Core Viewpoint - China's investment in controllable nuclear fusion projects has reached a total scale of 136.2 billion yuan, with the next 3-5 years being a critical bidding window for infrastructure construction [1][7]. Group 1: Investment Background - As of July 22, 2025, China Nuclear Power (601985.SH) announced a planned investment of 1 billion yuan to acquire a 6.65% stake in China Fusion Energy Co., marking an acceleration in the commercialization of nuclear fusion in China [4][7]. - Zhejiang Energy Power (600023.SH) also announced an investment of 751 million yuan for a 5% stake in the same company, further indicating the momentum in the nuclear fusion sector [4][13]. - Currently, there are 14 major controllable nuclear fusion projects under construction in China, with a total investment scale of 136.2 billion yuan [1][7]. Group 2: Key Participants - China Nuclear Power is a core participant, investing 1 billion yuan and holding a 6.65% stake in China Fusion Energy Co., which is under the China National Nuclear Corporation [11][12]. - Zhejiang Energy Power, as a traditional power enterprise, is leveraging its background to promote the commercialization of fusion technology through its 751 million yuan investment [14]. - West Superconducting Technologies (688122) is the only domestic supplier of low-temperature superconducting wire for the ITER project, breaking international monopolies in this technology [15][16]. Group 3: Strategic Significance - The investments by state-owned enterprises respond to national strategic requirements for future industries and aim to solidify their core positions in the nuclear fusion sector [12][14]. - The focus on nuclear fusion aligns with the country's energy transition goals, emphasizing the importance of clean energy development [14].

Investment Rating - Industry rating is maintained at "Outperform the Market" [2] Core Insights - The report highlights the Sichuan provincial government's implementation plan to promote the controllable nuclear fusion industry, emphasizing significant engineering breakthroughs in magnetic confinement and inertial confinement fusion technologies [3] - Sichuan has established a comprehensive layout in the nuclear fusion field, covering both magnetic and inertial confinement routes, and is actively pursuing international collaborations to enhance its technological capabilities [4] - The report suggests focusing on companies within the nuclear fusion supply chain, including leading suppliers of high-temperature superconducting magnets and materials essential for fusion devices [5] Summary by Sections Government Support - The Sichuan provincial government has explicitly supported the controllable nuclear fusion industry, marking a significant policy shift compared to other regions [3] - The plan includes the construction of key facilities and the acceleration of technology transfer to foster innovation [3] Technological Developments - Sichuan has achieved notable breakthroughs in nuclear fusion technology, including reaching a temperature of 100 million degrees Celsius and significant advancements in fusion product metrics [9] - The establishment of the electromagnetic-driven fusion large scientific device aims to validate the feasibility of fusion ignition [4] Investment Opportunities - Recommended companies for investment include: - Lianchuang Optoelectronics, a leading supplier of high-temperature superconducting magnets - Yongding Co., a major supplier of high-temperature superconducting materials - Guoguang Electric, which provides essential components for controllable nuclear fusion devices [5]

