HK Stock Market Move | CGN MINING (01164) rose more than 7%, the uranium price center is expected to rise overall, Morgan Stanley is optimistic that the company's stock price will rise within 15 days.

CGN MINING (01164) rose more than 7%, as of the time of writing, up 7.26% to HK$3.4 with a turnover of HK$1.86 billion. On the news front, on December 3, China Uranium Corporation held a listing ceremony on the Shenzhen Stock Exchange, becoming the first natural uranium company in the A-share market. According to a Morgan Stanley research report, based on China Uranium Corporation's IPO application materials, its IPO market value is RMB 37 billion, with an expected net profit of RMB 1.6 billion to RMB 1.65 billion this year. As the first uranium mining company to be listed on the mainland, the bank believes that the company will attract more investor attention to the uranium mining sector, boosting market confidence. CGN MINING, as the only uranium mining company listed in Hong Kong and participating in the Stock Connect, will also benefit. The bank expects CGN MINING's stock price to have a 70% to 80% chance of rising in the next 15 days. CMSC believes that nuclear power technology is constantly being upgraded as a clean and efficient power solution. The continuous electrification process at the terminal is driving the increase in electricity consumption. The demand for high-quality electricity is becoming more urgent with the explosive growth of AI. In addition, factors such as regional energy independence are strengthening the strategic position of nuclear power, leading to a resurgence. Contrary to the contraction in uranium mining capital expenditures for over a decade after the Fukushima incident, the short-term natural uranium gap mainly relies on inventory and uranium mine production resumption, with the pace of new production capacity release in the medium to long term unclear. Additionally, the possibility of further reduction in production at some mines may further increase supply-side pressure. Overall, it is judged that the future uranium price will maintain an upward trend, and the profit performance of uranium mining companies is expected to continue to improve.