Core Insights - The report from CITIC Securities highlights the continuous breakthroughs in high-temperature superconducting materials technology, which is expected to benefit downstream applications in strong electricity and high magnetic field sectors [1] - High-temperature superconducting magnets are identified as a core application with significant development potential in areas such as controlled nuclear fusion, superconducting induction heating, superconducting magnetic single crystal furnaces, superconducting magnetic levitation, and commercial aerospace electromagnetic propulsion [1] - The industry is anticipated to maintain a rapid growth trend driven by downstream application validation and industrial breakthroughs, with new application scenarios emerging alongside industry development [1] Industry Recommendations - It is suggested to focus on the midstream segments, particularly high-temperature superconducting tapes and high-temperature superconducting magnets, which are most directly driven by orders [1] - Continuous tracking of commercial progress in various downstream fields and the exploration of new application scenarios is recommended [1]

Core Viewpoint - The article discusses the advancements and market potential of high-temperature superconducting materials in the context of controlled nuclear fusion, highlighting the significant investment and technological developments in this sector. Group 1: High-Temperature Superconducting Materials - High-temperature superconducting materials can achieve zero resistance at temperatures above 40K, allowing for much higher current densities compared to traditional copper conductors [2] - The market for high-temperature superconducting magnets is expected to grow as the industry matures, driven by the demand from controlled nuclear fusion projects [10] - The production capacity of high-temperature superconducting materials is increasing, with companies like Shanghai Superconductor aiming to produce around 6000 kilometers of materials [7] Group 2: Investment and Development in Nuclear Fusion - China Fusion Energy Co. was established with a significant funding of 11.5 billion yuan to focus on key technologies like high-temperature superconductors [2] - The total investment for controlled nuclear fusion devices can reach up to 8.5 billion yuan for projects like BEST, with a substantial portion allocated to superconducting materials [5] - The demand for high-temperature superconducting materials is rising as more controlled nuclear fusion devices are being built, with a notable increase in sales and revenue for companies involved in this sector [8] Group 3: Challenges and Innovations - The main challenges in high-temperature superconducting materials include production capacity, performance stability, and the risk of "quenching," where the material loses its superconducting properties [6][7] - Companies are exploring engineering techniques to produce longer superconducting tapes while minimizing the risk of quenching [7] - The successful application of high-temperature superconductors in various fields, including nuclear magnetic resonance machines and energy storage systems, indicates a growing market beyond nuclear fusion [8]

Core Viewpoint - The report from Huatai Securities highlights the broad application prospects of superconducting materials with zero electrical resistance characteristics in the fields of power, industry, and transportation, particularly emphasizing the advantages of high-temperature superconductors over low-temperature ones [1] Group 1: Superconducting Materials - High-temperature superconductors have higher critical temperatures, currents, and magnetic fields, which expand their application space [1] - The demand for controllable nuclear fusion has driven the cost reduction of high-temperature superconducting tapes, with leading companies nearing the cost parity line for applications in industrial heating and power cables as estimated by Huatai Securities [1] Group 2: Market Potential - The accelerating demand for nuclear fusion is expected to enhance the economic viability of high-temperature superconductors, opening up a market space worth hundreds of billions [1]

