Investment Rating - The report maintains an investment rating of "Outperform the Market - A" [6] Core Insights - China's 2 MW liquid fuel thorium-based molten salt experimental reactor (TMSR) has achieved the first in-core thorium-uranium conversion, marking a significant step towards commercialization and reducing reliance on imported uranium [1][19] - The global thorium molten salt reactor market is expected to exceed $80 billion by 2030, with a compound annual growth rate (CAGR) of over 25% from 2025 to 2030, driven by strong demand in industrial high-temperature processes and hydrogen production [2][43] - The TMSR technology offers significant advantages in resource utilization and safety compared to traditional uranium-based reactors, with the potential to enhance energy security for China [38][39] Summary by Sections 1. Special Research - The TMSR has established a unique research platform for thorium-uranium cycles, which can efficiently utilize thorium resources and reduce dependence on imported uranium [1][19] - The molten salt reactor (MSR) is recognized as the most disruptive technology among the fourth-generation nuclear reactors, offering substantial benefits in resource utilization and safety [1][20][38] 2. Market Review - From November 1 to November 15, the Shanghai Composite Index rose by 0.9%, while the public utility index increased by 1.79%, outperforming the Shanghai Composite Index [3][47] 3. Market Information Tracking - In November 2025, the average transaction price of electricity in Jiangsu was 355.95 RMB/MWh, reflecting an 8.96% decrease from the benchmark price [4] - The average price of thermal coal in the Bohai Rim region was reported at 698 RMB/ton, showing an increase of 18 RMB/ton [14] 4. Industry Dynamics - The National Energy Administration is promoting the integrated development of renewable energy, emphasizing the need for multi-dimensional development and collaboration with various industries [11] - The State Council's white paper on carbon peak and carbon neutrality highlights significant energy efficiency improvements, with a cumulative reduction of 11.6% in energy consumption per unit of GDP during the 14th Five-Year Plan [12] 5. Investment Portfolio and Recommendations - The report suggests focusing on companies involved in the thorium molten salt reactor technology, including Baotou Steel, Shanghai Construction, and Shanghai Electric, which have made significant technological advancements [46] - Recommendations for public utilities include monitoring coal-fired power companies and hydropower firms, as well as nuclear power companies for their long-term growth potential [14]

人民财讯11月14日电，华泰证券认为四代核电发展或在"十五五"迎来关键机遇期，主要驱动力有三点： 1)寻找替代"水"作为冷却剂的核电技术方案，摆脱沿海厂址资源限制;2)寻找替代"铀235"作为燃料的核 电技术方案，解决我国贫铀的资源问题;3)拓展非电领域脱碳技术手段，为高品质工业供热、长距离船 运等难脱碳领域寻找清洁替代燃料方案。在上述背景下，看好围绕四代核电，特别是钠冷快堆、钍基熔 盐堆、高温气冷堆等技术方案在"十五五"迎来加速发展和验证。 ...

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 global nuclear energy sector is experiencing a revival, with significant interest in small modular reactors (SMRs) as a key solution for meeting the growing energy demands of artificial intelligence [4][5]. - China National Nuclear Corporation (CNNC) showcased its full industry chain capabilities at the 2025 World Nuclear Energy Exhibition (WNE), highlighting technologies such as "Hualong One" and "Linglong One," which have attracted global attention [3]. - The collaboration between CNNC and international partners, including Electricité de France, emphasizes the importance of SMR technology in promoting diversified applications of nuclear energy [4]. Summary by Sections Industry Overview - The report discusses the advancements in nuclear energy, particularly focusing on the development and application of small modular reactors (SMRs) [4][5]. - The exhibition highlighted CNNC's progress in small reactor construction, which has garnered interest from global corporate executives and institutional representatives [3]. Key Companies to Watch - **Jingye Intelligent**: Collaborating with Zhejiang University to establish a joint R&D center for micro-reactor/SMR technology, showing significant growth potential in the context of global AI demand and energy transition [6]. - **Jia Electric**: The main helium fan is the only power device for the primary loop of fourth-generation high-temperature gas-cooled reactors, with its subsidiary leading in nuclear pump products [6]. - **Guoguang Electric**: Key components for the ITER project, focusing on filter and cladding systems [6]. - **Lanshi Heavy Industry**: Covers upstream nuclear fuel systems, midstream nuclear power plant equipment, and downstream spent fuel processing [6]. - **Kexin Electromechanical**: Manufacturing high-temperature gas-cooled reactor products, with new fuel transport containers replacing imports [6]. - **Hailu Heavy Industry**: Services various reactor types, including third and fourth-generation reactors and thermonuclear fusion reactors (ITER) [6]. - **Jiangsu Shentong**: Secured over 90% of orders for nuclear-grade butterfly valves and ball valves for new nuclear power projects in China [6].

