Geopolitical Conflicts "Detonate" Oil Market, Battery Investment "Golden Window" Opens

What is the logic behind AI and the golden window for battery investments?

Recently, global investors have been affected by the Middle East situation. As the US-Iran conflict enters a stalemate, international crude oil prices have become highly volatile like a runaway horse. According to analysis from multiple brokerage reports, factors such as normalized geopolitical conflicts, OPEC+ production cuts supporting prices, and the restructuring of the global energy supply chain are stacking up. This round of oil price increases is not a short-term fluctuation; high oil prices may become the “new normal” for the next 3-5 years. This trend is also accelerating the global energy strategy shift from “fossil fuel dominance” to “new energy technology sovereignty.” Under this trend, the new energy battery sector is rapidly exploding. It is not only central to replacing traditional vehicles but also the foundation of the energy storage revolution.

The Huaxia Battery ETF (512460) focuses heavily on the core battery industry, covering the entire supply chain with distinct diversification features, forming an ecosystem from raw materials to end-use applications. Major holdings include resource companies (such as Tianqi Materials, GEM, Polyfluoro), leading battery cell manufacturers (such as CATL, EVE Energy), equipment suppliers (such as Lead Intelligent), and battery system management firms (such as Sungrow, Sanhua Smart Controls).

In terms of concept exposure, the CS Battery Index concentrates on numerous battery-related themes, allowing investors to follow hot topics through the index. Lithium battery concepts account for 61.2% of the weight, energy storage concepts 55.7%, and solid-state batteries 45.3%.

Looking at historical performance, the China Securities Battery Theme Index has shown strong long-term returns, with a cumulative gain of 313.7% since its inception and an annualized return of 14.3%. Regarding valuation, the latest PE-TTM of the index is 32.44 times, placing it in the 34.21% percentile over the past 10 years. Compared to tech indices with P/E ratios in the dozens or even hundreds, the battery theme index is relatively reasonable and has investment value.

Related ETF: Huaxia Battery ETF (512460)

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