Summary of Key Points from the Conference Call Industry Overview - The fusion industry is entering an accelerated phase driven by policy support and capital expenditure, with major countries expected to introduce fusion policies by 2025, marking a shift from laboratory research to industrial layout and regulatory framework development [1] Technological Developments - Low-temperature superconductors (NbTi, Nb₃Sn) are relatively mature, while high-temperature superconductors (REBCO) are anticipated to become the mainstream in the future. The current landscape features a parallel development of low-temperature and high-temperature superconducting materials, with low-temperature superconductors supporting existing fusion device operations due to their industrial application advantages. High-temperature superconductors are seen as key to breakthroughs in next-generation high-field fusion technology due to their superior adaptability to extreme environments [1] Market Dynamics - The magnetic system is identified as a core cost component of fusion projects. Future Tokamak devices are expected to trend towards compact designs and high-temperature superconductors, leading to a significant increase in industry demand. The market size for second-generation high-temperature superconducting tapes for controllable fusion devices is projected to be 300 million yuan in 2024, with an expected growth to 4.9 billion yuan by 2030, representing a compound annual growth rate (CAGR) of 59.3% from 2024 to 2030 [2] Investment Recommendations - It is advised to focus on core supply chain manufacturers in the magnetic component segment: 1. Low-temperature superconductors: Western Superconductors 2. High-temperature superconductors: Shanghai Superconductor (not publicly listed, with Jingda Holdings as the largest shareholder), Lianchuang Optoelectronics, Eastern Superconductor (not publicly listed, a subsidiary of Yongding Co., Ltd.) 3. Core suppliers of tantalum and niobium: Dongfang Tantalum [2]

Summary of Key Points from the Conference Call Industry Overview - The fusion industry is entering an accelerated phase driven by policy support and capital expenditure, with major countries expected to introduce fusion policies by 2025, marking a shift from laboratory research to industrial layout and regulatory framework construction [1] Core Insights - Low-temperature superconductors (NbTi, Nb₃Sn) are relatively mature, while high-temperature superconductors (REBCO) are anticipated to become the mainstream in the future. The current landscape features a parallel development of low-temperature and high-temperature superconducting materials, with low-temperature superconductors supporting existing fusion device operations due to their industrial application advantages. High-temperature superconductors are expected to be key for breakthroughs in next-generation high-field fusion technology due to their superior adaptability to extreme environments [1][2] Market Projections - The magnet system is identified as a core cost component of fusion projects. Future tokamak devices are expected to trend towards compact designs and high-temperature superconductors, leading to a significant increase in industry demand. The market size for second-generation high-temperature superconducting tapes for controllable fusion devices is projected to be 300 million yuan in 2024, with an expected growth to 4.9 billion yuan by 2030, representing a compound annual growth rate (CAGR) of 59.3% from 2024 to 2030 [2] Investment Recommendations - It is suggested to focus on core supply chain manufacturers in the magnet segment: 1. Low-temperature superconductors: Western Superconductor 2. High-temperature superconductors: Shanghai Superconductor (not publicly listed, with Jingda Co. as the largest shareholder), Lianchuang Optoelectronics, Eastern Superconductor (not publicly listed, a subsidiary of Yongding Co.) 3. Core suppliers of tantalum and niobium: Dongfang Tantalum [2]

Group 1 - The core viewpoint is that the fusion industry is entering an accelerated phase driven by policy support and capital expenditure, with significant developments expected by 2025 as major countries implement fusion policies [2] - The domestic policy support for controllable nuclear fusion is being established at the national level, focusing on optimizing regulatory processes and providing clear guidance for technological research directions [2] Group 2 - Low-temperature superconductors are relatively mature, while high-temperature superconductors are expected to become the mainstream in the future, with both types currently co-developing [3] - Superconducting materials are essential for achieving stable magnetic field confinement in fusion devices, with low-temperature superconductors supporting current operations and high-temperature superconductors being key for next-generation high-field fusion technology breakthroughs [3] Group 3 - The magnet system is a core cost component of fusion projects, with 86% of the component costs in the ITER project attributed to parts, and 28% specifically to magnets, primarily due to the high costs associated with low-temperature liquid helium cooling [4] - In high-temperature superconducting projects, the cost of the magnet system increases further, with the ARC project showing that magnets account for 46% of the costs, indicating a trend towards compact, high-temperature superconducting devices [4] - The market size for second-generation high-temperature superconducting tapes for controllable nuclear fusion devices is projected to reach 300 million yuan in 2024, with an expected growth to 4.9 billion yuan by 2030, reflecting a compound annual growth rate of 59.3% from 2024 to 2030 [4]

Core Insights - The fusion industry is entering an accelerated phase driven by policy support and capital expenditure, with major countries expected to introduce fusion policies by 2025, marking a shift from laboratory research to industrial layout and regulatory framework construction [2] - Low-temperature superconductors are relatively mature, while high-temperature superconductors are expected to become the mainstream in the future, with magnetic materials being the core foundation for stable magnetic field confinement in fusion devices [2] Industry Overview - The magnet system is a core cost component of fusion projects, with the ITER project using low-temperature superconductors having 86% of its component costs attributed to parts, of which magnets account for 28% [3] - In high-temperature superconductor projects, the cost of the magnet system increases further, with the ARC project showing that magnets account for 46% of the total cost [3] Market Potential - The market size for second-generation high-temperature superconducting tapes for global controllable fusion devices is projected to reach 300 million yuan in 2024, with an expected growth to 4.9 billion yuan by 2030, representing a compound annual growth rate of 59.3% from 2024 to 2030 [3] Investment Recommendations - The magnet segment, being the highest value component in the fusion system, is currently transitioning from low-temperature to high-temperature technology validation and evolution, indicating a positive outlook for demand driven by the capital expenditure cycle in fusion [3] - Key suppliers in the magnet segment include: 1) Low-temperature superconductors: Western Superconductor 2) High-temperature superconductors: Shanghai Superconductor (not listed, controlled by Jingda Co., Ltd. (600577)), Lianchuang Optoelectronics (600363), Eastern Superconductor (not listed, a subsidiary of Yongding Co., Ltd. (600105)) 3) Core suppliers of tantalum and niobium: Dongfang Tantalum Industry (000962) [3]