Core Viewpoint - BlackRock increased its stake in Kunlun Energy (00135) by acquiring 4.83237 million shares at a price of HKD 8.2917 per share, totaling approximately HKD 40.0686 million, raising its ownership to about 435 million shares, which represents 5.02% of the company [1] Group 1 - BlackRock's acquisition of shares indicates a positive outlook on Kunlun Energy's future performance [1] - The total investment made by BlackRock amounts to approximately HKD 40.0686 million [1] - Following the purchase, BlackRock's total shareholding in Kunlun Energy is approximately 435 million shares [1]

Core Insights - Energy prices in Inner Mongolia have shown stability in February, with coal and coke prices remaining unchanged, while natural gas prices experienced mixed trends [1] Group 1: Coal Prices - The average pithead price of thermal coal in Inner Mongolia for February was 364.27 RMB/ton, remaining flat month-on-month but increasing by 6.89% year-on-year [1] - The average pithead price of eastern lignite was 333.86 RMB/ton, unchanged month-on-month and up by 1.61% year-on-year [1] - The average pithead price of thermal coal in the Ordos region was 417.50 RMB/ton, stable month-on-month and rising by 15.27% year-on-year [1] Group 2: Coke Prices - The average price of coke in Inner Mongolia for February was 1316.75 RMB/ton, with no change month-on-month and a year-on-year increase of 3.70% [1] Group 3: Natural Gas Prices - The average ex-factory price of domestic LNG (liquefied natural gas) in February was 3948.50 RMB/ton, with a month-on-month decrease of 1.06% and a year-on-year decline of 12.76% [1] - The average retail price of LNG was 4393.75 RMB/ton, showing a slight month-on-month increase of 0.21% and a year-on-year decrease of 10.71% [1] - The average retail price of CNG (compressed natural gas) was 3.90 RMB/cubic meter, with a minor month-on-month decrease of 0.19% and a year-on-year decline of 1.75% [1]

Group 1 - BP has announced that the new natural gas consortium has commenced production at the Kilumba gas field located in Angola [1]

Market Overview - U.S. equity futures showed positive movement with Dow futures rising by 180 points (0.38%) to 47,066, S&P 500 futures increasing by 29 points (0.43%) to 6,714.75, and Nasdaq 100 futures advancing by 116.75 points (0.47%) to 24,722.50 [2] Commodity Prices - WTI Crude April 26 futures decreased by 0.88% to $97.84 per barrel, while Brent crude fell by 0.16% to $102.98 per barrel [2] - RBOB gasoline futures increased by 0.14% to $3.05 per gallon, whereas ULSD heating oil futures declined by 0.67% to $3.99 per gallon [3] - Natural gas futures dropped by 0.57% to $3.11 per MMBtu [4] Energy Market Dynamics - U.S. crude prices briefly surpassed $100 per barrel, reflecting ongoing concerns in energy markets due to shipping disruptions in the Strait of Hormuz, a critical route for global oil and liquefied natural gas transport [4] - The Strait of Hormuz is vital as it carries about one-fifth of the world's oil and liquefied natural gas [4] Geopolitical Factors - Former President Trump called for countries benefiting from the Strait of Hormuz to contribute military support to ensure its security amid rising tensions and tanker attacks [5][6] - Trump emphasized that China, which sources 90% of its oil from the Straits, should also assist in securing the route [6] - Recent U.S. military actions targeted Iranian military assets on Kharg Island, escalating tensions further in the region [7]

