Investment Rating - The report maintains a "Recommended" rating for the nuclear fusion industry, indicating a potential stock price increase of over 15% relative to the benchmark index within the next 12 months [4]. Core Insights - The successful plasma ignition of the HHMAX-901 device by Hanhai Fusion marks a significant breakthrough in China's commercial exploration of controlled nuclear fusion, particularly in the field-reversed configuration (FRC) technology [1][2]. - FRC technology is gaining attention due to its simpler system structure and lower costs, positioning it as a frontrunner for commercialization in the nuclear fusion sector [1]. - The report suggests that the commercialization of the nuclear fusion industry is accelerating, urging continued attention to the sector's catalysts [3]. Summary by Sections Event Highlights - On July 18, Hanhai Fusion successfully conducted the plasma ignition ceremony for its HHMAX-901 device, representing a major milestone in the commercial application of nuclear fusion technology in China [1]. - The FRC technology, which Hanhai Fusion focuses on, is characterized by its ability to create a closed magnetic field through reverse current, forming a self-organizing magnetic structure [1]. Company Developments - Hanhai Fusion's HHMAX-901 project began in June 2024, with significant progress made in physical design and engineering, culminating in the successful ignition of plasma [2]. - The company plans to leverage the HHMAX-901 as a platform to advance research in controllable nuclear fusion technology and accelerate breakthroughs in core components [2]. Investment Recommendations - The report recommends focusing on companies involved in vacuum chambers, high-power electronic tubes, superconductors, and capacitors, including Guoguang Electric, Xuguang Electronics, and Yongding Co., among others [3].

Investment Rating - The industry investment rating is "Recommended" (maintained) [1] Core Viewpoints - The signing of a 200MW power supply agreement between Google and Commonwealth Fusion Systems (CFS) is a strong validation of the commercial viability of nuclear fusion technology [5][6] - The increase in nuclear fusion project tenders since 2025 indicates a growing interest and investment in this sector, with various domestic projects accelerating [6] - The report emphasizes that nuclear fusion is a crucial solution to humanity's energy challenges, and the competition in this field is intensifying globally [6] Summary by Sections Recent Performance - The utility sector has shown a performance of 1.7% over the last month, 2.7% over the last three months, and a decline of 2.1% over the past year, compared to the CSI 300 index which has increased by 2.9%, 3.1%, and 15.6% respectively [4] Key Investment Points - CFS's tokamak technology has completed feasibility verification, with assembly starting in March 2025 and expectations to achieve Q>1 by 2027 [6] - The report suggests focusing on companies with significant project positioning advantages, including Guoguang Electric, Hezhong Intelligent, and others in various segments such as power systems and materials [6][8] Focused Companies and Earnings Forecast - The report lists several companies with their respective stock prices and earnings per share (EPS) forecasts for 2024A, 2025E, and 2026E, indicating their potential growth and investment ratings [8]

Group 1 - The core viewpoint of the articles highlights the strong performance of controlled nuclear fusion concept stocks, driven by a significant partnership between Alphabet and a fusion energy company, marking a historic breakthrough in commercial power procurement for nuclear fusion energy [1][2] - The stock of Rongfa Nuclear Power surged to its daily limit, becoming the leading stock in the sector, with other companies like Haheng Huaton and Tianli also seeing gains of over 5% [1] - The market's optimism regarding the commercialization prospects of nuclear fusion technology has increased, leading to heightened activity in related concept stocks [1][2] Group 2 - Rongfa Nuclear Power is recognized as a key supplier of nuclear power equipment in China and has participated in the manufacturing of components for international fusion reactor projects [1] - The company has established a presence in fourth-generation nuclear technology and provides forgings for the Huaneng Shidaowan High-Temperature Gas-Cooled Reactor Power Station [1] - The strategic value of nuclear fusion technology is becoming more prominent due to the growing global demand for clean energy and the surge in electricity needs from emerging industries like artificial intelligence [1]

Group 1: Nuclear Fusion Industry - Google has signed a historic power purchase agreement with Commonwealth Fusion Systems (CFS) to buy 200MW of electricity from its fusion power project in Virginia, marking a significant milestone in the commercialization of nuclear fusion energy [3][5] - The ARC project, located in Chesterfield County, Virginia, aims to be the world's first commercial fusion power plant, expected to generate 400MW of fusion power by the early 2030s, sufficient to power 150,000 homes or large industrial sites [3][4] - CFS, established in 2018, has raised over $2 billion and is one of North America's largest nuclear fusion commercialization companies, with ongoing projects including SPARC, which aims to achieve net energy gain by 2027 [4][5] Group 2: Market Recognition and Trends - The nuclear fusion sector is gaining recognition, with major tech companies like Google and Microsoft entering into power purchase agreements, indicating a growing acceptance and maturity of the nuclear fusion supply chain [5] - Microsoft's previous agreement with Helion Energy to provide at least 50MW of fusion power by 2029 further illustrates the accelerating commercialization of nuclear fusion technology [5]

