Investment Rating - The report maintains a positive outlook on the nuclear power sector, recommending a "Buy" rating for specific companies such as China Nuclear Power and China General Nuclear Power [1][10]. Core Insights - The State Council approved five nuclear power projects on April 27, 2025, which includes a total of 10 units, continuing the trend of regular approvals in recent years [3][4]. - China's nuclear power capacity is projected to reach 113 million kilowatts by 2025, making it the largest in the world, with expectations to further increase by 2030 [2][3]. - The report highlights the diversification of technology and participants in the nuclear power sector, with a focus on domestically developed third-generation technologies like "Hualong One" and CAP1000 [3][4]. - The financing environment for nuclear projects is improving, with decreasing interest rates and diversified funding channels, which will alleviate the financial pressure on nuclear companies [3][10]. Summary by Sections Project Approvals - The report details the approval of 10 nuclear units, including projects in Guangxi, Guangdong, Zhejiang, Shandong, and Fujian, with a mix of domestic and advanced foreign technologies [3][4]. Capacity and Technology - As of 2024, China has 102 operational, under-construction, and approved nuclear units, with a total capacity of 113 million kilowatts, positioning it as a global leader in nuclear energy [2][5]. - The report emphasizes the rapid development of nuclear technology in China, showcasing a blend of imported and indigenous technologies [3][5]. Financial Outlook - The average cost of constructing a third-generation nuclear unit is approximately 16,000 yuan per kilowatt, with significant capital expenditure expected [3]. - Recent interest rate cuts are expected to lower financing costs for nuclear projects, enhancing the financial viability of upcoming constructions [3][10]. Company Recommendations - The report recommends investment in China Nuclear Power, China General Nuclear Power, and Funiu Co., which has stakes in the Xiapu Nuclear Power project, citing their growth potential during the upcoming production phase [3][10].