Group 1 - Trump Media Technology Group (DJT) signed a final merger agreement with TAE Technologies, valued at over $6 billion, leading to a significant stock price increase of nearly 42% on December 18, 2023 [1] - The A-share market saw a rise in the controllable nuclear fusion index by nearly 3% on December 19, 2023, with companies like Liyang Optical Science, Prince New Materials, and others hitting the daily limit [1] Group 2 - The global nuclear fusion sector attracted over $7.1 billion in investments from 2021 to 2024, with $900 million raised in 2024 alone [2] - Domestic nuclear fusion projects are entering a bidding phase, with significant increases in tender amounts, including nearly $5 billion in October and $3.9 billion in November 2023 [2] - Over 10 companies in the A-share market have won bids for nuclear fusion projects since the fourth quarter of 2023, including Qifan Cable and Prince New Materials [2][3] Group 3 - Six companies are expected to see net profit growth exceeding 10% in 2025 and 2026, including Prince New Materials and Western Superconducting [4] - Prince New Materials is projected to turn a profit in 2025, benefiting from the acceleration of industrial project construction [4] - Eastern Precision is forecasted to achieve a net profit increase of over 40% in 2025 and nearly 20% in 2026, following a recent successful bid for a nuclear fusion project [5]

Core Viewpoint - The report indicates a continued upward trend in liquid argon prices, while the average price of rare gases remains stable. The industrial gas sector in China shows an increase in weekly operating load rates, and a significant project win for Hangyang in the low-temperature distribution valve box project is highlighted [1][2][3]. Price Trends - Liquid argon prices have increased by 3.94% week-on-week, reaching an average of 949 RMB per ton, and have risen by 52.84% year-on-year. In contrast, liquid oxygen and liquid nitrogen prices have decreased by 2.87% and 0.78% week-on-week, averaging 372 RMB and 388 RMB per ton, respectively [2]. - The average prices for rare gases are as follows: high-purity helium (91 RMB per cubic meter, stable), bottled high-purity helium (625 RMB per bottle, stable), xenon (22,500 RMB per cubic meter, stable), krypton (215 RMB per cubic meter, stable), and neon (110 RMB per cubic meter, stable) [2]. Operating Load Rates - The average weekly operating load rate for China's industrial gas sector is reported at 70.28%, reflecting an increase of 1.28 percentage points week-on-week [3]. Significant Events - Hangyang Group has successfully won the bid for the low-temperature distribution valve box project from Fusion New Energy (Anhui) Co., Ltd. This project includes seven sets of low-temperature distribution valve boxes for the BEST low-temperature system [3].

Investment Rating - The report assigns an "Accumulate" rating for the mechanical industry [1]. Core Insights - The price of liquid argon continues to rise, while the average weekly price of rare gases remains stable [3][4]. - The operating load rate of China's industrial gas sector has increased on a weekly basis [3][4]. - Hangyang has won the bid for the BEST low-temperature distribution valve box project, which includes seven sets of low-temperature distribution valve boxes for the compact fusion energy experimental device [3][4]. Summary by Sections Price Trends - Liquid argon has an average price of 949 RMB/ton, showing a week-on-week increase of 3.94% and a year-on-year increase of 52.84% [4]. - The average prices for other gases are as follows: - Liquid oxygen: 372 RMB/ton, down 2.87% week-on-week, down 5.1% year-on-year - Liquid nitrogen: 388 RMB/ton, down 0.78% week-on-week, down 3.6% year-on-year - High-purity helium (cylinder): 625 RMB/bottle, stable week-on-week, down 5.15% year-on-year - Xenon: 22,500 RMB/cubic meter, stable week-on-week, down 23.73% year-on-year - Krypton: 215 RMB/cubic meter, stable week-on-week, down 38.57% year-on-year - Neon: 110 RMB/cubic meter, stable week-on-week, down 12% year-on-year [4][8]. Operating Load Rate - As of December 10, 2025, the average operating load rate for China's industrial gas sector is 70.28%, reflecting an increase of 1.28 percentage points week-on-week [4][7]. Key Events - Hangyang has successfully secured the bid for the low-temperature distribution valve box project for the BEST low-temperature system, marking a significant achievement in the industry [4][3]. Recommended Stocks - Recommended stocks include Hangyang Co., Ltd. and Shaanxi Blower Co., Ltd. with related stocks being Zhengfan Technology, Fostar, and Zhongtai Co., Ltd. [4].

