CGN POWER's stock soared 5.08% during intraday trading on Wednesday, following positive market reactions to regulatory developments in China's nuclear power sector.
The surge comes after Liaoning Province established a new pricing mechanism for nuclear power units set to take effect in 2026. According to institutional analysis, this mechanism is expected to raise the comprehensive on-grid electricity price for nuclear units within Liaoning, where CGN POWER operates all existing nuclear power stations.
HSBC Research highlighted that with improved visibility on project returns for long-term assets and potential upside from a nationwide spread of contract-for-difference mechanisms, CGN POWER's valuation has room for further reassessment. The implementation of this pricing mechanism could raise CGN POWER's profit forecasts for fiscal years 2026 and 2027 by 3% to 6%, providing downside protection for nuclear power tariffs in weak markets and potentially enhancing the company's defensive value.
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