Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [5][10]. Core Views - The company is positioned as a core asset in uranium resources, benefiting from the global nuclear power recovery and a new long-term pricing mechanism that enhances performance expectations [5]. - Backed by China General Nuclear Power Group, the company has a leading global resource layout and long-term growth potential, being the only pure uranium listed company in East Asia [5][10]. - The company has a dual-driven model of "self-produced + international trade," which stabilizes growth and profitability [6]. Summary by Sections Market Performance - The closing price is HKD 2.26, with a market capitalization of HKD 17,177.54 million [3]. Financial Performance - The company achieved a revenue of HKD 86.24 billion in 2024, a year-on-year increase of 17%, with a net profit of HKD 3.42 billion [6][21]. - The projected net profits for 2025, 2026, and 2027 are HKD 5.73 billion, HKD 9.42 billion, and HKD 11.83 billion, reflecting growth rates of 67.5%, 64.4%, and 25.6% respectively [8][10]. Business Model - The business model consists of self-produced trade and international trade, with the international trade segment providing stable profit through price differences [19]. - The company holds a 49% equity stake in several uranium mines in Kazakhstan, ensuring a stable supply and cost advantage [5][41]. Pricing Mechanism - The new pricing mechanism for 2026-2028 includes a base price (BP) and spot price (SP) structure, with BP set to increase annually, enhancing profit margins [6][49]. Market Outlook - The global nuclear power revival is expected to drive uranium demand, with an average annual growth rate of over 4% from 2024 to 2040 [7]. - The company is well-positioned to benefit from the tightening supply of uranium due to high resource concentration and declining exploration investments [7]. Valuation - The company’s projected P/E ratio for 2026 is 18X, which is below the industry average of 29X, indicating potential undervaluation [10].

Investment Rating - The investment rating for the company is "Buy" and is maintained [1]. Core Views - The company is entering a fast development phase, being the only platform for overseas uranium resource development under China General Nuclear Power Group, with significant revenue growth following acquisitions [2]. - The company benefits from strong internal demand for nuclear power and has a cost advantage due to its mining operations, with projected sales volumes increasing significantly in the coming years [2]. - The uranium market is expected to remain tight due to geopolitical conflicts and recovering nuclear power demand, with a forecasted supply growth of approximately 8.51% in 2024 and 6.03% in 2025 [2]. - Revenue projections for 2025, 2026, and 2027 are estimated at 84.46 billion, 96.48 billion, and 99.72 billion HKD respectively, with corresponding net profits of 6.20 billion, 9.22 billion, and 10.53 billion HKD [2]. Summary by Sections Section 1: Company Overview - The company was established in 2001 and is the sole platform for overseas uranium resource development under China General Nuclear Power Group, with significant acquisitions enhancing its market position [6]. - The company is controlled by the State-owned Assets Supervision and Administration Commission, with a majority stake held by China General Nuclear Power Group [11]. Section 2: Uranium Industry - The uranium industry is characterized by a tight supply-demand balance, with long-term demand expected to outstrip supply due to increasing nuclear power installations and geopolitical factors [33][47]. - The company is well-positioned to benefit from the expected recovery in nuclear power demand, with significant growth in uranium prices anticipated [40][44]. Section 3: Profit Forecast - The company is projected to achieve substantial revenue and profit growth over the next three years, with a corresponding increase in earnings per share [49]. - The forecasted earnings reflect a strong recovery in uranium prices and increased production volumes from the company's mining operations [49].

Group 1 - The event held by China National Nuclear Corporation (CNNC) focused on the theme "Creating Value through Nuclear Innovation and Excellence" and took place on June 6 in Nanjing [1] - Wang Cheng, Chairman of CNNC International, highlighted four key points: the strong trend of nuclear power revival amid global energy transformation, presenting new development opportunities [3] - CNNC Uranium Industry is positioned as a national leader in natural uranium exploration and development, enhancing its supply assurance capabilities and international influence [3] - CNNC International, as the only publicly listed company under CNNC Uranium, is projected to achieve a 217% increase in revenue and an 83.4% increase in net profit in 2024, marking four consecutive years of profit growth [3] - The company aims to become a significant player in the international natural uranium market, enhancing CNNC's global competitiveness and fulfilling shareholder expectations [3] Group 2 - The investor exchange meeting included participation from 11 institutions, such as China Chengtong (Hong Kong), China Cinda (Hong Kong), and Morgan Stanley Asia, indicating strong interest from the investment community [7] - During the meeting, company representatives provided detailed introductions to the company's fundamentals and financial outlook for 2024, addressing investor concerns on key issues [4]

