Minsheng Securities: Water cooling system may be the best cooling solution for nuclear fusion, focusing on related industry chain targets.

Minsheng Securities published a research report stating that according to the announcement of the Fusion Industry Alliance on July 10, 2025, Fusion New Energy (Anhui) Co., Ltd. recently issued a procurement project, with the purchase and integration of the BEST equipment water cooling system accounting for 72% of the total bid amount. Currently, China has deep technical experience in controllable nuclear fusion water cooling systems. As early as 2017, the Institute of Plasma Physics of the Chinese Academy of Sciences independently developed the EAST superconducting tokamak experimental device and achieved a major breakthrough. It was the first in the world to achieve a stable high-constraint operational mode of over a hundred seconds. This system has a power consumption of over 13MW with very high power density. Considering factors such as space and safety, the water cooling system is the best cooling solution. Minsheng Securities' main points are as follows: Controllable nuclear fusion bids for a 320 million yuan contract According to the announcement of the Fusion Industry Alliance on July 10, 2025, Fusion New Energy (Anhui) Co., Ltd. recently issued a procurement project. According to business needs, this procurement involves the compact fusion energy experimental device power system trip protection (FDU) switch equipment, high current density Nb3Sn superconducting wire, compact fusion energy experimental device PF magnet development, compact fusion energy experimental device CC magnet development, compact fusion energy experimental device magnet feed line development, and the purchase and integration of the BEST equipment water cooling system. The purchase and integration of the BEST equipment water cooling system account for 72% of the total bid amount. Controllable nuclear fusion has entered a period of intensive infrastructure construction According to Advanced Energy Materials, the total investment scale of 14 major projects currently under construction in China has reached 136.2 billion yuan. The projects are mostly in the planning stage, indicating that the next 3-5 years will be a key window for bidding. The investment subjects are diversified, including research institutions (Hefei Institutes of Physical Science of the Chinese Academy of Sciences, Tsinghua University, CNNC), SOEs (New Energy, Jiangxi Lian Chuang Optoelectronic Science And Technology, China Fusion Energy) and private enterprises (Newo, Energy Point, Star Environment, Hanhai Fusion Energy, Nova Fusion, Star Energy Xuan Guang). Water cooling systems are a core component of low-temperature and cooling systems in controllable nuclear fusion devices In terms of investment proportion in ITER (International Thermonuclear Experimental Reactor), when the reactor is officially in operation, the proportion of systems maintaining stable balance is the highest, reaching 25%, followed by low-temperature devices and cooling water systems, accounting for approximately 16%. Currently, China has deep technical experience in controllable nuclear fusion water cooling systems. As early as 2017, the Institute of Plasma Physics of the Chinese Academy of Sciences independently developed the EAST superconducting tokamak experimental device and achieved a major breakthrough. It was the first in the world to achieve a stable high-constraint operational mode of over a hundred seconds. This system has a power consumption of over 13MW with very high power density. Considering factors such as space and safety, the water cooling system is the best cooling solution. The water cooling system designed by Gaolan for this system has a rated cooling capacity of up to 13.12MW, equivalent to twice the cooling capacity of a 1100kV ultra-high voltage DC transmission converter valve cooling system, making it the largest cooling system in terms of cooling capacity that Gaolan has ever designed. Investment recommendation Minsheng Securities believes that controllable nuclear fusion devices need to maintain extremely low-temperature environments for plasma and superconducting magnets (-269C in the liquid helium temperature range), and temperature control systems have become a core link to ensure the continuity of the reaction and equipment safety. Controllable nuclear fusion technology has high technical barriers, clear demand, and dual attributes of "leading research + commercial extension." Currently, controllable nuclear fusion temperature control technology is mainly divided into liquid cooling control, low-temperature refrigeration, and special cooling. Subject Companies in the related industry chain mainly include Guangzhou Goaland Energy Conservation Tech (300499.SZ): with deep accumulation of nuclear physics experiment temperature control technology, involved in the construction of the EAST device, the liquid cooling solution is compatible with the fusion reactor heat exchange system; Fujian Snowman Group (002639.SZ): breakthrough in megawatt-level helium compressor technology, providing a stable low-temperature environment for superconducting magnets, which has been applied to domestic fusion experimental projects; Lanzhou LS Heavy Equipment Co., (603169.SH): helium-cooled solid state cladding technology verified in high-temperature gas-cooled reactors, microchannel welded heat exchangers adapted to the CFETR project needs. Risk warning Policy support does not meet expectations; financing and investment do not meet expectations; technical bottlenecks are difficult to break through.