Group 1: Fixed Income/Banking - The report highlights a strong start for foreign trade in 2026, with total imports and exports reaching 7.73 trillion yuan, a year-on-year increase of 18.3%, marking a historical high for the same period [2][9] - The report anticipates that the 10-year government bond yield will fluctuate between 1.6% and 1.9% in 2026, with potential lows of 1.75% in Q1 and 1.70% in Q2 [2][12] Group 2: Agriculture, Forestry, Animal Husbandry, and Fishery - The report indicates that the pig price has fallen below cash costs, with the latest price at 10.07 yuan/kg, leading to negative cash flow in the industry [2][13] - The macroeconomic sentiment is expected to support rising agricultural product prices, driven by increasing costs and demand for substitutes, particularly due to geopolitical tensions affecting oil prices [2][20] Group 3: North Exchange - The Nvidia GTC2026 conference is expected to drive the demand for liquid cooling systems, with AI clusters pushing power consumption to 120kW-150kW, making liquid cooling a necessity for sustainable AI data centers [2][22] - The report identifies 11 companies in the North Exchange liquid cooling server supply chain, indicating a growing market projected to reach 294 billion yuan by 2025 [2][23] Group 4: Public Utilities and Environmental Protection - The "14th Five-Year Plan" emphasizes stricter carbon emission controls and the rapid development of carbon markets, with a focus on zero-carbon parks and green fuels [2][30] - The report suggests that the domestic natural gas supply will be increasingly important, with stable production growth and geopolitical factors supporting gas prices [2][33] Group 5: Pharmaceuticals - The report notes that the PD1 plus sector is expected to see numerous catalysts, with a focus on companies like Kangfang Biologics and Shanghai Yizhong, which are well-positioned for growth [2][5] Group 6: Media - Apple's reduction of App Store commission rates from 30% to 25% is expected to benefit gaming and related companies, with major internet firms like Tencent and Alibaba set to release earnings reports [2][6] Group 7: Automotive - The report discusses the acceleration of Robotaxi commercialization in the U.S. due to new legislation, which is expected to resolve key regulatory issues and promote industry growth [2][7]

Investment Rating - The report maintains a positive outlook on the public utility and environmental protection sectors, indicating a favorable investment environment for these industries [1]. Core Insights - The report highlights the implementation of the "14th Five-Year Plan" focusing on the construction of a new energy system, emphasizing the integration of various energy sources such as wind, solar, hydro, and nuclear power [3][6]. - It notes the recent slight decline in global gas prices due to geopolitical tensions affecting LNG supply, particularly from Qatar, while also mentioning the stable domestic supply in the U.S. [14][20]. - The report provides specific investment recommendations across various sectors, including thermal power, hydropower, nuclear power, green energy, and gas companies, reflecting a diversified approach to energy investments [12][34]. Summary by Sections 1. Electricity - The "14th Five-Year Plan" emphasizes the construction of a new energy system, promoting non-fossil energy sources and setting ambitious installation targets for nuclear, offshore wind, and pumped storage by 2030 [3][7]. - The plan aims to enhance the efficiency and resilience of the power system, optimize energy flow, and accelerate the development of smart grids and new energy storage solutions [6][8]. 2. Gas - The report discusses the impact of ongoing Middle Eastern tensions on global gas prices, with specific price data indicating fluctuations in various markets, including a 10.27% increase in U.S. Henry Hub spot prices [14][15]. - It highlights the current state of LNG prices in Northeast Asia, which have decreased by 13.33% recently, while also noting the overall supply constraints due to geopolitical factors [28][32]. 3. Weekly Market Review - The public utility, electricity, and environmental sectors outperformed the Shanghai and Shenzhen 300 index during the reporting period, while the gas sector lagged behind [36]. 4. Company and Industry Dynamics - The report mentions recent developments in energy safety and the approval of new energy storage projects in Inner Mongolia, indicating ongoing investments in energy infrastructure [39][42]. - It also highlights significant projects such as the completion of the first unit of the "Hualong One" nuclear power plant in Zhejiang, marking a milestone in China's nuclear energy development [45][46].

