Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **controlled nuclear fusion industry**, specifically the **magnet segment** which holds a significant value share in the overall investment landscape. The ITER project allocates approximately **30%** of its total investment to magnets, with potential increases to **40%** for high-temperature superconducting (HTS) technologies [1][3]. Core Insights and Arguments - **Investment Potential**: 2025 is anticipated to be a pivotal year for investments in controlled nuclear fusion, with capital expenditures expected to expand rapidly from **2025 to 2028**. This will lead to active bidding across the entire industry chain, benefiting companies with secured orders [1][5]. - **Technological Advancements**: Low-temperature superconducting (LTS) technology is currently mature, while HTS is viewed as the future direction, with companies like **West Superconductor** and **Shanghai Superconductor** leading in their respective fields. HTS is expected to reduce device size and costs significantly [1][3][4]. - **Market Dynamics**: The recent bidding activity has been robust, with a notable **$4 billion** project in November, indicating that market expectations are being met and the industry is progressing steadily [6]. Company-Specific Insights - **West Superconductor**: This company has established a leading position in the LTS sector, maintaining a gross margin above **30%** and benefiting from substantial orders due to the BEST project. Their products have been certified internationally and are crucial for nuclear fusion applications [7][8]. - **Shanghai Superconductor**: Recognized as a global leader in HTS wire production, the company has a production capacity exceeding **1,000 meters** and has secured contracts for significant international fusion projects, achieving a gross margin over **60%**. Plans for further capacity expansion are underway [13][14][15]. Risks and Challenges - The controlled nuclear fusion industry faces uncertainties, including project advancement risks, policy changes, and insufficient funding. Investors are advised to closely monitor these variables as they could significantly impact industry development [2][17]. Additional Noteworthy Content - The transition from first-generation copper oxide to second-generation rare earth metal oxides in HTS materials is noted for its higher critical temperatures and stronger current-carrying capabilities, indicating a promising future for these materials in fusion applications [10][12]. - The competitive landscape includes other companies like **Yongding Co.** and **Lianchuang Optoelectronics**, which are also making strides in HTS and LTS technologies, respectively [16]. This comprehensive overview highlights the significant investment opportunities and technological advancements within the controlled nuclear fusion industry, while also addressing the inherent risks that investors should consider.

招标风再起，核聚变再到配置节点 20251210 摘要 2025 年核聚变招标数量预计达 160-180 亿元，标志着行业关键拐点， 多地项目启动预示国家投入巨大，2026 年招标体量预计继续上升，行 业热度将更高。 选股策略上，建议关注龙头及平台型公司，其产品或服务可广泛应用于 反应堆项目，价值量大且市场份额高，如永鼎和杭氧，具备长期增长潜 力。同时，可关注与特定项目关联密切的链主企业。 2026 年是实验堆向工程堆过渡的关键年，CFBDR 项目预计启动，规模 达 800-1,000 亿元，将大幅提升市场估值，推动核聚变商业化进程，头 部公司如永鼎与杭氧的配置价值凸显。 核聚变反应堆通过强磁场约束氘氚原子，实现高温高压反应。托卡马克 装置中，磁体价值量占比最高，低温装置磁体加量达 30%，高温装置达 35%-40%，高加量、高壁垒方案是必然选择。 Q 值是衡量核聚变反应堆性能的关键指标，Q 值大于 30 被认为是商业 化条件。目前尚未开始氘氚反应，2026 年起实验启动后，将有助于观 察更有意义的指标，推动行业发展。 Q&A 核聚变作为未来发电的终极能源，其优势和难点分别是什么？ 核聚变的优势在于其高能量密 ...

