Core Viewpoint - China's nuclear fusion energy engineering has entered a substantial and systematic phase of industrial collaborative breakthroughs, with significant advancements in key technologies and partnerships being established [1] Group 1: Industry Developments - On January 16, at the 2026 Nuclear Fusion Energy Science and Industry Conference, the Hefei Comprehensive National Science Center Energy Research Institute signed a series of cooperation agreements with leading enterprises and research institutions in the industry chain [1] - Multiple joint laboratories focusing on key nuclear fusion technologies are being established, including advanced divertor laboratories, high-end metal materials research laboratories, high-multiplication energy storage devices and high-performance equipment laboratories, and nuclear fusion vacuum equipment development laboratories [1] Group 2: Market Outlook - CITIC Securities views nuclear fusion as the ultimate energy source for humanity, with significant long-term growth potential and a current phase driven by major events [1] - Domestic capital expenditure (CapEx) is progressing orderly, and overseas advancements are expected to exceed expectations, establishing a long-term growth trend for the industry [1] - Under the accelerated construction of international and domestic facilities, orders for component manufacturers are expected to be fully released, leading to a positive outlook for the industry [1] Group 3: Policy and Strategic Support - Ping An Securities emphasizes that controllable nuclear fusion is becoming an important energy solution globally, with increasing attention from various countries and the introduction of relevant policies and strategic plans [1] - With the continuous development of China's industrial chain and ongoing technological advancements, breakthroughs in controllable nuclear fusion are expected, supported by increasing policy backing [1] - The industrialization process of controllable nuclear fusion in China is anticipated to accelerate, benefiting related companies in the industry chain [1]

Core Insights - The controlled nuclear fusion industry is experiencing positive developments with significant breakthroughs reported by Energy Singularity, which achieved a stable long-pulse plasma operation for 335 seconds during its 5609th experiment [1] - Energy Singularity, established in 2021, is recognized as the first commercial fusion energy company in China [1] - A series of cooperation agreements were signed at the 2026 Nuclear Fusion Energy Technology and Industry Conference, involving Hefei Comprehensive National Science Center and several leading enterprises and research institutions to establish joint laboratories focused on key nuclear fusion technologies [1] Investment Opportunities - Since the beginning of 2026, there have been 12 nuclear fusion concept stocks that have seen net inflows exceeding 100 million yuan, with Western Superconducting, Western Materials, and Dongfang Electric leading the rankings, each exceeding 300 million yuan in investment [1]

Group 1 - The controllable nuclear fusion industry is experiencing positive developments, with significant breakthroughs in high-temperature superconducting tokamak technology [1] - The global nuclear fusion market is projected to approach $500 billion by 2030, driven by substantial advancements in engineering and collaboration among key industry players [2][3] - The Chinese government has elevated controllable nuclear fusion to a national strategic priority, encouraging research and technological development in this field [2] Group 2 - Major investments are being made in nuclear fusion concept stocks, with significant net purchases recorded since the beginning of 2026 [4] - Companies like Western Superconducting and Western Materials are actively involved in producing superconducting materials for international fusion projects, enhancing their market influence [6] - A number of nuclear fusion concept stocks are expected to see substantial profit growth in 2025, with predictions indicating significant increases for companies like Yongding Co. and Guoguang Electric [7][8]

Group 1 - The core point of the article is that Shanghai Xinghuan Juneng Technology Co., Ltd. has successfully completed a Series A financing round of 1 billion yuan, setting a record for private nuclear fusion companies in China [2][5] - The company was originally based in Shaanxi and has recently relocated its registration to Shanghai, indicating a strategic shift in its operational focus [3][4] - The financing was led by state-owned enterprises in Shanghai, and the company plans to establish a research and development center and experimental base in the Jiading District of Shanghai [5] Group 2 - Xinghuan Juneng was founded in October 2021 and has a registered capital of 1.497206 million yuan, with its founder and CEO being Chen Rui [3][4] - The company has received previous investments from the Xixian New Area Fund, totaling 4.63 million yuan, which has supported its technological advancements [2] - The company aims to complete the engineering validation of its spherical tokamak fusion experimental device by 2028 and establish a fusion demonstration reactor capable of generating electricity by around 2032 [5]

