The head of the Yuan Dynasty gave China Nuclear International (2302.HK) a purchase rating, with a target price of HK$15.70.

Yuanda pointed out that 62.1% of CNNC's shares are owned by CNNC. The latter holds the majority of shares in almost all nuclear power plants in mainland China. CNNC International's position is to supply uranium to the parent company through overseas acquisitions.

Yuanta added that CNNC has raised capital by issuing shares and convertible shares to parent companies, and it is expected that this situation will continue; one of the catalysts for stock prices is that the purchased assets will be put into production from 2012.

CNNC closed yesterday at HK$9.18.