Investment Rating - The report maintains an investment rating of "Outperform the Market - A" [6] Core Insights - China's 2 MW liquid fuel thorium-based molten salt experimental reactor (TMSR) has achieved the first in-core thorium-uranium conversion, marking a significant step towards commercialization and reducing reliance on imported uranium [1][19] - The global thorium molten salt reactor market is expected to exceed $80 billion by 2030, with a compound annual growth rate (CAGR) of over 25% from 2025 to 2030, driven by strong demand in industrial high-temperature processes and hydrogen production [2][43] - The TMSR technology offers significant advantages in resource utilization and safety compared to traditional uranium-based reactors, with the potential to enhance energy security for China [38][39] Summary by Sections 1. Special Research - The TMSR has established a unique research platform for thorium-uranium cycles, which can efficiently utilize thorium resources and reduce dependence on imported uranium [1][19] - The molten salt reactor (MSR) is recognized as the most disruptive technology among the fourth-generation nuclear reactors, offering substantial benefits in resource utilization and safety [1][20][38] 2. Market Review - From November 1 to November 15, the Shanghai Composite Index rose by 0.9%, while the public utility index increased by 1.79%, outperforming the Shanghai Composite Index [3][47] 3. Market Information Tracking - In November 2025, the average transaction price of electricity in Jiangsu was 355.95 RMB/MWh, reflecting an 8.96% decrease from the benchmark price [4] - The average price of thermal coal in the Bohai Rim region was reported at 698 RMB/ton, showing an increase of 18 RMB/ton [14] 4. Industry Dynamics - The National Energy Administration is promoting the integrated development of renewable energy, emphasizing the need for multi-dimensional development and collaboration with various industries [11] - The State Council's white paper on carbon peak and carbon neutrality highlights significant energy efficiency improvements, with a cumulative reduction of 11.6% in energy consumption per unit of GDP during the 14th Five-Year Plan [12] 5. Investment Portfolio and Recommendations - The report suggests focusing on companies involved in the thorium molten salt reactor technology, including Baotou Steel, Shanghai Construction, and Shanghai Electric, which have made significant technological advancements [46] - Recommendations for public utilities include monitoring coal-fired power companies and hydropower firms, as well as nuclear power companies for their long-term growth potential [14]

Core Insights - The company has received orders for 18 helium turbines, primarily serving the fourth-generation nuclear technology, specifically high-temperature gas-cooled reactors (HTGR) [1][3] - The helium turbine is a critical component in the nuclear island system, responsible for circulating helium gas within the reactor's primary loop [1] - High-temperature gas-cooled reactors, which are based on completely independent intellectual property rights, have significant safety features and broad application prospects in various fields, including petrochemical coupling, repurposing of thermal power plants, inland breakthroughs, heavy oil thermal recovery, and hydrogen production from nuclear energy [1] Company Developments - The company is focusing on current demonstration projects while closely monitoring future market expansion opportunities [1] - The application of helium turbines is primarily linked to the fourth-generation nuclear technology, indicating a potential for large-scale commercial application in the future [3]

Core Viewpoint - China National Nuclear Corporation (601611.SH) has stated that it is not currently involved in the construction of fourth-generation nuclear power thorium molten salt reactors [1] Group 1 - The company has clarified its position regarding the development of advanced nuclear technologies [1]

Core Viewpoint - Jiadian Co., Ltd. (佳电股份) is actively engaging with institutional investors and highlighting its strategic position in the nuclear power sector, emphasizing the importance of its products in the energy transition and national energy security [1][2]. Group 1: Company Overview - Jiadian Co., Ltd. has a diverse product range with 347 series and nearly 4000 varieties of electric motors, covering power outputs from 0.37 kW to 80,000 kW, with an annual production capacity exceeding 15 million kW [1]. - The company has established multiple subsidiaries and research centers across China, with products exported to over 50 countries and regions worldwide [1]. Group 2: Nuclear Power Strategy - The company recognizes the critical role of nuclear power in China's energy strategy, viewing it as a key component for energy security and structural transformation [2]. - With the successful development of helium compressors for nuclear power applications, the company is positioned to meet the growing demand for fourth-generation nuclear power plants, potentially leading to increased orders [2]. - The nuclear power sector is expected to experience strong growth from 2025 to 2027, with third and fourth-generation nuclear products contributing to the company's high-quality development [2]. Group 3: Market Trends and Future Outlook - The demand for efficient and energy-saving motors is increasing, which helps mitigate the downturn in traditional industries like petrochemicals and coal [2]. - The steel industry is showing signs of stabilization, and the company is actively pursuing renovation projects, anticipating improvements in the coming year [2]. - The acquisition of controlling interest in Harbin Electric Motor Co. (哈电动装) aims to eliminate competition and enhance the company's core competitiveness in the nuclear power sector [2]. Group 4: Technological Developments - Jiadian Co., Ltd. is exploring advanced nuclear technologies, including thorium molten salt reactors, sodium-cooled fast reactors, and lead-bismuth fast reactors, although it has not yet entered these markets [3]. - The company is committed to tracking advancements in nuclear energy technology to prepare for future market development and equipment supply [3].

