BOC Securities: Under the upward shift of oil price center, new energy investment opportunities become prominent

On March 25, BOC Securities released its morning meeting report. It noted: With the oil price’s central tendency rising and ongoing high-level consolidation, investment opportunities in new energy have become more prominent. Since mid-March, Brent crude oil prices have continued to trade in a high-range above $100. Against the backdrop that the trajectory of the conflict between the U.S. and Iran still carries a relatively high level of uncertainty, the importance of transitioning the energy mix has become even more apparent. On the one hand, power generation disruptions such as those in solar PV and wind power are less affected by geopolitical conflicts and fossil fuel price movements; on the other hand, the rising penetration rate of new energy vehicles can help break free from oil dependence. Energy storage systems can dampen the volatility of new energy, improving utilization capacity. In recent years, global political and energy structure systems have been undergoing changes. The frequency and intensity of geopolitical frictions have increased somewhat. Under this backdrop, global energy security needs are likely to be continuously strengthened, and each track within the new energy sector may continue to benefit. In 2026, performance across various links in the new energy sector—including solar PV, wind power, batteries, energy storage, and others—is expected to be favorable. At present, the industry still offers relatively high value-for-money for allocation, and investment opportunities are worth paying attention to.