Core Viewpoint - The article emphasizes the rapid advancements in nuclear fusion projects both domestically and internationally, highlighting significant investments and technological breakthroughs that could lead to commercial viability in the near future [2][6][21]. Group 1: Recent Developments in Domestic Fusion Projects - The "BEST" project has commenced assembly ahead of schedule, with the goal of completing construction by 2027 [4]. - Various tenders related to the "BEST" and "Xinghuo No. 1" projects have been launched, indicating a robust pipeline of activities and investments [4][6]. - The "Chinese Circulation No. 3" project achieved a significant milestone with a fusion triple product reaching 10^20, marking a critical advancement in plasma performance [4]. Group 2: Investment and Financing Trends - TAE Technologies, a leading U.S. fusion company, raised over $150 million in its latest funding round, bringing its total funding to $1.35 billion, with participation from major investors like Chevron and Google [6]. - Japan announced an additional investment of 10 billion yen (approximately $69 million) into its three major fusion research institutions, aiming for commercialization in the 2030s [6]. - The UK government plans to invest £2.5 billion over the next five years to advance its fusion energy initiatives, including the STEP project [6]. Group 3: Technological Innovations Driving Progress - Innovative magnetic field structures, such as spherical tokamaks, are expected to enhance confinement performance and increase fusion power output in smaller volumes [8]. - The application of high-temperature superconductors is anticipated to significantly improve fusion output power by allowing for higher current densities and stronger magnetic fields [12][14]. - The integration of AI and supercomputing technologies is facilitating real-time predictions and optimizations in plasma behavior, thereby accelerating research and development processes [16]. Group 4: Global Competition and Market Dynamics - The U.S. and China are the largest investors in nuclear fusion, with China's investment growth outpacing that of the U.S. in recent years [18][23]. - As of 2024, the U.S. has invested $5.63 billion in fusion, while China has invested $2.49 billion, indicating a competitive landscape [23]. - The article outlines the potential for fusion energy to meet global energy demands sustainably, with significant advantages over traditional energy sources [21][24]. Group 5: Future Outlook and Application Scenarios - The most optimistic projections suggest that the first fusion power plant could connect to the grid between 2025 and 2030, while a more conservative estimate places this timeline between 2031 and 2035 [48]. - The potential applications of nuclear fusion include electricity generation, industrial heating, and propulsion for spacecraft, with key developments expected around 2030 [53][55]. - The article highlights a "three-step" strategy for China's fusion energy application, progressing from experimental validation to commercial demonstration [42].

Investment Rating - Industry rating is maintained at "Outperform" [1] Core Insights - The World Bank has lifted a decades-long ban on nuclear energy financing to accelerate the development of low-emission technologies, aiming to meet the growing electricity demand in developing countries. This policy shift is expected to provide significant funding support for the international nuclear energy industry [3][4] - Governments in Europe and the U.S. are increasingly supporting the nuclear energy sector, with policies that may have influenced the World Bank's decision. For instance, the U.S. aims to quadruple nuclear power output in the next 25 years, while the UK plans to invest £2.5 billion in nuclear fusion over the next five years [4] - Recent financing records in the nuclear fusion sector indicate strong financial backing, with U.S. company TAE Technologies raising over $150 million and German startup Proxima Fusion securing €130 million (approximately $150 million) in funding, which will accelerate the commercialization of nuclear fusion technology [5] Summary by Sections Section: Industry Overview - The nuclear energy sector is experiencing a policy shift with increased government support in the U.S. and Europe, which is expected to drive growth in the industry [4] - The World Bank's new financing policy is aimed at supporting the extension of existing nuclear reactor lifespans and the development of small modular reactors [3] Section: Investment Opportunities - Companies to watch include: - Lianchuang Optoelectronics, a leading supplier of high-temperature superconducting magnets - Yongding Co., a major supplier of high-temperature superconducting strips - Guoguang Electric, which provides various components for controllable nuclear fusion devices [6]

Investment Rating - Industry rating is maintained at "Outperform" [1] Core Insights - The report highlights significant breakthroughs in China's controllable nuclear fusion technology, with the "Chinese Circulation No. 3" achieving a plasma current of one million amperes and ion temperature reaching 100 million degrees, marking a new high in fusion parameters [3][6] - The advancements in nuclear fusion technology position China as a leader in the field, paving the way for future commercialization and potential growth opportunities for related upstream and downstream enterprises [3] Summary by Sections Industry Overview - The report discusses the continuous progress in controllable nuclear fusion technology in China, with key projects like the "Xuanlong-50U" achieving critical engineering breakthroughs [3][4] - The comprehensive parameters of fusion triple product have reached the order of 10^20, indicating significant advancements in the field [3] Key Companies to Watch - Recommended companies include: - Lianchuang Optoelectronics, a leading supplier of high-temperature superconducting magnets, which are crucial for compact tokamak devices [4] - Yongding Co., a major supplier of high-temperature superconducting strips [4] - Guoguang Electric, which provides various components for controllable nuclear fusion devices [4]

