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 [13]. Core Insights - The U.S. Department of Energy has announced the first batch of companies selected for the nuclear reactor pilot program, marking the official start of the competition to achieve operational test reactors by July 2026 [3][4]. - The pilot program aims to authorize the construction and testing of at least three experimental reactors by July 2026, creating a new pathway for advanced reactor development outside of U.S. national laboratories [3]. - Google and Kairos Power have chosen Tennessee as the site for an advanced nuclear power plant, which is expected to supply power to Google's data centers by 2030, driven by the increasing energy demands of generative AI [4][5]. - Nuclear power is highlighted as a crucial force in promoting green energy transition due to its clean, safe, and efficient characteristics, with annual utilization hours exceeding 7000 hours, making it the most efficient energy source [5]. Company Summaries - **Jingye Intelligent**: Collaborating with Zhejiang University to establish a micro-reactor/SMR technology R&D center, showcasing significant development potential in the context of global AI demand and energy transition [5]. - **Jia Electric**: The main helium fan is the only power device for the fourth-generation high-temperature gas-cooled reactor, with its subsidiary Ha Electric's nuclear main pump products leading in the nuclear power business segment [5]. - **Guoguang Electric**: The company's filter and cladding systems are key components of the ITER project [5]. - **Lanshi Heavy Industry**: Covers upstream nuclear fuel systems, midstream nuclear power plant equipment, and downstream spent fuel processing [5]. - **Kexin Electromechanical**: Produced high-temperature gas-cooled reactor nuclear power products, with new fuel transport containers replacing imports [5]. - **Hailu Heavy Industry**: Services include third and fourth-generation reactors as well as thermonuclear fusion reactors (ITER) [5]. - **Jiangsu Shentong**: Secured over 90% of orders for nuclear-grade butterfly valves and nuclear-grade ball valves for new nuclear power projects in China [5].

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% in the next 6 months [6][13]. Core Insights - The nuclear power sector in China is showing robust performance, with a total of 58 operational nuclear units and an installed capacity of 61,007.74 MWe as of June 30, 2025. The cumulative electricity generation from nuclear power reached 230.086 billion kWh, accounting for 5.08% of the national electricity generation, reflecting a year-on-year growth of 8.06% [3][4]. - The safety standards are being met, with no significant operational incidents reported in the first half of 2025. Environmental monitoring shows no abnormalities, and several key projects have made significant progress, enhancing nuclear technology development [4][5]. - Nuclear power is recognized as a crucial force in promoting the green energy transition due to its clean, safe, and efficient characteristics. It has the highest annual utilization hours among all power sources, consistently exceeding 7,000 hours, and does not emit harmful pollutants during production [5]. Summary by Sections Operational Performance - As of June 30, 2025, China has 58 operational nuclear power units with a total installed capacity of 61,007.74 MWe. In the first half of 2025, one new unit was commissioned, and the cumulative electricity generation was 230.086 billion kWh, marking an 8.06% increase year-on-year [3]. - The average utilization hours for nuclear power units were recorded at 3,868.71 hours, with a capacity factor of 92.46% [3]. Safety and Project Development - No INES Level 1 or higher incidents occurred in the first half of 2025, and radioactive emissions were below regulatory limits. Significant advancements were made in various nuclear projects, including the completion of hot testing for the Zhangzhou Nuclear Power Unit 2 and the installation of the main pump for Hainan's "Linglong No. 1" [4]. Investment Opportunities - The report suggests focusing on several companies within the nuclear sector, including: 1. Jiadian Co., which leads in helium fan technology for fourth-generation high-temperature gas-cooled reactors [5]. 2. Guoguang Electric, a key supplier for the ITER project [5]. 3. Lanshi Heavy Industry, which covers the entire nuclear fuel cycle [5]. 4. Kexin Electromechanical, which has developed high-temperature gas-cooled reactor products [5]. 5. Hailu Heavy Industry, servicing various reactor types including third and fourth generation [5]. 6. Jiangsu Shentong, which has secured over 90% of orders for nuclear-grade valves in new nuclear projects [5]. 7. Xianheng International, whose products are used in the operation and maintenance of nuclear power [5].

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% in the next 6 months [12]. Core Insights - The report highlights a significant advancement in China's nuclear energy strategy with the completion of the preliminary design of the CFR1000, the first fourth-generation commercial fast reactor, which is crucial for energy security and sustainable development [3]. - Nuclear power is emphasized as a key player in promoting green energy transition due to its high efficiency, safety, and minimal land use, with annual utilization hours exceeding 7000, making it the cleanest energy source [5]. - The report outlines a collaborative effort involving various stakeholders, including government officials and experts, to enhance the fast reactor industry and its technology development [4]. Company Summaries - **Jia Dian Co., Ltd.**: Focuses on helium fans, the only power equipment for the fourth-generation high-temperature gas-cooled reactor, and leads in nuclear pump products [5]. - **Guoguang Electric**: Supplies critical components for the ITER project, enhancing its position in the nuclear energy sector [5]. - **Lanshi Heavy Industry**: Engages in the entire nuclear energy supply chain, from upstream nuclear fuel systems to downstream spent fuel processing [5]. - **Kexin Electromechanical**: Produces high-temperature gas-cooled reactor products and has developed domestic alternatives for new fuel transport containers [5]. - **Hailu Heavy Industry**: Provides services for various reactor types, including third and fourth-generation reactors and fusion reactors [5]. - **Jiangsu Shentong**: Secured over 90% of orders for nuclear-grade butterfly and ball valves in new nuclear power projects [5]. - **Xianheng International**: Supplies products for the operation and maintenance of nuclear power facilities [5].

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% in the next 6 months [14]. Core Insights - The recent breakthrough in the "Xuanlong-50U" spherical toroidal hydrogen-boron fusion device by Xin'ao Energy Research Institute marks the first successful achievement of a plasma current discharge of 1 million amperes, establishing a foundation for the commercialization of hydrogen-boron fusion [3][4]. - Nuclear power is recognized as a crucial force in promoting the green transition of energy due to its cleanliness, safety, efficiency, and minimal land use, with annual utilization hours exceeding 7000 hours, the highest among all power sources [5]. Summary by Sections Breakthroughs and Developments - The "Xuanlong-50U" device underwent an upgrade in 2023, achieving its first plasma discharge on January 24, 2024, and exceeding expected plasma current indicators on August 15, 2024. The focus for 2025 will be on high-parameter hydrogen-boron plasma discharge research [4]. Investment Opportunities - Recommended companies for investment include: 1. **Jia Dian Co., Ltd.**: Leading in nuclear main pumps and helium fans for fourth-generation high-temperature gas-cooled reactors [5]. 2. **Guoguang Electric**: Key components for the ITER project [5]. 3. **Lanshi Heavy Industry**: Covers upstream nuclear fuel systems to downstream spent fuel processing [5]. 4. **Kexin Electromechanical**: Producing high-temperature gas-cooled reactor products and replacing imports [5]. 5. **Hailu Heavy Industry**: Services for third and fourth-generation reactors and thermal nuclear fusion reactors (ITER) [5]. 6. **Jiangsu Shentong**: Secured over 90% of orders for nuclear-grade valves in new nuclear power projects [5]. 7. **Xianheng International**: Products applied in the operation and maintenance of nuclear energy [5].