National nuclear power domestic demand policy promotes nuclear power valve development

Nuclear power valve refers to the valve used in the nuclear island N1, conventional island CI and auxiliary plant BOP system in nuclear power plants. Nuclear power construction speeds up the demand for nuclear power valves. According to the national medium and long-term plan, by 2020, China’s nuclear power operation installed capacity will strive to reach 40 million kilowatts, accounting for 4% of the total installed capacity of electricity; in early 2008, the National Energy Administration stated that it will adjust this proportion to more than 5%, reaching 60 million. kilowatt.

The speeding up of nuclear power construction will drive the sales of nuclear power valves. According to statistics, a nuclear power plant with two 1 million kilowatt units has 30,000 sets of various types of valves. According to the current installed capacity of 9.1 million kilowatts, the planned capacity of 60 million kilowatts will be reached, and the newly installed annual installed capacity will be about 4 million kilowatts, which will require about 60,000 sets of various types of valves and about 850 million sales. In addition, maintenance costs of nuclear power plants spent on valves generally account for more than 50% of the total nuclear power plant maintenance. When the capacity of millions of kilowatt nuclear power motor assembly machines in China reaches 20 million kilowatt hours, the annual maintenance and replacement costs of nuclear power valve will reach 670 million yuan. Yuan Renminbi.

The only company under the Ministry of Nuclear Industry is a listed company in the field of nuclear power valves. China Nuclear Technology is one of the five domestic companies that have designed and manufactured nuclear Class I valves. The products have core competitiveness. From 2008, CNNC will provide 2211 sets of valves for the Qinshan Nuclear Power Plant with a value of about 23 million yuan. The supply is currently underway. From 2009, it will supply 610 sets of Liaoning Hongyanhe Nuclear Power Station, Guangdong Yangjiang Nuclear Power Station, Fujian Ningde Nuclear Power Project, respectively. The valve, with a total value of 84 million yuan, will provide valves for Fujian Fuqing Nuclear Power Plant and Zhejiang Fangjiashan Nuclear Power Project from 2010, with a total value of approximately 100 million yuan.

In addition, as the only listed company under the Ministry of Nuclear Industry, under the trend of China's vigorous development of nuclear power, the company also has the expectation of asset integration of the Nuclear Industry Ministry. The main business growth is stable. The company's variety of specifications of 12,000, more than 30 kinds of different materials, the domestic production of the most varieties of valve manufacturers, 60% of the company's products for the oil and petrochemical industry, 20% of the products used in the nuclear power industry. Since 2007, the company's valve sales have steadily increased. In the first three quarters of 2008, the main business revenue increased by 30.58% year-on-year. However, due to the one-off sale held by the company during the same period of last year to lift the proceeds from the sale of shares held by Shanghai Pudong Development Bank, this factor was not available this year, so the net profit decreased by 90% year-on-year.

The rapid growth of the nuclear power valve business is the main driving factor for the company's future high growth. It is expected that the compound annual growth rate of net profit will be -36.97%. The reason for this negative growth is also the return on the sale of Shanghai Pudong Development Bank's shares in 2007.