Core Viewpoint - The A-share controllable nuclear fusion sector has seen significant growth, driven by accelerated commercialization of nuclear energy, with the potential for limitless energy generation if controllable nuclear fusion is realized [1] Industry Overview - Controllable nuclear fusion is based on the fundamental principles of stellar energy release, offering a clean, efficient, and sustainable energy source with minimal radioactive waste [1] - The primary fuels for nuclear fusion are tritium and deuterium, with 1 liter of seawater capable of extracting 0.035 grams of deuterium, releasing energy equivalent to burning 300 liters of gasoline, and the global supply of deuterium from seawater could last for over a hundred billion years [1] Technological Pathways - Global fusion research primarily focuses on two main technological pathways: magnetic confinement fusion and inertial confinement fusion, with ITER being the most representative project for magnetic confinement and the National Ignition Facility (NIF) for inertial confinement [1] - Magnetic confinement fusion is considered the most effective approach for developing fusion energy due to its longer energy confinement time, higher technological maturity, and stronger engineering feasibility [1] Domestic Industry Chain - The domestic controllable nuclear fusion industry chain is taking shape, with upstream companies providing raw materials such as superconducting materials and tungsten-based materials [2] - Key players in the upstream include Western Superconducting (SH688122), Shanghai Superconductor, and Antai Technology (SZ000969), among others [2] - Midstream equipment manufacturers include Western Superconducting and Guoguang Electric (SH688776), which supply components for magnetic confinement systems [2] Application and Commercialization - Downstream application firms include China National Nuclear Power Co. and China General Nuclear Power Group, responsible for the operation and construction of nuclear power plants [3] - The commercialization of controllable nuclear fusion is progressing, with various companies involved, although many have not disclosed the revenue contribution from related businesses [3] - Guoguang Electric's products are key components for the ITER project, while Western Superconducting is the only domestic producer of superconducting materials for ITER and is also involved in the CFETR project [3] Future Prospects - The timeline for the commercialization of controllable nuclear fusion is projected around 2030, with significant advancements expected by 2035 [5] - The BEST project in Hefei aims to enhance the economic viability of nuclear fusion energy and is expected to complete by 2027, potentially becoming the world's first compact fusion energy experimental device [5][6] - Achieving commercial viability requires meeting specific criteria, including maintaining plasma conditions and achieving a fusion gain greater than one [6]

Investment Rating - The report maintains a positive outlook on the controllable nuclear fusion industry, particularly during the "14th Five-Year Plan" period, anticipating a significant increase in capital expenditure and related equipment orders [4]. Core Insights - Controllable nuclear fusion is highlighted as a preferred future energy source due to its high energy density, easy-to-obtain raw materials, flexible layout, and environmental safety [1][13]. - The Q value, a critical indicator for the commercialization of nuclear fusion, has been consistently improving, surpassing 1, indicating energy balance [1][16]. - The industry is experiencing rapid international advancements, with a notable increase in financing, exceeding $7.1 billion in 2024, up by $900 million from 2023 [1][31]. Summary by Sections Section 1: Controllable Nuclear Fusion - Nuclear fusion offers significant advantages over other energy sources, including a million-fold increase in energy density compared to current systems [13]. - The Q value is essential for assessing the feasibility of nuclear fusion, with recent advancements showing a positive trend in its growth [16][20]. - Magnetic confinement is expected to become the mainstream approach for controllable nuclear fusion, currently holding a 62% market share [22]. Section 2: Technological Breakthroughs and Accelerated Bidding - The industry is currently in the experimental reactor construction phase, primarily led by the Chinese Academy of Sciences and China Nuclear Group [36]. - Significant breakthroughs in high-temperature superconductors are expected to accelerate the commercialization of nuclear fusion [45]. - The BEST project is advancing rapidly, with expectations to achieve significant milestones by 2027 [51][57]. Section 3: Core Value in the Midstream Equipment - The nuclear fusion industry chain consists of upstream materials, midstream equipment, and downstream nuclear applications, with midstream equipment currently seeing increased capital expenditure [62]. - The magnetic component represents the highest value segment within the nuclear fusion industry chain, accounting for 28% of the total costs in projects like ITER [63][66]. Section 4: Investment Recommendations - Companies such as Hezhong Intelligent are expected to benefit from the capital expenditure associated with the BEST project, with projected revenue growth [69]. - Lianchuang Optoelectronics is positioned as a key player in high-temperature superconductors, with a strong market advantage [76]. - Guoguang Electric is recognized as a core supplier of critical components like the first wall and divertor in nuclear fusion applications [83].

