Investment Rating - Industry investment rating: Overweight [2] Core Viewpoints - The nuclear fusion industry is an emerging sector that warrants attention, with policies potentially influencing investment hotspots [3][4] - The development of nuclear fusion technology is progressing, and there is optimism for future industrial applications [4][5] - Investment suggestions indicate that if technological breakthroughs occur, the nuclear fusion industry could see significant growth, with companies like Western Superconducting Technologies as potential investment targets [5][95] Summary by Sections 1) Overview of Nuclear Fusion - Controlled nuclear fusion is a reaction where light atomic nuclei combine under specific conditions, releasing substantial energy [15] - Nuclear fusion is considered a strategic energy source due to its high energy density and sustainability [19] 2) Literature Descriptions of the Nuclear Fusion Industry - The nuclear fusion technology research has gained attention from various countries, with ongoing advancements since the 1970s [51] - Multiple international projects, including the ITER initiative, are underway to promote nuclear fusion research [52] 3) Attention on Nuclear Fusion - The global nuclear fusion industry has seen significant financing recently, indicating a shift in investment strategies that favor industry development [74] 4) Investment Recommendations - The report suggests that the nuclear fusion industry could have a promising future if relevant technologies continue to advance [95]

Key Points - The report highlights a selection of stocks for July, including companies such as 滨江集团 (Binjiang Group) and 顺丰控股 (SF Holding) as part of the recommended investment portfolio [1] - The macroeconomic analysis indicates a gradual appreciation of the RMB against the backdrop of easing trade policy uncertainties between the US and China, which enhances the competitiveness of Chinese exports [2][6] - The report notes a slight decrease in the overall activity of mergers and acquisitions in the A-share market, with a total of 66 disclosed transactions amounting to 5233.44 billion RMB, indicating a trend towards structural reorganization despite a decrease in the number of major deals [12] - In the nuclear fusion sector, significant advancements have been made in China's nuclear fusion technology, which is expected to benefit from ongoing investments and the development of related industrial chains [13][15] - The report discusses the emergence of a new market for AI Infra catalyzed quartz fiber cloth, with the company 菲利华 (Philips) leveraging its full industry chain advantages to gain a first-mover advantage in the electronics fabric sector [17][18]

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]

Group 1 - China Fusion Company has signed a capital increase agreement with several state-owned enterprises and investment funds, resulting in a diversified ownership structure [2] - The investment amounts to approximately 11.492 billion yuan, with a subscription price of 1.0019 yuan per registered capital [2] - Zero One Automotive has completed a 500 million yuan Series A financing round, led by prominent investors including Momenta and Xinghang Venture Capital [3][4] - The funds will be used for mass production of a new generation of autonomous trucks and further development of their self-developed technologies [3] Group 2 - Lingyun Smart Mining has completed a multi-million dollar angel round financing, marking its entry into the "AI + mineral rights operation" phase [4] - The funds will accelerate the acquisition of quality mineral rights in key global mineralization belts and enhance AI technology applications in mineral rights operations [4] - GCL-Poly Solar Materials has completed a nearly 200 million yuan Series C2 financing round to support the industrialization of perovskite products [5] Group 3 - Chengdu has launched its first future industry fund with an initial scale of 112 billion yuan, targeting ten future industry sectors [6] - The Yangtze Special Vehicle Industry Investment Fund has been registered with a total scale of 5 billion yuan, focusing on specialized vehicles and high-end manufacturing [7][8] - The Shanghai Baoshan Zhongying Fuyun Venture Capital Fund has been established with a total scale of 500 million yuan, aiming to enhance technology and finance integration [9] Group 4 - Shenhuo Co., Ltd. is establishing a high-quality industry development fund with a scale of 1.512 billion yuan, focusing on strategic emerging industries [10] - The Yunnan Dianzhong New District Industry Guidance Fund has been established with a scale of 5 billion yuan, focusing on non-listed enterprises [11] - The Jiading District Strategic Emerging Industry Investment Fund has set up its first batch of sub-funds totaling 550 million yuan to support local industrial development [12] Group 5 - A 1 billion yuan biopharmaceutical industry fund has been launched in Fujian Province, targeting innovative drugs and medical devices [12]

