Core Insights - The report from China Merchants Securities highlights the accelerated industrialization process of controllable nuclear fusion, transitioning from experimental validation to engineering demonstration, with a focus on material performance breakthroughs as a core bottleneck [1][2] - The overall domestic production rate of key nuclear fusion equipment exceeds 96%, with significant advancements in core components such as tungsten-based divertors and high-temperature superconducting materials [1] - The industry is entering a new phase characterized by "multiple routes racing + capital resonance," with a recommendation to focus on leading companies and suppliers of domestically replaced materials and core components [1] Group 1: Industrialization Progress - The urgency of global energy transition is propelling controllable nuclear fusion as a clean energy solution, moving towards engineering and commercialization [1] - The magnetic confinement tokamak route currently dominates the industrialization process, while inertial confinement and hybrid routes are also developing in parallel [1] - China is leveraging major scientific devices like EAST and BEST to achieve breakthroughs in key areas, with the BEST device expected to demonstrate fusion energy generation by 2027 [1] Group 2: Material Innovation - Material innovation is identified as the core bottleneck and breakthrough point for current industrialization, with extreme operational environments demanding near-limit performance from materials [2] - Key materials include high melting point and radiation-resistant materials for first walls/divertors, and the transition from low-temperature to high-temperature superconductors to enhance magnetic field strength [2] - Domestic companies have made significant progress in areas such as tungsten-copper divertors and superconducting wires, but challenges remain in material reliability verification and cost control [2] Group 3: Market Opportunities - The energy equipment sector is seeing significant growth, with leading enterprises establishing clear paths for core component R&D and industrialization [3] - Companies involved in superconductors, first walls, and divertor materials are expected to benefit significantly from this growth [3] - Military enterprises are extending their high-precision manufacturing capabilities into civilian sectors, with companies like Sui Chuang Electronics and Wangzi New Materials gaining early advantages in supporting roles [3] Group 4: Recommended Companies - Companies to focus on include Guoguang Electric, Hezhu Intelligent, Lianchuang Optoelectronics, Western Superconducting, Sui Chuang Electronics, Wangzi New Materials, Parker New Materials, Antai Technology, Yongding Co., Xuguang Electronics, Sui Rui New Materials, Zhongzhou Special Materials, and Jiuli Special Materials [4]

Core Insights - The report highlights the rapid development and commercialization potential of controlled nuclear fusion technology, which is seen as a key direction for future energy strategies globally [2][3][4] - The introduction of the Atomic Energy Law in China is expected to promote sustainable development in the nuclear energy sector and support research and technology development in controlled nuclear fusion [2][3] - The industry is experiencing significant growth opportunities, particularly in upstream materials and midstream processing sectors, driven by the bidding and construction activities of leading domestic fusion enterprises [4][5] Industry Overview - Controlled nuclear fusion is regarded as the "ultimate solution" in the energy sector, with the potential to lead a new technological revolution similar to the advent of the steam engine and electrification [2] - The commercialization of Tokamak fusion reactors is anticipated to occur between 2031 and 2035, according to a survey by FIA [2] Market Dynamics - The report indicates that high-temperature superconductors, first wall materials, low-temperature systems, heat exchangers, and vacuum chambers are considered critical components for fusion devices [4][5] - The domestic fusion supply chain is expected to benefit from the initial high growth phase, with upstream material suppliers and midstream processing companies poised to share in the industry's growth [4] Key Components and Technologies - High-temperature superconductors are projected to see a significant market expansion, with expectations that they will capture 25% of the global superconducting materials market by 2030 [4] - The blanket module, which includes the first wall, is identified as a critical component for the future of controlled nuclear fusion, with companies like Guoguang Electric being highlighted for their production capabilities [5] - Tungsten-copper divertors are noted as a promising solution for managing plasma contamination and heat, with companies such as Antai Technology recommended for their supply capabilities [6] Manufacturing and Processing - The vacuum chamber is emphasized for its high processing barriers and critical role in the safe operation of fusion reactors, with companies like Hezhong Intelligent suggested for their manufacturing experience [6][7] - The report suggests that companies with integrated solutions for vacuum chamber manufacturing and processing will have a competitive advantage in the market [6][7]