The investment case for energy storage has been strengthened by the Middle East crisis. Beyond computing power and electricity, a key underlying theme today is energy storage. First New Energy surged sharply in early trading and hit the daily upside limit. Across the sector, 21 stocks rose by the daily limit or gained more than 10%. CATL served as a benchmark, with its H-shares skyrocketing over 10% at one point. Besides CATL's strong earnings performance, the Middle East narrative continues to unfold. Morgan Stanley estimates that only three crude oil/product tankers passed through the Strait of Hormuz from the Persian Gulf on March 10. Some brokerages note that Iran still retains mine-laying capabilities. Given the high risks associated with LNG carriers, shipping navigation is expected to become more cautious, further reinforcing the logic for the residential energy storage sector.
The energy storage sector experienced a full-scale breakout. Following a 9% surge yesterday, trillion-dollar giant CATL continued its rapid ascent today. Its H-share price jumped over 10% intraday, while its A-shares broke through 400 yuan per share, rising more than 7% at one point. On the evening of March 9, CATL released its annual report, showing 2025 revenue of 423.702 billion yuan, a year-on-year increase of 17.04%, and net profit of 72.201 billion yuan, up 42.28% year-on-year. Fourth-quarter performance exceeded market expectations. During the earnings briefing, CATL stated that as of the end of 2025, it had 321 GWh of capacity under construction. With new capacity partnerships gradually materializing in 2026, the total scale of capacity under construction is expected to expand slightly. The company emphasized that all new capacity is based on in-depth market research and high-certainty order intentions, ensuring full-year capacity utilization remains at reasonable levels. With the promotion of super production lines, investment efficiency has further improved even as overall capital expenditure increases.
Much like how Industrial Fulian's earnings drove the computing power sector, CATL's leadership triggered a full-scale breakout in the energy storage sector today. Stocks such as First New Energy, Zhongzhi Technology, AILUO Energy, and Hyper Strong posted significant gains. Across the board, 21 stocks rose by the daily limit or increased more than 10%. Analysts point out that there is also a computing power logic behind energy storage. During this year's National Two Sessions, "computing-power coordination" was included in the government work report for the first time, becoming a key deployment for new infrastructure construction. The report proposed "implementing new infrastructure projects such as ultra-large-scale intelligent computing clusters and computing-power coordination, strengthening nationwide integrated computing power monitoring and scheduling, and supporting public cloud development." For computing power to integrate with electricity, particularly green power, energy storage is essential. Analysis suggests that with the large-scale deployment of AIDCs, their high power density, high energy consumption, and extreme requirements for power supply stability are upgrading energy storage from a "backup power source" to a "core infrastructure."
The Middle East situation reinforces the residential storage narrative. Morgan Stanley estimates that only three crude oil/product tankers passed through the Strait of Hormuz on March 10, compared to a normal level of about 35. Furthermore, no liquefied natural gas or liquefied petroleum gas tankers were observed transiting, indicating that the strait's energy transport function has largely stalled. The United Nations Conference on Trade and Development reported on the 10th that the escalating Middle East situation is disrupting transport through the Strait of Hormuz, with impacts extending far beyond the region, affecting energy markets, maritime transport, and global supply chains. The report highlighted that the Strait of Hormuz is a critical global energy transport route, handling about one-quarter of global seaborne oil trade and significant volumes of LNG and fertilizer shipments. It emphasized that developing economies are particularly at risk, as some face heavy debt burdens, narrowed fiscal space, and limited capacity to absorb new price shocks.
A brokerage pointed out that, according to CNN, Iran has begun laying mines in the Strait of Hormuz, with several dozen mines deployed so far. Given the high risks for LNG carriers, shipping navigation is expected to become more cautious. The substantial difficulty in restoring shipping routes will further amplify the impact on global natural gas markets. Consequently, the investment thesis for the residential energy storage sector has been strengthened.
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