Core Viewpoint - The article emphasizes the accelerating industrialization of controlled nuclear fusion, highlighting its importance for national energy security and technological independence. The industry is transitioning from experimental validation to engineering demonstration, with significant advancements in material performance and domestic production capabilities [5][11][14]. Industry Overview - Controlled nuclear fusion is entering a new phase characterized by multiple competitive technological routes and concentrated capital investment, with key equipment's domestic production rate exceeding 96% [5][8]. - The nuclear fusion industry is expected to achieve commercial power generation within the next decade, with 2031-2035 being the widely recognized timeframe for commercialization [15]. Investment Opportunities - The capital market has shown sustained interest in the controlled nuclear fusion sector, with stock performance indicating a potential new market cycle. Recent trading activity has seen significant gains in related stocks, suggesting a bullish trend [8][30]. - Investors are encouraged to focus on core enterprises within the nuclear fusion sector to seize investment opportunities as the industry progresses towards commercialization [9]. Technological Development - The development of controlled nuclear fusion is structured into five stages: scientific theory, scientific feasibility, engineering feasibility, commercial feasibility, and commercial reactor. The industry is currently advancing towards engineering feasibility [10]. - AI technology is playing a crucial role in accelerating the commercialization of nuclear fusion by optimizing reaction conditions and predicting plasma behavior, significantly enhancing research efficiency [15][19]. Material Innovation - Material innovation is critical for overcoming bottlenecks in the nuclear fusion industry, with research focusing on surface and structural innovations, superconducting materials optimization, and material modification [22][28]. - Superconducting materials are essential for the operation of controlled nuclear fusion devices, directly impacting energy efficiency and plasma confinement capabilities [25][26]. Key Enterprises - Several leading companies are making significant strides in the nuclear fusion sector, including: - **Sichuan Four Creation Electronics (四创电子)**: The only domestic company to achieve the localization of superconducting magnet power supply modules for fusion devices [36]. - **Parker New Materials (派克新材)**: The only company capable of mass-producing core components for nuclear fusion, continuously enhancing its technological advantages [38]. - **Antai Technology (安泰科技)**: A global supplier of core components for controlled nuclear fusion, providing a range of tungsten-related products for nuclear power technologies [39].

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]

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for its future performance [6][12][13]. Core Insights - The company is positioned to benefit from stable growth in traditional businesses while also capitalizing on three key growth areas: special powders, amorphous materials, and controlled nuclear fusion [6][9][15]. - The company has shown continuous improvement in operational efficiency, with a notable decrease in the proportion of expenses relative to revenue, indicating effective cost management [7][40]. - The company has a comprehensive product portfolio, structured under a "2+3+4" business model, which includes two core industries, three key industries, and four incubating industries, allowing for diversified growth opportunities [9][27]. Summary by Sections 1. Business Structure and Market Position - The company operates as a core platform for metal new materials under China Steel Research, focusing on high-end applications in various strategic industries such as AI, new energy, and aerospace [21][24]. - The "2+3+4" structure includes two core industries (refractory tungsten and molybdenum, rare earth permanent magnets), three key industries (amorphous/nanocrystalline materials, high-alloy high-speed steel, superhard materials), and four incubating industries (special powders, injection molding, welding materials, controlled nuclear fusion) [27][28]. 2. Historical Performance and Financial Health - The company has experienced steady revenue and net profit growth from 2021 to 2023, with a two-year compound annual growth rate (CAGR) of 14.26% and 20.53%, respectively [32][35]. - In Q1 2025, the company reported a revenue of 1.782 billion yuan, a year-on-year decrease of 5.76%, while net profit increased by 4.95% to 83 million yuan, indicating resilience despite challenges [7][32]. 3. Growth Drivers - The special powders segment is expected to see sustained high growth due to increasing demand in the electric vehicle and AI sectors, with a projected compound annual growth rate of 10.5% in the global injection molding market from 2023 to 2030 [15][48]. - The amorphous materials segment is entering a high-growth cycle, with significant applications in energy-efficient transformers and electric motors, which are gaining traction in the market [61][74]. - The controlled nuclear fusion segment is accelerating towards commercialization, with the company positioned to benefit from advancements in this field [75]. 4. Profitability Forecast and Valuation - The company is projected to achieve net profits of 330 million yuan, 422 million yuan, and 545 million yuan for the years 2025, 2026, and 2027, respectively, with earnings per share (EPS) expected to be 0.31, 0.40, and 0.52 yuan [11][13]. - The report suggests a valuation premium for the company due to its multiple business segments entering growth phases, with a price-to-earnings (P/E) ratio forecasted at 40.38 for 2025 [12][13].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company's Q1 2025 performance met expectations, with revenue of 1.782 billion RMB, a quarter-on-quarter increase of 3.62% but a year-on-year decrease of 5.76%. The net profit attributable to shareholders was 83 million RMB, showing a significant quarter-on-quarter increase of 155.07% and a year-on-year increase of 4.95% [2][3] - The overall product prices have increased, with average prices for praseodymium-neodymium oxide, tungsten, and molybdenum rising by 3.13%, 0.55%, and decreasing by 5.02% respectively in Q1 2025. The company achieved a gross profit of 296 million RMB and a gross margin of 16.61%, reflecting a quarter-on-quarter increase of 4.96% and 0.22 percentage points [3] - The company has made progress in cost reduction and efficiency improvement, with operating expenses decreasing by 26.49% to 197 million RMB, and the expense ratio down by 4.53 percentage points to 11.05% [3] Summary by Sections Financial Performance - For Q1 2025, the company reported revenue of 1.782 billion RMB, net profit of 83 million RMB, and a non-recurring net profit of 78 million RMB, indicating significant growth in profitability [2] - The company expects revenues of 8.2 billion RMB, 8.9 billion RMB, and 9.6 billion RMB for 2025, 2026, and 2027 respectively, with net profits projected at 325 million RMB, 369 million RMB, and 437 million RMB [5] Business Growth - The non-crystalline business showed strong growth in 2024, with new contracts amounting to 1.17 billion RMB, a year-on-year increase of 33%. Revenue reached 974 million RMB, with a net profit of 51.35 million RMB, reflecting a year-on-year growth of 31.63% and 60.79% respectively [4] - The company is the first in China to have the capability to produce fusion tungsten-copper filters, with a complete technology chain from raw materials to component delivery, receiving high recognition from international clients [4]