Institutions are optimistic about 6 major sectors focusing on nuclear power, industry 4.0 opportunities

Institutions are optimistic about 6 major sectors focusing on nuclear power, industry 4.0 opportunities

Energy Technology Revolution Innovation Action Plan Announces Welcome Significant Opportunity Period for Nuclear Power

Source: Industrial Securities

The National Development and Reform Commission and the National Energy Administration recently issued the “Energy Technology Innovation Action Plan (2016-2030)” (hereinafter referred to as the “plan”), and at the same time released the “Roadmap for Key Innovation Actions in the Energy Technology Revolution” (hereinafter referred to as “the route map"). The "plan" clarifies the overall goals of China's energy technology revolution, and listed 15 key tasks including "Advanced nuclear energy technology innovation" and "Spent fuel aftertreatment and high-level radioactive waste disposal technology innovation".

The third-generation nuclear power technology has gradually become the mainstream technology for newly-built units. The fourth-generation nuclear power technology, small modular reactors, advanced nuclear fuel and recycling technology R&D will continue to make breakthroughs. In terms of technology, China has been walking on both legs of independence and introduction. Judging, the release of the “plan” will promote the construction of fast reactors and advanced modular small reactor demonstration projects to help realize new ultra-high temperature gas-cooled reactors and molten salt reactors. A major breakthrough in the research and development of a new generation of advanced reactor-based key technology equipment materials is to make full use of nuclear power technology reserves.

At present, China's proposed construction is mainly based on three generations of nuclear power plants. Localization of key nuclear power equipment has entered the "fast forward" mode. The integrated localization rate of nuclear power equipment under construction of nuclear power generating units has reached 80%, of which Hualong No. 1's construction of the first pile will not be less than 85%, and the localization rate of equipment after mass production will not be lower than 95%. It is believed that the development of nuclear power has ushered in an important period of opportunity, and the localization of key materials and equipment for nuclear power will accelerate in the future.

Helping nuclear power to go all the way "go all the way", the future of nuclear power equipment billions of blue ocean Yang voyage. The localization of nuclear power equipment will not only bring down pressure on the international prices of similar products, lower procurement costs, but also make China's nuclear power exports more advantageous. Considering only existing overseas nuclear power projects and domestic nuclear power development plans, it is expected that China’s investment in nuclear power equipment will exceed RMB320 billion in the next five years, and the average annual nuclear power equipment market will exceed RMB60 billion.

The radioactive solid waste exceeds 120,000 cubic meters, and there is a huge demand for post-market equipment such as nuclear waste disposal. After the nuclear power plant is put into operation, it will produce waste material that is irradiated by nuclear materials. Due to radiation, nuclear-grade equipment needs to be used for the treatment, lifting, transportation, and stacking of nuclear waste. The vigorous development of nuclear power plants will surely bring about the treatment of nuclear waste. The huge demand has become another new growth point for nuclear equipment needs.

Investment suggestion: It is believed that China’s “restart of nuclear power” and accelerating localization of nuclear power equipment: along with the continued advancement of nuclear power equipment exports along the road, will drive the rapid growth of demand for nuclear power equipment. It is recommended to focus on Taihai Nuclear Power, Nanfeng’s shares, and Jintong’s Linghe Tongyu Heavy Industry.

Institutions are optimistic about 6 major sectors focusing on nuclear power, industry 4.0 opportunities