CNNP(SH:601985) Mei Ri Jing Ji Xin Wen·2026-02-04 10:06Core Viewpoint - China Nuclear Power's stock price has underperformed significantly compared to the A-share market, raising concerns among investors about the company's future valuation and operational performance [1][2]. Group 1: Stock Performance - Since the "9.24 market" in 2024, China Nuclear Power's stock has declined by 13.71%, lagging behind the Shanghai Composite Index by 61.71 percentage points [1]. - The stock price has fallen below the company's average repurchase price and is approaching the subscription price set by the National Social Security Fund [1][4]. - As of January 31, 2026, the company repurchased 44.90 million shares at an average price of 9.02 CNY per share, while the closing price on February 3, 2026, was 8.56 CNY [3]. Group 2: Financial Performance - In the first three quarters of 2025, the company reported revenue of 61.64 billion CNY, an increase of 8.16% year-on-year, but net profit fell by 10.42% to 8.00 billion CNY [4]. - The decline in net profit has been attributed to various factors, including decreased market electricity prices and increased tax burdens [6]. - Long-term growth potential remains, with a target of 259.2 billion kWh of electricity generation in 2026, a 6.04% increase from 2025 [6]. Group 3: Strategic Developments - The company is focusing on "strategic emerging industries," including high-tech investments and the development of new energy sources [10]. - A new subsidiary has been established to focus on perovskite photovoltaic components, with a fully automated production line already in place [10]. - The company has also developed a medical isotope production base, reducing reliance on imports and aiming for further innovation in this area [10]. Group 4: Market Outlook - Analysts suggest that while the nuclear power segment remains stable, the new energy business is under pressure due to declining electricity prices [7][8]. - The introduction of strategic investors may dilute earnings per share in the short term, and fluctuations in nuclear fuel costs could impact overall performance [9]. - The upcoming annual report in April 2026 will be critical for assessing the company's profitability amid market reforms [10].