Core Viewpoint - China National Nuclear Power (CNNP) is actively participating in the commercialization of nuclear fusion and accelerating its international development, positioning itself as a leader in the nuclear energy sector during the "14th Five-Year Plan" period [1][2]. Group 1: Industry Growth and Achievements - During the "14th Five-Year Plan," CNNP has transformed from a "nuclear power operator" to a "clean energy service enterprise," achieving a significant increase in its nuclear power installed capacity, ranking third globally among nuclear power companies [2][3]. - The company has generated over 700 billion kilowatt-hours of green electricity from 2021 to 2024, playing a crucial role in China's energy transition and ensuring energy supply stability [2][3]. Group 2: Technological Innovation - CNNP has evolved from a "technology user" to an "industry leader," successfully launching the "Hualong One" reactor, which showcases China's capabilities in third-generation nuclear technology [4][5]. - The company is also investing in the world's first land-based commercial modular small reactor, "Linglong One," and is actively participating in the development of fourth-generation nuclear technology [4][5]. Group 3: Capital Operations - CNNP's total assets increased from 263.2 billion yuan to 659.7 billion yuan, with operating revenue rising from 26.2 billion yuan to 77.2 billion yuan during the "14th Five-Year Plan," achieving a historic high in market value [5][6]. - The company completed a significant 14 billion yuan A-share refinancing, with funds allocated for the construction of eight nuclear power units, demonstrating the role of "patient capital" in supporting national energy security [5][6]. Group 4: Nuclear Power's Role in National Strategy - CNNP has been pivotal in the construction of nuclear power units, with 18 out of 46 approved units in China during the "14th Five-Year Plan" period, contributing significantly to the country's dual carbon goals [6][7]. - The company is recognized as a key player in China's nuclear energy development, fulfilling roles as a "main force" in energy transition and an "explorer" of diversified nuclear applications [6][7]. Group 5: Investment in Nuclear Fusion - CNNP has invested in China Fusion Energy Co., becoming a major shareholder, aligning with the national strategy for nuclear energy development and aiming to lead in the commercialization of nuclear fusion technology [7][8]. - The investment is part of a broader strategy to secure a competitive edge in future energy technologies, with nuclear fusion seen as a potential "ultimate energy" source [8][9]. Group 6: International Development Strategy - CNNP aims to become a "globally competitive world-class clean energy service provider," with a clear strategy for international expansion, particularly through the promotion of "Hualong One" technology [10][12]. - The company has established a presence in international markets, with successful projects in Pakistan and strategic partnerships for nuclear power services [12][13].

Core Viewpoint - China Nuclear Power is actively participating in the commercialization of nuclear fusion and accelerating its international development pace, positioning itself as a leader in the global nuclear energy sector [2][3]. Group 1: Achievements During the 14th Five-Year Plan - During the 14th Five-Year Plan, China Nuclear Power has transformed from a "nuclear power operator" to a "clean energy service enterprise," ranking third globally in nuclear power installed capacity [4][9]. - The company has generated over 700 billion kilowatt-hours of green electricity from 2021 to 2024, playing a crucial role in China's energy transition and ensuring energy supply stability [4]. - The business scope has expanded to include a diversified green energy layout of "nuclear, wind, and solar," enhancing its resilience and growth potential [4]. Group 2: Technological Innovations - The company has successfully commercialized the "Hualong One" reactor, showcasing China's capabilities in third-generation nuclear technology and establishing itself alongside nuclear power giants like the US, France, and Russia [6]. - It has pioneered the construction of the world's first land-based commercial modular small reactor, "Linglong One," providing a unique Chinese solution for small reactor applications [7]. - The company is actively involved in the development of fourth-generation nuclear power, ensuring it remains at the forefront of global nuclear technology [8]. Group 3: Capital Operations - Total assets of China Nuclear Power increased from 263.2 billion to 659.7 billion yuan, with operating revenue rising from 26.2 billion to 77.2 billion yuan during the 14th Five-Year Plan [9]. - The company completed a significant 14 billion yuan A-share refinancing, demonstrating the role of patient capital in supporting national energy security and enhancing market confidence [9]. Group 4: Nuclear Power's Role in National Strategy - Nuclear power is essential for achieving China's dual carbon goals and energy transition, with the company approved to construct 18 out of 46 new nuclear units in the country, accounting for 39% of the total [10]. - The company operates four nuclear units, with additional units expected to commence commercial operation by the end of 2025 [10]. Group 5: Investment in Nuclear Fusion - The company has invested in China Fusion Energy Co., becoming a major shareholder, aligning with national strategies for nuclear energy development [12][15]. - This investment aims to position the company at the forefront of nuclear fusion technology, which is seen as a potential "ultimate energy" source due to its high energy density and low carbon emissions [15][16]. Group 6: International Development Strategy - The company aims to become a globally competitive clean energy service provider, with a clear strategy for international expansion [20]. - The "Hualong One" technology has entered mass construction domestically and has been successfully exported, with operational units in Pakistan [21]. - Recent collaborations with international partners in nuclear service markets signify the company's commitment to contributing to global nuclear energy development [22][24].

