今年9月，有媒体报道称，全球14家大型银行和金融机构将承诺加大对核能的支持，多国政府和行业希望此举能为最新一波核电站建设的融资提供支持。据了解，这14家金融机构包括美国银行、巴克莱银行、法国巴黎银行、花旗银行、摩根士丹利和高盛等。Google, as well as Microsoft and other large technology companies, regard nuclear energy as a solution to the power problem for artificial intelligence (AI).
According to the Intelligent Finance News App, with the rise of AI, the power demand for data centers has increased significantly. In the future, there will be a tightening of power supply. Currently, some tech giants are exploring new power supply options; against this background, nuclear energy has gained renewed attention. In the early trading on October 17, Hong Kong-listed nuclear power stocks strengthened, with CGN Mining (01164) up 6.21%, CGN New Energy (01811) up 1.78%, and CGN Power (01816) up 1.69% by the time of publication.
Data from the U.S. Energy Information Administration (EIA) shows that nuclear energy is the most reliable source of energy, providing a stable 93% of maximum electricity annually without generating carbon dioxide. Its reliability is four times that of solar energy and three times that of wind energy. NERC's Chief Executive Officer Jim Robb stated that nuclear energy is an important choice, especially with the rise in focus on nuclear energy in supporting data centers and AI development.
In September this year, it was reported by the media that 14 large banks and financial institutions globally will pledge to increase their support for nuclear energy. Multiple countries' governments and industries hope this will provide financing support for the latest wave of nuclear power plant construction. These 14 financial institutions include Bank of America, Barclays, BNP Paribas, Citigroup, Morgan Stanley, and Goldman Sachs.
Furthermore, Google, as well as Microsoft and other large technology companies, view nuclear energy as a solution to the power problem for artificial intelligence (AI).
On October 14, Google announced that it has reached an agreement with nuclear energy startup Kairos Power to purchase 500 megawatts of round-the-clock carbon-free electricity from Kairos' 7 small modular reactors (SMRs). It is reported that the two companies are considering initial deliveries starting from the first SMR in 2030 and completing full deployment by 2035.
Google's Director of Energy and Climate, Michael Terrell, believes that adopting nuclear energy will complement Google's existing solar and wind energy investments, helping to achieve net zero energy goals. He also emphasized that nuclear power is a source of high-paying, long-term jobs. The U.S. Department of Energy (DOE) estimates that expanding nuclear energy capacity to 2,000 gigawatts by 2050 will require an additional 0.375 million workers.
In September this year, Constellation announced a 20-year partnership agreement with Microsoft to establish the Crane Clean Energy Center and restart Unit 1 of the Three Mile Island nuclear power plant.
According to the agreement, Microsoft will purchase energy from the restarted nuclear power plant to help achieve its goal of using carbon-free energy to meet the power needs of its data centers.
Guolian Securities stated that the nuclear power industry will enter a peak investment period in 2024, with units approved in the second half of 2022 and some units approved in 2023 expected to start construction within 2024. It is estimated that nearly 12 GW of units are expected to commence construction in 2024, and the scale of investment in 2025/2026 may still remain high. It is recommended to focus on investment-driven equipment suppliers and operators for performance growth opportunities.
Specifically, in the nuclear power industry chain equipment manufacturing sector, the general delivery period for nuclear power equipment is usually two years after the FCD. With 10/10 nuclear power units approved in China in 2022-2023 and the commencement of construction of 5/5 nuclear power units, it is expected to drive the industry into a period of equipment order realization. It is recommended to focus on Dongfang Electric Corporation, Jiangsu Shentong Valve, and others.
2) In terms of nuclear power operators, currently there is an abundance of under-construction and planned units, ensuring long-term growth potential. As nuclear power units are gradually connected to the grid contributing profits, the dividend ratio is expected to increase to reward investors. It is recommended to focus on China National Nuclear Power, CGN Power Co.,Ltd.
Related concept stocks:
CGN Power (01816): In late August, Citigroup released a research report stating that considering CGN Power's better-than-expected performance in the first half of the year, the company's net profit forecast for 2021 to 2026 was slightly increased by 1% to 2%. The target price was raised by 11.1% from HK$3.6 to HK$4, reaffirming a "buy" rating. It is anticipated that CGN Power's electricity generation capacity will increase in the second half of the year, with reduced downtime, and the issuance of convertible bonds in the A-share market will benefit H-share shareholders.
CGN Mining (01164): CGN Mining is one of the listed subsidiaries of China General Nuclear Power Corporation, which is the first and third largest nuclear power group in China and the world, respectively. It is also the only platform for investment and financing of overseas uranium resources development under CGNPC.
CNNC International (02302): China National Nuclear Corporation is the only state-owned wholly-owned enterprise that has established a complete nuclear science and technology industrial system in China. It is the main investor and owner of Chinese nuclear power plants and the supplier of nuclear power design, nuclear fuel, and nuclear technology equipment.
