Group 1 - The core viewpoint of the article highlights the increasing interest and investment in the controlled nuclear fusion sector, with significant financing rounds indicating strong confidence in its commercialization prospects [1][2][5]. - The controlled nuclear fusion theme index experienced an 8-day consecutive rise, reflecting the sector's growing momentum, although it faced a single-day decline of 5.28% on January 13, 2026 [1][4]. - Star Ring Fusion's recent 1 billion yuan A-round financing sets a new record in the domestic sector, showcasing the recognition of its unique technology path based on high-temperature superconducting spherical tokamak [2][3]. Group 2 - The rapid rise of East Rising Fusion, which secured hundreds of millions in angel financing within six months, underscores the sector's heat and the backing from major investment firms [5]. - The implementation of the "Atomic Energy Law" on January 15, 2026, marks a significant legislative support for controlled nuclear fusion research, establishing a regulatory framework for the industry [7]. - The optimistic long-term outlook for the nuclear fusion industry is supported by various brokerage firms, with projections indicating a potential global market size of $496.55 billion by 2030 [8].

Investment Rating - The industry investment rating is "Positive" (maintained) [3] Core Viewpoints - The report highlights the significant increase in bidding activities for the Hefei BEST project in the nuclear fusion sector, with a quarterly bidding scale reaching approximately 2.62 billion yuan in Q4 2025, a substantial increase from previous quarters [4][9] - The report emphasizes the growing attention from the capital market towards the nuclear fusion supply chain, particularly following the announcement of multiple large-scale bidding projects [5][9] Summary by Relevant Sections Nuclear Fusion Supply Chain Development - Since Q4 2025, the bidding scale for the Hefei BEST project has shown a marked increase, with Q4 2025 alone seeing approximately 2.62 billion yuan in bids, compared to 620 million yuan in Q3 2025 and 52 million yuan in Q2 2025 [4][9] - In November 2025, the bidding scale reached about 2.26 billion yuan, with significant projects including low-temperature systems and superconducting wires [5][9] - The report suggests that as the bidding results are published, the nuclear fusion supply chain will become clearer, and companies entering this supply chain may receive reasonable market valuations for their nuclear fusion-related businesses [14] Investment Recommendations - The report recommends focusing on companies such as Hezhong Intelligent, Antai Technology, Aike Saibo, Dongfang Precision, New Wind Light, Wangzi New Materials, Tongfeng Electronics, Yongding Co., and Western Superconducting, which are expected to benefit from the nuclear fusion supply chain developments [5][14]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights the continuous release of BEST orders and the long-term development prospects of the controlled nuclear fusion sector, with significant projects expected to commence soon [7][21] - The signing of Japan's first fusion power purchase agreement by Helical Fusion with Aoki Super marks a significant milestone in the industry [6][18] - The report emphasizes the steady progress in the research and construction of controlled nuclear fusion devices, with key components expected to see ongoing demand [21][22] Summary by Sections Sector Review - All segments within the controlled nuclear fusion sector experienced price increases, with notable stock performances including Aikoseibo (+34.3%), Yongding Co. (+27.8%), and Hahan Huaton (+22.2%) [5][14] - The overall sector saw a positive trend, with all sub-segments rising, particularly magnets (+15.4%), power assemblies (+9.9%), and upstream metal materials (+8.0%) [16][18] Industry Dynamics - Helical Fusion announced the signing of Japan's first fusion energy power purchase agreement, aiming to establish a commercially viable fusion demonstration plant by the 2030s [6][18] - Recent procurement updates indicate ongoing demand for key components, with significant projects awarded, including a total of approximately 9.32 billion yuan for various projects by the China Engineering Physics Research Institute [19][20] Weekly Perspective - The report expresses optimism regarding the long-term prospects of the sector, driven by the expected release of core component orders and advancements in technology [21][22] - Beneficiary stocks identified include those involved in magnets, vacuum chambers, power assemblies, and other critical components [22][23]

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 industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The controlled nuclear fusion sector is experiencing steady progress in research and construction, with continuous order releases, indicating a positive long-term development outlook [8][35] - The BEST device construction has fully commenced, and the core component bidding is expected to accelerate [6][22] - Recent breakthroughs in plasma discharge frequency and intensity by Zap Energy mark significant advancements towards commercialization [20][21] Summary by Sections Sector Review - In the week of October 9-10, 2025, most segments within the controlled nuclear fusion sector saw price increases, with notable gains in individual stocks such as Hahai Huadong (+29.6%), Hezhuan Intelligent (+21.0%), and Antai Technology (+21.0%) [5][15] - The magnetic materials segment rose by 10.9%, vacuum chamber and metal forgings by 10.8%, and upstream metal materials by 7.6% [17] Industry Dynamics - The BEST device's key component, the Dewar base, has been successfully installed, marking a new phase in the project [22] - Germany announced a €2 billion fusion action plan aimed at establishing a demonstration reactor by the 2040s [25] - Gauss Fusion released a concept design report for Europe's first commercial fusion power plant, with an estimated investment of €15-18 billion [31] Company Developments - Hangyang Group won a bid for a low-temperature liquid helium testing system project, which is crucial for the controlled nuclear fusion low-temperature system [34] Weekly Perspective - The ongoing development of nuclear fusion devices and the release of orders are viewed positively for the sector's long-term prospects, with a focus on core components such as magnets, main units, and power supplies [35]