Investment Rating - The report maintains a "Recommended" investment rating for the mechanical industry, indicating that the industry index is expected to outperform the benchmark index by more than 10% [6]. Core Insights - The low-altitude economy is showing steady growth, with significant policy support from various government departments, which is expected to create substantial market opportunities [3][4]. - The mechanical equipment sector is anticipated to maintain a steady growth trajectory, bolstered by strong competitive advantages of domestic leading enterprises in both supply and demand [3][4]. Weekly Market Review - From September 7 to September 12, 2025, the Shanghai Composite Index rose by 1.52%, while the ShenZhen Component Index and the ChiNext Index increased by 2.65% and 2.10%, respectively. The Shenwan Mechanical Equipment Index outperformed with a rise of 3.52%, ranking 7th among 31 Shenwan first-level industries [2][11]. - Sub-sectors such as general equipment, specialized equipment, and automation equipment saw increases of 2.90%, 3.13%, and 7.09%, respectively [2][11]. Key Sector Tracking - The low-altitude economy sector is being propelled by new policies aimed at integrating low-altitude transportation with AI and energy sectors, indicating a significant potential for industrial upgrades and market expansion [3]. - The mechanical equipment sector is witnessing domestic companies like Zoomlion actively expanding into overseas markets, exemplified by the successful delivery of a crane to Slovakia [3]. Investment Recommendations - For the low-altitude economy, recommended companies include ShenChengJiao, SuJiaoKe, and WanFengAoWei among others [4]. - In the mechanical equipment sector, recommended companies include Sany Heavy Industry, XCMG, and Anhui Heli [4]. Economic Data Tracking - The manufacturing PMI for August 2025 was reported at 49.4%, indicating a slight increase, while the non-manufacturing business activity index rose to 50.3%, suggesting a stable economic outlook [21][23]. - The industrial producer price index showed a year-on-year decline of 2.9% in August, with a narrowing of the decline compared to previous months [23]. Key Industry Data Tracking - The machine tool industry reported a total revenue of 578.9 billion yuan for the first seven months of 2025, reflecting a year-on-year decrease of 1.0%, while metal cutting machine tools saw a growth of 13.3% [26]. - The export value of machine tools reached 131.8 billion USD, marking an increase of 8.1% year-on-year [26].

Core Viewpoint - China National Nuclear Corporation (CNNC) launched the "Eight Directions Nuclear Protection" technical service product and signed strategic cooperation agreements with partners from Russia, France, the United States, and China, marking a significant step in expanding the international nuclear power service market and contributing to the sustainable development of global nuclear energy [1][2]. Group 1 - The "Eight Directions Nuclear Protection" product is a systematic integration and upgrade of CNNC's nearly 400 reactor-years of operational experience and technical capabilities, showcasing unique advantages in strength, leading standards, and deep integration with digital technology [1][2]. - The product aims to adapt to the diversified demands of the future nuclear power market and is positioned as a one-stop leader in nuclear power technical services, covering all aspects from initial production preparation to long-term operational support and specialized maintenance [2]. Group 2 - The launch event was attended by over 140 representatives from more than 70 domestic and international nuclear power-related enterprises, engineering construction companies, technical support units, operation and maintenance service units, equipment suppliers, research institutes, and universities [3]. - CNNC plans to enhance cooperation with various partners in technology collaboration, market development, standard building, and cultural exchange, promoting the "Eight Directions Nuclear Protection" brand and contributing to high-quality global nuclear energy development [2].