Core Viewpoint - Hangyang Co., Ltd. has successfully won the bid for the low-temperature distribution valve box project from Fusion New Energy (Anhui), which includes 7 sets of low-temperature distribution valve boxes, indicating the company's strong technical capabilities in the deep low-temperature technology field [1] Group 1: Project Wins and Technical Strength - The successful bid for the low-temperature distribution valve box project and the low-temperature nitrogen system project demonstrates Hangyang's comprehensive technical strength and engineering capabilities, gaining high recognition from clients [1] - The deep low-temperature technology of Hangyang includes nitrogen refrigeration systems and helium refrigeration systems, with a focus on controllable nuclear fusion as a key development direction [1] Group 2: Market Outlook and Growth Potential - According to research reports, Hangyang is a pure domestic demand stock with both cyclical and growth characteristics, as the gas industry is at the bottom of the cycle, and future performance is expected to turn upward [2] - The company is accelerating its layout in controllable nuclear fusion and other fields, opening up a second growth curve [2] Group 3: Industry Trends and Strategic Positioning - In the pipeline gas sector, the company's defensive attributes lead to stable growth with less impact from macroeconomic fluctuations, while in the retail gas sector, the offensive attributes may yield significant performance elasticity with potential economic recovery [2] - The company is also focusing on new growth points such as electronic specialty gases and has established partnerships for quantum computing and commercial aerospace, indicating a broad market space and potential for future growth [2]

Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company has successfully won a bid for the low-temperature distribution valve box project from Fusion Energy (Anhui), which includes 7 sets of low-temperature distribution valve boxes, indicating accelerated growth potential in the controllable nuclear fusion sector [1]. - The company is positioned as a leader in the industrial gas sector in China, benefiting from both cyclical and growth aspects, with expectations for performance to turn upward as the gas industry is at a cyclical low [1][2]. - The company is actively expanding into controllable nuclear fusion, quantum computing, and commercial aerospace, which are expected to open new growth avenues [2]. Summary by Relevant Sections Company Overview - The company has a strong technical capability in deep low-temperature technology, evidenced by multiple successful bids for projects related to the BEST low-temperature system [1][2]. - The company is expected to significantly increase its market share in the third-party stock market, potentially reaching 30-40% by 2025, contributing to long-term performance growth [2]. Financial Forecast - The projected net profit for the company from 2025 to 2027 is estimated to be 1.07 billion, 1.30 billion, and 1.51 billion yuan, respectively, with year-on-year growth rates of 16%, 22%, and 17% [3][4]. - The company's earnings per share (EPS) is expected to increase from 0.94 yuan in 2024 to 1.55 yuan in 2027 [4]. Market Position - The company is expected to leverage its existing capabilities in gas equipment to penetrate the controllable nuclear fusion low-temperature system market, which has significant domestic replacement potential [1][2]. - The company has established partnerships with leading firms like Anhui Fusion Energy, enhancing its competitive position in the market [1][2].

Core Viewpoint - Hangyang Co., Ltd. has successfully won the bid for the low-temperature distribution valve box project from Fusion New Energy (Anhui) Co., Ltd., marking an expansion into new applications in the controlled nuclear fusion field [1] Company Summary - The low-temperature distribution valve box is designed to deliver cooling capacity to different equipment, precisely controlling the flow and pressure of the coolant to ensure each device operates at its optimal temperature and pressure [1] - Hangyang has also successfully secured bids for two projects: the BEST low-temperature system low-temperature distribution valve box and the low-temperature nitrogen system [1]

Core Viewpoint - Hangyang Co., Ltd. has successfully won the bid for the low-temperature distribution valve box project from Fusion New Energy (Anhui) Co., Ltd., marking an expansion of Hangyang's application range in the field of controlled nuclear fusion [1] Group 1: Project Details - The low-temperature distribution valve box is designed to deliver cooling capacity to different devices within a fusion device, ensuring precise control of coolant flow and pressure for optimal operation [1] - This project is significant as it highlights the interdependence of various components in a fusion device that require simultaneous cooling [1] Group 2: Recent Achievements - Hangyang has also successfully secured bids for two additional projects: the BEST low-temperature system low-temperature distribution valve box and the low-temperature nitrogen system [1]