Huatai Securities: Nuclear power is expected to restart "double-click on performance growth + valuation increase"

According to a report by Huatai Securities, the significance of nuclear power in the context of energy transition and energy security has become prominent. China's globally leading nuclear industry chain has laid a solid foundation for the long-term growth potential of CNNC and CGN. Starting from 2026, the potential rebound of coal prices, continuous increase in carbon prices, and the introduction of the mechanism electricity price trial policy are very likely to put an end to the concerns about the depreciation of nuclear power in the capital market over the past three years. With the intensive commissioning of nuclear power during the "13th Five-Year Plan" period, it is expected that the leading nuclear power stocks will successively see profit recovery, accelerated growth, and valuation improvement, providing three-fold positive factors.