Constellation Energy Corporation (CEG), headquartered in Baltimore, Maryland, produces and sells energy products and services. With a market cap of $113.8 billion, the company generates and distributes nuclear, hydro, wind, and solar energy solutions serving homes, institutional customers, public sectors, community aggregations, and businesses. Companies worth $10 billion or more are generally described as “large-cap stocks,” and CEG perfectly fits that description, with its market cap exceeding this mark ...

Core Viewpoint - NextEra Energy, Inc. has declared a quarterly common stock dividend of $0.5665 per share, reflecting its commitment to returning capital to investors through consistent dividend payments [1][2]. Company Overview - NextEra Energy operates through its subsidiaries, Florida Power & Light Company (FPL) and NextEra Energy Resources, positioning itself as a leader in both regulated and renewable power generation [2]. - FPL is noted as the largest electric utility in the U.S., while NextEra Energy Resources is recognized as one of the biggest renewable energy developers in the country [2]. Business Strategy - The company is expanding its diversified portfolio, which includes natural gas, nuclear, solar, wind, and battery storage, highlighting its leadership role in the U.S. energy transition [3]. - NextEra is known for combining stable regulated returns with growth in clean energy infrastructure, making it a bellwether in the utilities sector [3].

Core Insights - GE Vernova Inc. (NYSE:GEV) has experienced significant stock performance, rising from the low 100s to the low 600s since its public debut in April of last year [1] - The company specializes in energy technologies and services, including power generation, wind energy, and electrification [1] - GE Vernova produces natural gas turbines essential for various applications, including data centers, contributing to its strong market performance [1] Company Overview - GE Vernova Inc. provides a range of energy solutions, including gas, nuclear, hydro, and wind systems, as well as grid, solar, storage, and software solutions [1] - The company is recognized for its role in the energy sector, particularly in the production of natural gas turbines [1] Market Commentary - Jim Cramer highlighted GE Vernova's stock performance during a recent episode, indicating a positive outlook for the company [1] - While GE Vernova shows potential as an investment, there are suggestions that certain AI stocks may offer greater upside potential with less downside risk [1]

Investment Rating - The report maintains a "Hold" rating for both H and A shares of Dongfang Electric, with target prices raised to HKD12.30 and RMB19.30 respectively [5][9]. Core Insights - Dongfang Electric-H has significantly outperformed Dongfang Electric-A, with a year-to-date increase of 50% compared to 6% for A shares, attributed to improved sentiment towards global power equipment, particularly nuclear [2][9]. - The report indicates that the current share price has largely priced in the positive outlook for global nuclear investment, suggesting limited upside potential without meaningful earnings growth [2][5]. - The company anticipates a steady increase in revenue from nuclear equipment, projecting RMB5 billion in 2025, RMB6 billion in 2026, and RMB7 billion in 2027, which will account for 11% of total revenue by 2027 [3][22]. Summary by Sections Nuclear Power - Global nuclear investment is gaining momentum, with China expected to approve the construction of 10 nuclear plants annually from 2026 to 2030, leading to a projected revenue increase from nuclear equipment [3][22]. - The gross profit margin for nuclear equipment is expected to be between 18-20% from 2025 to 2027, down from previous estimates of 20-30% [3][22]. Coal Power - Orders for coal power equipment are expected to peak in 2026, with a decline in tender sizes from 100GW in 2023 to an anticipated average of 50GW from 2026 to 2030 [4][22]. - The company expects thermal equipment margins to gradually recover, reaching approximately 20% in 2025 [22]. Financial Estimates - Earnings estimates for 2025 have been cut by 9%, while estimates for 2026 and 2027 have been raised by 6% and 14% respectively, reflecting the latest order cycle for thermal and nuclear power equipment [5][25]. - The report highlights that the earnings estimates for 2025 are 12% below consensus, indicating a potentially overly optimistic market outlook [5][9]. Market Performance - The H/A discount for Dongfang Electric has reached a 10-year low of 26%, reflecting the strong performance of H shares compared to A shares [2][5]. - The report notes that the buoyant expectations for global nuclear investment have likely been factored into the recent rally in share prices, suggesting a cautious outlook moving forward [5][9].