Core Viewpoint - The nuclear fusion sector is emerging as a new focus for capital investment, highlighted by Nova Fusion's recent 500 million yuan angel round financing, setting a record for private nuclear fusion companies in China [1][3]. Group 1: Company Overview - Nova Fusion, established in April 2025, is the first Chinese company dedicated to the commercialization of small modular nuclear fusion technology [3]. - The company aims to develop economically viable nuclear fusion power plants (FRC-SMR) that are small, modular, and can be deployed in a distributed manner, filling a gap in China's nuclear fusion technology [1][3]. Group 2: Financing and Investment - Nova Fusion's angel round financing was backed by a consortium of industry capital, social capital, and state-owned funds, including notable investors like Junlian Capital and Guokong Fund [3][4]. - The funds will primarily be used for the research and development of China's first small modular nuclear fusion reactor, specifically targeting the power supply needs of AI [4]. Group 3: Technological Goals - Nova Fusion plans to achieve several technological milestones: short-term goal of reaching 100 million degrees ion temperature, mid-term goal of achieving fusion energy gain Q > 1, and long-term goal of producing 50 MW of fusion power [4]. - The company utilizes a combination of field-reversed configuration (FRC) and magnetic compression technology to significantly reduce construction costs and development timelines for nuclear fusion power plants [4]. Group 4: Industry Trends - 2025 is anticipated to be a pivotal year for nuclear fusion commercialization in China, with both state-owned and private companies advancing in parallel [6]. - China Fusion Energy Co., established recently, has secured approximately 11.49 billion yuan in investments, becoming the largest capital entity in the domestic fusion sector [6]. - The global nuclear fusion industry attracted $7.1 billion (approximately 514 billion yuan) in investments last year, indicating a growing interest and financial backing for fusion technology [8].

Investment Rating - Industry rating is "Outperform the Market" (maintained rating) [5] Core Insights - The establishment of China Fusion Energy Co., Ltd. marks a significant step in the domestic nuclear fusion industry, with a registered capital of 11.469 billion yuan. The company aims to transition nuclear fusion technology from research to engineering applications [1] - The global investment landscape in nuclear fusion is heating up, with the US and China leading in equity financing. As of July 2025, US fusion companies have attracted approximately $6.28 billion, while Chinese companies have secured around $2.79 billion [2] - Various companies are making substantial investments in nuclear fusion technology, including New Hope Group, which has invested about 4 billion yuan since 2017, and several startups collaborating with public channels for funding [2] Summary by Sections Section 1: Company Establishment - China Fusion Energy Co., Ltd. was officially established on July 22 in Shanghai, with significant backing from state-owned enterprises and private capital [1] - The company will focus on overall design, technology validation, and digital R&D, aiming to build a technology research platform and a capital operation platform [1] Section 2: Investment Trends - The report highlights a surge in investments in nuclear fusion, with notable contributions from both state-owned and private enterprises in China [2] - Key players in the US, such as Helion and Commonwealth Fusion Systems, have also secured significant funding, indicating a competitive landscape [2] Section 3: Recommended Companies - The report suggests monitoring several companies involved in the nuclear fusion supply chain, including: - Lianchuang Optoelectronics, a leading supplier of high-temperature superconducting magnets - Yongding Co., a major supplier of high-temperature superconducting strips - Guoguang Electric, which provides various components for controllable nuclear fusion devices [3]