A New Asian Dawn for Nuclear Power
http://macq.wir.jp/e.ut?e=wdz12H7XVkBPBC0cWXCq1NwGjqr
* In this report, Macquarie analyst Damian Thong analyses the outlook for nuclear power in Asia, which looks increasingly favourable amidst fast-growing electricity demand in China and India. The IAEA projections imply that Asia and the Middle East will account for 52% of the global nuclear power capacity in 2020 and as much as 66% of the total in 2030, compared to just 29% in 2008.
* It's already started. In particular, China and India are poised for a massive expansion in their nuclear electricity generation capacity. China (20) and India (5) account for 25 units of the 53 reactors currently under construction.
* We list the leading players in the global nuclear power plant supply chain on pages 16-18 - Figs 20-21 and Fig 23, including the US and European peers.
Current Asian Outperform recommendations include:
* Larsen & Toubro (LT IN, Rs1,447.85, Outperform, TP: Rs1,825.00) is a US$18bn company that manufactures reactor vessels for pressurised heavy water reactors and fast breeder reactors.
* Doosan Heavy Industries (034020 KS, Won85,000, Outperform, TP: Won100,000) whose market share in the global nuclear equipment market we expect to rise from 5% to 10% plus.
* Dongfang Electric (1072 HK, HK$37.20, Outperform, TP: HK$38.00) whose nuclear business will be a new and significant profit contributor from 2011.
* Toshiba (6502 JP, ¥431, Outperform, TP: ¥510) whose extensive global nuclear operations - Westinghouse is a subsidiary - are often obscured by the volatility of its semiconductor business.sd
124 pp report link (pdf also attached):