Investment Rating - The report maintains an "Accumulate" rating for the defense and military industry [1] Core Insights - The establishment of China Fusion Energy Co., Ltd. marks a new phase in the commercialization of controlled nuclear fusion in China, with a registered capital of 15 billion yuan [3] - A total of 11.492 billion yuan has been jointly invested by seven central state-owned enterprises, with China National Nuclear Corporation holding a 50.35% stake [3] - The company aims to lead global fusion energy development and will focus on major projects like the "Circulation No. 4" high-temperature superconducting Tokamak device [3] - The formation of this company is expected to accelerate the commercialization process of the industry, with global investments in the sector reaching 7.1 billion USD [3] - The report suggests that the establishment of the company will lead to significant growth in orders for core components such as superconducting materials and magnet systems by 2027 [3] - The report highlights potential investment opportunities in companies like Western Superconducting, Lianchuang Optoelectronics, and China Nuclear Power [3] Summary by Sections Industry Trends - The defense and military industry is experiencing a significant transformation with the establishment of China Fusion Energy Co., Ltd. [3] - The company is positioned to integrate research resources in the Yangtze River Delta, enhancing national strategic foresight [3] Investment Opportunities - The report emphasizes the long-term potential of controlled nuclear fusion as a sustainable energy source, driven by advancements in high-temperature superconducting materials and AI control systems [3] - Suggested companies for investment include Western Superconducting, Lianchuang Optoelectronics, Yongding Co., Jingda Co., Guoguang Electric, Antai Technology, China Nuclear Power, and Shanghai Electric [3]