中国核电（601985.SH）：评级上调至“中性”，看好2027年核电市场化电价上行

CNNP's net profit -24.2% yoy to Rmb6,066m in 9M26: nuclear +12.8% yoy to Rmb6.5bn but losses from renewables. We cut 2026-27E net profit by 6-15% mainly due to losses from renewables. Despite the earnings cut, we upgrade CNNP from Sell to Neutral and lift our DCF TP by 31.3% to Rmb10.50/sh for a lower WACC, as we expect it to benefit from positive market sentiment over a likely power market tariff rise in 2027E. We forecast its average nuclear tariff to rise 2% yoy in 2027E, mainly from a higher market tariff in Jiangsu. Also, it has high nuclear capacity growth potential (2027E: +23.4% yoy). However, we view CNNP as less attractive than CGN Power (1816.HK, Buy) for a lower nuclear earnings mix and higher valuation.