Trillion-dollar giant surges over 10%! Middle East crisis sparks a rally across the entire sector!

Energy Storage Logic Strengthened by Middle East Crisis!

Beneath the power and electricity sectors, there is another hidden trend today: energy storage. Leading energy-saving company Chuanhang Energy saw a sharp surge in early trading, hitting the daily limit. The entire sector saw 21 stocks hitting the limit or rising over 10%. CATL (Contemporary Amperex Technology Co., Limited) is a benchmark, with its H-shares soaring over 10% at one point.

Aside from CATL’s strong performance, the Middle East situation continues to influence the market. Morgan Stanley estimates that on March 10, only three oil/product tankers passed through the Strait of Hormuz leaving the Persian Gulf. Some brokerages believe Iran still has the capability to lay mines, and considering the high risks of LNG ships, navigation will become more cautious. This reinforces the logic behind the household energy storage sector.

Energy Storage Sector Fully Explodes

After a 9% surge yesterday, CATL, a trillion-dollar giant, continued to soar today. Its H-shares rose over 10% at one point. A-shares broke through 400 yuan per share, with gains exceeding 7%.

On the evening of March 9, CATL released its annual report, projecting revenue of 423.702 billion yuan in 2025, up 17.04% year-over-year, and net profit of 72.201 billion yuan, up 42.28%. The fourth quarter’s performance exceeded market expectations.

During the earnings conference, CATL stated that by the end of 2025, the company’s under-construction capacity will reach 321 GWh. With the gradual implementation of new capacity collaborations in 2026, the overall under-construction capacity will slightly expand. All new capacity is based on in-depth market analysis and high-confidence order intentions, ensuring reasonable capacity utilization throughout the year. As super production lines are promoted, the company’s overall capital expenditure increases, and investment efficiency further improves.

Just as industrial internet company Foxconn’s performance boosted the computing power sector, under CATL’s leadership, the entire energy storage sector exploded today. Leading companies like First Horizon New Energy, Wisdom Technology, Airo Energy, and Haibo Sichuang surged significantly, with 21 stocks hitting the limit or rising over 10%.

Some analysts point out that the energy storage sector also has a logic tied to computing power. During the National Two Sessions, “computing and electricity collaboration” was included in the government work report for the first time, becoming a key part of new infrastructure development. The report proposed “implementing ultra-large-scale intelligent computing clusters, computing and electricity collaboration, strengthening nationwide integrated computing power monitoring and dispatch, and supporting the development of public clouds.”

To integrate computing power with electricity—especially green electricity—energy storage is essential. Analysts believe that with the large-scale deployment of AIDC (Artificial Intelligence Data Centers), their high power density, high energy consumption, and extreme requirements for stable power supply will upgrade energy storage from “backup power” to “core infrastructure.”

Middle East Situation Reinforces Household Storage Logic

Morgan Stanley estimates that on March 10, only three oil/product tankers passed through the Strait of Hormuz leaving the Persian Gulf, compared to about 35 normally. Additionally, no LNG or LPG tankers were observed passing through, indicating that energy transportation through the strait has essentially come to a halt.

The United Nations Conference on Trade and Development (UNCTAD) released a report on the 10th stating that the escalation of the Middle East situation has disrupted transportation through the Strait of Hormuz, with impacts far beyond the region, affecting energy markets, maritime transportation, and the global supply chain.

The report pointed out that the Strait of Hormuz is a critical global energy route, carrying about a quarter of the world’s seaborne oil trade, as well as large volumes of liquefied natural gas and fertilizers. It emphasized that developing economies, in particular, face risks—many are heavily indebted, with limited fiscal space to absorb new price shocks.

Some brokerages noted that, according to CNN, Iran has begun laying mines in the Strait of Hormuz, with only dozens of mines currently deployed. Considering the high danger of LNG ships, navigation will become more cautious, and the subsequent recovery of shipping will face substantial difficulties, further impacting global natural gas supplies. This strengthens the logic behind household energy storage.

Typesetting: Wang Lulu

Proofreading: Peng Qihua