Industry Overview - The 2026 Nuclear Fusion Technology and Industry Conference will be held in Hefei, Anhui from January 16 to 17, 2026, focusing on promoting collaborative innovation and results transformation in the nuclear fusion industry chain [1] - Controlled nuclear fusion has been included in top-level planning as a future industry, with significant capital expenditure entering an upward cycle [1] - Hefei has established a leading global cluster of fusion devices, covering multiple key technology links of magnetic confinement fusion, with 37% of the country's related patents [1] - The demand for electricity driven by AI computing power is increasing the importance of controlled nuclear fusion as a "ultimate energy," with the industry entering the "engineering feasibility verification" stage [1] Company Insights - Hezhong Intelligent is leading in the manufacturing process of fusion reactor vacuum chambers, benefiting from the construction of the Hefei fusion industry cluster [2] - Western Superconducting is a core supplier for nuclear fusion, deeply involved in domestic and international fusion projects, and is the only supplier of low-temperature superconducting wire for the ITER project in China, with the CRAFT project delivery expected in 2024 [2]

Group 1 - The total amount of projects announced by the Hefei Institute of Plasma Physics and Fusion Energy in Anhui exceeded 2.4 billion yuan, with 9 projects having a budget over 50 million yuan [1] - From January 1 to December 12, 2025, the BEST project had 43 tenders with a budget of 2.043 billion yuan, while the EAST and CRAFT projects had 10 and 12 tenders with budgets of 18 million yuan and 77 million yuan respectively [1] - The industry is transitioning from intensive bidding to concentrated winning bids, indicating a validation of capital expenditure expansion logic [1] Group 2 - The global controllable nuclear fusion market is projected to reach 496.5 billion dollars by 2030 and may exceed 1 trillion dollars by 2050, with 35 major companies planning to operate commercial demonstration reactors between 2030 and 2035 [2] - The market for high-temperature superconducting materials used in controllable nuclear fusion technology verification devices is expected to experience exponential growth, potentially becoming a core sector worth hundreds of billions or even trillions by 2035 [2] - The A-share market has included controllable nuclear fusion in its "future industries" top-level planning, indicating that industry capital expenditure is entering an upward cycle [2]

Market Performance - On October 28, the nuclear fusion sector strengthened again, with companies such as Antai Technology and Dongfang Tanye achieving consecutive gains, while Western Superconducting and Yongding shares also rose [1] - Antai Technology's stock price reached 22.98, with a 10.00% increase, and it is a core supplier for global controllable nuclear fusion devices [2] - Western Superconducting, the only Chinese supplier of low-temperature superconducting wire for the ITER project, saw its stock rise by 8.28% to 83.16 [2] - Yongding shares increased by 7.86% to 16.20, with its subsidiary being the only mass producer of second-generation high-temperature superconducting tape in China [2] Domestic and International Developments - Helical Fusion, a Tokyo-based startup, announced progress in developing high-temperature superconducting magnets crucial for fusion reactors, marking a significant step towards commercial fusion energy [3] - Helion Energy received conditional use permits for its fusion generator facility in Washington, clearing obstacles for construction [4] - In China, a research team from the Institute of Metal Research successfully industrialized high-purity ton-level Hastelloy (C276) metal substrates for second-generation high-temperature superconducting tapes [5] - The compact fusion energy experimental device in Hefei is expected to be completed by 2027, potentially becoming the first facility to achieve fusion power generation [5] Industry Insights - The controllable nuclear fusion industry in China is entering a phase of significant capital expenditure, with over 150 billion yuan planned or under construction by September 2025 [6] - The industry is diversifying its technological routes, with the Tokamak being the most mature. Key components such as magnets and vacuum chambers constitute major costs [6] - The global nuclear fusion market is projected to reach approximately $843.46 billion by 2040, with a compound annual growth rate (CAGR) of about 6% from 2030 to 2040. China's market is expected to grow to around $53.68 billion by 2040, with a CAGR of 6.4%, slightly higher than the global average [6] Project Updates - The EAST project has reached a mature stage, with core component tenders nearly complete, while the BEST project is in mid-construction with key component tenders ongoing [7] - The CFEDR project is still in the research phase, with concentrated tendering expected between 2027 and 2029 [7] - The CRAFT project has completed some tenders and is advancing in the procurement of magnets, power supplies, and diagnostic systems [7]

