Matty Zhao 5.0 6 ideas

Energy prices will be higher for longer due to the Iran war disruption, benefiting upstream oil and gas companies like PetroChina, which has exposure to higher crude and gas prices.

As energy disruption persists, coal becomes a backup fuel, benefiting coal producers like Shanghai Yang Kwang, which can supply alternative energy to Asian markets.

Lithium prices have surged from 70,000 to 170,000-180,000 CNY per ton due to tight inventories at historical lows and 50% year-to-date demand growth from doubling EV sales and energy storage, making lithium a key beneficiary of electrification.

Near-term battery demand could spike as countries use batteries to buffer energy crisis, benefiting battery makers like CATL and LG Chem, which are leaders in the space.

Copper prices are supported by cost inflation from diesel and sulfuric acid shortages, plus potential low-single-digit supply cuts in Africa and Australia due to lack of inputs, while electrification drives long-term demand, making copper a beneficiary of supply tightness.