A research report from GTHT indicates that the State Council has approved four nuclear power projects, encompassing eight units. Over the past eight years, a total of 36 new nuclear power projects, representing 64 units, have been approved. The approval of nuclear power units remains at a regular pace, supporting the steady advancement of nuclear equipment development. The "Hualong One" Version 2.0 and the "Guohe One" technologies are progressing toward batch construction, with total investment potentially exceeding 160 billion yuan. China's operational nuclear power capacity is expected to surpass the United States and become the world's largest by 2030, benefiting the entire industry chain. The report highlights a focus on upstream and midstream segments within the nuclear power supply chain.
Key Insights from the Report Include:
On July 31, the State Council executive meeting approved four nuclear power projects, totaling eight units. These include: CNNC's Zhejiang Sanmen Phase II (Units 3 and 4), CGN's Guangdong Taipingling Phase III (Units 5 and 6), SPIC's Shandong Laiyang Phase I (Units 1 and 2), and CNNC's Liaoning Zhuanghe Phase I (Units 1 and 2). Since 2019, China has approved 6, 4, 5, 10, 10, 11, 10, and 8 nuclear power units annually, with at least 10 approved each year from 2022 to 2025. This brings the cumulative total to 36 projects and 64 units over eight years. The consistent approval rhythm ensures steady progress in nuclear equipment development.
All newly approved units are third-generation nuclear reactors. The Sanmen Phase II and Taipingling Phase III projects, each with four units, will use the "Hualong One" technology fusion scheme Version 2.0, marking its first batch application from research to engineering. The Laiyang Phase I project, with two units, adopts the "Guohe One" technology, representing its first batch construction project following the Shandong Rongcheng demonstration project, and establishing a new nuclear base in Shandong Province. The Zhuanghe Phase I project uses the already batch-deployed "Hualong One" technology, expanding Liaoning Province's nuclear bases from two to three. With an estimated investment of around 20 billion yuan per domestically produced 1,000 MW third-generation unit, the total investment for these newly approved units may exceed 170 billion yuan, fostering a virtuous cycle of scale and continuous development in the nuclear equipment manufacturing sector.
Policy support continues to strengthen, providing clear development direction for the industry. The "15th Five-Year Plan for Building a New Energy System," released in June 2026, emphasizes maintaining a steady pace of nuclear power construction with third-generation pressurized water reactors as the primary technology, aiming for an operational nuclear capacity of approximately 110 GW by 2030. The "Energy-Saving and Carbon-Reduction Action Plan (2026-2028)" proposes integrating nuclear power into the green electricity certificate system, further highlighting its low-carbon value. As of April 2026, the National Nuclear Safety Administration has issued operating licenses for 62 nuclear units and construction permits for 39 units. China's nuclear construction scale accounts for over half of the global total, with its under-construction capacity maintaining the world's top spot for 19 consecutive years. The total number of operational units is expected to reach 70 by the end of 2026. According to the "China Nuclear Energy Development Report (2026)" blue book by the China Nuclear Energy Association, China's operational nuclear capacity is poised to overtake the United States as the world leader by 2030, benefiting upstream and downstream players across the industry chain.
Investment Recommendations Target Upstream and Midstream Segments
For midstream equipment, recommended stocks include Yingliu Co., Ltd. (nuclear and fusion reactor materials), with related stocks such as Jia Electric Co., Ltd. (nuclear main pumps, fans), CNNC Valve Co., Ltd. (nuclear-grade valves), Jiangsu Shentong Valve Co., Ltd. (nuclear-grade valves), Hailu Heavy Industry Co., Ltd. (core barrel/supports), Lianchuang Optoelectronics Co., Ltd. (high-temperature superconducting magnets), Guoguang Electric Co., Ltd. (divertors, blanket systems), AT&M Science and Technology Co., Ltd. (divertors), and Hedai Intelligent Equipment Co., Ltd. (vacuum chamber components). For upstream materials, related stocks include Yongding Co., Ltd. (through subsidiary Eastern Superconducting, high-temperature superconducting tapes), Jingda Co., Ltd. (investee Shanghai Superconducting, high-temperature superconducting tapes), and Shangda Co., Ltd. (superalloys).
Key Risks Include: Potential underperformance in nuclear equipment investment and delays in nuclear power construction schedules.
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