Cathay Pacific Haitong: Nuclear power plant approval maintains normalization, focusing on the middle and upstream segments of the industrial chain

The Zhitong Finance App learned that Cathay Pacific Haitong released a research report saying that the National Standing Committee approved a total of 8 units for 4 nuclear power projects, and approved a total of 36 new nuclear power projects in 8 years, for a total of 64 units. Approval of nuclear power units remains normalized, and the development of nuclear power equipment is progressing steadily. The 2.0 version of “Hualong 1” and “Guo 1” are moving towards batch construction, with a total investment of over 160 billion yuan. China is expected to surpass the US and become number one in the world by 2030, and the upstream and downstream industrial chains are expected to continue to benefit. Focus on the middle and upstream segments of the nuclear power industry chain.

Cathay Pacific Haitong's main views are as follows:

The National Standing Committee approved 4 nuclear power projects with a total of 8 units. A total of 36 projects were approved in 8 years, with a total of 64 units. Nuclear power approval maintained a normalized pace

1) On July 31, the Executive Meeting of the State Council decided to approve 4 nuclear power projects, with a total of 8 units, specifically: CNNC Zhejiang Jinqimen Nuclear Power Phase II (units 3 and 4), CGN Guangdong Taipingling Nuclear Power Phase III (units 5 and 6), China Power Investment Corporation Shandong Laiyang Nuclear Power Phase I (units 1 and 2), and CNNC Liaoning Zhuanghe Nuclear Power Phase I (units 1 and 2). 2) Since 2019, the number of nuclear power units approved by China each year has been 6, 4, 5, 10, 10, 10, 11, 10, and 8, respectively. Of these, 10 units or more were approved every year for four consecutive years from 2022 to 2025, and 36 new nuclear power projects were approved in 8 years, for a total of 64 units. Approval of nuclear power units remains normalized, and the development of nuclear power equipment is progressing steadily.

The 2.0 version of “Hualong 1” and “Guo 1” are moving towards batch construction, with a total investment of over 160 billion yuan

1) The units approved this time are all third-generation nuclear power units: Jinqimen Phase II and Taipingling Phase III use the “Hualong 1” technology integration scheme version 2.0, which will be a demonstration project for moving the technology from R&D to batch application in engineering; the 2 units of Laiyang Nuclear Power Phase I use “Guo-1” technology, the first batch construction project of “Guo-1” after the Shandong Rongcheng demonstration project, and opened up a new nuclear power base for Shandong Province; Zhuanghe Nuclear Power Phase 1 uses “Hualong 1” technology that has already been built in batches, Liaoning Province The number of nuclear power plants under construction in operation has increased from 2 to 3. 2) Based on an estimated investment of about 20 billion yuan for a single domestic million-kilowatt third-generation nuclear power unit, the total investment for this newly approved unit may exceed 170 billion yuan, promoting the nuclear power equipment manufacturing system to form a virtuous cycle of large-scale and continuous development.

Policies continue to be strengthened, industry development space is clear, and upstream and downstream of the industrial chain are expected to continue to benefit

1) The “15th Five-Year Plan for the Construction of a New Energy System” released in June 2026 clearly focuses on third-generation pressurized water reactor technology to maintain a steady pace of nuclear power construction, and proposes that the installed capacity of nuclear power will reach about 110 million kilowatts by 2030; the “Energy Sector Energy Conservation and Carbon Reduction Action Plan (2026-2028)” proposes “promoting the integration of nuclear power into the green power certification system”, and the low carbon value of nuclear power is expected to be further demonstrated. 2) As of April 2026, the National Nuclear Safety Administration has issued operating licenses for 62 nuclear power units and construction permits for 39 units. China accounts for more than half of the world's nuclear power generation, and has maintained the world's highest assembly capacity for 19 consecutive years. The total number of units in operation is expected to reach 70 by the end of 2026. The China Nuclear Energy Industry Association's “China Nuclear Energy Development Report (2026)” Blue Book points out that China is expected to surpass the US to become number one in the world by 2030, and the upstream and downstream industries are expected to continue to benefit.

Investment advice: focus on the middle and upstream segments of the nuclear power industry chain

1) Midstream equipment: Recommended targets are Strain Flow Co., Ltd. (nuclear power and fusion reactor material components), related targets are Jiadian (nuclear power main pump, fan), China Nuclear Technology (nuclear grade valve), Jiangsu Shentong (nuclear grade valve), Hailu Heavy Industries (core cylinder/support), Lianchuang Optoelectronics (high temperature superconducting magnets), Guoguang Gas (polarizer, cladding system), Antai Technology (polarizer), Heavy-Forged Intelligence (vacuum chamber components); 2) Upstream materials: The targets are Yongding Co., Ltd. (subsidiary Dongfang Superconducting, High Temperature Superconducting Strip), Jingda Co., Ltd. (participating in Shanghai Superconductivity, High Temperature Superconducting Strip), Shangda Shares (high temperature alloys).

Risk warning: Nuclear power equipment investment falls short of expectations; nuclear power installation construction progress falls short of expectations.