According to the Zhitong Finance APP, Kaiyuan Securities has released a research report stating that the controllable nuclear fusion technology routes are flourishing, with significant changes in magnetic confinement, Z-pinch, FRC, and other technology routes. The controllable nuclear fusion industry has entered a rapid incubation stage and is expected to gradually move towards commercialization. Technological advancements and capital investments are jointly driving the industry into a rapid incubation phase, and it is recommended to pay attention to investment opportunities in upstream equipment and materials brought about by the accelerated capital expenditure of fusion projects. Beneficiary targets include WST (688122.SH), HFM (603011.SH), INJET (300820.SZ), and CDXG (600353.SH).
<h2>The main viewpoints of Kaiyuan Securities are as follows:</h2>
Diverse development of controllable nuclear fusion technology routes, with public funds and private capital actively entering the field
Nuclear fusion reactions refer to the process of light nuclei colliding and fusing to form heavy nuclei, releasing a large amount of energy. The controllable nuclear fusion technology routes are flourishing, with significant changes in magnetic confinement, Z-pinch, FRC, and other technology routes. Currently, the nuclear fusion projects in operation or under construction globally are mainly led by public funds, predominantly using magnetic confinement technology routes; planned nuclear fusion projects are mainly led by private capital, with a trend towards diversification of technology routes; the global fusion race has begun, with frequent financing activities among fusion companies in various countries, and American tech giants like Google, Amazon, and Microsoft are actively investing in fusion companies. Based on the current annual approval construction pace of 10GW-level fission reactors in China, if nuclear fusion power stations successfully achieve commercialization, the annual investment amount in a scenario of mass construction in the future may reach hundreds of billions.
Tokamak devices are expected to benefit from breakthroughs in the mass production of high-temperature superconducting tapes, achieving grid-connected power generation in the 2030s
The fusion power of Tokamak devices is proportional to the fourth power of the strength of the toroidal magnetic field; theoretically, every time the strength of the toroidal magnetic field increases by 1.8 times, the fusion power of the device can increase by an order of magnitude. The critical current capacity of low-temperature superconducting materials NbTi and Nb3Sn significantly decreases at magnetic field strengths of 10T and 20T, respectively; however, second-generation high-temperature superconducting materials REBCO maintain strong current-carrying capacity at a magnetic field strength of 40T. In recent years, with the industrial mass production of high-temperature superconducting materials, the theoretical limits of devices using high-temperature superconducting solutions have significantly increased, leading to the emergence of a new generation of fusion companies, including CFS, Tokamak Energy, XH Fusion, and Energy Singularity, all adopting high-temperature superconducting solutions.
Domestic Z-pinch hybrid reactors are expected to accelerate implementation, and FRC devices are favored by private capital
In 2008, Academician Peng Xianjue proposed the Z-pinch driven fusion-fission hybrid reactor (Z-FFR); in March 2025, Xianjue Fusion was established, and the construction of domestic Z-pinch hybrid reactors is expected to accelerate. From 2008 to 2020, the Helion team received approximately $74 million in awards/funding and completed six iterations of the prototype of the field-reversed configuration (FRC) device, successfully achieving a plasma temperature of 100 million degrees. FRC devices are expected to become dark horses in the fusion field, with private capital accelerating its layout. From 2021 to the first half of 2025, Helion completed a total of $960 million in financing, and domestic companies such as Hanhai Fusion, Xingneng Xuanguang, and Nova Fusion were established successively; in August 2025, Nova Fusion completed 500 million yuan in angel round financing
Beneficiary Targets
(1) Magnets: WST (low-temperature superconducting wire), Yongding Co., Ltd. (high-temperature superconducting tape), Shanghai Superconductor (high-temperature superconducting tape), Lianchuang Optoelectronics (high-temperature superconducting magnet services), etc.;
(2) Vacuum chambers and in-pile components: HFM (vacuum chambers, first wall, blanket, and divertor), Guoguang Electric (first wall, blanket, and divertor), Antai Technology (first wall, blanket, and divertor), etc.;
(3) Power assemblies: INJET (magnet power supply and PSM power supply), Aike Saibo (magnet power supply and PSM power supply), Sichuang Electronics (PSM power supply), Xinfengguang (magnet power supply), Saijing Technology H (pulse power supply), etc.;
(4) Microwave and power devices: CDXG (vacuum pulse power devices, etc.), Guoli Co., Ltd. (hydrogen thyratron, cyclotron, traveling wave tube), Hongwei Technology (IGBT), Prince New Materials (capacitors), etc.;
(5) Fuel breeding and recycling: Guoguang Electric (tritium plant), etc.;
(6) Testing equipment: Wanyi Technology (helium leak detection, vacuum leak detection), etc.
Risk Warning
Commercialization progress may be below expectations, funding input may be below expectations, and risks of changes in technological routes

300820

603011

688122

600353

KaiYuan Securities released a research report indicating that the controlled nuclear fusion industry is rapidly incubating and gradually moving towards commercialization. The technology routes are diversified, with significant changes in magnetic confinement, Z-pinch, FRC, and other technologies. Both public and private capital are actively invested, driving industry development. It is recommended to pay attention to capital expenditure opportunities in fusion projects, with beneficiary companies including WST, HFM, INJET, and CDXG. If nuclear fusion power plants achieve commercialization in the future, annual investment could reach hundreds of billions of yuan

KaiYuan Securities: Controlled nuclear fusion technology is flourishing, and the industry is expected to gradually move towards commercialization