Investment Rating - The report maintains a "Recommended" rating for the controllable nuclear fusion industry, indicating an expectation of significant growth in the sector over the next 3-6 months [3][49]. Core Insights - The 2026 Nuclear Fusion Energy Technology and Industry Conference held in Hefei is expected to accelerate the industrialization of nuclear fusion, with major procurement projects and collaborations being signed [1][8]. - Star Ring Fusion has completed a 1 billion RMB Series A financing round, which will expedite the commercialization of nuclear fusion technology, aiming to complete engineering validation by 2028 and establish a demonstration reactor by around 2032 [9][1]. - The report anticipates that the domestic nuclear fusion projects will see a total investment of approximately 146.5 billion RMB from 2025 to 2028, marking a significant increase in capital expenditure [8][1]. Summary by Sections Industry Overview - The report highlights the successful completion of the REBCO high-temperature superconducting tape by Eastern Superconductors, which plays a crucial role in the development of advanced superconducting models for nuclear fusion [2][11]. Investment Recommendations - The report continues to recommend companies such as Hezhong Intelligent and Lianchuang Optoelectronics, while suggesting attention to Guoguang Electric [3][23]. - In the magnet segment, companies like Western Superconductors, Yongding Co., and Jingda Co. are highlighted for their high value contribution [3][33]. - For internal structural components and others, the report recommends companies like Sihua Electronics, Yingliu Co., and Wanyi Technology, while suggesting to pay attention to Antai Technology and Jiuli Special Materials [3][34]. Market Trends - The report notes a significant increase in bidding activity, with a total of 1.28 billion RMB in new bids reported in the first half of January 2026, indicating a robust growth trajectory in the nuclear fusion sector [7][12]. - The market performance in early January 2026 shows notable gains for several companies, with New Wind Power leading at +42% [22][26]. Future Outlook - The report emphasizes that controllable nuclear fusion is now included in top-level planning as a future industry, with capital expenditures expected to rise significantly, leading to increased orders across the industry chain [1][8]. - The next 3-5 years are projected to be a peak period for nuclear fusion project tenders, with substantial investments anticipated [1][8].

Summary of Key Points from the Fusion Energy Conference Records Industry Overview - The conference focused on the development of nuclear fusion technology in China, particularly the FAST project, which is aligned with the US SPARK project. The BICE main engine is expected to be installed by 2027, achieving a Q value greater than 1 by 2030, and reaching a Q value of 5 to 10 by 2035, with large-scale power generation planned for 2050 [1][3][5]. Core Insights and Arguments - **Funding and Procurement Plans**: The annual procurement budget for 2026 is set at 8.79 billion RMB, a 40% increase from the previous year. This budget will cover over 120 projects, funded by 14 billion RMB from financing and over 6 billion RMB from two major project orders [1][4][6]. - **CIPHER Project**: This project will be established in Changfeng Town, Hebei Province, with the Tokamak demonstration reactor expected to be completed by 2035. The laser confinement route aims to achieve a Q value greater than 1 by 2027 and greater than 5 by 2028, with ignition experiments planned for 2035 [1][7]. - **BEST Reactor Project**: The overall investment for the BEST reactor project is close to 20 billion RMB, with 8.79 billion RMB allocated for 2026. The project aims to cover 80% of the industry chain needs, with the remaining 20% to be addressed in 2027 [1][9]. Important but Overlooked Content - **Policy Support**: Recent changes in national policy, including a more relaxed regulatory attitude towards nuclear materials and a tiered regulatory approach for fusion-related devices, indicate strong governmental support for the development of nuclear fusion technology [5]. - **Market Dynamics**: The primary market for nuclear fusion financing is active, with companies like Dongsheng Juhuan and New Ring Intelligent completing significant funding rounds. This activity is expected to influence the secondary market in the coming years [2][15]. - **Key Companies Involved**: - **Hefei Plasma Institute**: Funding sources include market financing through Juhuan New Energy, national key R&D plan support, and remaining funds from the 14th Five-Year Plan for educational infrastructure [8]. - **Companies in the BEST Project**: - **Hefei Intelligent**: Responsible for lathe and vacuum coating installation, with orders valued at 360 to 400 million RMB [10]. - **Guoguang Electric**: Handling orders exceeding 1 billion RMB for the manufacturing plant [10]. - **Antai Technology**: Responsible for the filter, with stable annual orders of at least 10 million RMB [10]. Future Projections - **Upcoming Milestones**: Key milestones for 2026 include the completion of the vacuum chamber by May 31, 2026, and the completion of the inner vacuum closure by November 15, 2027 [13]. - **Starfire Project**: This project has received initial funding commitments from local governments and is expected to begin procurement processes in 2026 [14]. - **Market Trends**: The nuclear fusion sector is experiencing a trend similar to the commercial aerospace industry, with government support for new entities seeking market financing. However, there is currently no specific green channel policy for nuclear fusion akin to that in commercial aerospace [16]. This summary encapsulates the critical developments and insights from the conference, highlighting the strategic direction of China's nuclear fusion initiatives and the associated market dynamics.