Company Overview - Harbin Electric Group Jiamusi Electric Motor Co., Ltd. is a key state-owned enterprise with over 80 years of motor production history, recognized as the first electric motor factory in China [3] - The company has a production capacity exceeding 15 million kilowatts annually, with 347 series and nearly 4,000 varieties of motor products covering power ranges from 0.37 to 80,000 kW [4] Strategic Direction - The company focuses on green low-carbon drive systems, emphasizing efficient, intelligent, and sustainable development [5] - It aims to become a world-class electric drive system manufacturer and service provider, guided by the principles of high-quality development and technological innovation [5] Nuclear Power Sector - The company is a major producer of key nuclear-grade motors for China's fourth-generation nuclear technology, specifically the main helium fan for high-temperature gas-cooled reactors [5][6] - It has successfully secured orders for 18 out of 24 main helium fans, with ongoing commitments to timely delivery [8] Financial Performance - As of the end of the reporting period, the company has signed contracts worth CNY 5.147 billion, with expected revenue recognition of CNY 1.333 billion in 2025, CNY 1.673 billion in 2026, and CNY 2.141 billion in 2027 [7] - The company anticipates strong demand in the nuclear power sector from 2025 to 2027, which is expected to contribute positively to its high-quality development [10] Management and Governance - Recent management changes include a new board and executive team, which are expected to drive high-quality development and enhance shareholder returns [11] - The company is considering further stock incentive plans to attract and retain talent, aligning the interests of shareholders, the company, and employees [11] Market Expansion - The company has limited direct exports, as most of its electric motor products are sold through main engine manufacturers rather than directly to end-users [12] - There are ongoing discussions regarding potential capital increases and strategic collaborations to strengthen its position in the nuclear power sector [13]

Core Viewpoint - The Shidao Bay High-Temperature Gas-Cooled Reactor Demonstration Project represents a significant advancement in China's nuclear power technology, marking the country's transition from following to leading in the global nuclear energy sector [2][7]. Group 1: Project Overview - The Shidao Bay High-Temperature Gas-Cooled Reactor is the world's first commercially operational fourth-generation nuclear power plant, having commenced operations at the end of 2023 and achieving nearly 10,000 hours of safe and stable operation [2]. - The project is characterized by its inherent safety features, which allow the reactor to remain safe without human or mechanical intervention during severe accidents [3][4]. Group 2: Technological Innovations - The reactor utilizes high-temperature spherical fuel elements instead of traditional fuel rods, with each reactor containing 430,000 fuel balls, designed to withstand temperatures exceeding 1,620°C without releasing radioactive materials [4][5]. - The cooling system employs helium gas instead of water, contributing to the reactor's inherent safety and operational efficiency [4][5]. Group 3: Development Process - The project was initiated in 2006 as part of China's major scientific and technological initiatives, with a focus on overcoming unprecedented engineering challenges to establish a commercial-scale high-temperature gas-cooled reactor [5][6]. - A collaborative effort involving Tsinghua University, China Huaneng Group, and China National Nuclear Corporation was essential in the design, development, construction, and commissioning phases of the project [5][6]. Group 4: Industry Impact - The project has led to the development of over 1,500 unique equipment pieces, with a domestic production rate of 93.4%, showcasing China's manufacturing capabilities in the nuclear sector [6][7]. - The successful implementation of the Shidao Bay project is seen as a cornerstone for China's nuclear power industry, enhancing its global standing and innovation capacity [7].

Group 1 - The successful production and delivery of the main helium fan by Harbin Electric Group Jiamusi Electric Machine Co., Ltd. marks a significant milestone in China's nuclear power sector, showcasing the achievement of independent intellectual property rights in the fourth-generation nuclear technology core equipment [1] - The main helium fan is a critical component for high-temperature gas-cooled reactors, playing a vital role in promoting green and low-carbon energy transition [1] - The main helium fan has undergone extensive testing, including a 100-hour full-power continuous operation test and various type tests under different helium gas conditions, confirming its safety, reliability, and performance exceeding technical specifications [1] Group 2 - The core objective of the industrialization project is not only product delivery but also the establishment of a complete, mature, and scalable production line, incorporating digital design, intelligent manufacturing, and lean management [2] - The industrialization ensures effective quality control and significantly reduces production cycles, providing stable, reliable, and economical core equipment support for future high-temperature gas-cooled reactor construction in China [2] - Jiamusi City has prioritized optimizing the business environment and nurturing the real economy, implementing tailored service strategies to assist enterprises in overcoming challenges in technological innovation and industrialization [2] Group 3 - The company plans to leverage technological innovation, industrial support, and safety assurance to continuously promote nuclear power technology upgrades and industry progress [2] - There is an emphasis on expanding new application scenarios for high-temperature gas-cooled reactors, contributing to the high-quality development of China's nuclear power sector and the implementation of energy strategies [2]