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].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The controlled nuclear fusion sector is experiencing steady progress in research and construction, with continuous order releases, indicating a positive long-term development outlook [8][35] - The BEST device construction has fully commenced, and the core component bidding is expected to accelerate [6][22] - Recent breakthroughs in plasma discharge frequency and intensity by Zap Energy mark significant advancements towards commercialization [20][21] Summary by Sections Sector Review - In the week of October 9-10, 2025, most segments within the controlled nuclear fusion sector saw price increases, with notable gains in individual stocks such as Hahai Huadong (+29.6%), Hezhuan Intelligent (+21.0%), and Antai Technology (+21.0%) [5][15] - The magnetic materials segment rose by 10.9%, vacuum chamber and metal forgings by 10.8%, and upstream metal materials by 7.6% [17] Industry Dynamics - The BEST device's key component, the Dewar base, has been successfully installed, marking a new phase in the project [22] - Germany announced a €2 billion fusion action plan aimed at establishing a demonstration reactor by the 2040s [25] - Gauss Fusion released a concept design report for Europe's first commercial fusion power plant, with an estimated investment of €15-18 billion [31] Company Developments - Hangyang Group won a bid for a low-temperature liquid helium testing system project, which is crucial for the controlled nuclear fusion low-temperature system [34] Weekly Perspective - The ongoing development of nuclear fusion devices and the release of orders are viewed positively for the sector's long-term prospects, with a focus on core components such as magnets, main units, and power supplies [35]

Group 1 - The company has significant achievements in technological innovation and industrial incubation, with broad applications across three major business segments, and anticipates continued growth in superconducting materials and magnets over the next three to five years [3][4] - The company is a domestic leader in low-temperature superconducting wire production and has developed high-performance Bi and MgB2 high-temperature superconducting materials, achieving internationally advanced core technology [4][5] - The demand for titanium and high-temperature alloys is expected to grow steadily in sectors such as new aircraft, transport aircraft, engines, and naval vessels, with collaborations to support gas turbine research and development [3][5] Group 2 - The company has successfully commercialized low-temperature superconducting wire and is the only domestic enterprise capable of full-process production of superconducting materials, with significant market share [4][5] - The company is actively engaging in domestic major nuclear fusion projects and expects substantial growth in orders for superconducting products, particularly in semiconductor and medical applications [5][6] - The company is expanding its foreign trade business and diversifying applications of titanium and high-temperature alloy products in various sectors, with ongoing certification processes for international markets [6]

Group 1 - The successful plasma ignition of the HHMAX-901 fusion device marks a significant breakthrough in China's exploration of commercial nuclear fusion [1] - The "controlled nuclear fusion" industry is gaining traction in the capital market, with over 20 companies participating in discussions about the supply chain and technological collaboration [1][4] - Controlled nuclear fusion is considered the ultimate energy source due to its abundant fuel, safety, environmental cleanliness, high energy density, and economic advantages [2] Group 2 - China is leading in nuclear fusion research, with significant achievements in various national scientific devices and projects like CFETR [3] - The controlled nuclear fusion industry in China includes multiple segments such as materials, main engines, systems, and applications, benefiting from technological advancements and collaborative innovation [4] - Companies like China Nuclear Power and Xibu Superconductor are playing crucial roles in the development and supply of materials and components for nuclear fusion projects [4][5] Group 3 - The focus on commercializing nuclear fusion technology requires overcoming challenges related to material costs and technological breakthroughs [5] - There is a strong emphasis on the need for financial support from the capital market and local governments to facilitate the expansion of production capacity and technological validation [5]

Core Viewpoint - The article emphasizes the significant potential and applications of superconducting materials in various fields, particularly in controlled nuclear fusion, highlighting the advancements in high-temperature superconductors and their role in future energy solutions [2][4][17]. Group 1: Superconducting Materials Overview - Superconducting materials exhibit unique properties such as zero electrical resistance and complete diamagnetism, making them valuable in energy, medical equipment, transportation, quantum computing, defense, and scientific research [2][17]. - The global market for low-temperature superconducting materials currently dominates, accounting for over 90% of the superconducting materials market, while high-temperature superconductors are expected to gain market share as applications like superconducting cables and controlled nuclear fusion develop [2][3]. Group 2: Applications in Controlled Nuclear Fusion - In the ITER project, superconducting magnets account for 28% of the total cost, indicating their critical role in tokamak devices [2][4]. - High-temperature superconductors, such as ReBCO, are anticipated to significantly reduce production costs and have vast commercial prospects, especially in the development of superconducting magnet systems operating above 16T at 4.2K [3][22]. Group 3: Investment Recommendations - The article suggests focusing on companies involved in the supply chain for tokamak devices, including leading firms like Guoguang Electric, Hezhong Intelligent, and Lianchuang Optoelectronics, which are engaged in various components and systems for fusion reactors [4][44]. - Key players in superconducting materials include Yongding Co., Dongfang Tantalum, and Xibu Superconductor, which specialize in high-temperature and low-temperature superconducting materials [4][44]. Group 4: Technological Advancements - The article discusses the advancements in superconducting materials, particularly the transition from low-temperature superconductors to high-temperature superconductors, which can operate in more complex environments and are expected to expand the application range significantly [3][17]. - The SPARC project in the U.S. is highlighted as a leading initiative utilizing high-temperature superconductors to enhance operational efficiency and reduce costs in nuclear fusion applications [35][36]. Group 5: Future Prospects - The article outlines the ongoing development of domestic projects like the "Xinghuo No. 1" hybrid fusion-fission reactor, which aims to achieve continuous power generation and is expected to significantly contribute to sustainable energy development [43][44]. - The BEST project, a compact fusion energy experiment, is also mentioned as a significant step forward in demonstrating fusion energy generation capabilities [42][43].