Group 1: Company Growth and Market Expansion - The company is focusing on long-cycle, high-demand electricity needs driven by global energy revolution, aging power grids in developed countries, and explosive growth in computing power [2] - In the first half of the year, direct export revenue reached 262 million CNY, a year-on-year increase of 37.99%, with significant growth in electromagnetic wire exports and a breakthrough in cable exports [4] - The company is establishing a smart production base in Europe with an annual capacity of 20,000 tons of electromagnetic wire, with all necessary investment registrations completed [4] Group 2: Product Development and Applications - The company has developed high-voltage flat electromagnetic wires for electric vehicles, with 800V wires already in supply and 1000V wires in technical reserve [6] - In the specialized cable sector, the company has successfully developed a full range of cables for shield tunneling machines, replacing imported products in hard rock tunneling machines [7] - The company has products used in nuclear fission projects, including the fourth-generation nuclear power ultra-high temperature electromagnetic wire, ending reliance on imports in this field [8] Group 3: Research and Development - The company is investing in R&D for superconducting cables and has developed a series of products for superconducting magnets, serving clients like Western Superconducting and Siemens [8]

Investment Rating - The investment rating for the electric equipment and new energy industry is "Outperform the Market" (maintained) [1]. Core Insights - On July 22, China Fusion Energy Co., Ltd. was established with a total investment of 11.5 billion RMB from various stakeholders, marking a significant step in advancing fusion energy technology in China [2]. - The company will focus on overall design, technology verification, and digital R&D, aiming to build a technology research platform and a capital operation platform [2]. - The capital injection will be used for the construction of the technology research platform and integration of the industrial chain [2]. Company Summaries - **Jinbei Electric**: A leader in ultra-high voltage electromagnetic wire, with products used in nuclear fission projects. The company has developed a fourth-generation ultra-high temperature electromagnetic wire, ending reliance on imports in this field [2]. - **Guangda Special Materials**: A top domestic enterprise in special steel materials and wind power castings, with a strong technical foundation. The company supplies materials for superconducting coil armor and has successfully delivered low-activation martensitic steel [2]. - **Xuji Electric**: A leading enterprise in ultra-high voltage converter valves, with deep expertise in power electronics technology. The company has capabilities in new magnetic field power supply projects for magnetic confinement fusion [2]. - **Dongfang Electric**: A major energy equipment R&D and manufacturing group in China, successfully developing the first batch of blanket shielding modules for the International Thermonuclear Experimental Reactor (ITER) [2]. - **Shanghai Electric**: The largest comprehensive equipment manufacturing group in China, with a complete nuclear energy equipment manufacturing industry chain covering various nuclear power technologies [3]. Financial Forecasts - **Jinbei Electric**: Market capitalization of 7.6 billion RMB, with projected net profits of 570 million RMB in 2024, increasing to 770 million RMB by 2026 [5]. - **Guangda Special Materials**: Market capitalization of 6.6 billion RMB, with projected net profits of 110 million RMB in 2024, increasing to 410 million RMB by 2026 [5]. - **Xuji Electric**: Market capitalization of 25.3 billion RMB, with projected net profits of 1.12 billion RMB in 2024, increasing to 1.88 billion RMB by 2026 [5]. - **Dongfang Electric**: Market capitalization of 73.2 billion RMB, with projected net profits of 2.92 billion RMB in 2024, increasing to 5.52 billion RMB by 2026 [5].