceptance of China's first compact P-band high-power metamaterial traveling wave tube marks a significant breakthrough in the field of neutron sources, showcasing China's core capabilities in high-end RF device development [1] - The market share of high-temperature superconducting materials is expected to gradually expand due to ongoing developments in applications such as superconducting cables and controlled nuclear fusion [1] - REBCO tape, compared to first-generation high-temperature superconductors, is anticipated to significantly reduce production costs and has vast commercial prospects, especially in the development of 16T@4.2K superconducting magnet systems [1] Group 2: Company Highlights - Dongfang Tantalum Industry focuses on the localization of superconducting niobium materials, leveraging its full industry chain advantages and technological innovations to become a leading enterprise in the superconducting materials sector [2] - Western Superconducting Technologies utilizes its comprehensive superconducting material technology and major engineering experience to break international monopolies in fields such as nuclear fusion, medical imaging, and quantum computing [2] - Guoli Co., Ltd. is a platform enterprise for high-end electronic vacuum devices, entering the large scientific engineering and nuclear fusion fields with superconducting supporting devices (traveling wave tubes, cooling systems), characterized by high technical barriers and clear self-control determinacy [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 67.20 CNY, based on a 42x PE ratio for 2025 [2][4]. Core Insights - The company has received the Anhui Provincial Science and Technology Progress Award for its key technology and engineering application results related to the EAST large scientific device, indicating strong technological capabilities [1]. - The company is expected to benefit from a recovery in downstream demand and advancements in nuclear fusion projects, which may lead to synchronized growth across its various business segments [1]. Financial Forecast and Performance - Revenue projections for 2025 and 2026 have been adjusted to 6,028 million CNY and 7,337 million CNY, respectively, reflecting a growth rate of 30.7% and 21.7% [3]. - The adjusted EPS for 2025 is forecasted at 1.60 CNY, with further increases to 1.97 CNY in 2026 and 2.41 CNY in 2027 [2][3]. - The company’s gross margin is expected to improve from 31.9% in 2023 to 35.4% by 2027, indicating enhanced profitability [3]. Business Segments and Innovations - The superconducting materials business is globally leading, with multiple projects achieving bulk supply, including superconducting wire materials for domestic nuclear fusion projects [9]. - Significant breakthroughs in high-performance high-temperature alloy technology have been achieved, enhancing the company's competitive edge in the industry [9]. - The high-end titanium alloy market is expanding, with the company developing new titanium alloy products for various sectors, including marine and nuclear industries [9].

在核聚变领域中，国光电气和合锻智能是值得关注的两家公司。国光电气主要 负责氘氚系统，占整个装置价值量的 25%。合锻智能则是顶级装置企业之一。 这些公司在未来几年内有望通过核业务实现百亿以上的市值。此外，超导磁体 中国在 ITER 项目中承担重要任务，负责制造 TF 线圈和 PF 导体，积累 了超导材料应用及核聚变领域丰富经验，目前在超导材料及其应用方面 处于全球领先地位。 江西星火一号混合堆项目是全高温超导项目，由联创超导与中核聚变设 计总院联合设计，目标是能量增益 Q 值大于 30，总投资规模超过 200 亿元，预计 2025 或 2026 年招标。 核聚变装置主要部件拆解 1：超导磁体深度 20250602 摘要 全球核聚变投资持续增长，中国预计在 2025 年新增千亿人民币投资， 推动 2030 年前单年投资额达 400 亿人民币，并计划在 2035 年前实现 商业化，预示核聚变产业进入快速发展期。 国光电气在核聚变装置氘氚系统领域占据重要地位，价值量占比达 25%，合锻智能是顶级装置企业，两家公司有望通过核业务实现百亿以 上市值增长。 超导材料在可控核聚变中应用广泛，低温超导材料已商业化，高温超导 ...

Core Insights - The report analyzes the global coaxial cable market for quantum computing, highlighting the critical role of ultra-low temperature coaxial cables in superconducting quantum computing systems, which must meet extreme low-temperature requirements for high-fidelity signal transmission, low thermal load, and interference resistance [1][7][8] - The market is segmented, with high-end products below 4K priced at $3,000 each, dominated by international manufacturers, while domestic companies like Western Superconducting are gradually overcoming technical barriers through material localization and process innovation [1][2][18] - The demand for coaxial cables is closely linked to the scale of quantum bits, with a practical requirement of approximately 3,100 cables for a 1,000-qubit quantum computer, potentially reduced to 1,100 cables under ideal conditions [1][8] Market Analysis - The ultra-low temperature coaxial cable market exhibits significant stratification, with high-end products priced at $3,000 for 4K and above products priced at $1-2 per meter, indicating a clear differentiation in product offerings [1][18] - The profit margins for 4K below products dominate, with a gross profit of $800-1,200 per cable and a gross margin of 27%-40% [1][8] - The report emphasizes the need for innovation in flexible, photonic multiplexing, and high-density integration to address challenges such as "wiring walls" and cooling limits [1][2][8] Competitive Landscape - International firms like Delft Circuits and CryoCoax monopolize the high-end market, while domestic players like Western Superconducting lead in NbTi and Nb₃Sn wire materials, although innovations in flexible cables still require breakthroughs [2][8] - The future of the industry may see advancements in all-optical wiring and time/frequency division multiplexing technologies, which could enhance transmission efficiency and reduce reliance on traditional coaxial cables [2][8] Technical Challenges - The coaxial cables face significant technical barriers, including low-temperature compatibility, high-frequency stability, low loss and noise, and supply chain constraints [29] - The report identifies the "wiring wall" issue as a limitation for scaling quantum bits, with existing dilution refrigerators struggling to meet the cooling demands of high-density wiring [27][29] Future Outlook - The report anticipates that breakthroughs in flexible cables, fiber optic transmission, and multiplexing technologies will create new opportunities for industry growth [8][29] - The ability to solve the extreme challenges of low-temperature connections will be crucial for advancing quantum system integration capabilities [8][29]