Core Viewpoint - The revival of nuclear energy in the U.S. is driven by both policy support and market demand, indicating a significant shift in the energy landscape [4][5]. Group 1: Challenges and Opportunities in Nuclear Energy - Large new nuclear projects face challenges such as long construction periods and cost overruns, which have hindered capacity growth in the past [3][6]. - The rapid advancement of nuclear unit life extension and restart projects, along with the promising development of Small Modular Reactors (SMRs), is seen as a key direction to overcome growth bottlenecks [3][6][7]. - SMRs offer advantages like shorter construction times and lower initial costs, making them suitable for diverse and decentralized power needs [6][7]. Group 2: Policy and Market Drivers - U.S. federal and state governments are increasing support for nuclear energy through tax incentives, subsidies, and streamlined approval processes, providing certainty for the industry [5][6]. - The growing demand for stable, efficient, and low-carbon power from data centers, driven by the rise of AI and cloud computing, is creating new growth opportunities for nuclear energy [5][6]. Group 3: Capacity Expansion and Technological Innovation - By 2050, U.S. nuclear capacity is projected to reach 150 GW, significantly higher than current levels, driven by new projects, life extensions, and the scaling of SMRs [7]. - The U.S. is exploring diverse nuclear energy pathways, including the commercialization of SMRs and advancements in fourth-generation nuclear technology and nuclear fusion [7]. - The entry of major tech companies into nuclear fusion research indicates strong capital expectations for breakthroughs in nuclear technology, which could accelerate growth in the sector [7]. Group 4: Cost Advantages of Nuclear Energy - While natural gas plants have shorter construction times and lower initial costs, they are heavily impacted by fuel price volatility and have higher carbon emissions compared to nuclear energy [8]. - Once initial investments are recouped, nuclear energy has low marginal generation costs and stable fuel costs, highlighting its cost advantages and low-carbon attributes over the lifecycle [8].

Core Insights - China has developed a groundbreaking thorium-based molten salt reactor, which is projected to meet its energy needs for the next 20,000 years, marking a significant advancement in energy security and technology [1][3]. Group 1: Technological Breakthroughs - The thorium molten salt reactor in Gansu has been operational since October 2023, achieving critical reaction and generating power by December 2023, with full capacity expected by June 2024 [3][7]. - Thorium resources in China are abundant, with reserves estimated to be 3-4 times that of uranium globally, positioning China as a leader in thorium availability [3][5]. - The new reactor technology offers automatic safety features, reducing the risk of catastrophic failures associated with traditional nuclear power plants [5][14]. Group 2: Global Positioning - China is set to construct the world's first commercial thorium molten salt reactor, with a thermal power output of 60 megawatts, beginning construction in March 2025 [7][9]. - The international community recognizes China's advancements in fourth-generation nuclear technology, with the International Atomic Energy Agency acknowledging China's role as a model for global nuclear development [9][12]. Group 3: Environmental and Economic Impact - The thorium molten salt reactor significantly reduces nuclear waste, with waste toxicity decay periods shortened from thousands of years to hundreds, alleviating long-term environmental concerns [14][16]. - China's comprehensive advantage in renewable energy spans solar, wind, and nuclear sectors, with a dominant share in global markets, including 90% of solar module shipments and 67.7% of the electric vehicle market [12][18]. Group 4: Strategic Implications - The development of thorium molten salt technology allows China to achieve energy independence, reducing reliance on external nuclear fuel resources and enhancing national security [16][18]. - This technology has the potential for global dissemination, offering other nations a pathway to energy security and independence [16][18].

Core Insights - The Mkuju uranium mine project in Tanzania, initiated by a consortium including Jianggen Capital and China National Nuclear Corporation, aims to explore uranium resources, enhancing China's diversified supply of nuclear materials and energy security [1][2] - The project aligns with China's strategic mission to secure critical mineral resources and is seen as a response to the Belt and Road Initiative, fostering cooperation between China and Tanzania in the energy sector [2] Group 1: Project Overview - The Mkuju uranium mine covers an area of approximately 300 square kilometers in southern Tanzania, with significant geographical advantages for resource development [1] - The exploration and development of the Mkuju uranium mine will enrich China's uranium supply chain, contributing to the stable and sustainable development of the nuclear energy industry [1] Group 2: Strategic Importance - The project is expected to create job opportunities and enhance technical capabilities in Tanzania while optimizing China's energy structure and contributing to the global clean energy supply chain [2] - By 2024, China's operational and under-construction nuclear power capacity is projected to reach the world's largest scale, with uranium demand expected to grow to 36,000 tons, making China the largest consumer of natural uranium globally [2] Group 3: Future Outlook - The global uranium demand is anticipated to rise, with estimates reaching between 61,000 to 77,000 tons by 2030, driven by increasing nuclear power capacities worldwide [2] - The industry views overseas uranium exploration as a key support for domestic nuclear power development, with acquisitions and joint ventures being crucial for ensuring safety in the nuclear energy sector [2]