Core Viewpoint - The establishment of China Fusion Company marks a significant transition from experimental research to engineering and commercial application in fusion energy, demonstrating a key leap for the fusion industry cluster development in China [1][2]. Group 1: Company Establishment and Investment - China Fusion Company was officially established on July 22, 2025, in Shanghai, with a total investment of 11.492 billion yuan from seven units, including China National Nuclear Corporation and China Petroleum Kunlun Capital [2]. - The company will focus on the engineering and commercialization of fusion energy, utilizing the magnetic confinement Tokamak technology [2]. - China Fusion Company has signed a deepening cooperation agreement with several institutions, including Shanghai Jiao Tong University and Shanghai Electric Group, to promote collaborative development within the fusion industry chain [2][3]. Group 2: Industry Development and Technological Advancements - Shanghai is actively promoting the fusion industry cluster, emphasizing the integration of innovation elements from enterprises, universities, and research institutions to accelerate the commercialization of fusion technology [3]. - Shanghai Superconductor has achieved breakthroughs in high-temperature superconducting core technology, holding over 80% market share for domestic and international fusion reactor supplies [3]. - The establishment of the fusion innovation consortium will enhance the density of technological innovation and accelerate the development of a globally influential fusion energy innovation hub [3]. Group 3: Global Context and Future Outlook - The global fusion industry is thriving, with at least 45 commercial fusion companies and cumulative investments of approximately 7 billion USD, with 80% of surveyed companies expecting to supply power to the grid in the 2030s [4]. - China has validated the feasibility of fusion reactors through national research projects and plans to start the BEST project in 2025, aiming for its first power supply to the grid by 2030 [4]. - The role of state capital in Shanghai is crucial for encouraging social capital to foster innovation in the upstream and downstream sectors, potentially shortening the growth cycle of the fusion industry [4].

Group 1 - The establishment of China Fusion Company on July 22 marks a significant transition from experimental research to engineering and commercial application in fusion energy [1] - China Fusion Company, a subsidiary of China National Nuclear Corporation (CNNC), is responsible for the innovation and commercialization of fusion energy using magnetic confinement Tokamak technology [1] - A total of 114.92 billion yuan has been raised from seven entities, including CNNC and China National Petroleum Corporation, at a price of 1.0019 yuan per share, with CNNC remaining the controlling shareholder [1] Group 2 - Shanghai is actively promoting the commercialization of fusion technology through policy support and financial guidance, encouraging collaboration among enterprises, universities, and research institutions [2] - Shanghai has achieved breakthroughs in high-temperature superconducting core technology, with over 80% market share in domestic and international fusion reactor supply [2] - The establishment of a fusion innovation consortium will accelerate the development of the industry ecosystem and enhance technological innovation density [2] Group 3 - The global fusion industry is thriving, with at least 45 commercial fusion companies and cumulative investments of approximately 7 billion USD, with 80% of surveyed companies expecting to achieve grid supply in the 2030s [3] - China has validated the feasibility of fusion reactors through national research projects and plans to start the BEST project in 2025, aiming for grid connection by 2030 [3] - The role of state capital in Shanghai encourages social capital to foster upstream and downstream innovative enterprises, potentially shortening the growth cycle of the fusion industry [3] Group 4 - Investment focus should be on midstream equipment such as high-temperature superconductors and detection systems, with relevant companies identified [4] - Upstream material companies involved in high-temperature superconducting materials are also highlighted as potential investment opportunities [4]

