Jiangsu Shentong Valve Co Ltd

The State Council executive meeting decided to approve four nuclear power projects totaling eight units: the second phase of the Jinqimen Nuclear Power Plant in Zhejiang, the third phase of the Taipingling Nuclear Power Plant in Guangdong, the first phase of the Zhuanghe Nuclear Power Plant in Liaoning, and the first phase of the Laiyang Nuclear Power Plant in Shandong. This marks the first nuclear project approval of 2026 and the first batch approved during the 15th Five-Year Plan period. Total investment for these new projects will exceed 170 billion yuan. Boosted by the news, the nuclear power concept sector in the A-share market surged against the overall market trend. China Nuclear Engineering, LBT, Jiangsu Shentong, and Zhongyan Technology hit their daily limit up, while Western Metal Materials, Dongfang Electric, and China National Nuclear Corporation Technology followed with gains. China Galaxy Securities estimates that the eight domestically produced million-kilowatt third-generation nuclear units involve investment of over 170 billion yuan, which could drive total output of related industrial chains to approximately 500 billion yuan, directly benefiting the entire chain including nuclear equipment manufacturing, nuclear island construction, nuclear fuel cycle, and operation and maintenance. Caitong Securities believes this approval confirms the trend of large-scale and regularized nuclear power construction during the 15th Five-Year Plan period, continuously strengthening the sector's medium- to long-term prosperity and growth certainty.

The State Council executive meeting decided to approve four nuclear power projects, including the first phase of the Liaoning Zhuanghe project, totaling eight new units with an overall investment exceeding 170 billion yuan. Boosted by this news, the nuclear power sector strengthened against the market trend, with more than 10 stocks including Jiusheng Electric, China Nuclear Engineering, and Jiangsu Shentong hitting their daily limit-up, and net capital inflows into the nuclear power sector from major funds exceeding 2.6 billion yuan. The newly approved projects include the second phase of the Zhejiang Jinqimen nuclear power project, the third phase of the Guangdong Taipingling nuclear power project, the first phase of the Liaoning Zhuanghe nuclear power project, and the first phase of the Shandong Laiyang nuclear power project. These are the first nuclear power projects approved during the 15th Five-Year Plan period. In recent years, new nuclear power projects have maintained a regular approval pace, with 10 or more units approved each year for four consecutive years from 2022 to 2025. As the proportion of nuclear power entering the market rapidly increases, the average market-based settlement price for nuclear power has fallen below the approved on-grid tariff. How to establish a mechanism for stable returns has become a key issue. Liaoning and Guangxi have already taken the lead in piloting a mechanism-based electricity price for nuclear power, which is expected to be promoted in other major nuclear power provinces.