Investment Rating - The report maintains a positive outlook on the controllable nuclear fusion industry, indicating a strong belief in the investment opportunities across the entire industry chain [3][4]. Core Insights - The controllable nuclear fusion technology is transitioning from laboratory research to engineering verification, with significant advancements in China and international collaboration through the ITER project [3][5]. - The global controllable nuclear fusion market is projected to grow from $331.49 billion in 2024 to $479.5 billion by 2029, with a substantial construction phase expected between 2025 and 2035 [3][4]. - The report emphasizes the importance of high-barrier and high-value segments within the industry chain, recommending specific companies for investment [4][5]. Summary by Sections 1. Controllable Nuclear Fusion: Progress Towards the "Eternal" 50 Years - The D-T reaction is identified as the mainstream approach for nuclear fusion, offering high energy density and sustainability compared to traditional nuclear fission [14][21]. - The magnetic confinement route is confirmed as the dominant technical pathway, with significant research and development efforts in China [26][27]. 2. Global Fusion Landscape: ITER and International Cooperation - The ITER project is highlighted as the largest international scientific collaboration aimed at developing a self-sustaining nuclear fusion reactor, with China playing a crucial role [48][51]. - Various countries are increasing their investments in fusion energy, with significant funding allocated to projects like ITER and national initiatives [61][63]. 3. China's Rise in Fusion Technology - China is advancing rapidly in nuclear fusion technology, with multiple research institutions and private companies contributing to the development of various fusion routes [3][5]. - The BEST project in China has commenced ahead of schedule, indicating a robust pace in fusion technology development [3][5]. 4. Market Potential and Investment Opportunities - The report forecasts a market space of approximately $203.5 billion for controllable nuclear fusion from 2025 to 2035, with a focus on high-value segments such as superconducting materials and core components [3][4]. - Recommended companies for investment include Lianchuang Optoelectronics, Guoguang Electric, and others involved in the high-barrier segments of the industry [4][5].

Core Insights - The 20th China Western International Expo concluded with 416 investment cooperation projects signed, amounting to 354.3 billion yuan [1] - The expo showcased over 2,200 investment projects with a total investment exceeding 3.7 trillion yuan, highlighting the strategic importance of the western region in China's development [1][2] - This year marks the 25th anniversary of both the expo and China's Western Development Strategy, emphasizing the region's transformation from a "defender" to a "vanguard" in international trade [2] Investment and Economic Growth - The expo attracted over 3,000 enterprises from more than 60 countries and regions, indicating a significant increase in international participation [2][6] - The western region's economy has grown 14 times since 2000, with an average annual growth rate surpassing the national average from 2000 to 2024 [10] - A total of 30 projects were signed at the expo, with a combined value exceeding 6.9 billion yuan, showcasing the region's investment potential [11] Innovation and Technology - The expo featured 61 Fortune 500 companies, a 74.3% increase from the previous year, highlighting the growing interest in the region's innovation capabilities [12] - Nearly half of the products showcased were related to technological innovation, with significant displays in artificial intelligence, biotechnology, and low-altitude economy [12][13] - The western region is advancing in high-level technological self-reliance, with breakthroughs in integrated circuits, artificial intelligence, and renewable energy [12][14] International Cooperation - The introduction of dual guest countries, Laos and Hungary, aimed to deepen international cooperation and expand the expo's global reach [4][6] - The participation of various foreign dignitaries and organizations underscores the expo's role as a platform for international collaboration [6][10] - The expo's focus on regional cooperation and investment opportunities reflects the strategic importance of the western region in China's broader economic landscape [16][18]

Core Viewpoint - The domestic controlled nuclear fusion projects are making significant progress, with mainstream technology expected to enter the demonstration phase by 2035 and achieve commercial power generation around 2050 [1][6][14]. Group 1: Industry Progress - The controlled nuclear fusion sector has seen a surge in stock prices, with the concept stocks rising by 6.11% on May 6, 2023, following positive developments in the industry [1]. - The Hefei compact fusion energy experimental device (BEST) project has commenced its assembly work two months ahead of schedule, aiming for completion by 2027 [1]. - The International Thermonuclear Experimental Reactor (ITER) has completed the construction of all components of its superconducting magnet system, marking a significant milestone in fusion research [1][6]. Group 2: Technological Developments - The "Xuanlong-50U" spherical hydrogen-boron fusion device achieved high-temperature, high-density plasma currents exceeding 15 million degrees Celsius, surpassing the core temperature of the sun [2][5]. - New Hope Group has invested 4 billion yuan in fusion research since 2017, aiming to achieve engineering feasibility before 2035 [5]. - The industry is focusing on three main technical challenges: maintaining plasma at over 100 million degrees Celsius, ensuring materials can withstand neutron bombardment for commercial operation, and addressing the production of tritium [11]. Group 3: Investment and Market Dynamics - The global fusion industry attracted $7.1 billion in investment in 2023, with a significant portion coming from private capital [16]. - China has formed three main forces in fusion research: market-driven startups, national research teams, and private enterprises like New Hope Group, which plans to invest nearly 10 billion yuan in the next five years [16][17]. - The market for fusion devices is projected to reach 2.26 trillion yuan between 2030 and 2035, indicating substantial investment potential in components like high-temperature superconductors [18].

Group 1 - The 16th China International Nuclear Power Industry Exhibition is being held in Beijing, attracting over 200 domestic and international companies to showcase new technologies, equipment, and applications in the nuclear power sector [1] - This year marks the 10th anniversary of the Hualong One demonstration project, with a large model of the Hualong One nuclear power unit prominently displayed at the exhibition. The unit has a potential annual electricity generation capacity of 10 billion kWh, and seven units have been put into commercial operation domestically and internationally [3][5] - Hualong One has achieved a total of over 30 units in operation or under approval for construction, making it the most widely deployed third-generation nuclear power technology globally. The technology is now entering a phase of mass construction [5][7] Group 2 - The Hualong One technology is undergoing significant innovation, with collaboration from over 5,400 manufacturing companies to develop advanced applications and intelligent tools for safer and more economical products [5] - The exhibition also features other advanced nuclear technologies such as the Circulating Three, High-Temperature Gas-Cooled Reactor, and Guohe One, highlighting the rapid advancement of digital and intelligent upgrades in China's nuclear industry [7] - Artificial intelligence is being integrated into the daily operations and maintenance of nuclear power plants, creating typical application scenarios in design, construction, and operational management [7][8]