CITIC Securities: The approval of nuclear power units will be officially implemented for the first time this year, and the sector is expected to see multidimensional valuation reconstruction under a stable growth trend.

CITIC Securities released a research report stating that this year marks the first approval of eight nuclear power units. Under the stimulation of the logic of self-control and AI demand, nuclear power construction is expected to become a new infrastructure sector. We believe that the global nuclear power industry is likely to experience a revival. Domestically, the orderly advancement of nuclear power units is expected to drive the growth of component orders, with breakthroughs in fourth-generation reactors and small reactors, as well as opportunities in exports and nuclear fusion, opening up new horizons for the industry. We recommend paying attention to leading companies in the SMR sector; leading valve manufacturers with a full order book; leading special motor manufacturers achieving localization in the third and fourth generation nuclear power fields; leading manufacturers of special welding materials for nuclear power; leading mechanical sealing companies with advantages in high-end sealing products; leading companies benefiting from the demand for spent fuel storage and processing; leading manufacturers of nuclear-grade zirconium sponge; and companies qualified in the manufacturing of control rod drive mechanisms, nuclear main pumps, and in-core components.