Summary of Key Points from the Conference Call on High-Temperature Superconductors and Their Applications in Controlled Nuclear Fusion Industry Overview - The discussion centers around the superconducting materials industry, particularly focusing on high-temperature superconductors (HTS) and their applications in controlled nuclear fusion [1][2][10]. Core Insights and Arguments - **Key Characteristics of Superconductors**: Superconductors are defined by three critical characteristics: zero electrical resistance, complete diamagnetism, and a distinct change in specific heat curve. These characteristics are essential for determining the superconducting nature of materials [1][4]. - **Performance Metrics**: The performance of superconducting materials is primarily measured by critical temperature, critical magnetic field, and critical current density. These metrics are crucial for assessing the application potential of superconductors [5][10]. - **Types of Superconductors**: Superconductors are categorized into two main types based on critical fields: Type I (single critical field) and Type II (two critical fields). Most practical superconductors fall under Type II, which is more applicable for industrial use [6][8]. - **Applications in Nuclear Fusion**: High-temperature superconductors are vital in controlled nuclear fusion due to their zero resistance and complete diamagnetism, which help in maintaining stable fusion reactions and reducing energy losses [2][10][11]. Practical Applications and Challenges - **Current Utilization**: Low-temperature superconductors like niobium-titanium and niobium-tin are widely used in strong electric fields, such as MRI machines and particle accelerators, despite requiring liquid helium for cooling [9][12]. - **Challenges for High-Temperature Superconductors**: HTS face significant challenges, including brittleness, low strength, and high anisotropy, which hinder their scalability and application compared to low-temperature superconductors [3][13]. - **Advancements in Second-Generation HTS**: Second-generation HTS materials have shown significant improvements in critical current density and are gradually entering industrial applications, particularly in nuclear fusion [15]. Emerging Trends and Research Directions - **Research Focus**: Recent research has focused on increasing the transition temperature of superconductors under high-pressure conditions, although not all high-temperature superconductors are unconventional [7][8]. - **Material Development**: The development of nickel-based superconductors has shown promise, but practical applications remain distant. Current efforts are concentrated on enhancing existing materials like magnesium diboride and copper oxides [21]. Manufacturing Techniques - **Production Methods**: Various production methods for HTS include Pulsed Laser Deposition (PLD), Metal-Organic Chemical Vapor Deposition (MOCVD), and Solution Deposition (MOD). Each method has its advantages and disadvantages, impacting the quality and performance of the superconducting materials produced [22][23][24]. - **Selection Criteria**: The choice of production method depends on the specific application requirements, such as performance metrics and cost considerations [27]. Conclusion - The superconducting materials industry, particularly high-temperature superconductors, is poised for growth driven by advancements in nuclear fusion technology. However, challenges related to material properties and manufacturing processes must be addressed to fully realize their potential in practical applications [11][20].

Group 1: Core Insights - The International Atomic Energy Agency (IAEA) will release the "2025 World Fusion Outlook" report during the 30th Fusion Energy Conference in Chengdu, China, in October 2025, highlighting significant advancements in nuclear fusion and its transition from concept to reality through scientific breakthroughs, industrial capital, and international collaboration [1] - The domestic nuclear fusion project "BEST" has made breakthrough progress this year, with the establishment of local fusion industry entities and ongoing engineering tenders, indicating a rapid transition from laboratory to practical applications [1] - The A-share nuclear fusion sector has shown strong performance, with the Wind nuclear fusion index rising by 6.87% since October 1, 2023, and a peak increase of over 14% during this period [1] Group 2: Investment Pathways - The BEST project in Hefei, Anhui, has achieved a key breakthrough with the successful development and installation of the Dewar base, marking a new phase in the project's construction, expected to be completed by 2027 and demonstrate power generation by 2030 [2][3] - Nuclear fusion differs from traditional nuclear fission in terms of technology principles, maturity, and industry chain composition, with fission relying on uranium resources and fusion primarily utilizing deuterium, which can be extracted from seawater [5][6] - Companies involved in deuterium production include China Shipbuilding Special Gas (688146.SH), which has an annual production capacity of 10 tons of deuterium with high purity [7][8] Group 3: Key Materials and Technologies - Tritium, a critical fuel for nuclear fusion, is radioactive and scarce in nature, presenting a significant challenge for commercialization. Current methods involve breeding tritium through neutron bombardment of lithium-6 within reactors [8][9] - Companies providing tritium factory technology or key materials for tritium breeding, such as Dongfang Tantalum (000962.SZ) with beryllium materials, are essential for the industry [9] - The BEST project requires advanced vacuum environments for plasma containment, leading to high demand for vacuum chambers and core components, with companies like Hunan Zhiye (603011.SH) gaining popularity in this sector [9][10] Group 4: Industry Players - Major players in the nuclear fusion sector include Shanghai Electric (601727.SH) and Dongfang Electric (600875.SH), which have been involved in various fusion projects and are key contributors to the development of critical components for fusion reactors [10] - The ongoing collaboration among industry partners in large-scale nuclear fusion experiments is focused on addressing the early-stage challenges of commercializing laboratory fusion devices, indicating that the A-share nuclear fusion concept may not generate stable cash flow in the short term [10]

