Tracking of Hong Kong stock concepts | National Development and Reform Commission approves the construction of 10 new nuclear power units, driving investment exceeding 200 billion RMB. Many institutions are optimistic about the prospects of nuclear power stocks this year. (Including concept stocks)

In 2025, domestic nuclear power project approvals were opened for the first time. According to the news broadcast on April 27th, the State Council Executive Meeting held that day approved nuclear power projects such as the Sanmen Phase III project in Zhejiang. Nuclear power projects have always been an important driving force to expand effective investment. With an estimated investment of about 20 billion yuan for a single domestically-made million-kilowatt third-generation nuclear power unit, the total investment for the newly approved units this time exceeds 200 billion yuan. Related concept stocks: Dongfang Electric Corporation (01072), CNNC INT'L(02302), CGN POWER(01816). It was learned from multiple sources within the industry that the new projects approved at the State Council meeting include the Guangxi Fangchenggang Nuclear Power Phase III (Units 5 and 6), Guangdong Taishan Nuclear Power Phase II (Units 3 and 4), Zhejiang Sanmen Nuclear Power Phase III (Units 5 and 6), Shandong Haiyang Nuclear Power Phase III (Units 5 and 6), and Fujian Xiapu Nuclear Power Phase I (Units 1 and 2), totaling 5 projects and 10 new units. Since 2022, China has approved 10 or more nuclear power units every year for four consecutive years, maintaining a regular approval pace. The new projects all adopt independent third-generation nuclear power technology, including 8 units of the Hualong One type. Currently, China's operational and under-construction nuclear power capacity ranks first in the world. Nuclear power generation provides electricity in a safe, efficient, and clean manner, offering a practical option for addressing environmental and climate change issues. With the increasing integration of intermittent renewable energy sources into the grid bringing challenges in regulation and accommodation, high-energy-density nuclear power, which can serve as a base load, can compensate for the fluctuation shortcomings of renewable energy and provide strong support for the secure and stable operation of the grid. Nuclear power projects have significant investment, long construction periods, high technological content, and involve multiple industries, playing a strong driving role in the development of the national economy. Data from the "China Nuclear Energy Development Report (2025)" Blue Book shows that the construction investment in nuclear power projects reached 146.9 billion yuan in 2024, an increase of 52 billion yuan compared to the previous year, reaching a historic high. Within China, nuclear power has become an important supporting and main power source in the eastern coastal areas, with nuclear power generation exceeding 20% in 5 provinces, namely Liaoning, Zhejiang, Fujian, Guangdong, and Hainan, playing important roles in ensuring power supply. Last year, with less than 2% of installed capacity, nuclear power contributed 4.7% of the country's electricity generation. As of now, China has 58 commercial nuclear power units with an installed capacity of 60.96 million kilowatts, and 44 units are under construction with an installed capacity of 52.35 million kilowatts, making it the largest in the world in terms of total capacity. Industry forecasts suggest that during the "14th Five-Year Plan" period, China is expected to become the only country in the world with over 100 commercial nuclear power units. Furthermore, on March 12th, the World Nuclear Association announced that global tech and industrial giants like Google, Amazon, and Meta have signed commitments to support the goal of at least tripling global nuclear power generation by 2050. According to data from the World Nuclear Association, as of early 2025, there are approximately 411 nuclear reactors operating globally, with a total installed capacity of about 371 gigawatts, supplying roughly 9% of the world's electricity. Since COP 28, a total of 8 new nuclear reactors have been connected to the grid globally, with 12 new nuclear power plants begun construction. According to a Zheshang research report, based on Gartner's forecast, the electricity demand for data centers solely dedicated to running AI-optimized servers is expected to reach 500 terawatt-hours/year by 2027, 2.6 times the level in 2023. The tremendous demand for electricity driven by AI necessitates round-the-clock power supply for data centers, with nuclear power emerging as an important choice due to its efficiency, cleanliness, and stability. Faced with the surge in electricity demand for AI model training and inference, various parties are turning to nuclear power to seek solutions for energy supply, with companies like Microsoft, Google, Amazon, and Meta all investing in nuclear power. Analysts from UBS and Morgan Stanley are optimistic about the prospects of nuclear power stocks in 2025, as the surge in electricity demand related to the AI boom. China Securities Co., Ltd. stated that in terms of nuclear fission, the approval of third-generation nuclear power units is accelerating in China, while fourth-generation reactors and small modular reactors are steadily progressing. It is recommended to focus on listed companies related to nuclear island equipment; in terms of nuclear fusion, China has made huge investments in nuclear fusion reactors, with national fusion projects, commercial projects, and fusion-fission hybrid reactors intensively under construction. It is expected that 2025 will be a great year for nuclear fusion bidding, and the continued delivery of the ITER project and the construction of domestic fusion reactors and hybrid reactors will have a positive impact on related listed companies in the industrial chain. It is recommended to focus on upstream companies engaged in superconducting tapes and midstream companies involved in superconducting magnets, vacuum chambers, divertors, first walls, and other core components related to the nuclear fusion industry. Related concept stocks: Dongfang Electric Corporation (01072): Dongfang Electric Corporation is expected to benefit from the upcoming nuclear power construction cycle in China, with its stable cash flow from the thermal power equipment sector providing support. Its attractive dividend yield is expected to drive up its valuation. CNNC INT'L(02302): The company is the only wholly state-owned enterprise in China that has established a complete nuclear technology industrial system. It is the main investor and owner of China National Nuclear Power stations, as well as a supplier of nuclear power design, fuel, and technology equipment. CGN POWER(01816): In the first three quarters of 2024, the company achieved a net power generation of 166.89 billion kilowatt-hours, a year-on-year increase of 4.97%, with net power generation from subsidiaries at 1303.32 kilowatt-hours, an increase of 5.02% year-on-year, and net power generation from joint ventures at 365.58 kilowatt-hours, an increase of 4.78% year-on-year. The company achieved revenue of 62.37 billion yuan, an increase of 4.06% year-on-year, and non-net profit attributable to owners of 9.74 billion yuan, an increase of 0.91% year-on-year. The increase in costs was due to the additional costs of the new units undergoing their first refueling, as well as the start of the 5-year operation for some units triggering the provision of funds for spent fuel management. It is expected that the company's full-year power generation...Maintain steady and strong performance growth."Il fait beau aujourd'hui." "It is beautiful today."