Core Viewpoint - The report from China Merchants Securities indicates that uranium prices are expected to maintain an upward trend, leading to improved profitability for uranium mining companies [1] Group 1: Nuclear Power Development - Continuous upgrades in nuclear technology are enhancing its status as a clean and efficient energy source [2] - The electrification process is driving an increase in electricity demand, with AI's emergence intensifying the need for high-quality power [2] - The strategic importance of nuclear power is being reinforced due to regional energy independence and a global recovery in nuclear energy [3] Group 2: Global Uranium Demand - The nuclear power sector is experiencing a resurgence, with significant investments from major nuclear countries [3] - The World Nuclear Association (WNA) predicts a 118% increase in uranium demand by 2040, reaching 150,000 tons [3] Group 3: Supply Constraints - The current supply of natural uranium is constrained, with short-term increases relying on the resumption of production from idled mines [4] - The aging of some mines may lead to production declines around 2030, creating potential supply shortages if new projects are insufficient [4] Group 4: Uranium Price Trends - Uranium prices have risen from approximately $20 per pound in 2016-2017 to around $80 currently, with an estimated cumulative industry gap of about 100,000 tons from 2015 to 2024 [5] - Future supply gaps are projected at 0.64, 3.19, and 7.91 million tons of uranium for the years 2030, 2035, and 2045 respectively, indicating a clear upward trend in uranium price levels [5]