Hongxun Technology (603015) Limit-Up Analysis: 2 Consecutive Limit-Ups Driven by the Controllable Nuclear Fusion Concept

Hongxun Technology’s current round of limit-ups is driven by the outbreak of the controllable nuclear fusion concept. On January 2, 2026, the Hefei Institutes of Physical Science, Chinese Academy of Sciences announced that the “Artificial Sun” Experimental Advanced Superconducting Tokamak (EAST) nuclear fusion experimental device successfully confirmed the existence of the tokamak density free regime, found a way to break through the density limit, and provided important physical basis for the high-density operation of magnetic confinement nuclear fusion devices. The relevant results were published in the international academic journal Science Advances [3][4]. This technological breakthrough marks China’s significant progress in the field of controllable nuclear fusion, directly igniting the market’s investment enthusiasm for nuclear fusion concept stocks.

Meanwhile, the 2026 Nuclear Fusion Energy Science and Industry Conference will be held in Hefei, Anhui from January 16 to 17, at the campus of the Comprehensive Research Facility for Fusion Reactor Host Key Systems (CRAFT) [2]. As an important event in China’s controllable nuclear fusion sector, it is expected to release more industrial progress, further catalyzing sector sentiment. From the perspective of capital flows, controllable nuclear fusion concept stocks have continued to strengthen in January, with 13 stocks including Far East Co., Ltd. recording cumulative increases of over 10% [5], showing obvious sector momentum.

Hongxun Technology has a substantive business layout in the nuclear fusion field, which is its key advantage distinguishing it from pure concept speculation. The company’s Italian subsidiary EEI provides high-precision power supply systems for the DTT project of the Italian National Agency for New Technologies, Energy and Sustainable Economic Development (ENEA), with an order value of 3.6 million euros [6]. The company’s products include electromagnetic coil power supplies for tokamak fusion experimental devices, fast inverters for resistive wall mode control, etc. [7], with obvious technological barriers in the nuclear fusion field and special power supply capabilities. This “substantive” participation in the concept makes it more convincing in sector speculation.

Hongxun Technology’s main business covers three sectors: industrial automation, digitalization, and new energy. It is a leading domestic manufacturer of injection molding machine control systems, which is a national single champion product. The company has in-depth cooperation with Taiwanese chip design companies, and multiple MCU chips and communication chips have entered mass production [6], continuously enhancing its supply chain independence and controllability.

From the first half of 2025 performance, the company achieved operating revenue of RMB 436 million, a year-on-year increase of 1.04%, but net profit attributable to shareholders was RMB 28.2296 million, a year-on-year decrease of 21.48%, and non-recurring net profit was RMB 23.6194 million, a year-on-year decrease of 41.28% [6]. The decline in net profit was mainly due to increased exchange losses caused by the appreciation of the New Taiwan Dollar. Excluding exchange factors, the core business profit remained relatively stable. Notably, the new energy business of Italian subsidiary EEI performed well, with revenue of RMB 50.44 million, a year-on-year increase of 16% [6], further consolidating its technological advantages in nuclear fusion.

Corporate governance has been continuously optimized recently. According to Xina AI’s abnormal movement analysis, the company has formulated a public opinion management system, optimized the board structure, abolished the supervisory board, strengthened investor communication and held performance briefings, and the election of employee representative directors and the executive team have remained stable [1]. Improved governance helps enhance market confidence in the company’s long-term development.

In terms of market sentiment, the controllable nuclear fusion concept is in a period driven by both policy and technology. The 15th Five-Year Plan Proposal lays out a forward-looking layout for the nuclear fusion energy sector, with positive policy expectations [5]. Institutions such as Kaiyuan Securities are optimistic about the sector’s long-term development prospects, and market attention continues to rise.

From the perspective of sector linkage, Hongxun Technology’s limit-up was accompanied by the simultaneous strength of multiple concept stocks. Controllable nuclear fusion concept stocks including Far East Co., Ltd., China Nuclear Engineering Corporation, China National Machinery Heavy Industry Corporation, and Xuelong Group also hit daily limit-ups [1][2], with China Nuclear Engineering Corporation and Xuelong Group also achieving 2 consecutive limit-ups, forming obvious sector momentum. On January 7, Hongxun Technology’s turnover reached RMB 213 million, a significant increase from usual [1], indicating inflows of incremental capital driving the movement.

The overall A-share market is active, with the Shanghai Composite Index fluctuating around 4100 points. The turnover of the Shanghai and Shenzhen markets has exceeded RMB 2.5 trillion for 4 consecutive trading days [2], with over 100 stocks hitting daily limit-ups. Technology concepts such as commercial aerospace, brain-computer interfaces, and controllable nuclear fusion have rotated strongly, providing a favorable market environment for Hongxun Technology’s limit-up.

Investors need to pay attention to the following risk factors:

: The concerted action person of the controlling shareholder plans to reduce holdings by no more than 3% of the shares [9]. Although share reduction is an independent action of shareholders, it may exert short-term pressure on the stock price.

: The appreciation of the New Taiwan Dollar has led to increased exchange losses, creating short-term pressure on performance. The total profit in the first half of 2025 decreased by 26.11% year-on-year [6].

: After 2 consecutive limit-ups, the short-term increase is significant. The stock price rose from approximately RMB 12.85 before the limit-up to around RMB 15.55, with a cumulative increase of over 20%. Investors need to be alert to pullback pressure after market sentiment fades.

: The commercialization of controllable nuclear fusion still takes a long time. Beware of value regression after pure concept speculation.

: Non-recurring net profit decreased by 41.28% year-on-year, indicating that the profitability of the main business needs improvement. Revenue growth was only 1.04%, with relatively limited growth potential [6].

: The first support level is around RMB 14.50 (5-day moving average), and the second support level is around RMB 13.50.

: The first resistance level is RMB 17.00 (near the previous high), and the second resistance level is RMB 18.00.

:

Scenario	Conditions	Forecast
Optimistic	Controllable nuclear fusion sector continues to ferment + trading volume remains high	Challenges the previous high area of RMB 18
Neutral	Sector fluctuates and consolidates + trading volume is moderate	Fluctuates within the range of RMB 14-16
Pessimistic	Sector sentiment fades + trading volume shrinks	Pulls back to the 10-day moving average to seek support

Hongxun Technology’s current round of limit-ups belongs to a sectoral rally driven by the controllable nuclear fusion concept. The company has a substantive business layout in nuclear fusion (3.6 million euro order for the Italian DTT project) with obvious technological barriers. Short-term catalysts are concentrated, and the sector still has opportunities for repeated activity before the January 16-17 Nuclear Fusion Energy Industry Conference. However, investors need to note the short-term performance pressure from shareholder share reduction and exchange losses, as well as the pullback risk caused by the significant short-term increase. Investors should closely monitor changes in trading volume and sector sustainability, and rationally view the difference between concept speculation and fundamental value.