Core Insights - The International Atomic Energy Agency (IAEA) will release the "2025 World Fusion Outlook" report during the 30th Fusion Energy Conference in Chengdu, China, in October 2025, highlighting significant advancements in nuclear fusion and its transition from concept to reality [1] - The domestic nuclear fusion project "BEST" has made breakthrough progress this year, with local entities being established and engineering tenders being issued, indicating rapid development in the field [1] - The A-share nuclear fusion sector has shown strong performance, with the nuclear fusion index rising by 6.87% since October 1, 2023, and a peak increase of over 14% during this period [1] Industry Developments - The BEST project in Hefei, Anhui, achieved a key breakthrough with the successful delivery and installation of the main component, the Dewar base, marking a new phase in the project's construction [2] - The BEST project is expected to be completed by 2027 and aims to demonstrate power generation by 2030 [3] Technical Challenges - Achieving commercial nuclear fusion will require overcoming significant scientific and engineering challenges, including maintaining plasma stability and achieving a net energy gain (Q) greater than one [4] - Future projects will need to address challenges related to tritium self-sustainability and cost reduction for materials, as well as the availability of key fusion fuels [4] Investment Landscape - The nuclear fusion sector differs from traditional nuclear fission in terms of technology maturity and industry chain structure, with fission having a more established supply chain [5] - Deuterium, a key fusion fuel, is abundant and can be extracted from seawater, while tritium is radioactive and scarce, presenting a bottleneck for commercialization [6][8] - Companies like China Shipbuilding Special Gas (688146.SH) have disclosed deuterium production capacity, while others focus on tritium production technologies and materials [7][9] Key Players - Companies supplying critical components for the BEST project, such as Hunan Huatian Technology (603011.SH) and West Superconducting (688122.SH), are gaining attention in the market [9] - Major players in the fission nuclear energy sector, including Shanghai Electric (601727.SH), Dongfang Electric (600875.SH), and China Nuclear Engineering (601611.SH), are also involved in fusion projects [10] - Shanghai Electric has participated in various fusion projects since the early 2000s, while Dongfang Electric has developed key components for fusion devices [10]

Summary of Key Points from Conference Call Industry Overview - The conference call discusses the **controlled nuclear fusion** industry, particularly focusing on the **BEST project** and its implications for the market. The industry is entering a new phase with accelerated bidding for key components like power supplies and superconducting materials in the second half of the year [1][2][3]. Core Insights and Arguments - The **BEST project** has made significant progress, with the successful installation of the **Dewar base** into the main device, marking a new stage for the project [2][3]. - Other notable projects in the controlled nuclear fusion sector include those by **China Nuclear Group** and **Chengdu and Jiuyuan**, which are expected to have more bidding activities next year, impacting the market from 2026 onwards [1][4]. - The **controlled nuclear fusion supply chain** is centered around structural components such as vacuum chambers, divertors, blanket cold screens, magnets, and Dewars, along with upstream materials like low-temperature superconducting wires and tungsten materials [1][5]. - The **module power supply industry** is benefiting from the recovery of defense demand and the growth of AI applications, with the military market projected to reach **59 billion RMB** by 2028 [1][12][13]. - The demand for **AI servers** has significantly increased power consumption, leading to a need for high-performance, high-density, and reliable power supply systems, which in turn accelerates the application of modular and integrated power systems [1][14][16]. Additional Important Insights - The **magnet system** is crucial in controlled nuclear fusion, accounting for approximately **28%** of the experimental pile's value, with a shift towards high-temperature superconductors expected to reduce cooling requirements and costs [1][7]. - The **power supply system** plays a significant role, comprising about **8%** of the overall system, with domestic and international companies likely to secure contracts in upcoming bidding processes [1][8]. - The **controlled nuclear fusion supply chain** includes upstream materials, midstream equipment, and downstream research institutions, with key players identified in each segment [1][9]. - **West Superconducting** is a key supplier of low-temperature superconducting wires, with a projected market value of **500 million RMB** in 2025, despite currently lower market attention [1][10][11]. - The **module power supply industry** is expected to enter a high-growth cycle, driven by defense and AI applications, with the military module power supply market projected to exceed **10 billion RMB** by 2025 and **15 billion RMB** by 2028 [1][12][13]. - The global AI market is anticipated to exceed **11 trillion USD** by 2030, with related supply equipment markets growing even faster, indicating significant investment opportunities [1][17][18]. Conclusion - The controlled nuclear fusion industry is poised for growth with ongoing projects and increasing demand for related technologies. The module power supply sector is also expected to thrive due to rising defense and AI needs, presenting various investment opportunities in the coming years [1][12][13][17].