Summary of Key Points from the Conference Call on Controlled Nuclear Fusion Power Supply Industry Overview - The conference focuses on the controlled nuclear fusion industry, specifically the power supply systems for various fusion devices such as Tokamak, FRC (Field-Reversed Configuration), and Z-pinch technology [1][4][16]. Core Insights and Arguments - **Tokamak Dominance**: The Tokamak device is the mainstream nuclear fusion route, with high demand for magnet power supplies and auxiliary heating systems, which constitute a significant portion of the value [1][4]. - **FRC and Z-Pinch Technology**: FRC and Z-pinch technologies have high technical barriers and rapidly growing demand, particularly for fast-switching and pulse capacitor technologies [1][4][16]. - **Power Supply Requirements**: Controlled nuclear fusion power supplies require high capacity, high voltage, large current, and low ripple. For Tokamak devices, ripple must be maintained below 1% to 2% [2][11]. - **Auxiliary Heating Systems**: The main auxiliary heating systems are neutral beam heating and radio frequency heating, which require specific power supply types based on their voltage needs [10][12]. Technical Specifications - **Key Components of Tokamak**: The critical aspects of Tokamak devices include steady-state power (auxiliary heating, grid, low-temperature, and water cooling systems) and pulse power (auxiliary heating, magnetic power, and reactive power compensation) [5][9]. - **Reactive Power Compensation**: This system is essential for stabilizing the operation of fusion devices by managing reactive power fluctuations, ensuring reliability and safety [6][8]. - **FRC Device Characteristics**: FRC devices do not require complex magnetic fields or superconducting magnets, but they demand high instantaneous power pulse capabilities, leading to increased power supply value [13][15]. Market Opportunities and Risks - **Investment Potential**: Companies such as PSM, Sifang Electronics, Yingjie Electric, Aikexibo, and Xinfengguang are highlighted as having competitive advantages in the nuclear fusion sector, particularly in FRC-related equipment [18]. - **Upcoming Tender Activities**: The recent tender activities related to the CAS BEST project for magnet procurement are expected to expand into power supply-related tenders, presenting new market opportunities for suppliers [19]. Additional Important Content - **Key Components to Watch**: The demand for switches and supercapacitors is expected to rise significantly in the development of FRC and Z-pinch technologies, along with attention to MOSFETs as critical components [17]. - **Response Time Requirements**: FRC devices require nanosecond-level response times for power supplies, indicating a significant increase in power supply value, potentially exceeding 15% to 50% growth [15][16].

Core Insights - The controlled nuclear fusion industry is entering a rapid incubation phase, with significant advancements in various technical routes such as magnetic confinement, Z-pinch, and FRC, indicating a potential move towards commercialization [1][2] Group 1: Industry Developments - The diversification of controlled nuclear fusion technology routes is evident, with public funding leading current projects and private capital driving future initiatives, resulting in a global fusion race with increased financing activities from major tech companies like Google, Amazon, and Microsoft [2] - The Tokamak device is expected to benefit from breakthroughs in high-temperature superconducting materials, potentially achieving grid-connected power generation by the 2030s [3] Group 2: Project and Investment Opportunities - Domestic Z-pinch hybrid reactors are anticipated to accelerate in development, with private capital showing interest in FRC devices, which have seen significant funding and advancements in recent years [4] - The potential annual investment in nuclear fusion power stations could reach several hundred billion yuan if commercialization is successful, based on current construction rates of fission reactors [2] Group 3: Beneficiary Companies - Beneficiary companies in the magnetic materials sector include Western Superconducting (low-temperature superconductors), Yongding Co. (high-temperature superconductors), and Shanghai Superconductor (high-temperature superconductors) [5] - Companies involved in vacuum chambers and internal components include Hezhong Intelligent (vacuum chambers), Guoguang Electric (first wall components), and Antai Technology (first wall components) [5] - In the power supply assembly sector, beneficiaries include Yingjie Electric (magnet power supply), Aike Saibo (magnet power supply), and Sichuang Electronics (PSM power supply) [5]