Core Viewpoint - The surge in nuclear energy stocks in the U.S. reflects a growing demand for nuclear power, driven by major tech companies securing long-term energy agreements to support their operations, particularly in data centers and artificial intelligence [1][3][5]. Group 1: Market Reaction - U.S. nuclear energy stocks experienced significant gains, with Nuscale Power rising over 13% and Centrus Energy increasing by more than 8% [1][3]. - The agreement between Meta and Constellation Energy to purchase nuclear power for 20 years is a key driver of this market surge [1][3]. Group 2: Strategic Agreements - Meta will purchase approximately 1.1 billion watts of power from Constellation Energy's Clinton plant starting June 2027, which represents the total output of one nuclear reactor [3][4]. - This agreement is part of a broader trend where major tech companies, including Google and Amazon, are investing in nuclear energy projects to ensure clean energy supply [5]. Group 3: Industry Outlook - Morgan Stanley's report highlights a revival in U.S. nuclear power plans, projecting a long-term demand boost for uranium, with a target of 400 GW of nuclear capacity by 2050 [7][8]. - Goldman Sachs anticipates a structural shortage in the global uranium market, predicting a deficit of 130 million pounds by 2040 due to increasing nuclear power demand [9].

Core Viewpoint - The article discusses the revival of nuclear power in the U.S. under the Trump administration, highlighting the long-term demand support for uranium prices due to the ambitious nuclear capacity goals set for 2050 [1][2]. Group 1: Nuclear Power Expansion Plans - The Trump administration aims to achieve a nuclear power capacity of 400 GW by 2050, increasing the current operational capacity of 100 GW by four times [5]. - The plan includes a 5 GW power increase for existing capacity, which translates to approximately 900 tons of uranium demand, accounting for 1% of the projected demand by 2030 [5]. - The construction of 10 new large reactors is set to begin by 2030, with a streamlined approval process of 18 months for new reactors [5]. Group 2: Uranium Demand and Supply Dynamics - Morgan Stanley's report indicates that the nuclear capacity development will have a limited immediate impact on uranium demand but may reignite investor interest, particularly through uranium ETFs [3]. - The global uranium supply chain faces significant challenges, with existing mines depleting resources and new projects having long lead times. By 2040, a uranium shortfall of 130 million pounds is anticipated [4]. - The U.S. nuclear fuel supply chain is heavily reliant on imports, with two-thirds of enrichment and conversion needs sourced from abroad [12]. Group 3: Historical Context and Challenges - Since 2000, only three new reactors have been added in the U.S., with significant delays and cost overruns observed in recent projects [7]. - To meet the 400 GW target, the U.S. would need to start construction on 20 average-sized reactors annually, a significant increase compared to historical rates [6][11]. - The construction speed required for the new targets is three times faster than the rate observed in the 25 years following the 1953 "Atoms for Peace" speech [11]. Group 4: Future Supply Chain Developments - By 2030, U.S. mines are projected to meet about 40% of domestic uranium demand, with Canada expected to fill much of the remaining gap [13]. - Several projects are underway to enhance domestic enrichment capacity, with Orano and Urenco planning significant expansions by 2028 and 2027, respectively [13]. - The deployment of small modular reactors (SMRs) is anticipated by the end of 2030, with potential construction approvals as early as 2027 [13][14].

Group 1: Core Insights - The U.S. nuclear power plan under the Trump administration aims to significantly increase nuclear capacity to 400 GW by 2050, which is four times the current operational capacity of 100 GW [2][3] - Morgan Stanley maintains a positive outlook on uranium prices, citing long-term demand support from the nuclear revival theme in the U.S. [1][2] - The ambitious nuclear capacity goal will require the construction of 20 new reactors annually, a significant challenge given the historical context of U.S. nuclear development [3][7] Group 2: Supply Chain and Market Dynamics - The U.S. nuclear fuel supply chain is heavily reliant on imports, with two-thirds of enrichment and conversion needs depending on foreign sources [8] - By 2030, U.S. mines are projected to meet about 40% of domestic uranium demand, with Canada expected to fill much of the gap [8] - The construction of small modular reactors (SMRs) may be expedited by recent executive orders, with potential deployment by the end of 2030 [8][9]

