Will nuclear power welcome a golden decade?
The trillion-dollar track is exploding, and controlled nuclear fusion is initiating a revolution in new energy.
Recently, market focus has shifted to the nuclear power sector, and after last Friday's counter-trend explosion, the sector continued to perform strongly on Monday.
As of the time of publication, CGN MINING in the Hong Kong stock market soared over 9%, while CGN POWER increased by over 3%.
CNNC INT'L once surged over 180% during the day, now retreating to 165% at 4.73 HKD. CNNC INT'L is the only overseas uranium resource operation platform under the China National Nuclear Corporation, covering the buying and selling of uranium products as well as exploration and sales of uranium mines.
Zheshang Securities indicates that as a nuclear power fuel, natural uranium will significantly benefit from the expected increase in long-term nuclear power demand, and the tight supply and demand situation for natural uranium may further strengthen, making a long bull market for natural uranium likely.
In the A-share market, Hahan Huatsong, Fujian Snowman, and RongFa Nuclear Equipment have each had two consecutive limit-ups, while Atlantic China Welding Consumables, Inc., Tianjin Benefo Tejing Electric, and several other stocks reached their daily limit, with Shanghai Electric Group, which has a market cap of over 120 billion yuan, surging over 7%.
However, Shenzhen Prince New Materials, which previously recorded a six-day rise in ten days, saw its growth slow down today, experiencing a significant drop before recovering.
Since May, the stock has 'taken off' at lightning speed, with an accumulated increase of nearly 100% from the beginning of the month, and it has recorded six limit-up days in the last eleven trading days.
Last night (May 25), Shenzhen Prince New Materials issued a risk warning, stating that the company’s stock has seen a significant rise in recent days and the speed of increase has been rapid.
The announcement pointed out that the controllable nuclear fusion business of the company's holding subsidiary has a small proportion and its sustainability is questionable. As of May 23, the company's static PE is -105.73, and the PB is 4.18.
Is this the strongest wind direction in the market in May?
Controllable nuclear fusion, known as the 'ultimate energy solution' that could rewrite the global energy landscape, is sparking a new wave of technology investment frenzy.
Recently, influenced by multiple news sources, this Concept has jumped to become one of the strongest trends in the market in May.
On one hand, the International Thermonuclear Experimental Reactor (ITER) recently announced that, after decades of efforts by more than 30 countries, it has successfully completed the construction of the world's largest pulse superconducting magnet system.
This also marks a key step for humanity towards achieving controllable nuclear fusion energy.
As a key participant in ITER, China contributed 18% of the core components.
Additionally, last Friday, US President Trump signed a nuclear energy "revitalization order", further stimulating market enthusiasm.
This executive order includes expanding the scale of US nuclear energy, the nuclear energy Industry Chain, and shortening the approval cycle for nuclear power projects.
Among other things, it requires the US Department of Energy to initiate the construction of ten large nuclear power plants before 2030 and to quadruple US nuclear power capacity by 2050.
Trump stated, "Nuclear energy is a hot industry, and we will make it very big."
As early as the beginning of his term, Trump announced a "national energy emergency." He indicated the need for sufficient electricity to meet the growing demands of AI data centers.
It is said that Trump hopes to "test and deploy" new nuclear reactors before the end of his second term.
Zheshang noted that Trump's new policies will further strengthen the narrative blueprint for global nuclear power development, driving an increase in the intensity of industrial capital expenditure.
Accelerating industrialization.
A global revival of nuclear energy is underway, and the ultimate energy boom has arrived.
According to data from the Fusion Industry Association (FIA), as of mid-2024, the total investment received by global private fusion companies has reached 7.12 billion USD, an increase of 0.9 billion USD year-on-year, with financing in the capital markets hitting new highs.
According to predictions by the International Atomic Energy Agency, the global controllable nuclear fusion market is expected to reach 496.5 billion USD by 2030 and may exceed one trillion USD by 2050.
In summary, the Industry Chain of controllable nuclear fusion primarily includes upstream raw material supply, midstream technology research and development and equipment manufacturing, and downstream application and operation.
It covers multiple aspects including superconducting materials, magnet manufacturing, vacuum systems, and energy conversion.
Source: RimeData Data collected from public information.
In recent years, China has been increasing support for the controllable nuclear fusion field, and breakthroughs in fusion technology are continuously being made.
On May 1, the overall construction of China's BEST reactor project officially started, marking that the construction of the fusion reactor has entered a stage of intensive tackling, aiming to complete comprehensive construction by 2027 and is expected to be the first to achieve experimental demonstration of fusion power generation.
On May 16, China Fusion Energy released a competitive negotiation procurement announcement, with the purchaser being the Southwest Institute of Physics of the China National Nuclear Corporation, marking that the nuclear fusion industry has entered a substantive stage, accelerating the process of industrialization.
Under the resonance of policies and technologies, listed companies are actively laying out in the field of controllable nuclear fusion.
Earlier, China National Nuclear Power and Zhejiang Zheneng Electric Power increased their investments in China Fusion Energy Co., Ltd. by 1 billion yuan and 750 million yuan respectively, laying the foundation for the commercial application of fusion reactors in the future.
Everbright stated that the nuclear power market has huge potential, with rich investment opportunities in the Industry Chain, focusing on core equipment suppliers in the midstream who benefit from the delivery of the ITER project and the construction of new experimental reactors domestically.
Sinolink also indicated that controllable nuclear fusion has the advantages of high energy density, easy access to raw materials, and environmental friendliness. The Q value has exceeded 1 to achieve energy balance, and the industry has raised over 7.1 billion USD in total financing.
With breakthroughs in high-temperature superconducting magnet technology and the EAST project setting a new record of '100 million degrees for a thousand seconds', attention should be focused on midstream equipment, especially in high-temperature superconducting magnets.
The firm is Bullish on the controllable nuclear fusion Industry during the 14th Five-Year Plan period entering an accelerated release cycle of capital expenditure, with orders from related equipment companies expected to be released, suggesting to focus on investment opportunities brought about by the rise in capital expenditure in the Sector.
Goldman Sachs analysis pointed out that due to structural underinvestment on the supply side, increasing demand driven by AI data centers and other electrification trends, as well as the global urgent demand for stable clean energy to achieve decarbonization goals, it is believed that the nuclear power theme will continue to outperform the market in the 2030s, and is likely to extend to 2040.
With the continuous enhancement of innovation, investment, and policy support, nuclear technology is experiencing a significant growth inflection point, especially against the backdrop of a rising global demand for reliable, all-weather, clean electricity.
