UBS Predicts Guangdong Nuclear Power Rate Changes Will Favor CGN POWER and Its Suppliers

The analyst rating from Citi Research is based on the expectation that the National Energy Administration's conservative guidance for 2026, which includes cautious targets for new wind and solar capacity, may be underestimated. The broker believes that the forecast of 'wind and solar power installed capacity exceeding 200GW' for the next year could be too low. Additionally, Citi Research anticipates an increase in capital expenditure for hydropower and nuclear power projects during the 15th Five-Year Plan to meet emission reduction targets. This positive outlook on future capacity and investment led to the reaffirmation of a Buy rating for GOLDWIND and other companies in the sector.

The analyst rating from UBS is based on a more optimistic outlook for China's electricity market demand, with a forecast of 8% growth in power demand from 2028 to 2030, which is double the previous estimate. The report highlights that structural drivers such as AI data centers, exports, and electrification are expected to have a significantly greater impact on demand than initially anticipated. This positive outlook has led UBS to upgrade its ratings on several stocks, indicating confidence in their potential for growth in the evolving market.