Group 1 - The article discusses China's commitment to technological openness and cooperation in response to global challenges such as climate change and energy security [1] - China has made significant technological breakthroughs in nuclear fusion energy and deep space exploration, aligning cutting-edge technology with the practical needs of humanity [1] - The International Thermonuclear Experimental Reactor (ITER) project, which China joined in 2006, is a major international scientific endeavor, with China responsible for approximately 10% of the procurement tasks [1] Group 2 - China's "artificial sun" team has successfully delivered numerous procurement packages for ITER and is engaged in joint experiments to address key scientific issues necessary for ITER's operation [2] - The Experimental Advanced Superconducting Tokamak (EAST) in Anhui has set multiple world records over the past decade, showcasing its leading performance in nuclear fusion research [2] - The establishment of the International Academy of Deep Space Exploration in Anhui, led by China, aims to initiate international scientific programs and contribute to reshaping international cooperation in space exploration [3]

Investment Rating - The industry investment rating is "Positive" (maintained) [6] Core Insights - The report highlights accelerated integration in the US fusion industry, with frequent technological breakthroughs and a continuous strengthening of the "engineering" logic [1] - International cooperation is advancing, with significant policy support at both national and international levels, emphasizing the strategic urgency of major economies in seizing future energy dominance [1][13][17] - The report notes substantial progress in various technological pathways, particularly in Tokamak device construction and other fusion technology routes, indicating a robust trajectory towards commercialization [2][19][25] Policy Insights - National policies are increasingly supportive of fusion energy, with the Chinese government explicitly including fusion technology in its "14th Five-Year Plan" [1][11] - A cooperation agreement between China and France has been established, marking a new phase in international collaboration on fusion technology [13][14] - South Korea has advanced its fusion energy goals by moving the timeline for fusion power generation from the 2050s to the 2030s, highlighting the urgency among global economies [17][18] Industry Developments - Significant advancements in Tokamak devices include the completion of key plasma control coils for the JT-60SA, which is set to facilitate high-parameter experiments in 2026 [2][19] - The CRAFT facility has successfully passed its first performance test, confirming that its core components meet design specifications [21] - China's ITER project has officially commenced mass production of its first wall components, a critical step in the development of fusion reactors [22] Capital Market Activity - The US fusion industry is experiencing rapid consolidation, with notable mergers such as Trump Media and Technology Group's acquisition of TAE Technologies, which is set to launch the world's largest commercial fusion power plant [3][27][29] - Initial public offerings and significant funding rounds for startups in the fusion sector are on the rise, indicating growing investor confidence in fusion technology [3][33][36] Investment Recommendations - The report suggests focusing on midstream equipment companies such as Lianchuang Optoelectronics, Xuguang Electronics, and others, as well as upstream material suppliers like Yongding Co. and West Superconducting [4][37]

Core Insights - The 2026 Nuclear Fusion Energy Technology and Industry Conference exceeded expectations with over 400 investment institutions in attendance, highlighting the growing interest in nuclear fusion as a future energy source [1] Industry Overview - Nuclear fusion energy, seen as a potential ultimate energy solution, is transitioning from "scientific breakthroughs" to "energy applications," marking a significant historical turning point [1] Investment Landscape - The conference attracted attention from academia, industry, and the financial investment community, indicating a strong interest in the commercialization of nuclear fusion technology [1]

Group 1 - Controlled nuclear fusion is transitioning from laboratory experiments to engineering and commercialization, with expectations to see the first demonstration of fusion energy by around 2030 [1] - The core of fusion commercialization lies in finding a technically feasible and economically viable path, with a unique structure in China's fusion sector characterized by collaboration between state-owned enterprises and private companies [1][2] - Major advanced tokamak devices like EAST and the China Fusion Engineering Test Reactor are leading scientific exploration, supported by the construction of key research facilities for fusion technology development [2] Group 2 - The demand for upstream industries such as superconducting materials and vacuum equipment is being driven by significant advancements in large scientific devices [3] - Collaborative models, such as joint laboratories, are effectively breaking through technical bottlenecks in the supply chain, enhancing the efficiency of engineering advancements [6] - The establishment of educational institutions focused on fusion science and engineering is diversifying talent cultivation pathways, with universities like Hefei University of Technology and Lanzhou University setting up relevant programs [6][7] Group 3 - Financial institutions are increasingly supporting the fusion industry, with the establishment of a fusion financial alliance and a venture capital fund aimed at aligning financial services with industry needs [8] - The transition of fusion energy from basic research to large-scale application represents a significant opportunity for technological innovation to drive manufacturing upgrades and cultivate new productive forces [8]