Analysis of Investment Value and Industry Chain Impact of CGN Ningde Nuclear Power Project Unit 6 Commencement on China's Nuclear Power Industry

CGN Fujian Ningde Nuclear Power Plant Unit 6 completed the first concrete pouring of the nuclear island in 2025, marking the official commencement of the main project of this unit. The project plans to build 6 million-kilowatt-level nuclear power units in two phases, using China’s independent third-generation nuclear power technology “Hualong One”. As the first nuclear power plant in Fujian Province to commence construction and put into operation, the commencement of Unit 6 has multiple strategic significance.

According to broker API data, the performance of major listed companies in China’s nuclear power industry is as follows:

• Market Capitalization：1,775 billion RMB
• Current Share Price：8.63 yuan (-1.03%)
• P/E Ratio：20.77x
• ROE：6.92%
• YTD Performance：-14.98%[0]

• Market Capitalization：1,928.7 billion RMB
• Current Share Price：3.82 yuan (-1.29%)
• P/E Ratio：20.51x
• ROE：7.74%
• YTD Performance：-3.29%[0]

From a valuation perspective, the current valuation levels of the two nuclear power operators are relatively reasonable, with P/E ratios around 20x, which is comparable to the average level of the utility sector. It is worth noting that despite recent stock price corrections, the cumulative returns over 3-year and 5-year periods exceed 39% and 39-86% respectively, reflecting the long-term investment value of nuclear power assets.

Nuclear power has significant cost advantages among clean energy sources. According to analysis, the levelized cost of electricity (LCOE) for nuclear power is approximately 65 yuan/MWh, significantly lower than that of wind power (85 yuan), photovoltaic (95 yuan) and coal power with carbon capture technology (120 yuan). This cost advantage provides stable profitability and cash flow for nuclear power operators.

The use of Hualong One technology in Ningde Nuclear Power Unit 6 marks the maturity and accelerated standardized application of this technology. Currently, Hualong One has become the nuclear power reactor type with the largest number of in-operation and under-construction units globally [1]. The batch construction of this technology will significantly reduce unit construction costs and improve construction efficiency.

According to investment value score analysis, the investment value of each link in the nuclear power industry chain shows a gradient distribution:

1. Nuclear Power Operators (85 points)
   ：As the downstream of the industry chain, they enjoy stable cash flow and long-term monopoly advantages
2. Nuclear Power Equipment Manufacturing (78 points)
   ：Benefit from the scale effect brought by Hualong One standardization
3. Nuclear Fuel Supply (72 points)
   ：With the growth of nuclear power installed capacity, nuclear fuel demand continues to rise
4. Engineering Construction (65 points)
   ：Demand for engineering services brought by the peak period of nuclear power construction
5. Nuclear Waste Treatment (58 points)
   ：Long-term environmental protection demand, but the investment payback period is relatively long

China’s nuclear power installed capacity shows a steady growth trend, from 51.3 GWe in 2020 to an estimated 80 GWe in 2030. The construction of Ningde Unit 6 is an important part of this growth trend, helping to achieve the national clean energy development goals.

Global nuclear power stocks experienced a $566 billion rally in 2025, and fund managers believe that the upward momentum of nuclear power stocks will continue driven by improved regulatory prospects and demand beyond artificial intelligence needs [2]. As one of the fastest-growing countries in nuclear power development globally, China will benefit from this global trend.

China’s only uranium mining company CGN Uranium tripled its share price in the Shenzhen IPO, raising approximately 4 billion RMB [2], reflecting the market’s high attention and investment enthusiasm for the upstream supply chain of nuclear power.

1. Long-term Value Investment
   ：Nuclear power operators have stable cash flow and dividend capabilities, suitable for long-term value investment
2. Equipment Manufacturers
   ：Hualong One standardization will drive the growth of related equipment demand
3. Nuclear Fuel Supply Chain
   ：With the growth of installed capacity, nuclear fuel demand will continue to rise

1. Construction Cycle Risk
   ：Nuclear power projects have long construction cycles, with risks of cost overruns and delays
2. Policy Regulatory Risk
   ：The nuclear power industry is strictly regulated, and policy changes may affect industry development
3. Safety Risk
   ：Nuclear safety incidents may lead to damage to industry reputation and stricter regulation

The commencement of CGN Ningde Nuclear Power Unit 6 marks China’s nuclear power industry entering a new stage of development. The standardized application of Hualong One technology will reduce construction costs and improve construction efficiency, bringing better economic benefits to nuclear power operators. From the perspective of investment value, the nuclear power industry has cost advantages, stable cash flow, and long-term growth potential, which is worthy of attention. There are investment opportunities in all links of the industry chain, among which nuclear power operators and equipment manufacturers have relatively high investment value.

With the global nuclear power revival trend and China’s clean energy transformation needs, China’s nuclear power industry is expected to usher in important development opportunities in the next decade, providing investors with long-term stable investment returns.

[0] Gilin API Data - Real-time quotes and financial data of China Nuclear Power (601985.SS) and CGN Power (003816.SZ)
[1] Yahoo Finance Hong Kong - “China’s First ‘Hualong One’ Nuclear Power Plant Using Cooling Towers Officially Commences Construction” (https://hk.finance.yahoo.com/news/國內首個採用冷卻塔的-華龍-號-核電站正式動工-085957689.html)
[2] Bloomberg - “China’s Only Uranium Miner Sees Shares Triple on Shenzhen IPO” (https://www.bloomberg.com/news/articles/2025-12-03/shares-in-china-s-only-uranium-miner-triple-on-shenzhen-debut)
[3] Bloomberg - “Global Nuclear Stocks Remain in Vogue After $566 Billion Rally” (https://www.bloomberg.com/news/articles/2025-12-08/global-nuclear-stocks-remain-in-vogue-after-566-billion-rally)