Group 1 - The core component of fusion devices is the fusion power supply, which enhances the fusion "triple product" by optimizing heating temperature and energy confinement time, thus promoting fusion ignition [1][2] - The overall technical and customer barriers for power supply are high, with power supply costs accounting for 30%-50% of the total device cost [1][5] - The investment climate for fusion in China is improving, and the demand for fusion power supply is expected to be fully released as multiple technical routes progress simultaneously [1][5] Group 2 - The power supply plays a crucial role in assisting plasma heating and controlling plasma position, with strict requirements for precision to avoid electromagnetic radiation hazards [2][3] - Different fusion routes, such as linear, Z-pinch, and stellarator, have stringent requirements for power supply, with costs for linear devices reaching about 50% and Z-pinch devices around 30% of total costs [4][5] - Domestic capabilities for core components of power supplies have been established, reducing reliance on imports for critical components like electron tubes [3][5] Group 3 - Recommended stocks include Aikesaibo (688719.SH), with attention to Yingjie Electric (300820.SZ), Guoguang Electric (688776.SH), Xuguang Electronics (600353.SH), Hongxun Technology (603015.SH), and Wangzi New Materials (002735.SZ) [6]

Investment Rating - The report maintains a "Positive" investment rating for the electrical equipment industry [10]. Core Insights - Recent advancements in nuclear fusion technology have garnered significant attention from the capital markets, driven by breakthroughs such as China's "East Super Ring" achieving high-confinement plasma operation and substantial increases in industry capital expenditures [4][7]. - Major countries have introduced supportive policies, leading to a surge in social capital inflow, indicating that the nuclear fusion sector is approaching a pivotal point [4][30]. - The value proportion of power supply equipment is high, with significant technical barriers, particularly in magnet power supply parameters and converters being core devices [4][8]. Summary by Sections Nuclear Fusion Progress and Commercialization - The nuclear fusion sector is witnessing positive developments, with commercial viability becoming increasingly attainable. Key milestones include the successful operation of high-confinement plasma and increased capital expenditures in the industry [7][26]. - The plasma physics research institutes have reported a significant year-on-year increase in contract amounts since 2024, indicating a robust growth trajectory [29]. Importance of Power Supply in Fusion - Achieving a certain threshold in fusion triple product is crucial for effective power output, highlighting the importance of providing sufficient energy input [8]. - The power supply for tokamak devices is categorized into pulsed and steady-state loads, with pulsed loads having higher value proportions and technical requirements [8]. Competitive Landscape and Early Mover Advantage - The nuclear fusion development is still exploratory, with no unified standards for power supply parameters, creating high technical barriers [9]. - Companies that have been deeply involved in this field for years are likely to benefit from their early mover advantages as more capital flows into the nuclear fusion sector [9][30]. Investment Trends and Policy Support - The investment in nuclear fusion has seen a turning point since 2020, with the U.S. leading globally, followed closely by China. The cumulative investment in private fusion companies has surged from €1.5 billion to €9.9 billion [35]. - Various countries, including the U.S., Germany, the U.K., and China, have launched initiatives to support nuclear fusion technology development, reflecting a global commitment to advancing this field [30][31]. Focus on High-Value Equipment - The report emphasizes the need to focus on high-value equipment in the nuclear fusion sector, particularly in the context of the ITER project, where core equipment constitutes a significant portion of the investment cost structure [47][48].

Core Insights - The Shanghai Stock Exchange hosted a salon focused on "Controlled Nuclear Fusion," with over 20 companies and nearly 30 financial institutions participating to discuss the industry's future and capital market support [1][2] Industry Development - China's controlled nuclear fusion industry has gained a first-mover advantage, particularly in high-temperature superconducting materials and Tokamak devices, due to overall technological advancements and collaboration between academia and industry [2] - Leading companies in the Shanghai main board include China National Nuclear Corporation, which is deeply involved in the CFETR project, and China Nuclear Engineering Corporation, which supports the ITER project [2] Technology and Commercialization - There is a consensus on the development model that combines various technological routes, with a focus on enhancing energy Q value and creating commercially viable products [3] - The commercial viability of nuclear fusion is accelerating, as evidenced by the increasing order and production capacity from upstream companies, although significant breakthroughs and cost reductions are still needed for full commercialization [3] Investment and Financial Support - Investment institutions are currently focusing on capital expenditure and key parameter improvements, suggesting companies adopt differentiated competition strategies to attract funding [4] - The Shanghai Stock Exchange plans to enhance the adaptability of the Sci-Tech Innovation Board to better serve technological innovation and support the real economy [5]