Industry Overview - The nuclear power sector in China is experiencing a significant upturn, with investment completion amounting to 36.256 billion, reflecting a year-on-year growth of 36.64% as of April 27, 2025 [1] - A total of 31 nuclear power units have been approved from 2023 to 2025, with 102 units in operation, under construction, or approved for construction, totaling an installed capacity of 113 million kilowatts [1] Modular Construction Technology - The majority of recently approved units utilize third-generation nuclear technology, specifically the "Guohe No. 1" (CAP1000) and "Hualong No. 1" (HPR1000) models [2] - Modular construction techniques can reduce the construction period of nuclear power plants from 50 months to 36 months, enhancing standardization and quality while minimizing accidents [2] - The modular construction market for new nuclear units is projected to reach approximately 86.4 billion from 2025 to 2030, with an annual opening scale of around 6 units before 2030 [2] Company Developments - The company is expanding its nuclear module production capacity through a new investment project, which will enhance its manufacturing and transportation capabilities [3] - The new production base covers an area of 487,800 square meters and is strategically located near a seaport, improving logistics efficiency [3] - The company recently secured a contract worth 226 million (including tax) for the construction and installation of modules for the Ningde Phase II project, marking the first application of modular technology in the "Hualong No. 1" nuclear power plant [3] Financial Projections - The company is expected to see a net profit attributable to shareholders of 230 million, 250 million, and 290 million for the years 2025 to 2027, with corresponding price-to-earnings ratios of 20, 19, and 16 [4] - The investment project is anticipated to further enhance the company's nuclear module production capabilities, despite some pressure on orders [4]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Viewpoints - The nuclear power sector is experiencing accelerated growth, with significant investment completion in the first four months of 2025 reaching 36.64% year-on-year growth, indicating a new cycle of prosperity in nuclear power construction [1][14] - The modular construction market for nuclear power is expected to expand significantly, with an estimated market size of approximately 86.4 billion yuan annually from 2025 to 2030 due to the anticipated annual commencement of around six new nuclear units [2][36] - The company is enhancing its modular production capacity through new investment projects, securing a competitive advantage in nuclear module orders [3][39] Summary by Sections Nuclear Power Market Outlook - The nuclear power investment completion in China reached 36.256 billion yuan in the first four months of 2025, with a cumulative increase of 36.64% year-on-year, and a total of 102 nuclear units in operation, under construction, or approved, with a total installed capacity of 113 million kilowatts [1][14] - The third-generation nuclear units, primarily using modular design, are expected to significantly reduce construction time from 50 months to 36 months, enhancing efficiency and safety [2][24][29] Modular Construction Capacity - The company is expanding its modular production capabilities through a new investment project, which will increase its manufacturing and transportation capacity for large modules, thereby improving production efficiency [3][39] - The company has secured a contract for the construction of modules for the Ningde Phase II project, marking its first application of modular technology in the "Hualong One" nuclear power plant [3][42] Financial Projections - The company's projected net profit for 2025-2027 is estimated at 229.17 million, 252.15 million, and 292.78 million yuan, respectively, with corresponding P/E ratios of 20.44, 18.58, and 16.00 [4][5]