同轴电缆在量子计算中承担高保真信号传输的核心功能，其技术已从早期室温射频测试场景，跨越至接近绝对零度（10mK）的 极低温环境。当前技术要求包括：零电阻特性（如NbTi超导材料在9.2K以下实现零电阻）、GHz级微波传输能力（5-10GHz）、 热负载控制（单通道热负荷<4μW）及抗干扰设计（如迈斯纳效应屏蔽）。材料体系从单一金属导体拓展至柔性超导合金（如 NbTi）、多路微带结构，甚至融合电光复用技术，推动量子系统集成向高密度、低损耗方向发展。 二、产品分类与特性 根据材料和结构，量子计算用同轴电缆分为三类： 1. 超导材料类：以NbTi同轴电缆为代表，低温下实现零电阻传输与电磁屏蔽，外径0.040"，特性阻抗50Ω，用于4K以下极低温场 景，单根价格高达3000美元。 今天分享的是：2025年全球量子计算用同轴电缆市场分析报告-光子盒研究院 报告共计：36页 2025年全球量子计算用同轴电缆市场分析报告核心内容总结 一、技术演进：从室温到极低温的突破 2. 低温非超导金属类：如柔性不锈钢电缆，具备低导热性，适用于大温度梯度环境，但存在弱磁性，成本较低。 3. 创新结构类：如Delft Circuits的C ...

Investment Rating - The report maintains an "Overweight" rating for the non-ferrous metals industry [1] Core Insights - The non-ferrous metals sector has been significantly increased in holdings, with copper and gold seeing the most substantial increases in Q1 2025. The sector is currently in an "overweight" position, reflecting positive market sentiment and expectations for continued growth [2][3] - The report highlights a positive outlook for Q2 2025, driven by domestic macroeconomic policies aimed at boosting internal demand, which is expected to benefit the industrial metals sector, particularly aluminum [3][5] - The report identifies specific investment opportunities within the sector, recommending increased holdings in rare earth magnetic materials and companies with strong cost control and favorable customer structures in aluminum processing [3][4] Summary by Sections Industry Overview - In Q1 2025, the non-ferrous metals sector outperformed the market, with a sector increase of 12.0%, ranking first among 28 major industries [5][12] - The sector's performance is attributed to global monetary policy shifts towards easing and enhanced expectations for domestic economic recovery [5][12] Sub-Sectors Performance - **Precious Metals**: The precious metals sector showed the best performance in Q1 2025, with gold and silver prices increasing by 36.4% and 32.6% year-on-year, respectively. The sector's net profit rose by 51.8% year-on-year [45][46] - **Base Metals**: Base metals, excluding nickel, saw price increases, with copper and aluminum prices rising by 11.3% and 7.4% year-on-year. The net profit for copper increased by 79.6% year-on-year [38][41] - **Rare Metals**: The rare metals sector is expected to benefit from supply constraints and increasing demand, particularly in the cobalt market, which has seen price increases due to supply disruptions [51][53] Holdings Situation - In Q1 2025, the overall holding ratio for the non-ferrous metals sector increased to 1.30%, up from 1.09% in Q4 2024, indicating a shift from underweight to a slight overweight position [56][57]

Group 1 - Nuclear fusion is expected to become the ultimate energy source for humanity due to its rich energy potential, high energy density, zero emissions, and high fuel availability [2][4] - The technology is still in the laboratory stage, and commercial application requires further breakthroughs [1][3] - Significant investments in nuclear fusion are increasing globally, making it a competitive field among countries [4] Group 2 - The key indicators for measuring nuclear fusion reactions include the product of plasma temperature, atomic density, and confinement time, which must exceed a certain value for ignition [3] - The energy gain factor Q must be greater than 1 to achieve net fusion energy, indicating the feasibility of engineering technology [3] - The main technical routes for nuclear fusion research are magnetic confinement fusion and inertial confinement fusion, with tokamaks being the most widely studied and likely to achieve controllable fusion [5] Group 3 - The magnet system constitutes the largest cost component (28%) in the ITER experimental reactor, highlighting the critical role of superconducting technology [5] - High-temperature superconducting materials, such as REBCO, are expected to become significant components in nuclear fusion, providing stronger magnetic fields and reducing the size and cost of fusion reactors [5] - Companies involved in the development of superconducting materials and fusion technologies are likely to benefit as fusion projects progress [5]