Author|Zhao Ling,Editor|Gu Jinfeng
Source: Jufeng Investment Advisory, Good Stock Application
The construction of nuclear power units in mainland China is the highest in the world
The China Nuclear Energy Industry Association released the Blue Book of China's Nuclear Energy Development Report 2024. According to the Blue Book, up to now, the mainland has 26 nuclear power units under construction, and the number of units under construction continues to lead the world. The Blue Book shows that the construction of nuclear power units on the mainland is progressing steadily. In 2023, the mainland will approve 5 new nuclear power projects and start construction of 5 new nuclear power units, the highest number of approvals in more than a decade. According to the total investment of 20 billion yuan for a single unit, the investment scale of 10 units approved in 2023 will be as high as 200 billion yuan.
Up to now, the mainland has 26 nuclear power units under construction, with a total installed capacity of 30.3 million kilowatts, continuing to rank first in the world. The total installed capacity in operation, under construction and approved exceeds 100 million kilowatts.
On March 20, China Nuclear Power announced the meeting materials of the first extraordinary general meeting of shareholders in 2024, and the total investment plan for 2024 will be about 121.55 billion yuan, a new high since its listing. It is used for nuclear power, nuclear energy multi-purpose, new energy, single fixed asset investment projects, capital injection and acquisition projects of participating in holdings. This amount is about 52% year-on-year compared with 8001673 million yuan in 2023.
According to China General Nuclear Power Corporation, the investment amount of a single unit is about 18.75 billion yuan, of which about 50% is invested in equipment, and about 58% is invested in nuclear islands in equipment. The construction process of nuclear power plants is as long as 5~8 years, considering that the nuclear power approval will be restarted after 2019, the relevant equipment supply companies may usher in an intensive equipment delivery period, and the equipment side is expected to be the first to benefit.
The company's nuclear power valve leader has accelerated its performance
As a leading enterprise of nuclear power valves, backed by China National Nuclear Corporation, the company has the qualification for the production of nuclear Class I valves, and can realize the complete supply of valves for the second and third generations of nuclear power units, and can meet the supply of key valves for the fourth generation of nuclear power units, which is expected to fully benefit.
Since 2022, the company's performance has accelerated, with net profit increasing by 43% year-on-year in 2022, and the performance growth rate in the first three quarters of 2023 is as high as 208%, and revenue growth is 36.39%.
State-owned enterprise background
Valuations are at nearly a decade low
From the perspective of the company's valuation, it is currently in a position where the valuation is reasonably high. The average price-earnings ratio of the company in the past 10 years is 74.33 times, and it is currently around 27.28 times, which is far lower than the average level, indicating that the current valuation is at a low position.
(Author: Zhao Ling, Practicing Certificate: A0680615040001)
Disclaimer: The above content is for reference only and does not constitute specific operation advice, and you shall operate at your own risk and profit and loss
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