Core Points - The World Nuclear Industry Expo opened on November 4 in Villepinte, near Paris, with over 1,000 exhibitors from more than 80 countries and regions participating [1] Group 1: Event Overview - The expo is one of the most influential events in the civil nuclear energy sector, with its first edition held in Paris in 2014 [1] - The Chinese nuclear industry association organized a delegation of 12 Chinese companies, showcasing a nearly 500 square meter exhibition area, making it the largest national delegation after France [3] Group 2: Chinese Participation - The Chinese delegation highlighted key technologies such as "Hualong One" and "High-Temperature Gas-Cooled Reactor," attracting significant attention from industry professionals worldwide [3] - In addition to state-owned nuclear enterprises, many large domestic nuclear equipment manufacturing companies participated to promote the strength and potential of Chinese manufacturing in the global market [3]

Core Insights - The sixth World Nuclear Industry Exhibition was held from November 4 to 6 in Paris, attracting over 1,000 exhibitors from more than 80 countries, including China, France, the USA, Japan, and South Korea [1][2] - The exhibition showcased the critical role of nuclear technology across various sectors such as electricity, healthcare, agriculture, aerospace, hydrogen energy, and heating [1] - The Chinese delegation, led by the China Nuclear Energy Association, was one of the largest international groups at the event, featuring 12 participating units [1] Company Highlights - China National Nuclear Corporation (CNNC) highlighted its capabilities in nuclear power with models like Hualong One, Linglong One, and high-temperature gas-cooled reactors, along with comprehensive clean energy solutions [1] - China General Nuclear Power Group (CGN) showcased its "Harmony System," the first domestically developed nuclear-grade digital control system platform, which has passed independent engineering reviews by the International Atomic Energy Agency [1] - Huaneng Group presented its high-temperature gas-cooled reactor demonstration project, set to commence commercial operation in December 2023, marking the world's first operational fourth-generation nuclear power unit [1] Industry Collaboration - The China Nuclear Energy Association organized participation from major nuclear equipment manufacturers like Dongfang Electric Group and Shanghai Electric Group to demonstrate the strength and potential of China's nuclear manufacturing capabilities [2] - The Chinese delegation aimed to deepen systematic cooperation with key international organizations, participating in seminars with the International Atomic Energy Agency and the French Nuclear Industry Association to promote Chinese nuclear enterprises in the global market [2] - The Director General of the International Atomic Energy Agency noted China's rapid growth in new nuclear power capacity and its diverse reactor technologies, emphasizing nuclear energy as a key option for addressing climate change [2]

Core Insights - Shandong Province has made significant progress in energy development during the "14th Five-Year Plan," focusing on energy supply security, green transformation, and innovation, effectively meeting the energy needs of over 100 million people [1][2]. Energy Supply Security - Shandong prioritizes energy security, establishing a comprehensive production, supply, and emergency response system, maintaining coal and crude oil production at approximately 86 million tons and 22 million tons respectively [2]. - As of September 2023, the total installed power capacity reached 250 million kilowatts, with an annual electricity generation expected to be around 700 billion kilowatt-hours [2]. - Major projects like the Long Electric Power and the China-Russia East Line have been completed, with over 95,000 kilometers of transmission lines and more than 15,000 kilometers of oil and gas pipelines established [2]. - The government has a coal reserve capacity of 20 million tons and gas storage facilities with a capacity of 2.52 billion cubic meters [2]. Green Transformation - Shandong's clean energy generation capacity has reached 134 million kilowatts, 2.8 times that of 2020, accounting for 53.4% of the total power capacity [6]. - The province has made breakthroughs in nuclear power, offshore wind, and solar energy, with a total installed capacity of 5.92 million kilowatts for offshore wind and 91.728 million kilowatts for solar power, maintaining the top position in China for eight consecutive years [6]. - Shandong has implemented innovative pricing policies to promote renewable energy consumption, achieving a 95.9% utilization rate for new energy from January to August 2023, surpassing the national average by 1.4 percentage points [8]. Innovation and Reform - Shandong is enhancing energy development through technological innovation and institutional reform, with significant projects like the fourth-generation nuclear power plant and advanced coal power technologies [7]. - The province has established a comprehensive electricity market system, with 43,000 market participants, and is projected to achieve 421.9 billion kilowatt-hours of market transactions in 2024, saving over 8 billion yuan in electricity costs for industrial and commercial users [7]. - The introduction of private capital in energy projects is notable, with private enterprises holding a 40% stake in onshore wind projects and at least 10% in nuclear projects [8]. Future Outlook - Shandong aims to accelerate the construction of a new energy system and become a model for green and low-carbon energy transformation, providing robust energy support for the province's modernization efforts [8].

