Investment Rating - The report assigns an "Accumulate" rating for the controlled nuclear fusion industry [1]. Core Insights - The report highlights significant developments in the controlled nuclear fusion sector, including South Korea's increased budget for fusion research and General Fusion's plans for a SPAC merger to raise $1 billion [3][24]. - South Korea's 2026 fusion research budget has been raised to 112.4 billion KRW (approximately $76.57 million), a 99% increase from 2025 [15]. - General Fusion aims to commercialize its magnetized target fusion technology by the mid-2030s, with a valuation of approximately $1 billion post-merger [24][18]. Summary by Sections Market Performance - During the week of January 19-23, the nuclear fusion index rose by 3.76%, outperforming the Shanghai Composite Index by 2.92 percentage points [8][11]. Tender and Bid Information - The report notes a significant increase in procurement demand, particularly for components like TF coils, with total procurement amounts nearing 100 million RMB [10][4]. - Key projects include the procurement of stability measurement systems and TF coil insulation manufacturing, with various contracts signed [10][13]. Domestic and International News - South Korea's Ministry of Science and Technology has initiated the 2026 fusion research development plan, focusing on upgrading the fusion energy ecosystem and introducing AI technology [14][15]. - The "Huanghuang 70" superconducting tokamak has achieved a significant milestone by maintaining a stable plasma state for 335 seconds [16][17]. Investment Dynamics - General Fusion's SPAC merger is expected to accelerate its commercialization efforts, while MuWave has secured £450,000 in seed funding to develop high-power microwave technology for fusion energy [21][24]. - The report emphasizes the importance of domestic suppliers in key areas such as magnets, power supplies, and structural components, which are expected to benefit from the accelerating tender processes [24].

Investment Rating - The report assigns an "Accumulate" rating for the controlled nuclear fusion industry [1]. Core Insights - The report highlights significant developments in the controlled nuclear fusion sector, including South Korea's increased budget for fusion research and General Fusion's plans for a SPAC merger to raise $1 billion [3][14][24]. - South Korea's 2026 fusion research budget has been raised to 112.4 billion KRW (approximately $76.57 million), a 99% increase from 2025 [15]. - General Fusion aims to accelerate its magnetized target fusion (MTF) technology commercialization with the funds raised from its SPAC merger, targeting commercial power generation by the mid-2030s [18][24]. Summary by Sections Market Performance - During the week of January 19-23, the nuclear fusion index rose by 3.76%, outperforming the Shanghai Composite Index by 2.92 percentage points [8][11]. Tender and Bid Information - The report notes a significant increase in procurement activities, particularly for components like TF coils and structural parts, with total procurement amounts nearing 100 million RMB [10][13]. Domestic and International News - South Korea's Ministry of Science and Technology announced the 2026 Fusion Research and Development Execution Plan, focusing on upgrading the fusion energy ecosystem and introducing AI technology [14][15]. - The "Huanghuang 70" superconducting tokamak achieved a significant milestone by maintaining a stable plasma state for 335 seconds [16][17]. Investment Dynamics - General Fusion's SPAC merger is expected to position it as a leading public entity in the nuclear fusion sector, with a valuation of approximately $1 billion [18][24]. - MuWave, a spin-off from the UK Atomic Energy Authority, secured £450,000 in seed funding to develop high-power microwave technology for fusion energy applications [21]. Investment Recommendations - The report suggests focusing on key suppliers in the controlled nuclear fusion sector, particularly in areas such as magnets, power supplies, and structural components [24]. Recommended companies include: - Magnets: Lianchuang Optoelectronics, Yongding Co. - Power Supplies: Wangzi New Materials, Xuguang Electronics, Aike Saibo, and Sichuang Electronics. - Structural Components: Hangyang Co., with related companies including Hezhu Intelligent, Guoguang Electric, and Antai Technology [24].