The Zhitong Finance App learned that on the morning of July 22, Fangzheng Securities released a research report saying that on the morning of July 22, the Korean research team submitted 2 consecutive papers on the arXiv website, claiming to have successfully synthesized a room temperature superconductor (LK-99) that works under normal pressure for the first time in the world. The world's top laboratories scrambled to verify it, and concept stocks in the capital market also rose in response. Current low temperature and high temperature superconducting materials require extremely low temperature and ultra-high pressure working environments, and there are many limitations in commercial applications. The Korean research team's breakthrough in room-temperature atmospheric pressure superconductivity is expected to fundamentally solve the current technical difficulties facing the superconductor industry. Fields related to “electricity” will all be revolutionized by superconducting materials.It will have a huge transformative impact on manufacturing and on human society as a whole.
▍ The main views of Fangzheng Securities are as follows:
South Korea “refines” room-temperature superconductors, is humans about to enter the superconductor era?
On the morning of July 22, the Korean research team submitted 2 consecutive papers on the arXiv website, claiming to have successfully synthesized a room-temperature superconductor (LK-99) that works under normal pressure for the first time in the world. The world's top laboratories scrambled to verify it, and concept stocks in the capital market also rose in response. Current low temperature and high temperature superconducting materials require extremely low temperature and ultra-high pressure working environments, and there are many limitations in commercial applications.
The Korean research team's breakthrough in room-temperature atmospheric pressure superconductivity is expected to fundamentally solve the current technical difficulties faced by the superconductor industry. Fields related to “electricity” will all be revolutionized by superconducting materials, which will have a huge transformative impact on the manufacturing industry and human society as a whole.
Is the rapid resurgence of global laboratories a breakthrough in history or research on oolong?
Since the Korean research team published the paper on July 22, the world's top laboratories have verified and replicated it based on the paper. A team from China's Huazhong University of Science and Technology verified the Meissner effect (antimagnetism), and a leading US laboratory said the theory is workable. Since the synthesis steps given in the room temperature superconductivity paper are relatively simple, there will be more and more repeated experiments in the future. Whether room temperature superconductivity is a study of oolong or a historical breakthrough is expected to be determined within a short period of time.
The possibilities of room-temperature superconductivity are limitless. Can they lead the fourth industrial revolution?
At present, there are many flaws in the application of high/low temperature superconductivity technology. The core problem is that the required working temperature is extremely low, the cost is too high due to cooling through the refrigeration system, and the application scenarios are limited. Room temperature superconductivity solves the strict limitations of the working environment, and has broad application scenarios in various fields such as electricity (power cable/superconducting energy storage), energy (nuclear fusion), transportation (magnetic levitation), medicine (nuclear magnetic resonance), and electronics (quantum computer/precision instruments).
The room-temperature superconductor industry chain includes upstream resources, midstream materials, and downstream terminal applications.
Upstream: mineral resources. The main material of LK-99 is modified lead apatite, corresponding to lead and copper minerals; midstream: superconducting strips, wires, etc.; downstream: manufacturing of various terminal equipment such as cables, magnets, etc., and derives application scenarios such as superconducting power, maglev technology, medical fields, etc.
The threshold for the middle and lower reaches is relatively high, and investment recommendations prioritize the placement of high-quality enterprises in the middle and lower reaches.
There are high technical barriers to the development and testing of midstream material processes and downstream products, and leading enterprises can maintain a first-mover advantage. Based on the industry chain, it is recommended to focus on the following targets — (1) upstream (lead/copper/rare metals): Jinhui Co., Ltd. (603132.SH), a resource enterprise with rich lead-zinc ore resources, Yuguang Gold & Lead (600531.SH), a resource enterprise with leading lead smelting technology, and Dongfang Tantalum (000962.SZ), which specializes in rare metals;
(2) Midstream (superconducting strip/wire): Yongding Co., Ltd. (600105.SH), which specializes in superconducting strips and wires, etc.;
(3) Downstream (superconducting equipment manufacturer): National Cable Inspection, leader in superconducting cable inspection (301289.SZ), innovative new materials for superconducting cables (600361.SH), etc.
Risk warning:
The strategic view does not indicate that the downward pressure on the industry or macroeconomy has exceeded expectations, that the profit environment has fluctuated beyond expectations, etc.