Core Viewpoint - Shanghai Electric's stock price surged by over 9% in early trading, currently up 7.06% at HKD 4.85, with a trading volume of HKD 405 million, following the successful operation of a 2 MW liquid fuel thorium-based molten salt experimental reactor, marking a significant milestone in thorium fuel utilization technology [2][2][2] Company Summary - The 2 MW liquid fuel thorium-based molten salt experimental reactor, led by the Shanghai Institute of Applied Physics under the Chinese Academy of Sciences, has achieved the world's first thorium-uranium fuel conversion and obtained experimental data after operation, establishing it as the only molten salt reactor globally to utilize thorium fuel [2][2][2] - The company has strategically positioned itself in the energy equipment sector, focusing on advanced nuclear technologies, including thorium-based molten salt reactors and high-temperature gas-cooled reactors, covering all existing nuclear power technology routes in China [2][2][2] - Shanghai Electric maintains the leading market share in the domestic nuclear island main equipment sector, reinforcing its competitive edge in the energy equipment industry [2][2][2]

Core Viewpoint - Shanghai Electric (02727) experienced a significant stock increase, rising over 9% at one point and closing up 5.08% at HKD 4.76, with a trading volume of HKD 261 million [1] Group 1: Technological Advancements - The 2-megawatt liquid fuel thorium-based molten salt experimental reactor, led by the Shanghai Institute of Applied Physics under the Chinese Academy of Sciences, has successfully achieved thorium-uranium fuel conversion [1] - This reactor is the first in the world to obtain operational experimental data for thorium in a molten salt reactor, proving the technical feasibility of utilizing thorium resources in molten salt reactor nuclear energy systems [1] Group 2: Company Positioning - Shanghai Electric's annual report highlights the company's core competitiveness in energy equipment, including its involvement in thorium-based molten salt reactors and high-temperature gas-cooled reactors, covering all existing nuclear power technology routes in China [1] - The company maintains the highest market share in the domestic nuclear island main equipment sector, reinforcing its leading position in the industry [1]

Core Viewpoint - The company, Jiangsu Shentong, is actively increasing its R&D investment in the nuclear power sector, aligning with advancements in domestic nuclear technology and successfully launching a series of valve products that meet the standards of third and fourth generation nuclear technologies [2]. Group 1: Company Developments - Jiangsu Shentong confirmed its role as a major supplier for the Linglong One nuclear project and indicated that the number of orders on hand has increased compared to last year [2]. - The company's products now cover mainstream domestic reactor types, including Hualong One, Guohe One, high-temperature gas-cooled reactors, and fast reactors, providing stable and reliable valve support for new nuclear power units [2]. Group 2: Market Position - The company is focused on enhancing its competitive position in the nuclear power industry by developing products that meet the latest technological standards [2].

Core Viewpoint - The article emphasizes the importance of nuclear energy in ensuring energy security, addressing climate change, and promoting green and low-carbon transformation in China, guided by the new energy security strategy proposed by President Xi Jinping [2][3]. Group 1: Historical Achievements and Transformations in Nuclear Energy - The nuclear industry has achieved significant progress and transformation under the new energy security strategy, focusing on safety, innovation, and enhancing core competitiveness [3]. - China has maintained the highest international safety standards in nuclear power development, approving over 10 nuclear power units annually for four consecutive years, with a total installed capacity leading globally [4]. - The nuclear power generation is projected to reach 450.9 billion kilowatt-hours in 2024, accounting for 4.5% of the total national power generation [4]. Group 2: Technological Advancements in Nuclear Power - China has made historic advancements in nuclear power technology, transitioning from following to leading in certain areas, with the "Hualong One" reactor becoming a key model for third-generation nuclear technology [5]. - The development of fourth-generation nuclear technology and the construction of the world's first modular small reactor "Linglong One" are notable achievements [5]. Group 3: Modern Industrial System Development - The nuclear industry has significantly enhanced its full industrial chain capabilities, focusing on uranium resource development, advanced nuclear fuel components, and digital transformation [6]. - The construction capacity for nuclear power projects has been systematically improved, enabling simultaneous construction of 40 nuclear power units [6]. Group 4: Safety and Operational Excellence - China's nuclear power operations adhere to the highest safety standards, achieving a perfect score in the WANO (World Association of Nuclear Operators) comprehensive index for its operating units in 2024, surpassing major nuclear countries [7]. Group 5: International Cooperation and Expansion - The collaboration with Russia on nuclear energy projects has set a global benchmark, with successful exports of nuclear power units to Pakistan and the establishment of the first overseas "Hualong One" reactor [8]. - China is actively participating in international nuclear fusion projects, contributing to significant global scientific endeavors [8]. Group 6: Future Opportunities and Challenges - The next decade presents significant opportunities for nuclear energy development, driven by global confidence in nuclear power and advancements in technology [9]. - Challenges include geopolitical tensions affecting the nuclear market and the need for strategic breakthroughs in cutting-edge technologies [9]. Group 7: Strategic Measures for Development - The focus is on achieving high-level self-reliance in nuclear technology, promoting innovation, and ensuring safety in nuclear power operations [10][11]. - Enhancing the industrial chain and fostering international cooperation are critical for the sustainable development of the nuclear industry [12].