On the first trading day of August, all three major A-share indexes declined, but the nuclear energy sector bucked the trend to lead gains. Stocks such as Jiusheng Electric, Ruidi Zhiqu hit their 20% daily limit, while China Nuclear Engineering, Chang Cable Technology, Jiangsu Shentong, Hedun Intelligent, and Rongfa Nuclear Power also saw strong limit-ups. Over a dozen other stocks, including Changfu Components, Hawa Welding, Tianli Composite, and Ruiqi Zhizao, surged over 10%.
On the news front, last Friday the State Council approved four nuclear power projects, including the Liaoning Zhuanghe Phase I, with a total of eight new units and an investment exceeding 170 billion yuan. Institutions point out that China's nuclear power development has entered a phase of regular approvals, with investment in the "15th Five-Year Plan" period expected to approach nearly 1 trillion yuan, benefiting the entire nuclear power industry chain.
First Batch of "15th Five-Year" Nuclear Power Projects Approved
On July 31, the State Council executive meeting approved four nuclear power projects, including the Liaoning Zhuanghe Phase I project, totaling eight new units. This marks the first batch of nuclear power units approved during the "15th Five-Year Plan" period. The approved projects include the Zhejiang Jinqimen Nuclear Power Phase II (Units 3 and 4), Guangdong Taipingling Nuclear Power Phase III (Units 5 and 6), Liaoning Zhuanghe Nuclear Power Phase I (Units 1 and 2), and Shandong Laiyang Nuclear Power Phase I (Units 1 and 2), with total investment estimated to exceed 170 billion yuan. Three major nuclear power central enterprises, CNNC, CGN, and SPIC, all had new projects approved, with Zhuanghe and Laiyang being new nuclear power plant sites. In terms of technical routes, the approved projects cover two of China's independent third-generation nuclear power technologies: six units from Jinqimen Phase II, Taipingling Phase III, and Zhuanghe Phase I will use the "Hualong One" technology, with Jinqimen Phase II and Taipingling Phase III designated as "Hualong One 2.0" demonstration projects. The two units of Shandong Laiyang Phase I will use the "Guohe One" technology, marking the first batch construction project for "Guohe One" following the Rongcheng demonstration project.
This approval is not an isolated event. Previously, the "15th Five-Year Plan" for building a new energy system, jointly issued by two ministries, proposed actively, safely, and orderly developing nuclear power. The "15th Five-Year Carbon Peak Action Plan" also set a clear target of "achieving about 110 million kilowatts of nuclear power installed capacity by 2030." Meanwhile, surging AI demand and the expansion of computing infrastructure are further driving the global nuclear power revival. Tech giants like Microsoft and Google have secured long-term power purchase agreements for nuclear and fusion power, while overseas nuclear power construction is also accelerating.
Institutions: Trillion-Yuan Investment Space Opens for Nuclear Power
Nuclear energy refers to the clean energy industry that uses nuclear fission reactions to generate electricity, covering nuclear power operations, engineering construction, equipment manufacturing, and the nuclear fuel cycle. It is a key support for building a new power system and achieving the "dual carbon" goals. Driven by energy security, green transformation, and AI computing power demand, global nuclear energy policies are shifting positively, nuclear power construction is entering a recovery phase, advanced nuclear energy technologies are accelerating, and diversified nuclear energy applications are expanding. A recent in-depth report from China Merchants Bank Research Institute indicates that total investment in nuclear power construction during the "15th Five-Year Plan" period could approach 1 trillion yuan, with an annual investment scale of about 180 billion yuan. Nuclear power construction involves large investments and long cycles, with the industry chain set to benefit sequentially from civil construction, nuclear power equipment, and the nuclear fuel cycle.
According to CITIC Securities, AI demand is triggering a full-scale global revival of the nuclear power industry. Domestic nuclear power has entered a phase of regular approvals and construction peaks. Advanced reactors represent a high-growth direction for nuclear power, and small modular reactors (SMRs) could become the optimal solution for data center energy supply and one of the best options for power export. This could lead to a revaluation of the nuclear power sector, suggesting attention to companies involved in nuclear island equipment, valves, specialty materials, and main pumps. Caitong Securities notes that this approval fully aligns with the "15th Five-Year Plan" requirement to "maintain a steady pace of nuclear power construction," marking the official start of nuclear power construction during the "15th Five-Year Plan" period. The industry's high prosperity enjoys long-term policy support. Following the launch of the "Hualong One 2.0" demonstration project, the nuclear power sector's high prosperity continues, with modular construction expected to bring significant market share gains.
Financing Funds Position in Multiple Concept Stocks Ahead of Time
According to the concept sector data, there are currently 198 stocks in the A-share market related to the nuclear energy concept, with a total market capitalization exceeding 4.7 trillion yuan. Yangtze Power leads with a market cap of over 700 billion yuan, followed by CGN Power and NARI Technology. China National Nuclear Power, Huadian New Energy, Jereh Group, China Uranium, Huaneng Power International, and Datang Power all have market caps exceeding 100 billion yuan. Since the start of the year, the overall performance of the nuclear energy concept sector has been weak, with 51 stocks rising and 147 falling. Taijin New Energy surged 279% to lead, Youyan Fucai rose 211% to rank second, Gebijia and Guangzhi Technology both gained nearly 180%, while Jereh Group and Binglun Environment both rose over 90%. On the downside, stocks like Xiangtan Electric, Changfu Components, and Zhongzhou Tender fell over 40%. Last week, the sector showed a significant recovery, with about 80% of stocks recording price gains. Tiansu Jiliang led the weekly gain with a 29.5% rise, while Lanshi Heavy Equipment, Shenzhou Taiyue, Xizi Clean Energy, and Rongfa Nuclear Power all rose over 10%. In terms of capital flows, data showed that last week, several nuclear energy concept stocks attracted financing funds. Torch Electronics saw a net increase of 160 million yuan, Dongfang Tantalum followed with 68 million yuan, Tefa Information received 54 million yuan in net buying, and stocks like Shenling Environment, Xinhongye, and Yangtze Power each saw net financing buying of over 20 million yuan. Torch Electronics previously stated on its interactive platform that its new materials business primarily serves customers in the aerospace and nuclear power sectors, including relevant research institutes and Xi'an Xinyao Company. Tefa Information recently revealed that its "wide temperature range MEMS optical fiber multi-physical quantity sensitive element and sensor" project has completed relevant application verification with three application verification units for ships, subways, and nuclear power, successfully passing the Ministry of Science and Technology's mid-term inspection. It has not yet entered mass production.
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