The Zhitong Finance App learned that Lyon released a research report saying that the State Council approved eight new nuclear power units on July 31, the first batch of approvals in 2026, involving four projects in Guangdong, Liaoning, Zhejiang and Shandong. The total installed capacity was about 10 gigawatts, with a total investment of about 170 billion yuan. Lyon believes that nuclear power investment has countercyclical characteristics, bringing long-term profit visibility to nuclear power equipment suppliers, and is optimistic about related stocks such as Shanghai Electric (02727) and Harbin Electric (01133).
China's “15th Five-Year Plan” target is that the installed capacity of nuclear power will reach 110 gigawatts in 2030, which is a significant increase from 63 gigawatts in 2025. This means that between 2026 and 2030, it will need to add at least 9.5 gigawatts of installed capacity every year, which is far higher than the average of 2.2 gigawatts per year during the “14th Five-Year Plan” period. Lyon pointed out that the compound annual growth rate of nuclear power investment from 2021 to 2025 was 35%, and electricity capital expenditure increased by 12% during the same period, far higher than overall fixed asset investment (3%) and gross domestic product (5%), reflecting the role of electricity investment as a countercyclical stabilizing economy.
Lyon believes that Shanghai Electric and Harbin Electric are major manufacturers of raw equipment for nuclear power equipment in China, while Yingliu Co., Ltd. (603308.SH) supplies reactor casting components, and all three companies will benefit from the growth of the nuclear power business. The bank raised Harbin Electric's profit forecast to reflect strong growth in the nuclear power business and improved profit margins, and raised the target price from HK$18 to HK$21 to maintain a “outperforming the market” rating; Shanghai Electric H shares and Shanghai Electric (601727.SH) A shares both maintained “outperforming the market” ratings, with target prices of HK$3.9 and RMB 8, respectively; the target price for Yingliu shares was RMB 80, rated “outperforming the market”.