Industry Overview - The superconducting materials industry is a crucial segment of advanced materials, showcasing unique properties such as zero electrical resistance and the Meissner effect, with applications in energy, transportation, medical, and high-end manufacturing sectors [2][5]. - The industry has evolved from low-temperature superconductors to high-temperature superconductors, becoming a focal point in global technological competition, especially with the increasing demand for clean energy and efficient transmission [2][5]. Major Superconducting Materials and Preparation Processes - Superconducting materials are categorized based on critical temperature: low-temperature superconductors (Tc ≤ 25K) and high-temperature superconductors (Tc ≥ 25K) [11][12]. - Low-temperature superconductors include NbTi and Nb3Sn, while high-temperature superconductors include various cuprates like YBCO and Bi-2212 [11][12]. - The preparation methods for these materials vary, with powder-in-tube (PIT) being the mainstream process for most superconductors, while advanced techniques like pulsed laser deposition (PLD) and metal-organic chemical vapor deposition (MOCVD) are used for high-temperature superconductors [42][67]. Key Application Areas - The primary application of superconducting materials is in the field of controlled nuclear fusion and high-field applications, where their ability to carry large currents and generate strong magnetic fields is essential [30][31]. - Superconducting materials are also utilized in power applications, such as superconducting cables, motors, and energy storage systems, enhancing efficiency and reducing size and weight [30][31]. Competitive Landscape of High-Temperature Superconductors - The competitive landscape for high-temperature superconductors is characterized by ongoing technological advancements and the emergence of new materials, with companies like SuperPower and Fujikura leading in the development of REBCO materials [50][68]. - The market is witnessing a shift towards the commercialization of high-temperature superconductors, with significant investments from governments and private sectors aimed at enhancing production capabilities and reducing costs [50][68]. Market Size Forecast - The superconducting materials market is expected to grow significantly, driven by increasing applications in energy, transportation, and advanced manufacturing sectors, with a focus on reducing operational costs and improving efficiency [2][5]. Related Companies - Key players in the superconducting materials industry include SuperPower, Fujikura, and various domestic companies in China such as Shanghai Superconductor and Eastern Superconductor, each employing different technological routes for material production [68].

Summary of the Conference Call for 永鼎股份 Company Overview - **Company**: 永鼎股份 - **Key Business Areas**: 光芯片 (Optical Chips) and 超导带材 (Superconducting Materials) [2][3] Industry Insights - **Optical Chip Business**: - Benefiting from the growth of the AI industry, with multiple domestic partnerships established [2][4] - High-speed products like EML for 56G and 100G are now in mass production [4] - Expected to be a significant growth driver in the second half of the year [2][4] - **Superconducting Materials**: - Focus on controlled nuclear fusion superconducting tape, with increasing demand due to global emphasis on nuclear fusion [2][5] - The superconducting tape is primarily used in Tokamak devices, accounting for 15%-25% of the value in these applications [9] - Applications extend to maglev transportation, MRI, military degaussing cables, superconducting motors, and photovoltaic systems [9] Production Capacity and Expansion Plans - **Current Capacity**: - Plans to expand superconducting tape production capacity to 5,000 kilometers by the end of 2025, with a long-term goal of 20,000 kilometers [2][13] - Expected revenue from 5,000 kilometers is projected at 500 million yuan, and from 20,000 kilometers at 2 billion yuan [14] - **Production Technology**: - Utilizes MOCVD technology, which has superior performance in strong magnetic fields and is largely domestically sourced [10][12] - MOCVD is expected to have cost advantages in mass production compared to other technologies [12] Financial Performance and Market Position - **Profitability**: - Current average price per meter is 100 yuan, translating to approximately 1 billion yuan for 1,000 kilometers [14] - The company is currently in a phase of capacity expansion, which has not yet stabilized profit margins [18] - **Market Competition**: - Despite lower shipment volumes in the first half of the year, the company is optimistic about the second half, with a strong focus on high-speed chip development [21] - Competing with companies like 尚超, which has a head start in capacity expansion, but 永鼎股份 is rapidly catching up [22] Customer Base and Industry Trends - **Key Customers**: - Major clients include 上海超导, 东部超导, and various national research institutes, primarily in the controlled nuclear fusion sector [16] - **Industry Trends**: - The superconducting materials industry is experiencing rapid growth, with increasing demand and a tight supply side globally [23] - The company has a strong position due to its long-standing experience and partnerships in the superconducting materials field [23] Additional Insights - **Production and Delivery**: - Typical delivery cycles range from 6 to 8 months depending on customer requirements [19] - **Future Outlook**: - Continuous improvements in equipment and processes are expected to enhance yield and profitability in the coming periods [18]