Summary of Key Points from the Conference Call Industry Overview - The nuclear fusion sector is experiencing rapid advancements, with both state-owned and private enterprises exceeding expectations in project progress. The Helen project plans to sell electricity to Microsoft by 2030, indicating a rising phase for industry catalysts [1][2]. Core Insights and Arguments - Various technical routes for nuclear fusion exist, with magnetic confinement technology showing greater scalability potential. The Tokamak device is the mainstream choice, with projects like ITER and BEST adopting this technology, while smaller FRC designs are more suitable for distributed power generation [1][6]. - Superconducting materials are critical to Tokamak devices, with high-temperature superconductors expected to account for nearly 50% of materials used in the future. Companies to watch include Shanghai Superconductor, Yongding, and Jinda, as well as magnet companies like Lianchuang Optoelectronics [1][7]. - The magnetic confinement scheme is preferred due to its strong engineering feasibility and long energy confinement time, achieved through strong magnetic fields that confine charged particles for controlled nuclear fusion [1][8]. Market Trends and Projections - The market demand for high-temperature superconducting materials in nuclear fusion magnets is projected to grow from 300 million yuan in 2024 to 4.9 billion yuan by 2030, with a compound annual growth rate (CAGR) of approximately 60% [3][15]. - The current focus in the nuclear fusion sector includes domestic project planning and bidding, as well as ignition progress in international projects. Key upcoming events include the Chengdu advanced skills unveiling and various bidding activities from companies like Shanghai China Fusion Energy and Nova Fusion [2][5]. Technical Insights - The Tokamak discharge process involves three stages: gas injection into the vacuum chamber, rapid current induction to accelerate free electrons, and further gas injection to increase reactant density and temperature [10][11]. - Superconducting materials significantly enhance nuclear fusion performance, with early materials achieving magnetic field strengths of 3-5 Tesla, while future trends indicate potential peaks of 12 Tesla with high-temperature superconductors [12][14]. Competitive Landscape - In the superconducting cable sector, notable companies include ASD, FFG, and Furukawa Electric internationally, with domestic players like West Superconducting Cable and Shanghai Superconducting Cable leading the market. Shanghai Superconducting Cable is expanding rapidly and supplying to major projects [16][17]. Additional Important Points - The distinction between magnetic mirror, stellarator, and Tokamak devices lies in their magnetic field structures and plasma confinement methods, with Tokamak being the most researched and developed [9]. - High-temperature superconductors are more advantageous than low-temperature ones due to their operational efficiency in liquid nitrogen environments and lower production costs, despite the initial high costs associated with first-generation materials [13]. This summary encapsulates the essential insights and developments within the nuclear fusion industry as discussed in the conference call, highlighting both current trends and future projections.

Investment Rating - The report rates the industry as "Outperform" [1] Core Insights - The commercialization of controlled nuclear fusion is accelerating, with superconducting magnets expected to benefit significantly from this trend [1][3] - The industry is entering a rapid development phase due to breakthroughs in technology, particularly the large-scale application of high-temperature superconducting materials [1][3] - The potential market for controlled nuclear fusion could reach at least $1 trillion by 2050, with superconducting magnets representing a market space exceeding $100 billion [3] Summary by Sections Superconducting Magnets as Core Components - Superconducting magnets are critical components in magnetic confinement fusion devices, particularly in Tokamak systems, where they account for a significant portion of costs, reaching 28% in the ITER project [1][14][20] - The introduction of superconducting materials, especially high-temperature superconductors, addresses the heating issues associated with copper conductors, enabling longer and more efficient operation of fusion devices [1][29] Material Preparation and Manufacturing Processes - The preparation and winding processes for superconducting magnets are complex, with high barriers to entry for high-temperature superconductors, which are still in the early stages of industrialization [3][39] - Low-temperature superconductors have achieved commercial production, while high-temperature superconductors are still developing their performance and application capabilities [3][39] Future Applications and Market Potential - The application prospects for superconducting magnets are broad, extending beyond controlled nuclear fusion to include MRI, NMR, induction heating equipment, and silicon growth furnaces [1][3] - The report recommends focusing on publicly listed companies with superconducting magnet manufacturing capabilities, highlighting companies such as Lianchuang Optoelectronics and Western Superconducting Technologies [3]