Report Industry Investment Rating - Not provided in the content Core Viewpoints - The recent geopolitical conflict between the US and Iran has led to significant fluctuations in oil prices and affected the performance of various commodity sectors. The subsequent market trend depends on the evolution of the US - Iran conflict. The conflict has also increased the market's attention to agricultural products, and this conflict may be a catalyst for the reversal of agricultural product price expectations [2][16] - The price changes of commodities in a war state follow a clear transmission path of geopolitics, industry chain, and psychological expectations. The transmission logic of commodities is that precious metals start first, copper confirms, oil detonates, and agriculture ends [4][6] Summary by Directory 1. Recent US - Iran Geopolitical Conflict Timeline - The US - Israel military action against Iran has led to shipping risks in the Strait of Hormuz, causing violent fluctuations in oil prices. The US government has made intensive policy statements to suppress the rapid rise of oil prices. Currently, oil prices have regained their upward momentum, driving the energy - chemical sector to strengthen significantly. However, the uncertainty of the geopolitical conflict remains high [2] - From February 28 to March 12, different stages of the conflict have had different impacts on the commodity market. For example, on February 28, oil and gold prices jumped; from March 1 - 2, energy - chemical products soared; from March 3 - 8, oil prices hit new records; on March 9, oil prices had a "roller - coaster" market; from March 10 - 11, oil prices fell, and gold prices fluctuated; on March 12, oil prices returned above $100 [3] - As of March 13, 2026, in the domestic commodity market, the bullish atmosphere has converged, but the crude - oil related products have continued to rise. The chemical sector has shown a differentiated trend, and the shipping index has fallen. The precious metals and non - ferrous sectors are weak, while the oilseeds and grains have risen [4] 2. Commodity Rotation: Will Agricultural Products Be the Next Relay? (1) Commodity Transmission Logic - In the past thirty years, the rotation law of commodities has been that precious metals start first, copper confirms, oil detonates, and agriculture ends. This price - increase order follows a chain from "expectation" to "reality", reflecting the macro - narrative transformation of the global economy from "risk aversion" to "recovery trading" and then to "inflation reality" [4] - Since January this year, commodities have shown a structural market with strong energy, high - level precious metals, rising agricultural products, and weak black - series products. The price changes of commodities in a war state follow a clear transmission path. Oil is highly sensitive to supply interruptions, and the rise in oil prices will drive up the prices of coal and natural gas, and then affect the prices of downstream chemical products. Urea is the key node for the transmission of commodity price increases to agricultural products [6] (2) Impact Path of Agricultural Products - The impact of the US - Iran conflict on agricultural products is mainly through fertilizers. Iran is the second - largest urea exporter. The conflict may lead to a reduction in fertilizer production and export, causing a global fertilizer price increase, which will directly raise the cost of grain planting. In addition, the rise in shipping costs, the increase in bio - diesel demand, and the increase in fertilizer prices will also push up the price of agricultural products [7][8] - From February 27 to March 13, both domestic and foreign agricultural products have shown different degrees of price increases, with palm oil, rapeseed oil, and other varieties having relatively large increases [9] - The price trend of agricultural products is more likely to follow the fluctuations of oil prices, and the macro - level impact is greater than the low - dimensional supply - demand fundamentals [11] (3) Key Focus on Oilseeds and Grains and Corn - The core transmission logic of agricultural product price increases is closely related to oil prices. One is cost transmission, and the other is alternative demand. The correlation between oil and agricultural products is different, and the impact on agricultural products with high import dependence is the greatest [13][15] - The order of capital attack is "oilseeds first, then corn, and staple grains last" [16] 3. Outlook Analysis of the Impact of the US - Iran War on Commodity Sectors (1) Energy Products - Crude oil: The conflict has led to damage to refineries in the Middle East and production cuts in oil - producing countries, reversing the expectation of global oil supply surplus. The bottom of oil prices has risen to $70 per barrel. In the benchmark scenario, the Brent crude oil central price in each quarter of this year is expected to be $75, $80, $75, and $72.5 per barrel; in the risk scenario, the oil price central price may soar above $120 per barrel [17] - Natural gas: The attack on Qatar's energy facilities has led to the suspension of production, pushing up European natural gas prices and putting cost pressure on European chemical production [17] (2) Non - ferrous Metals - Aluminum: The Middle East accounts for 9% of the global electrolytic aluminum production capacity, but the alumina supporting facilities are seriously insufficient. The blockade of the strait will lead to the interruption of alumina supply, forcing aluminum plants to cut production. If the blockade continues, the global electrolytic aluminum shortage will push up the aluminum price to challenge and stabilize above 25,000 yuan per ton [19] (3) Chemical Products - Energy - chemical products: The soaring oil price directly raises the cost of basic raw materials such as naphtha. The supply interruption of methanol and other products from Iran will strongly support their prices [20] - Coal - chemical industry: In the context of high oil prices, the oil - coal price difference widens, and the coal - chemical route is more economical, and its energy security status may be re - evaluated at the national strategic level [20] - Fine chemicals: The soaring European natural gas price has put cost pressure on European chemical products. Some small - variety additives have begun to increase prices [20] (4) Agricultural Products - In the short term, the impact of the geopolitical conflict on most agricultural product varieties is gradually decreasing, and the market may tend to be stable. In the long term, this conflict may be a catalyst for the reversal of agricultural product price expectations [21][22]

