There's no doubt General Electric (GE) has lately become a much purer industrial play on Wall Street.
The manufacturer's power unit, which generated about 18% of the company's $117.4 billion total revenues last year, might be the next among its businesses to benefit from CEO Jeff Immelt efforts to ditch what's left of lending arm GE Capital and accelerate the company's push into global manufacturing.
With reports Friday that China is beefing up its nuclear power capabilities, partially to mitigate widespread ecological problems of smog and contaminated air, the world's second-largest economy seems a logical frontier for Immelt.
He managed to delight shareholders in 2015 in a successful bid to scrap GE Capital and ink megadeals such as the $10 billion purchase of French turbine maker Alstom's (ALSMY) energy businesses -- the company's largest deal in its 124-year history. GE shares increased roughly 12% in 2015.
One downside of winding down GE Capital, which was largely responsible for embroiling GE in the 2008 financial crisis, is that the manufacturer is now largely exposed to the global economy, given a business almost exclusively determined by project and service orders.
And China would certainly be a welcome suitor, especially if it can manage to turn around this year's decelerating trend in infrastructure growth.
Its latest project is for a nuclear plant just outside its capital of Beijing, Reuters said in its Friday report, and the project was largely prompted by hazardous air conditions in the heavily populated city.