Group 1: Superconducting Materials - The global high-temperature superconducting market is projected to reach $10.5 billion by 2030, with a compound annual growth rate (CAGR) of 53.9%, driven by demand from nuclear fusion and cable applications [1] - The increasing competition in controlled nuclear fusion is expected to lead to a surge in demand for superconducting materials used in Tokamak devices, highlighting the value of leading companies with production capabilities [1] - Companies recommended for investment include those with superconducting material preparation technology and production advantages, such as **** (****.SH), **** (****.SH), **** (****.SH), and high-temperature superconducting fusion magnet manufacturers like **** (****.SH) [1] Group 2: Electrical Equipment - Energy storage is identified as the most promising direction in the renewable energy sector, with global installations expected to grow by 33%, 39%, and 41% over the next three years [4] - The domestic independent energy storage market is entering a rapid growth phase following the issuance of Document No. 136, with significant potential in overseas markets such as Europe, Australia, Latin America, and India [4] - Key companies to watch in the energy storage sector include **** (****.SH), **** (****.SZ), **** (****.SH), and others [4] Group 3: Market Insights - In the domestic market, there was a noticeable rush to install systems by the end of May, with June's bidding volume increasing, indicating sustained growth for the year [6] - The overseas market is transitioning towards large-scale energy storage in Europe, while the U.S. may experience a slight decline; however, demand remains strong in Australia, India, and Latin America [6]

Investment Rating - The report does not explicitly state an investment rating for the company Core Insights - Shanghai Superconductor is the global leader in high-temperature superconducting tape, with a unique annual shipment exceeding 1,000 kilometers [3][11] - The company achieved a revenue of 240 million yuan in 2024, representing a year-on-year growth of 187.4%, and successfully turned a profit with a net profit of approximately 72.95 million yuan [3][19] - The market for high-temperature superconducting materials is expected to exceed 10.5 billion yuan by 2030, with a compound annual growth rate (CAGR) of 53.91% from 2024 to 2030 [3][72] Summary by Sections 1. Shanghai Superconductor: Global Leader in High-Temperature Superconducting Tape - The company was established in 2011 and has developed a comprehensive production process for second-generation high-temperature superconducting tape [3][11] - It is the only company globally with an actual annual shipment exceeding 1,000 kilometers of superconducting tape [3][11] 2. Technological Advancements Accelerating Downstream Application Industrialization - The second-generation high-temperature superconducting tape has advantages over the first generation, including higher critical temperature, higher current-carrying capacity, and lower production costs [3][45] - The market for controllable nuclear fusion is projected to grow from 300 million yuan in 2024 to 4.9 billion yuan by 2030, with a CAGR of 59.29% [3][72] 3. Core Technology and Equipment Independent Research and Development, Maintaining Industry Leadership - The company has three core competitive advantages: technology, equipment, and delivery capability [4][75] - It has achieved a domestic market share of over 80% in second-generation high-temperature superconducting tape, ranking first for three consecutive years from 2022 to 2024 [4][86] - The company aims to expand its production capacity to 15,000 kilometers within two to three years [4][11]

