Core Viewpoint - The skepticism surrounding the commercialization of controlled nuclear fusion is diminishing due to advancements in high-temperature superconductors, increased commercial investments, and rapid developments in artificial intelligence, making the dream of ultimate energy more attainable [1]. Group 1: Industry Developments - The global race for "artificial sun" represents a multidimensional competition involving strategic determination, endurance, and strength, as controlled nuclear fusion transitions from basic research to engineering practice and commercial application [3]. - Shanghai Electric is one of the leading manufacturers of core equipment for nuclear fusion systems in China, having participated in major domestic and international fusion device constructions such as EAST, CRAFT, BEST, and ITER [3][5]. - The matrix of fusion devices covers various technological routes and engineering stages, providing Shanghai Electric with a significant competitive advantage in the fusion technology landscape [5]. Group 2: Technological Advancements - Shanghai Electric has a long history of involvement in fusion technology, dating back to the 1980s when it supplied two sets of pulse generator units for China's first Tokamak device [6]. - In 2025, significant breakthroughs in domestic fusion research devices are expected, including the achievement of a fusion triple product of 10^20 for the HL-3 device and the installation of key components for the BEST device [6]. - The company has developed the world's largest toroidal field magnet coil box, which is 21 meters high and weighs 400 tons, showcasing its advanced manufacturing capabilities [7]. Group 3: Strategic Initiatives - In July 2023, China Fusion Energy Co., a major player in fusion engineering, was established with a registered capital of 15 billion yuan, indicating a strategic move towards fusion commercialization [8]. - Shanghai Electric's long-term investments in cutting-edge technologies are expected to yield competitive advantages and collaborative synergies in the fusion energy sector [10]. - The company aims to explore new thermal conversion systems and efficient heat exchange devices while advancing into the supply of main equipment for controlled nuclear fusion [11]. Group 4: Future Outlook - The Chinese government has included nuclear fusion energy in its 14th Five-Year Plan, indicating a clear policy direction and stable long-term expectations for the industry [12]. - The industry is currently in the "burning experiment" phase, with plans to enhance plasma parameters significantly by the end of 2027 and to develop the first engineering experimental reactor by around 2035 [12]. - Shanghai Electric is committed to deepening its involvement in the national fusion strategy and accelerating the transition of fusion technology from laboratory feasibility to industrial application [13].

Group 1 - The establishment of the Controlled Nuclear Fusion Innovation Consortium aims to advance fusion energy as a key future energy source in China, aligning with the country's strategic development plan for nuclear energy [1][2] - The consortium, formed by China National Nuclear Corporation and 25 other entities, will focus on building a technological innovation hub for fusion engineering, integrating technology needs with industrial advantages [1][2] - Shanghai Electric, a leading manufacturer in nuclear power equipment, has developed critical core devices and possesses comprehensive capabilities in the supply of fusion equipment, supporting the industrialization process of fusion energy [2][3] Group 2 - The forum highlighted the transition of fusion technology from scientific research to engineering applications, marking a crucial period for commercialization [3][4] - The event featured 18 thematic reports focusing on advanced technologies such as fusion energy conversion, energy storage, and special power sources, fostering collaboration among academia, industry, and research [4] - Shanghai Electric plans to leverage decades of technological accumulation to collaborate with various sectors in advancing fusion technology from laboratory validation to industrial application [3]

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].