On October 16, 2025, China's nuclear power sector achieved a historic breakthrough — the completion of the cold-state performance test for the world's first commercial land-based modular small reactor "Linglong One". This "nuclear energy charging station" located in Changjiang, Hainan, is designed with a power output of 1.25 million kilowatts, generating 1 billion kilowatt-hours annually, meeting the electricity needs of 526,000 households. It also reduces carbon emissions by 8.8 million tons per year, equivalent to planting 7.5 million trees. This milestone not only marks China's entry into the global forefront in fourth-generation nuclear power technology but also signals an impending explosive growth in the trillions of yuan clean energy market.

Technological Breakthrough: Modular Design Redefining the Energy Landscape

The core innovation of "Linglong One" lies in its "LEGO-style" modular construction technology. By prefabricating key components such as the pressure vessel and steam generator in factories into standardized modules, on-site assembly is simplified to a "building block" style, shortening the construction period by 30% and reducing costs by 25%. This disruptive design allows flexible deployment in scenarios such as islands and industrial parks, even providing "carbon-neutral base load power" for data centers, perfectly aligning with the high-energy demands of the AI era.

Benefits Across the Industrial Chain: Six Fields Facing Golden Opportunities

1. Nuclear Power Operators: Reaping the Benefits of a Trillion-Yuan Market

As the core operator of the project, China Nuclear Power (601985.SH) directly benefits from the commercialization of "Linglong One." The company has already established a nuclear power capacity of over 10 million kilowatts in Changjiang, Hainan, and plans to build six additional small modular reactors within the next five years, expected to drive revenue growth exceeding 20 billion yuan.

2. Key Equipment Manufacturers: Technological Barriers Build Moats

  • China Machinery Industry Corporation (601399.SH): Exclusive supplier of critical components like the wave tube, its domestically produced nuclear-grade forgings have a localization rate of 95%, with orders scheduled through 2026.
  • Jiangsu Shen Tong (002438.SZ): Holds over 60% market share in nuclear-grade butterfly valves, being the only enterprise worldwide that has passed the ASME III certification, with technology suitable for the compact layout of small reactors.
  • Nangang (600282.SH): Has independently developed SA738Gr.B special steel, used to cast the radiation-resistant safety shell for "Linglong One," with this material having been certified by the French Nuclear Safety Authority.

3. New Material Suppliers: A Battle for High-End Manufacturing

  • Shanxi Iron and Steel (000825.SZ): Nuclear-grade stainless steel plates have broken foreign monopolies, with products applied in 70% of third-generation nuclear power projects globally.
  • Antai Technology (000969.SZ): Refractory tungsten alloy materials solve the problem of high-temperature corrosion in the reactor core, with technical parameters reaching international leading levels.

4. Engineering Construction Leaders: A Billion-Yuan Infrastructure Cake Awaits Division

China Nuclear Construction (601611.SH), the only company continuously focusing on nuclear power construction for 30 years, undertakes 85% of nuclear island engineering for domestic nuclear power plants. With the rise of small modular reactor construction, the company's new contract value is expected to exceed 200 billion yuan within the next three years.

5. Cable Suppliers: A Hidden Track Underdog

TEPCO (600089.SH) entered the nuclear cable market through the acquisition of Shuguang Cable, with its 1E class K1 cables passing the China Nuclear Power Group's certification, expected to contribute 1.5 billion yuan in revenue by 2026.

6. Operation and Maintenance Service Providers: Long-Term Value Awaits Release

Jingye Intelligent (688290.SH)'s nuclear industry robots have been applied in the fuel cycle system of "Linglong One," and will benefit from the demand for digital operation and maintenance upgrades in nuclear power plants.

Capital Dynamics: Policy Wind Drives Valuation Reconstruction

Under the dual drivers of the "Dual Carbon" goals and energy security, nuclear power has evolved from a supplementary energy source to a base load power source. In 2025, the "Long-Term Nuclear Power Development Plan" explicitly states that by 2035, nuclear power capacity will reach 200 million kilowatts, doubling the current scale. According to CICC, the incremental market space in the small modular reactor segment alone exceeds 500 billion yuan, with equipment manufacturers and operators benefiting first.

Currently, the price-to-earnings ratio of the nuclear power sector is only 18 times, significantly lower than the average level of the new energy industry. As the commercial operation of "Linglong One" approaches, leading enterprises with technological barriers and confirmed orders are likely to experience a Davis double hit.

Original article: https://www.toutiao.com/article/7561811633295655470/

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