CNNP(SH:601985) Jiang Nan Shi Bao·2025-05-26 07:49Core Viewpoint - The nuclear power industry in China is expected to experience significant growth due to its advantages in cleanliness and stability, as well as the uneven distribution of energy resources in the country. The industry is poised for a construction and production peak driven by multiple factors including policy, technology, and market dynamics [1][18]. Group 1: Advantages of Nuclear Power - Nuclear power has clear advantages in terms of cleanliness, stability, and utilization hours. It does not produce greenhouse gases during electricity generation, resulting in minimal environmental impact. Compared to fossil fuels, nuclear power has extremely low carbon emissions, aiding in pollution reduction. Additionally, nuclear power provides stable electricity supply with annual utilization hours consistently above 7000, the highest among all energy sources [2]. Group 2: Energy Distribution and Strategic Importance - China's primary energy resources are concentrated in the northern and western regions, while economically developed and densely populated coastal areas lack conventional energy sources. Accelerating nuclear power development is crucial for optimizing energy structure, alleviating transportation pressure, and enhancing energy efficiency and grid reliability, which is strategically significant for national energy security. By the end of 2025, China's operational nuclear power capacity is expected to reach 65 million kilowatts, with nuclear energy's share of total electricity generation projected to double to 10% by 2035 compared to 2022 [4]. Group 3: Nuclear Power Industry Chain - The nuclear power industry chain consists of three main segments: upstream (uranium mining, processing, trading, and fuel manufacturing), midstream (nuclear power equipment manufacturing), and downstream (nuclear power plant construction, operation, and fuel reprocessing) [7]. Group 4: Acceleration of Nuclear Approvals and Construction - The nuclear power sector is experiencing a surge in approvals, with 11 new units approved in August 2024. The average annual approvals have increased from 4-5 units (2019-2021) to 10-11 units (2022-2024), indicating a significant uptick in nuclear power construction and equipment demand [9]. Group 5: Recent Catalysts for the Nuclear Power Industry - The nuclear power industry is benefiting from multiple catalysts, including accelerated approvals, technological breakthroughs, and expanding market demand. The approval of new projects is expected to continue at a pace of 8-10 units annually, while technological advancements have increased the domestic production rate of third-generation nuclear power plants to over 90%. Additionally, the market demand for nuclear power is growing, with its share of total electricity generation rising to 4.72% and significant reductions in carbon emissions [15][16]. Group 6: Investment Logic and Related Stocks - The nuclear power sector's growth is supported by its cleanliness and stability, alongside favorable policies and technological advancements. Key stocks in the industry include Shanghai Electric, Dongfang Electric, and Jiangsu Shentong, among others [19].