Investment Rating - The report does not explicitly state an investment rating for the company Core Views - Shanghai Superconductor is the global leader in high-temperature superconducting (HTS) wire, with a unique annual shipment exceeding 1,000 kilometers. The company achieved a revenue of 240 million yuan in 2024, a year-on-year increase of 187.40%, and a net profit of 72.94 million yuan, successfully turning a profit after previous losses. The market for HTS materials is expected to exceed 10.5 billion yuan by 2030, with a CAGR of 53.91% from 2024 to 2030, particularly driven by the controllable nuclear fusion sector, which is projected to grow from 30 million yuan in 2024 to 4.9 billion yuan by 2030, with a CAGR of 59.29% [3][71]. Group 1: Company Overview - Shanghai Superconductor was established in 2011 and has developed a comprehensive production process for second-generation HTS wire, covering equipment development, raw material formulation, coating technology, cutting and packaging, and quality control monitoring [3][10]. - The company has maintained a domestic market share of over 80% for second-generation HTS wire, ranking first for three consecutive years from 2022 to 2024 [4][86]. Group 2: Financial Performance - The company's revenue increased from 36 million yuan in 2022 to 240 million yuan in 2024, with a growth rate exceeding 100% for two consecutive years [18][24]. - The net profit improved from a loss of 26 million yuan in 2022 to a profit of 72.94 million yuan in 2024, marking a successful turnaround [18][24]. - The gross margin rose from 24.28% in 2022 to 60.72% in 2024, primarily due to cost reductions driven by economies of scale [24][38]. Group 3: Market Potential - The global market for HTS materials is projected to exceed 10.5 billion yuan by 2030, with significant growth in applications such as controllable nuclear fusion and superconducting cables [71][67]. - The controllable nuclear fusion market is expected to grow significantly, with a projected increase from 30 million yuan in 2024 to 4.9 billion yuan by 2030 [71][67]. Group 4: Competitive Advantages - The company’s core competencies include technology, equipment, and delivery capabilities, with its production technology reaching international advanced levels [4][76]. - Shanghai Superconductor is one of only two companies globally capable of producing over 1,000 kilometers of HTS wire annually, highlighting its leading position in the industry [86][4].

Industry Insights - The State-owned Assets Supervision and Administration Commission (SASAC) emphasizes the need to enhance the resource security of important metal minerals and accelerate the comprehensive development of the non-ferrous metal industry chain, including exploration, investment, development, construction, smelting, and processing [1] - A new round of mineral exploration strategy is being implemented to increase reserves and production of important metal minerals, while also promoting a positive image of central enterprises in the "going out" strategy [1] - There is a focus on achieving high-quality stable growth by closely monitoring macroeconomic conditions and industry trends, adjusting business strategies, and planning major projects to support domestic demand expansion [1] Technology and Market Trends - High-temperature superconductors are expected to see increased market share due to ongoing developments in superconducting cables and controlled nuclear fusion applications [2] - The ReBCO tape is anticipated to significantly reduce production costs compared to first-generation high-temperature superconductors, presenting vast commercial prospects [2] - Controlled nuclear fusion is viewed as a potential ultimate solution for human energy needs, with commercial development prospects expected to accelerate as domestic and international projects progress [2] Company Developments - Western Superconductor is the only company in China that has achieved commercial production of superconducting wires, with products used in major scientific projects such as the International Thermonuclear Experimental Reactor (ITER) and China's fusion reactor [3] - Baile Electric has developed superconducting current limiter technology and is involved in the construction of smart grids for the State Grid, with products certified by IEC to enhance grid stability [3] - Dongfang Tantalum is recognized as the world's largest research and manufacturing base for superconducting niobium materials, achieving a stable RRR value of over 500 for high-purity superconducting niobium materials [4]

Group 1 - The construction of Hegang Luobei Airport in Heilongjiang Province has received preliminary design approval, marking the completion of preliminary work and the transition to full construction phase [2][3] - The airport is designed to handle an annual passenger throughput of 450,000 and a cargo throughput of 1,600 tons, featuring a 2,500-meter runway and a terminal building of 5,008 square meters [2][4] - The airport project aims to support the transformation of Hegang, a resource-depleted city, by enhancing air transport connectivity and promoting tourism and diversified industries [4][3] Group 2 - The planning for Hegang Airport began in 2013, with various approvals received over the years, including a joint approval from the State Council and Central Military Commission in 2022 [3][4] - The local government aims to start construction by June 2024 and expects the airport to be operational by 2027 [4] - Heilongjiang Province currently has 14 civil transport airports, ranking fifth in the country, and the new airport will enhance the regional transportation network [4] Group 3 - The Civil Aviation Administration and China National Railway Group are promoting the development of air-rail intermodal transport, focusing on collaboration and integration [5] - A new superconductor base with an investment of 2.5 billion yuan has commenced construction in Pudong, which will be the largest project in the global superconducting field [6] - Hubei Province has established a 10 billion yuan humanoid robot investment fund, focusing on core areas of humanoid robots and artificial intelligence [8]