Core Viewpoint - Google's signing of the largest fusion power purchase agreement with Commonwealth Fusion Systems (CFS) marks a significant step towards the commercialization of nuclear fusion, indicating growing market recognition of the fusion industry [1][3]. Group 1: Agreement Details - On June 30, 2023, CFS announced that Alphabet, Google's parent company, will purchase 200MW of power from its fusion project in Chesterfield County, Virginia [1]. - The ARC project aims to build the world's first commercial fusion power plant, expected to be operational in the early 2030s, with a lifespan of 20 years or more, generating 400MW of fusion power sufficient to supply 150,000 households [1]. Group 2: CFS's Development Plans - CFS, established in 2018, has raised over $2 billion and is one of North America's largest nuclear fusion commercialization companies [2]. - In addition to the ARC project, CFS is developing the SPARC project, which aims to achieve net energy gain (Q>1) and provide critical knowledge for the ARC project [2]. - SPARC is designed with a plasma major radius of 1.85m, a minor radius of 0.57m, a plasma current of 8.7MA, and a maximum auxiliary heating power of 25MW, with a magnetic field strength of 12.2T [2]. Group 3: Market Recognition - Prior to Google's agreement, Microsoft had already committed to purchasing fusion power, with Helion Energy promising to deliver at least 50MW by 2029 [3]. - The increasing maturity of upstream equipment in the fusion industry and the acceleration of commercialization are evident, as major tech companies like Google and Microsoft sign power purchase agreements, indicating widespread market acceptance of fusion energy [3].

Core Viewpoint - The current trend in technology is AI, with the next focus shifting towards nuclear power, specifically nuclear fusion, as a solution to the increasing energy demands driven by AI advancements [1]. Investment Trends in Nuclear Fusion - Major tech companies are investing heavily in nuclear fusion to meet the exponential growth in computational power requirements. Google has made significant investments in Commonwealth Fusion Systems (CFS), including a recent agreement to purchase electricity from CFS's first power plant, Arc, which is expected to be operational by 2030 [2][5][12]. - Google has invested in CFS multiple times, including participation in a $1.8 billion B-round financing in 2021 and leading a $150 million E-round financing for TAE Technologies in 2023 [4][13]. CFS Developments - CFS, which has raised over $2 billion and is one of the largest nuclear fusion companies globally, is developing the Sparc demonstration reactor, which aims to produce more energy than it consumes. The reactor is currently 60% complete and is expected to be finished by 2026 [8][10]. - The Arc power plant will be located near Richmond, Virginia, and is set to supply 200 megawatts of power to Google [5][12]. Broader Industry Movements - Other tech giants are also entering the nuclear power sector. Microsoft has signed a power purchase agreement with Helion for a fusion power plant expected to be operational by 2028, marking the first such agreement globally [17]. - Microsoft is also investing $16 billion to restart the Three Mile Island nuclear plant, which is expected to provide power for 20 years [23]. - Amazon is supporting the construction of new small modular reactors (SMRs) in the Pacific Northwest and has led a $50 million financing round for X-energy [23]. - Meta has signed a 20-year nuclear power purchase agreement with Constellation Energy [24]. Chinese Nuclear Power Initiatives - Chinese companies are also increasing their investments in nuclear fusion, with announcements of significant capital injections into domestic fusion energy firms [30]. - Notably, the company Energy Singularity, backed by MiHoYo, has completed a B-round financing and is advancing its high-temperature superconducting tokamak technology [30]. Conclusion - The nuclear fusion sector is gaining momentum as a critical area of investment among tech companies, driven by the need for sustainable energy solutions to support the growing demands of AI technologies [31].

Economic Indicators - In June, China's manufacturing, non-manufacturing, and composite PMI were 49.7%, 50.5%, and 50.7%, respectively, showing an increase of 0.2, 0.2, and 0.3 percentage points from the previous month [2] - The steel industry PMI in June was 45.9%, down 0.5 percentage points month-on-month, marking two consecutive months of decline [12] - The top 100 real estate companies in China reported a total sales of 183.64 billion yuan in the first half of the year, a year-on-year decrease of 11.8% [12] Market Performance - The A-share market showed resilience with the Shanghai Composite Index rising 2.8% year-to-date, while the Shenzhen Component Index and ChiNext Index both increased around 0.5% [3] - The Hong Kong market performed well, with the Hang Seng Index up 20% year-to-date, ranking third among major global indices [3] - In the first half of 2025, 163 public fund institutions conducted research on 1,943 A-share listed companies, with a total of 40,093 research instances [8] Policy Developments - The Ministry of Finance, State Taxation Administration, and Ministry of Commerce announced a tax credit policy for foreign investors using profits from domestic companies for direct investment in China, allowing a 10% tax credit on the investment amount [2] - The Shenzhen Stock Exchange released standards for "light asset, high R&D investment" recognition for companies, allowing over 200 companies in strategic emerging industries to have more flexible financing options [2] Corporate Actions - Citic Securities received approval to issue up to 30 billion yuan in perpetual subordinated bonds [10] - Longi Green Energy plans to raise 1.08 billion yuan for its high-efficiency monocrystalline battery project [10] - The Hong Kong-based New World Development secured a refinancing agreement covering approximately 88.2 billion Hong Kong dollars of existing unsecured financial debt [8]

Core Insights - Google’s parent company Alphabet has signed a commercial power purchase agreement with Commonwealth Fusion Systems (CFS) to buy 200 megawatts of electricity from its fusion power project in Virginia, marking the first instance of commercial electricity procurement from nuclear fusion [1] Company Summary - Alphabet is engaging in a pioneering venture by purchasing electricity generated from nuclear fusion, a technology that has not yet been commercially applied on Earth [1] - Commonwealth Fusion Systems, a startup spun out from MIT in 2018, is developing the ARC demonstration project in Virginia, located near the world’s largest data center cluster [1]