Summary of Controlled Nuclear Fusion Industry Conference Call Industry Overview - The controlled nuclear fusion industry is experiencing significant milestones, with projects like ITER completing the construction of core pulse superconducting magnet systems and China's Circulation No. 3 renovation project starting, with total investments reaching several hundred million [1][2][3] - Major economies including the US, UK, Japan, and the EU are accelerating the commercialization of controlled nuclear fusion, aiming for energy structure transformation and environmental protection [1][6] Key Developments - The EAST project in Hefei has started two months ahead of schedule and demonstrated power generation capabilities, marking a major breakthrough in making controlled nuclear fusion a reality [2] - The industry is transitioning from scientific validation to engineering validation, with various construction and design tenders being launched [3][18] - Significant contributions from China include advancements in superconducting tokamak technology by institutions like the Southwest Institute of Physics and the Chinese Academy of Sciences [5] Future Projections - Commercialization of controlled nuclear fusion is expected to begin after 2035 or 2040, with experimental pile construction and equipment tenders occurring beforehand [1][9] - 2025 is seen as a pivotal year for the industry, with projects like EAST and Spark entering construction and equipment phases, potentially attracting hundreds of billions in investments [3][16] Market Dynamics - The market for controlled nuclear fusion is projected to expand significantly due to increased experimental pile construction and equipment tenders, alongside advancements in AI and high-temperature superconducting materials [13][10] - The total investment for a single tokamak device is approximately $1.2 billion, with the market for superconducting technology potentially reaching $14.8 billion if high-temperature superconducting technology is utilized [14][15] Key Players and Components - Key components in the controlled nuclear fusion industry include magnet systems, filters, blanket systems, vacuum chambers, and vacuum dewars, with magnet systems accounting for a significant portion of costs [17] - Companies with high participation in the controlled nuclear fusion sector include Lianchuang Optoelectronics, Yongding Co., Yinlong Co., Jinda Co., and Guoguang Electric, all of which are involved in critical product segments [19] Investment Opportunities - The industry is forming a resonance effect, accelerating the industrialization process, with increased capital market attention and strategic investments from companies like PetroChina and Shanghai Future Energy [7][8] - The focus on core components and equipment manufacturing in the controlled nuclear fusion supply chain presents significant investment opportunities [17][19]

文 ｜ 裘翔 刘春彤 杨家骥 高玉森 连一席 遥远 在彻底取消所有对华单边关税措施前，中美贸易谈判可能进展有限；国内的政策是托底和应对式的，4月只是第一波以试验和预防为特征 的政策；筹码出清相对彻底且对业绩不敏感的主题阶段性占优；市场整体情绪位置不算低，科技板块相对医药和消费更接近冰点，对风偏 回升更敏感。配置上，5月关注新技术和产业题材轮动、海外科技映射链修复以及服务业扩内需政策落地。 在彻底取消所有对华单边关税措施前， 中美贸易谈判可能进展有限 近期特朗普针对关税问题表态持续反复，美股市场反应较为敏感。但我们认为国内投资者不需要花精力关心这些高频变化，特朗普试图灵活 利用关税武器来制造谈判筹码，而中国商务部新闻发言人何亚东表示"如果美方真的想解决问题，就应该正视国际社会和国内各方理性声音， 彻底取消所有对华单边关税措施，通过平等对话，找到解决分歧的办法"。我们建议还是关注特朗普未来一年面临的两大约束，一是7~8月需 要推进债务上限谈判和减税法案通过，二是明年中期选举。尽管目前特朗普的民调支持率已经开始明显下降，但这属于每个美国总统百日新 政后正常的回落，而特朗普两次任期的民调本身就比其他美国总统偏低，目前 ...