Summary of Fusion Industry Conference Call Industry Overview - The conference call focused on the nuclear fusion industry, particularly advancements in magnetic confinement fusion technology, specifically the stellarator and tokamak designs [1][3][4]. Key Points and Arguments - **Significant Progress in Europe**: Germany's Fusion has completed a record €130 million financing, aiming to establish a 1GW fusion power plant by early 2030, indicating strong market support for the stellarator approach [1][3]. - **Comparison of Magnetic Confinement Devices**: The stellarator does not require plasma current drive, leading to more stable operation, although it has a more complex magnetic field structure and slightly inferior confinement performance compared to tokamaks [1][4][5]. - **Achievements of W7-X Stellarator**: The W7-X stellarator in Germany achieved a discharge duration of 43 seconds, with fusion triple product levels comparable to or slightly exceeding China's EAST, highlighting the feasibility of the stellarator technology [1][7][8]. - **Importance of Fusion Triple Product**: The fusion triple product, which considers temperature, plasma density, and energy confinement time, is crucial for assessing controllable nuclear fusion. Focusing on comprehensive indicators rather than single factors is essential [1][8]. - **Domestic Advancements in China**: The South China No. 3 device has reached and exceeded the optimal ignition temperature of 160 million degrees Celsius, suggesting accelerated future progress in domestic fusion research [1][9]. Catalysts for Future Growth - **Potential Catalysts in 2025**: The nuclear fusion sector may experience multiple catalysts for growth, including policy support, industrial developments (e.g., Shanghai Superconductor IPO, various project tenders), the EU's fusion strategy announcement, and the UK's £2.5 billion investment plan over five years [1][9]. Key Components and Companies to Watch - **Focus on Key Components**: Attention should be given to critical components such as the divertor (produced by Guoguang Electric, Antai Technology, and HEDON Intelligent), vacuum chambers (by HEDON Intelligent and Shanghai Electric), and low-temperature superconductors (developed by Western Superconducting) [2][10]. - **Emerging Companies**: Other notable companies include Yuyuan Co., Jinda Co., Shanghai Superconductor, Yongding Co., and Jin Da Co. Companies in power supply, such as Wangzi New Materials and Exabio, are also highlighted for their performance and development efforts [2][10]. Development Status of Stellarators and Tokamaks - **Domestic vs. International Development**: While China primarily focuses on tokamaks, significant progress has been made in stellarators. Internationally, both designs are advancing rapidly, necessitating increased attention and investment in stellarator technology domestically [1][11].

Summary of Superconducting Materials and Nuclear Fusion Industry Conference Call Industry Overview - The superconducting materials industry is divided into low-temperature and high-temperature superconductors, with low-temperature superconductors already commercialized for applications like MRI, but reliant on expensive liquid helium. High-temperature superconductors are used in magnetic levitation, quantum computing, and nuclear fusion, but face challenges in large-scale production, requiring cost reduction and performance enhancement [1][4][5]. Key Points and Arguments - **Production Techniques**: High-temperature superconducting tapes are multi-layered structures, with common production methods including IBAD, PVD, and CVD. PVD is noted for producing smooth films, while other methods like PLD, MOCVD, and MOD each have their advantages and disadvantages affecting conductor performance [1][7][10]. - **Market Demand**: Domestic high-temperature superconducting material production capacity is approximately 7,000 kilometers, but actual output is limited by yield. The demand for the Xinghuo No. 1 project is estimated to be between 15,000 to 20,000 kilometers, indicating a tight supply-demand situation. Shanghai Superconductor plans significant capacity expansion in the coming years [3][15][16]. - **Nuclear Fusion Applications**: Superconducting materials are widely used in Tokamak devices, with the ITER project’s magnet investment accounting for about 28% of total investment. Domestic projects like EAST have substantial magnet investments, indicating a growing application of superconductors in nuclear fusion [11][12]. - **Industry Growth**: The nuclear fusion industry is accelerating, supported by policy and technological advancements. The planning and initiation of experimental and engineering demonstration reactors are expected to lead to increased capital expenditures. The superconducting materials segment is under pressure due to tight processing steps and rising demand [12][14]. Additional Important Insights - **Technological Routes**: Different companies adopt various high-temperature superconducting technologies, leading to differences in tape yield, length, and width. For instance, Shanghai Superconductor and Shengchi Technology use PLD, while Yongding Holdings' Dongbu Superconductor and Superpower use MOCVD [10][17]. - **Future Trends**: High-temperature superconductors are expected to significantly impact nuclear fusion devices by enabling higher current and stronger magnetic fields, thus enhancing power output and reducing construction costs. Projects like Spark in the U.S. and domestic initiatives are moving towards full high-temperature superconducting technology [13][19]. - **Key Players**: Major domestic companies include Shanghai Superconductor, which holds a significant market share and plans to quadruple its production capacity by 2027-2028. Other notable companies include Dongbu Superconductor and West Superconductor, which are also expanding their capabilities in the superconducting materials market [16][18]. - **Investment Opportunities**: Investors should focus on companies with strong order potential and development space, such as Jinda Co., Yonglin Co., and West Superconductor, as well as related firms like Guoguang Electric and Antai Technology, which play crucial roles in equipment and components [19].