Group 1 - The core viewpoint is that the recent executive order by President Trump to promote nuclear energy development is expected to significantly accelerate the deployment of Small Modular Reactors (SMRs) in the U.S. by the end of 2030 [1][2] - The executive order mandates the Nuclear Regulatory Commission to decide on new nuclear power plant applications within 18 months and to adopt shorter approval timelines for specific reactor types, addressing long-standing complaints about lengthy approval processes [1][2] - GE Vernova, a company focused on power systems and clean energy, aims to balance reliability, affordability, and sustainability in energy solutions, particularly through the deployment of SMRs [2][3] Group 2 - SMRs are viewed as the future of nuclear power due to their smaller size, lower construction costs, and faster deployment times compared to traditional large-scale nuclear plants [3][4] - The design of SMRs allows for factory manufacturing and on-site assembly, integrating passive safety systems, which aligns with the growing demand for low-carbon energy sources driven by AI and data centers [3][4] - The increasing power demands from AI server clusters make SMRs an attractive solution, as their compact size and flexible siting capabilities can reduce transmission losses and land approval conflicts [4][5] Group 3 - GE Vernova has received approval to deploy its BWRX-300 reactor in Ontario, Canada, marking the first SMR construction in the Western world, with expectations for operation by 2030 [6] - The company anticipates a surge in interest from clients, particularly data centers and cloud computing giants, for its SMR technology, as they are willing to pay a premium for efficient, zero-carbon energy [6] - GE Vernova's stock has surged nearly 48% this year, significantly outperforming the S&P 500 and Nasdaq 100 indices, driven by strong demand for gas turbines and nuclear power systems [6]

作为现有核电技术的直接燃料来源，天然铀的需求增长将伴随美国核能规模扩充、SMR应用推广进一 步强化，而福岛核事故后的10年核电低迷塑造的供给困境虽在近两年缓解，但远期的供需矛盾仍未解 决。 5月以来，笼罩在天然铀市场的不确定性逐步消除，现货价格逐步向上修复至71美元/磅，仍然看好：短 期因贸易情绪所致的价格低迷终将伴随情绪回归理性而逐步修复至长协价格附近水准。 投行Jefferies表示，美国总统特朗普签署的四项以核能为重点的行政命令标志著美国数十年来对核能产 业最大力度的干预。 分析师Daniel Roden表示，这些政策要求美国核能管理委员会进行监管改革，加快先进反应堆的开发， 并支持整个核燃料循环前端。该机构表示，这些行政命令到2035年可能带来约35吉瓦的新增核电装机容 量，同时其他资产将得到升级并延长服役时间。 智通财经APP获悉，5月23日，美国总统特朗普签署4项行政命令推动美国核能产业改革，包括扩大美国 核能规模、核能产业链、缩短核电项目审批周期等；此举或吹响美国核电复兴号角，受政策影响，上周 五美股核能股普遍大涨。 Jefferies表示："这意味著到2035年，U3O8的需求量预计将从每年4 ...

Core Viewpoint - The approval of 10 new nuclear power units in China marks a significant shift from "importing and digesting" technology to "independent output," showcasing the advancement of domestic nuclear technology [3][4]. Group 1: Nuclear Power Project Approvals - The recent approval includes 10 nuclear power units across five projects, with significant participation from major state-owned enterprises such as China National Nuclear Corporation and China General Nuclear Power Group [3]. - The approved units consist of 8 "Hualong One" reactors and 2 CAP1000 reactors, indicating a strong emphasis on domestically developed technology [3][4]. - The approval process for nuclear projects has accelerated, with 31 units approved from 2022 to 2024, of which 20 are based on "Hualong One" technology [3]. Group 2: Investment and Economic Impact - The total investment for the newly approved nuclear units is estimated to reach approximately 200 billion yuan, with equipment investment accounting for over 40% of this total [5]. - The nuclear power sector is expected to drive significant investment, with the construction of these units benefiting established players in the supply chain due to high barriers for new entrants [5]. Group 3: International Trends and Domestic Position - The global consensus on the revival of nuclear energy is reflected in commitments made by 31 countries to triple nuclear capacity by 2050 [7]. - China's nuclear power capacity has surpassed that of traditional nuclear power leaders like Russia, France, and the United States, with a total operational capacity of 113 million kilowatts [7]. - The rapid pace of nuclear project approvals positions China as a leader in nuclear energy development, with a total of 112 units either operational or under approval [7]. Group 4: Contribution to Energy Supply - Nuclear power has become a crucial baseload power source in China's eastern coastal regions, contributing nearly 5% of the national electricity generation despite only accounting for less than 2% of installed capacity [8].