Investment Rating - The industry rating is "stronger than the market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [13]. Core Insights - Major technology and new energy companies are entering the nuclear power sector, creating a diversified new landscape for nuclear energy in China. Companies like Alibaba and Geely are investing in coastal nuclear power projects, focusing on stable energy to support computing power demands [3][4]. - The policy environment is increasingly favorable for private investment in nuclear power, with the proportion of private capital expected to rise to 10% by 2024. This trend is supported by the integration of AI and nuclear energy, which is anticipated to deepen as the demand for computing power grows [4]. - Small Modular Reactors (SMR) are highlighted as a key solution to meet the energy demands of AI, with significant interest from technology giants. Companies are developing tailored energy solutions for data centers using SMR technology [5]. Company Summaries - **Jingye Intelligent**: Plans to establish a subsidiary focused on SMR technology for AI data center power supply [6]. - **Jia Electric**: Its main helium fan is the only power device for the fourth-generation high-temperature gas-cooled reactor's primary circuit, leading in the nuclear power business segment [6]. - **Guoguang Electric**: Provides critical components for the ITER project, focusing on filter and cladding systems [6]. - **Lanshi Heavy Industry**: Covers the entire nuclear energy supply chain from upstream nuclear fuel systems to downstream spent fuel processing [6]. - **Kexin Electromechanical**: Produces high-temperature gas-cooled reactor products and has developed domestic alternatives for new fuel transport containers [6]. - **Hailu Heavy Industry**: Services various reactor types, including third and fourth-generation reactors and fusion reactors [6]. - **Jiangsu Shentong**: Secured over 90% of orders for nuclear-grade butterfly valves and ball valves for new nuclear power projects in China [6].

Investment Rating - The industry rating is "Outperform the Market," indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% over the next 6 months [15]. Core Insights - Rolls-Royce SMR collaborates with Skanska to advance the prototype development of seismic bearings, which will be installed beneath the reactor building to ensure structural safety and functional integrity. This project aims to validate seismic technology and modular construction methods, thereby reducing the risks associated with fleet deployment. The 470 MW small modular reactor (SMR) has 90% of its components prefabricated in factories, and the standardized seismic bearing design has passed multiple seismic profile pre-certifications, allowing for global deployment without the need for customized redesigns [4]. - X-energy has signed a ten-year framework agreement with SGL Carbon to secure the supply of graphite materials necessary for the deployment of the Xe-100 small modular reactor. This agreement covers component support for the first four-unit project at the Seadrift site in Texas and capacity reservation for 12 units in Washington state. The Xe-100 is based on high-temperature gas-cooled reactor technology, with graphite being a critical component [5]. - The small modular reactor (SMR) is seen as a key solution to meet the growing energy demands of artificial intelligence (AI). Tech giants are collaborating with SMR and nuclear fusion companies to create tailored energy solutions for data centers. The commercialization of fission is expected to occur earlier than fusion. Domestic company Jingye Intelligent is advancing its key technology development for SMR, with a clear technical route and an initial core R&D team established [6]. Company Summaries - Jingye Intelligent plans to establish a subsidiary, Jinghan Energy, focusing on power supply for AI data centers [6]. - Jiadian Co., Ltd. produces the main helium fan, which is the only power device in the primary circuit of fourth-generation high-temperature gas-cooled reactors, and its subsidiary, Harbin Electric Machinery, leads in nuclear main pump products within the nuclear power business segment [6]. - Guoguang Electric's filter and cladding systems are key components of the ITER project [6]. - Lansi Heavy Industry covers upstream nuclear fuel systems, midstream nuclear power plant equipment, and downstream spent fuel reprocessing [6]. - Kexin Electromechanical has manufactured high-temperature gas-cooled reactor products, achieving import substitution for new fuel transport containers [6]. - Haili Heavy Industry services third and fourth-generation reactors as well as thermonuclear fusion reactors (ITER) [6]. - Jiangsu Shentong has secured over 90% of orders for nuclear-grade butterfly valves and nuclear-grade ball valves for newly constructed nuclear power projects in China [6].

Group 1 - The Shanghai Composite Index rose by 0.29% and the Shenzhen Component Index increased by 0.09%, while the ChiNext Index fell by 0.70% on January 19 [2] - Sectors such as precious metals, power grid equipment, and flexible direct current transmission saw significant gains [2] - The National Energy Administration announced that by 2025, China's total electricity consumption is expected to exceed 10 trillion kilowatt-hours, reaching 10.4 trillion kilowatt-hours, a year-on-year increase of 5% [2] Group 2 - Oriental Securities highlighted the zinc sector as an overlooked material in the context of de-globalization, with supply and demand improving and prices expected to rise [3] - The market has been pessimistic about lead and zinc due to domestic infrastructure and real estate concerns, but there is optimism regarding the re-industrialization in Asia, Africa, and Latin America driving demand [3] - Huafu Securities noted that key technologies for small modular reactors (SMR) are being developed by domestic companies, with progress on energy solutions tailored for data centers [3]