Hong Kong stocks concept tracking | Nuclear power revival? 14 global financial giants support nuclear energy development, institutions recommend focusing on these two growth opportunities (with concept stocks)

Nuclear power is considered an important acquisition path for Clean Energy Fuels Corp., and in recent years it has gained attention from countries around the world. According to reports, the world's 14 largest banks and Financial Institutions, Inc. are expected to increase their support for nuclear energy to unlock financing for the industry. It is reported that on Monday, at an event in New York with White House climate policy advisor John Podesta, institutions including Bank of America Corp (BAC.US), Barclays PLC Sponsored ADR (BCS.US), Citi (C.US), Morgan Stanley (MS.US), and Goldman Sachs Group, Inc. (GS.US) are expected to announce their support for the goals of the 28th United Nations Climate Change Conference (COP28), which include doubling the world's nuclear energy capacity by 2025. Furthermore, the International Atomic Energy Agency has recently released the "Energy, Electricity, and Nuclear Power Forecast by 2050," which has raised expectations for the prospects of nuclear power for the fourth consecutive year. The International Atomic Energy Agency predicts that in a high expectation scenario, by 2050, the world's nuclear power capacity will increase 2.5 times its current capacity, in line with the global consensus on accelerating the deployment of nuclear energy. The Director General of the International Atomic Energy Agency, Mr. Grossi, stated that the momentum of global nuclear energy development continues to be strong. The latest forecasts from the International Atomic Energy Agency reflect an increasing recognition that nuclear energy is a clean, safe energy supply, and a growing focus on small modular reactors, with hopes of using them for both power and non-power applications, to achieve climate goals and promote sustainable development. With the increasing demand for energy from tech giants, combined with their commitments to reduce carbon emissions, nuclear power is becoming an increasingly important option. Recently, the largest nuclear reactor operator in the United States, Constellation Energy, reached an agreement with Microsoft Corporation to sell all the electricity from the Three Mile Island nuclear power station, earmarked for restart, to Microsoft Corporation, to provide energy for its large artificial intelligence data centers. In March of this year, Amazon.com, Inc. purchased a data center campus with a nuclear power supply from Terrestrial Energy. Oracle Corporation has also recently stated that it is designing a data center powered by three small modular reactors. Domestically, in recent years, the development of nuclear power has been highly prioritized, with continuous issuance of related policies. On August 11th, the State Council issued the "Opinions on Accelerating the Comprehensive Green Transformation of Economic and Social Development," which stated the need to "accelerate the construction of Clean Energy Fuels Corp. bases for wind, solar, hydro, offshore wind, and coastal nuclear power" for the first time at the national level. On August 19th, the State Council held an executive meeting and approved 5 nuclear power projects, including the first phase of the China National Nuclear Corporation's Xuxi Phase I project, the first phase of China General Nuclear Power Corporation's Landfeng project in Guangdong, the first phase of the Zhaoyuan project in Shandong, the second phase of the Sanao project in Zhejiang, and the first phase of the Bailong project in Guangxi of the State Power Investment Corporation, totaling 11 units. In addition, the "Guidance Opinions on Energy Work by 2024" issued by the National Energy Administration also requires active, safe, and orderly progress in the approval of coastal nuclear power projects. Since 2019, the approval process for nuclear power plants in China has accelerated, with an average of 10 units approved per year in 2022-2023 and a Compound Annual Growth Rate (CAGR) of nuclear power investment of 29.7% from 2019 to 2023. According to data from the China Nuclear Energy Association, it is estimated that by 2035, nuclear power will account for around 10% of the total electricity generation in China (currently only 5%), indicating vast development opportunities for nuclear power construction in the future. Huafu Securities stated that compared to other forms of power generation, nuclear power plants maintain a high annual electricity generation utilization rate of over 7,000 hours, ranking at the top among all power sources, and do not emit sulfur dioxide, nitrogen oxides, particulate matter, or carbon dioxide during the production process. Nuclear power is one of the cleanest, safest, most efficient, and smallest footprint energy forms, with its characteristics of cleanliness, safety, and efficiency making it an important force for promoting the green transformation of energy. Guolian pointed out that in 2024, the nuclear power industry will enter a peak investment period, with units approved in the second half of 2022 and in 2023 expected to start construction in 2024. It is expected that the number of units starting construction in 2024 will approach 12GW, and the investment scale in 2025/2026 may remain high. It is recommended to focus on investment opportunities that will drive equipment suppliers and operators' performance growth. Specific targets: 1) In terms of the nuclear power industry chain equipment manufacturers, the delivery period for nuclear power equipment is generally around two years after the final contract date (FCD). With China approving 10/10 nuclear power units in 2022-2023 and starting construction on 5/5 units, the industry is expected to enter a period where equipment orders will be fulfilled. It is recommended to focus on companies such as Dongfang Electric Corporation and Jiangsu Shentong Valve. 2) In terms of nuclear power operators, there are currently an abundant number of units under construction and planned, ensuring long-term growth opportunities. As nuclear power units are gradually connected to the grid and contribute to profits, the dividend ratio is expected to increase to benefit investors. It is recommended to focus on companies such as China National Nuclear Power and CGN Power Co., Ltd. Related concept stocks: CGN POWER (01816): In late August, Citigroup issued a research report stating that considering CGN POWER's better-than-expected performance in the first half of the year, the company slightly raised its net profit forecast for the years 2021 to 2026 by 1% to 2%, increased its target price by 11.1% from HK$3.6 to HK$4, reaffirmed its "buy" rating, and predicted that CGN POWER's electricity generation capacity will increase in the second half of the year with fewer shutdowns, and that the issuance of convertible bonds in the A-share market will benefit H-share shareholders.Cmo ests?CGN MINING (01164): CGN MINING is one of the listed subsidiaries of China General Nuclear Power Group, which is the largest nuclear power group in China and the third largest in the world. It is also the only platform for investment and financing in overseas uranium resource development under CGN Group. CNNC INT'L (02302): China National Nuclear Corporation (CNNC) is the only state-owned enterprise in China that has established a complete nuclear science and technology industry system. It is the main investor and owner of China National Nuclear Power Station, and is a supplier of nuclear power design, nuclear fuel, and nuclear technology equipment.