Summary of Key Points from Conference Call Records Industry Overview - The nuclear power industry is recognized as a baseload energy source, with continuous growth in installed capacity and high Return on Equity (ROE) being critical for cash flow value [1][2][15] - The establishment of China Fusion Energy Company under China National Nuclear Corporation (CNNC) aims to finance and construct Tokamak devices, although it does not engage in scientific research [1][4][9] Core Insights and Arguments - Despite short-term concerns regarding annual long-term electricity price fluctuations in Guangdong Province, the long-term outlook remains positive due to project increases and stable capital expenditures driving operational cash flow growth [2][15] - The current Tokamak devices are experimental and lack commercial viability, with commercialization expected around 2050 [1][6] - The value distribution of Tokamak components shows that the magnet system holds the highest value (28% for low-temperature superconductors and 50% for high-temperature superconductors), followed by the vacuum chamber (8-10%) and other auxiliary systems [1][7][12] Financial Performance and Market Dynamics - The investment value of nuclear power operators like China National Nuclear Corporation and China General Nuclear Power Group is assessed based on cash flow value, growth potential, and the critical role of nuclear power in the energy system [2][3] - The decline in electricity prices has pressured the performance of these operators, but valuations have already reflected this impact [3][20] - The anticipated increase in installed capacity and operational projects is expected to enhance free cash flow and dividend rates [15][21] Future Projections and Strategic Recommendations - The nuclear power sector is projected to maintain a strong growth trajectory, with expectations of increasing profitability and ROE due to rapid project commissioning [18][19] - The need for adjustments in the current pricing mechanism is emphasized to better reflect the value of nuclear power, potentially through capacity compensation or green premiums [25][26] Key Companies and Competitive Landscape - Major players in the nuclear power sector include China General Nuclear Power Group and China National Nuclear Corporation, with their valuations currently ranging from 18 to 19 times earnings [26][27] - The market is expected to favor companies with strong operational capabilities and favorable market positions, particularly in the Hong Kong stock market [27][28] Additional Considerations - The nuclear power industry is characterized by a stable cost structure, with unit costs remaining around 0.2 yuan per kilowatt-hour, primarily influenced by depreciation and fixed costs [22] - The impact of coal price fluctuations on nuclear power profitability is limited, but market-driven price declines in certain regions have created challenges [22][23] - The overall sentiment towards the nuclear power industry remains optimistic, with expectations for continued investment and technological advancement [28]

Market Overview - The Shanghai Composite Index briefly surpassed 3600 points, reaching a new high for the year, but closed slightly up by 0.01% at 3582.3 points, while the Shenzhen Component Index fell by 0.37% to 11059.04 points, and the ChiNext Index was down by 0.01% to 2310.67 points [1] - The total trading volume in the Shanghai and Shenzhen markets was 189.87 billion yuan, a decrease of approximately 30 billion yuan from the previous day [1] - Various sectors showed mixed performance, with military, electricity, construction, and liquor sectors declining, while insurance, brokerage, and banking sectors saw gains [1] Hainan Free Trade Port Development - The Hainan Free Trade Port will officially start its full island closure on December 18, 2025, marking a significant milestone in its development [2] - The policy will promote high-quality development by implementing "open on one line, controlled on another line, and free within the island" [2] - The tourism industry in Hainan is expected to benefit significantly, with related businesses such as scenic spots, hotels, and travel retailers poised for long-term gains [2] Tungsten Market Dynamics - Tungsten concentrate prices have reached a historical high of 182,500 yuan per ton as of July 21, with a continuous upward trend since May 13 [3] - The supply-demand balance for tungsten is expected to remain tight, and despite potential price corrections, tungsten prices are projected to stay high over the next three years [3] Nuclear Fusion Industry Developments - The establishment of China Fusion Energy Co., a subsidiary of the China National Nuclear Corporation, aims to advance fusion engineering and commercialization [4] - Global investment in the fusion industry has reached $7.1 billion, with China's significant funding expected to drive growth in core areas such as superconducting materials and magnet systems by 2027 [4] - The technology spillover effects from fusion research are anticipated to open new markets in medical devices and new materials [4] Agricultural Sector Initiatives - The Ministry of Agriculture and Rural Affairs is focusing on promoting high-quality development in the pig industry, emphasizing market guidance and policy support [6] Industrial Robotics Market Growth - China remains the largest market for industrial robots globally, with a notable increase in demand from the 3C industry due to national subsidy policies [9] - A specific industrial robot manufacturer in Shenzhen reported that orders are already booked until November, reflecting strong market demand [9] - In the first half of 2025, China's cumulative production of industrial robots reached 369,300 units, marking a year-on-year increase of 35.6% [9]

