Bank of China Securities: Power determines fusion control accuracy, special power supplies welcome development tailwind

According to the report from Bank of China Securities, fusion power sources are one of the core components of fusion devices. By optimizing heating temperature and energy confinement time to enhance the fusion "triple product," fusion ignition can be promoted. The overall technical barriers and customer barriers for power sources are high. In addition to the Tokamak route, other fusion technology routes such as linear, Z-pinch, and stellarator also have strict requirements for power sources, with power source costs accounting for as much as 30%-50% of the overall device. With the rising investment climate in China's nuclear fusion and the simultaneous advancement of multiple technology routes, orders and performance in the fusion power source segment are expected to be fully released. The main points from Bank of China Securities are as follows: High safety requirements for power sources, product iteration promotes fusion ignition The "triple product" of plasma temperature, plasma density, and energy confinement time in China's fusion devices has reached the level of 10^20, still some distance from the fusion self-sustaining condition of 5×10^21. The power source plays a role in assisting plasma heating and controlling plasma position in fusion devices. Technological iteration can promote the enhancement of the "triple product," ultimately achieving fusion ignition. The power source needs to continuously adjust output current and voltage in coordination with plasma reactions, and the power system has strict requirements for control precision to avoid electromagnetic radiation hazards to the fusion device. As the power of fusion devices increases, the impact on the operational safety of high-voltage power grids is also increasing, further raising the requirements for power source control capabilities. Different performance focuses for magnet power sources and heating power sources; China has the capability for domestic production of core components for power sources The Tokamak fusion route requires the use of magnet power sources and heating power sources. Magnet power sources control plasma position and protect magnet safety, emphasizing fast response speed and high stability. The response time of magnet power sources needs to be controlled within 0.3ms, with voltage fluctuation not exceeding 3%, while also requiring high disturbance resistance. Heating power sources are trending towards high power, with various heating schemes requiring high-frequency radio frequency technology and using electron tubes as core components. In the past, China needed to import electron tubes from the United States, Russia, and France, but now, through special projects from the Ministry of Science and Technology from 2017 to 2019, it has achieved domestic production capabilities for cyclotron tubes, traveling wave tubes, and tetrodes. Strict requirements for power sources in linear, Z-pinch, and stellarator fusion routes Linear devices use power sources for plasma ionization and plasma injection, requiring plasma to be accelerated to 250km/s, with coil discharge speeds needing to be controlled at the sub-microsecond level. The cost of power sources for linear devices accounts for about 50%. Z-pinch devices require the development of a 50MA-level "electromagnetic driving large scientific device," accounting for about 30% of the overall device cost. The magnetic field configuration of stellarators completely relies on the current of magnetic field coils, making power source design and control complex. In addition to the Tokamak route, other fusion routes such as linear, Z-pinch, and stellarators also have high requirements for power sources. High customer and technical barriers for power sources, expected to benefit from the rising investment climate in fusion Power source manufacturers need to closely cooperate with customer needs for customized product development, resulting in high customer barriers; at the same time, nuclear fusion requires the use of high-power sources with high stability requirements, creating technical barriers. With the rising investment climate in China's nuclear fusion and the advancement of multiple technology routes, it is expected to drive the release of demand for fusion power sources Target Aspects Recommend Actionpower (688719.SH), suggest paying attention to INJET (300820.SZ), Guoguang Electric (688776.SH), Xuguang Electronics (600353.SH), Hongxun Technology (603015.SH), and Wangzi New Materials (002735.SZ). Risk Factors Progress in nuclear fusion industrialization does not meet expectations, nuclear fusion policy risks, industrial investment intensity does not meet expectations, international trade friction risks