Matters:
Premier Li Keqiang chaired an executive meeting of the State Council on April 20 to determine measures to ensure and increase energy supply and improve the guarantee capacity of energy for economic and social development. The meeting pointed out that under the premise of strict supervision and ensuring absolute safety, nuclear power should be developed in an orderly manner. Three new nuclear power unit projects that have been included in the national plan after years of preparation and comprehensive evaluation and review shall be approved.
Guoxin machinery's view: 1) the state has newly approved a total of 6 units in three nuclear power projects. The number of approved units has reached a new high in recent years since the restart of nuclear power in 2019 (4 / 4 / 5 / 6 units were approved in 20192022). The trend of nuclear power is booming, and we expect the boom to continue during the 14th Five Year Plan period; 2) Space and pattern: according to the calculation that the investment of a single nuclear power unit is about 18-20 billion yuan and the equipment value accounts for 50%, the new approved unit will bring about 54-60 billion yuan of market increment of nuclear power equipment in 2022. Nuclear power equipment presents a high monopoly and stable competition pattern: the main missile of large enterprises is small, the subdivision leader of small private enterprises is flexible, and the world is divided into China National Nuclear Power Co.Ltd(601985) , Cgn Power Co.Ltd(003816) and Cgn Power Co.Ltd(003816) ; 3) Investment suggestion: the national attitude towards the development of nuclear power is positive and clear, the nuclear power boom continues to improve, and the batch construction + post-treatment of nuclear waste opens up the growth space of nuclear power. We are optimistic about companies with high market share and high proportion of nuclear power business in the subdivided field of nuclear power, and focus on equipment links: Jiangsu Shentong Valve Co.Ltd(002438) , Anhui Yingliu Electromechanical Co.Ltd(603308) , Sinoseal Holding Co.Ltd(300470) ; Operators focus on: China National Nuclear Power Co.Ltd(601985) (covered by the environmental protection group). 4) Risk warning: nuclear power accidents occur worldwide; Changes in nuclear power development policies; The demand for nuclear power equipment is lower than expected.
