Open Source Securities: Suggest focusing on the investment opportunities in upstream equipment, materials, and other sectors brought about by the accelerated capital expenditure of fusion projects.

Open source Securities pointed out that the controllable nuclear fusion technology route is flourishing, with significant changes in magnetic confinement, Z-pinch, FRC, and other technology routes. Currently, the global operational/under construction nuclear fusion projects are mainly led by public funds, mostly using the magnetic confinement technology route; planned nuclear fusion projects are mainly led by private capital, with technology routes tending towards diversification. The global fusion competition has begun, with frequent financing activities of fusion companies in various countries, and tech giants like Google, Amazon, and Microsoft from the United States eagerly investing in fusion companies. Referring to the annual approval and construction pace of 10GW-level nuclear fission reactors in the country, if nuclear fusion power plants successfully achieve commercialization in the future, the annual investment amount in the scenario of mass construction may reach billions of yuan. Technological progress and capital input are driving the industry into a rapid incubation stage, and it is recommended to focus on the investment opportunities in upstream equipment, materials, and other areas brought about by the accelerated capital expenditure of fusion projects.