Investment Rating - The industry investment rating is "Positive" (maintained) [5] Core Insights - The bidding for the plasma project has accelerated, with over 5.6 billion yuan in bids since 2025, and over 3.7 billion yuan in November alone, indicating a speed-up in project construction [1][10] - The focus of the industry is shifting from "scientific feasibility verification" to "engineering verification," as evidenced by the launch of the tritium fuel self-sustaining cycle system bidding, totaling over 1.3 billion yuan [2][12] - The controlled nuclear fusion sector is seen as the ideal ultimate energy source, with a resonance of "policy-industry-capital" expected to accelerate commercialization [3] Summary by Sections Section 1: Acceleration of Bidding for the BEST Project - The bidding for the BEST project has seen significant acceleration, with a total of over 3.7 billion yuan in November 2025 alone, compared to 1.6 million yuan and 2.4 million yuan in September and October respectively [10] - Key components have been awarded, including projects won by Hangyang Co., Ltd. for low-temperature systems and by Wangzi New Materials for magnetic power storage systems, enhancing certainty in the supply chain [1][11][12] Section 2: Launch of Tritium Factory Bidding - The tritium factory bidding was initiated on November 12, with a total amount exceeding 1.3 billion yuan, marking a critical phase in the BEST project [2][12] - Tritium self-sustaining is crucial for the commercial operation of fusion reactors, indicating a shift in focus towards solving core engineering challenges necessary for future fusion power plants [2][13] Section 3: Policy-Industry-Capital Resonance - The industry is entering the engineering feasibility verification stage, with a Q value greater than 1 indicating potential energy gain, and a Q value greater than 30 suggesting the possibility of commercialization [3] - The policy framework for controlled nuclear fusion is strengthening, with significant support from national planning and legislative measures, including its inclusion in the "14th Five-Year Plan" [3][25] - Capital inflow is diversifying, with significant investments in the fusion sector, including the establishment of the China Fusion Energy Company with a registered capital of 15 billion yuan [3][26] Section 4: Investment Recommendations - Focus on core suppliers and flexible targets, particularly in the midstream equipment sector, including companies like Lianchuang Optoelectronics, Xuguang Electronics, and Hangyang Co., Ltd. [3][30] - Upstream material companies such as Yongding Co., Ltd. and Western Superconducting Technologies are also highlighted as potential investment opportunities [3][30]

Core Insights - The CRAFT (Comprehensive Research Facility for Fusion Reactor Key Systems) has made significant progress with the successful testing and acceptance of the prototype component for the divertor, which is crucial for fusion reactor operations [1][3] Group 1: Technical Achievements - The divertor prototype component achieved a steady-state thermal load capacity of 20 megawatts per square meter, with a target plate alignment error of less than 1 millimeter, marking the successful development of the largest and highest thermal load divertor prototype designed independently in China [1][3] - The innovative design of the divertor features a hybrid divertor blanket integration scheme, theoretically increasing the tritium breeding ratio by over 3%, providing an effective auxiliary pathway for achieving tritium self-sufficiency [3] Group 2: Project Significance - The divertor prototype is one of the 19 key systems within the CRAFT project, and its successful development signifies that China's divertor research capabilities have reached a level of independent control, laying a solid technical foundation for future engineering applications of fusion reactor divertors in China [3]

Investment Rating - Investment rating: Positive (maintained) [3] Core Viewpoints - The report highlights that electricity demand in April showed improvement in several provinces, with six provinces experiencing a growth rate exceeding 7%. However, Xinjiang reported negative growth. The overall electricity demand growth rate for April was 4.7%, down from 7.0% in the same month last year, indicating a potential impact from external demand [4][10][16]. - The report emphasizes the importance of coal price declines for short-term flexibility in thermal power and suggests mid-term focus on asset integration opportunities within state-owned power groups, as well as investment value in hydropower and wind power operators [4][19]. - Key recommendations include major hydropower companies such as Guotou Electric Power, Huaneng Hydropower, Yangtze Power, and Chuan Investment Energy, along with wind power stocks like Longyuan Power (H), Xintian Green Energy, Datang New Energy, and CGN New Energy. Quality thermal power companies recommended include Wan Energy Power, Shanghai Electric Power, China Resources Power, Huadian International, and Sheneng Co [4][19][20]. Summary by Sections Electricity Demand Analysis - In April, electricity demand growth improved in multiple provinces, particularly in Hunan (6.6 percentage points), Hubei (5.3 percentage points), and Anhui (5.1 percentage points). Conversely, provinces like Hainan (-6.9 percentage points), Guangdong (-1.6 percentage points), and Xinjiang (-1.6 percentage points) saw deteriorating growth rates [4][16]. - The report notes that the overall electricity consumption in April reached 772.1 billion kWh, with a year-on-year growth rate of 4.68%, while the cumulative growth rate for January to April was 3.08% [14][17]. Sector Performance - The report identifies that the industrial sector contributed significantly to electricity demand, with a growth rate of 3.2% in April. However, several non-key sectors experienced negative growth, potentially due to external demand influences [10][12]. - The report also highlights that the electricity consumption in the information transmission and charging industries has been a positive contributor, while sectors related to photovoltaic equipment production showed negative growth, indicating a less optimistic outlook for new photovoltaic projects [12][13]. Nuclear Fusion Developments - The report discusses the construction of the third heavy water tritium removal facility in Romania, which is expected to position the country as a key player in tritium production and export in Europe. Tritium is identified as a critical fuel for nuclear fusion reactors like ITER [5][21]. - It is noted that the demand for tritium is expected to rise significantly with the completion of various global fusion engineering experimental reactors, with estimates suggesting that ITER alone will consume approximately 12.3 kg of tritium over its operational lifetime [22][24]. Investment Opportunities - The report suggests that companies with relevant technological reserves in tritium breeding, extraction, and analysis are likely to benefit from increased investments in nuclear fusion projects. Companies such as Guoguang Electric are highlighted as potential beneficiaries [30].