昆仑资本、中国核电等股东方共同增资中国聚变公司： 中核集团、中国核电、中国石油集团昆仑资本有限 公司、上海未来聚变能源科技有限公司、国家绿色发展基金股份有限公司、浙能电力及四川重科聚变能源 科技有限公司共同向中国聚变公司投资约 114.92 亿元，增资完成后公司注册资本将上升至 150 亿元； 股权结构为：中核集团 50.35% 、中国核电 6.65% 、昆仑资本 20% 、上海聚变 11.81% 、国绿基金 3.19% 、浙能电力 5% 、四川聚变 3% 。 中国核聚变行业再添生力军： 在中国聚变公司揭牌成立前，国内核聚变行业的主力军为聚变新能。 2024 年聚变新能通过增资扩股，其注册资本增至 145 亿元，股东涵盖安徽省与合肥市国有平台、中央企业、 中国科学院及社会资本。中国聚变公司的成立标志着中核集团在核聚变领域的拓展决心，并依托昆仑资 本、中核电力等央企资金拓展核聚变领域的布局。目前国内形成了以中国聚变公司、聚变新能两大主体为 主力，众多商业化公司（能量奇点、星环聚能、星能玄光等）百花齐放的行业格局。中国聚变公司的成立 有力推动了产业化的进程，国内核聚变行业迎来黄金发展时期。 风险提示： 核聚变行业 ...

Market Overview - A total of 58 stocks in the A-share market hit the daily limit, with 51 stocks after excluding 7 ST stocks, and an overall limit rate of 50.88% [1] Top Performers - China Electric Power Construction Company (中国电建) had the highest limit order volume with 7.5033 million hands, followed by Tibet Tianlu (西藏天路) with 2.0645 million hands, and China Railway Construction Heavy Industry (铁建重工) with 1.8256 million hands [2] - In terms of limit order funds, 20 stocks had over 100 million yuan in limit orders, with China Electric Power Construction leading at 5.08 billion yuan, followed by Tibet Tianlu at 2.632 billion yuan, and China Railway Construction Heavy Industry at 1.3 billion yuan [4] Industry Highlights Hydropower Sector - China Electric Power Construction is a leading player in hydropower and pumped storage construction, with new hydropower contracts signed in 2024 amounting to 142.896 billion yuan, representing 18.73% of its energy business, a year-on-year increase of 26.35% [4] - Other stocks in the hydropower sector that hit the limit include Tibet Tianlu, Poly United (保利联合), and Shanhe Intelligent (山河智能) [5] Nuclear Fusion Sector - The establishment of China Fusion Energy Co., in which China Nuclear Power (中国核电) has a stake, was announced, indicating a focus on controlled nuclear fusion technology [8] - Key players like GuoJi Heavy Equipment (国机重装) are actively developing critical components for fusion devices [8] Pharmaceutical Sector - Zhendong Pharmaceutical (振东制药) is focusing on innovative drugs, particularly in oncology and dermatology [9] - Seer Medical (塞力医疗) has developed a therapeutic vaccine for hypertension, which is recognized as a national Class I innovative drug [9] - HanShang Group (汉商集团) has a diverse portfolio of 92 pharmaceutical products across various therapeutic areas [9] Related ETFs - The Green Power ETF (绿电ETF) tracks the China Securities Green Power Index, with a recent five-day change of 1.56% and a price-to-earnings ratio of 17.54 times [11]