Group 1: Market Impact of High Oil Prices - Since the outbreak of the US-Iran conflict, Brent oil prices have risen above $100, with the forward oil price curve shifting upward, indicating an implied annual average oil price of $85, a 30% increase from two weeks prior[2] - The US retail gasoline price has surged by 22% to $3.63 per gallon, significantly altering market expectations regarding costs and growth[2] - Financial conditions have tightened, with GS US financial conditions index tightening by 50 basis points, corresponding to a 0.5 percentage point drag on growth[3] Group 2: Economic and Financial Risks - The blockade of the Strait of Hormuz is unprecedented and may disrupt the oil dollar circulation, leading to increased dollar shortages and tighter liquidity[4] - High oil prices are expected to exacerbate inflationary pressures, complicating monetary policy as growth slows and financing costs rise[2] - Credit spreads for US investment-grade and high-yield corporate bonds have widened by 10 and 20 basis points, respectively, indicating increased credit risk[12] Group 3: Vulnerable Economies and Assets - Economies highly dependent on energy imports, such as those in Europe, Japan, and South Korea, are facing significant impacts, with stock markets in Japan and South Korea dropping by 8.5% and 15.4%, respectively[5] - Emerging markets like Thailand, India, and Pakistan are particularly vulnerable to the ongoing energy crisis, alongside financially fragile economies such as Argentina and Turkey[5] - Non-essential consumer goods and assets with poor cash flow are likely to face increased pressure in the current environment[5]

Investment Rating - The report maintains a positive outlook on the energy sector, particularly in the context of the new energy system construction outlined in the 14th Five-Year Plan [3][7]. Core Insights - The 14th Five-Year Plan emphasizes the construction of a new energy system, promoting a multi-energy approach including wind, solar, hydro, and nuclear power, with specific capacity targets set for 2025 and 2030 [3][8]. - Natural gas prices have shown slight declines due to easing panic premiums and geopolitical tensions affecting supply, with various price metrics reflecting this trend [16][22]. - The report identifies several investment opportunities across different energy sectors, including thermal power, hydropower, nuclear power, green energy, and natural gas [13][36]. Summary by Sections 1. Electricity - The 14th Five-Year Plan outlines a comprehensive strategy for carbon emission control and the development of a new energy infrastructure, focusing on the integration of various energy sources [3][7]. - Specific targets for nuclear power, offshore wind, and pumped storage have been established, aiming for significant capacity increases by 2030 [8][9]. 2. Natural Gas - Ongoing geopolitical tensions have impacted LNG supply from Qatar, leading to fluctuations in global gas prices, with recent data showing a decrease in prices across various markets [16][22]. - The report highlights the importance of U.S. domestic supply and demand dynamics, noting that the U.S. has reached its LNG export capacity limit, which contributes to price stability [16][30]. 3. Weekly Market Review - The report indicates that the utility, electricity, and environmental sectors have outperformed the Shanghai and Shenzhen 300 index, while the gas sector has underperformed [39]. 4. Company and Industry Dynamics - Recent developments include the approval of new energy projects and the establishment of safety protocols in energy production, emphasizing the importance of safety in the energy sector [42][45]. - The report mentions significant projects in renewable energy, including the construction of large-scale wind and solar facilities, which are expected to contribute to the energy transition [46][48].

Group 1: Energy Production Overview - In January and February, the production of raw coal remained stable, while crude oil production shifted from decline to growth, natural gas production showed steady growth, and electricity production accelerated [1][2][4][7][9]. Group 2: Raw Coal, Crude Oil, and Natural Gas Production - The production of raw coal in large-scale industries was 760 million tons, with a year-on-year decrease of 0.3%, narrowing the decline by 0.7 percentage points compared to December 2025; the average daily output was 12.93 million tons [2]. - Crude oil production in large-scale industries reached 35.73 million tons, marking a year-on-year increase of 1.9%, reversing a previous decline of 0.6% in December 2025; the average daily output was 606,000 tons [4]. - The processing of crude oil also maintained growth, with a processing volume of 122.63 million tons, reflecting a year-on-year increase of 2.9%; the average daily processing was 2.079 million tons [4]. - Natural gas production in large-scale industries was 44.6 billion cubic meters, with a year-on-year increase of 2.9%; the average daily output was 7.6 billion cubic meters [7]. Group 3: Electricity Production Situation - The electricity production in large-scale industries reached 1,571.8 billion kilowatt-hours, with a year-on-year growth of 4.1%, accelerating by 4.0 percentage points compared to December 2025; the average daily generation was 26.64 billion kilowatt-hours [9]. - By type, thermal power production turned from decline to growth with a year-on-year increase of 3.3%, compared to a decline of 3.2% in December 2025; hydropower growth accelerated to 6.8%, an increase of 2.7 percentage points; nuclear power growth slowed to 0.8%, down by 2.3 percentage points; wind power growth was 5.3%, slowing by 3.6 percentage points; solar power growth was 9.9%, slowing by 8.3 percentage points [9].