CITIC Securities: The investment logic of controllable nuclear fusion industry is transitioning from thematic narrative to industry trend investment.

The CITIC construction investment research report stated that the investment logic of the controllable nuclear fusion industry is transitioning from the distant narrative of "ultimate energy" to industrial trend investment driven by engineering implementation. The core driving force comes from the explosion of demand expectations on the demand side and technological breakthroughs on the supply side. The contradiction between the growing demand for electricity brought by the booming development of artificial intelligence and big data industries and the future power supply gap is becoming increasingly prominent. The application of high-temperature superconductors and AI technology in the field of nuclear fusion has greatly reduced the construction cost of fusion devices and accelerated the iteration speed of devices. This has jointly stimulated the huge capital expenditure for the construction of experimental and demonstration reactors, bringing certainty of order volume to upstream material and midstream equipment enterprises in the industrial chain. Before fusion energy "produces the first degree of electricity", upstream and midstream enterprises providing core materials, critical equipment, and systems for experimental and demonstration reactors will be the first and continuous beneficiaries, sharing the huge growth dividend of the industry from 0 to 1. It is recommended to layout core suppliers of fusion devices in various regions, as well as key links with high value proportions in various types of fusion devices.