CNECC(SH:601611)2024-06-06 06:30Investment Rating - The report indicates a positive outlook for the company, highlighting a new growth cycle for nuclear power due to government policies [2][11]. Core Insights - The company is experiencing steady performance improvements, particularly in nuclear power construction, which is expected to grow significantly [2][4]. - The demand for nuclear power projects is increasing, with a notable rise in international market opportunities under the Belt and Road Initiative [2][8]. Company Overview and Performance - The company primarily operates in engineering construction, divided into nuclear power engineering and industrial & civil engineering sectors [3]. - In 2023, the company reported total revenue of 109.39 billion, a year-on-year increase of 10.34%, and a net profit of 2.06 billion, up 16.07% [4][5]. - The nuclear power engineering segment achieved revenue of 23.93 billion, reflecting a 42.9% growth, while the industrial and civil engineering segment saw a slight decline of 0.1% [4]. Market Dynamics - As of April 2024, there are 26 nuclear power projects under construction in China, with a planned investment exceeding 121.55 billion, marking a 52% year-on-year increase [8]. - The company holds a dominant market share, responsible for 97% of operational and under-construction nuclear island installations and 94% of nuclear island civil engineering projects [8]. Strategic Developments - The government’s 2024-2025 energy plan emphasizes the development of non-fossil energy sources, including nuclear power, which is expected to enhance the company's growth prospects [11]. - The company is actively expanding its international presence, particularly in key markets along the Belt and Road Initiative, which is projected to require significant nuclear power infrastructure [10][11].