Brokerage firms have announced 262 top stocks! CATL is the most popular, CNOOC has been recommended 6 times, and is the dividend king making a comeback?

Affected by international geopolitical risks, on April 2nd, global oil prices surged significantly. As of the time of writing, WTI crude oil futures rose by 7.08%, trading at $107.23 per barrel; precious metals such as gold and silver experienced sharp declines again, with COMEX silver dropping over 6% and COMEX gold falling nearly 4%.

In the A-share market, the three major indices declined. On that day, the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index respectively fell by 0.74%, 1.60%, and 2.31%. The Shanghai Index briefly touched a low of 3,900.12 points during the session. Over 4,300 stocks declined, while multiple oil-related sectors soared. Oilfield services and oil service engineering both increased by over 5%, and sectors such as oil and gas, refining, petrochemical engineering, oil exploration, and petrochemical sectors all rose by more than 2%.

Will the market trend continue to fluctuate in April? Which sectors will benefit?

Many brokerages believe that international geopolitical risks persist. Considering the continuous rise in international crude oil prices, they recommend paying attention to traditional energy industries such as oil and coal, which directly benefit from price increases, as well as new energy sectors like power equipment and new energy vehicles. Some brokerages also suggest that, at this stage, investors can consider allocating to high-dividend, low-volatility, and stable cash flow dividend sectors to hedge against market fluctuations.

Western Securities fund manager He Qi told Times Weekly that the conflict between the U.S. and Iran remains the core contradiction in the current market. The impact of global oil and gas inventory consumption on supply chains may gradually become evident. With ongoing short-term conflicts, the central tendency of oil and gas prices is expected to shift upward, and sectors benefiting from new energy are likely to remain a focus of market trading. In the medium term, the pursuit of energy independence and control may accelerate energy transformation in various countries, benefiting sectors such as energy storage, lithium batteries, upstream resources, and wind power.

Source: TuChong Creative

Brokerages recommend 262 stocks, with CATL and CNOOC favored

Reviewing the March market performance, the Shanghai Index reached a high of 4,197.23 points on March 3rd, hitting a nearly ten-year high since July 2015. However, from March 3rd onward, A-shares and H-shares experienced a correction. During this period, the Shanghai Index quickly declined, and on March 23rd and 24th, it closed below 3,800 points for two consecutive trading days. In March, the Shanghai Index and Shenzhen Component Index respectively fell by 6.51% and 7.02%. The Hang Seng Index and Hang Seng Tech Index also declined by 6.92% and 9.50%.

Looking back at the brokerages’ top stocks list in March, many stocks saw significant declines amid the overall market correction. For example, Zijin Mining and Luoyang Molybdenum in the non-ferrous metals sector fell by 17.27% and 28.51% respectively that month; in the tech sector, stocks like Haiguang Information and Cambrian each dropped by 19.47% and 16.55%. A few new energy-related stocks bucked the trend, such as lithium battery leader CATL and new energy vehicle manufacturer BYD, which rose by 17.45% and 17.83% respectively.

As April begins, how have brokerage stock recommendation strategies changed?

According to Wind data, as of April 2nd, 37 brokerages have issued stock picks for April, recommending a total of 262 stocks.

Specifically, CATL, China National Offshore Oil Corporation (CNOOC), and China Conch Group rank the top three in recommendation frequency, each being recommended by 8, 7, and 6 brokerages respectively. China Geostock, Zijin Mining, TCL Electronics, Kweichow Moutai, BYD, and Wanhua Chemical are each recommended by 5 brokerages.

CATL and CNOOC saw the largest increases in recommendation frequency, each gaining 5 more mentions compared to last month. BYD’s recommendations increased by 4 times. Many brokerages mention that the recent rise in international oil prices will directly benefit oil and gas producers like CNOOC, and indirectly promote the development of the new energy industry, benefiting lithium battery leader CATL and new energy vehicle companies like BYD.

Open Source Securities pointed out in their research report that CATL is a global leader in lithium batteries with strong profit resilience. Under geopolitical disturbances, rising oil and gas prices elevate the strategic importance of new energy. Domestic and international electric vehicle penetration is expected to continue increasing. CATL benefits from energy security transformation, with strong demand for large overseas storage and household storage.

Regarding the rationale for recommending BYD, Zhongtai Securities believes that rising oil prices offset the negative impact of domestic new energy subsidy cuts. On the overseas front, the company’s export capacity and supply chain are both expanding, and higher oil prices strengthen overseas demand expectations. Industrial Securities analyzed that BYD, as a leading domestic new energy vehicle manufacturer, will accelerate its global expansion by 2025, continuously expanding regional and product lines, and advancing overseas capacity building.

For the recommendation of CNOOC, Guojin Securities states that in the short term, conflicts such as the U.S.-Iran tensions have caused sharp increases in international oil prices, with the duration of the conflict still uncertain. The company benefits from the rapid short-term rise in oil prices. In the medium to long term, CNOOC’s cost advantage in oil and gas production remains significant, with ongoing cost compression per barrel, strengthening profitability. The company maintains high capital expenditure, with oil and gas output and reserves continuing to grow rapidly, and ongoing stable contributions from domestic and overseas projects.

Besides directly benefiting from rising oil prices, CNOOC’s high dividend payout ratio also attracts attention.

Ping An Securities and Huatai Securities both mention in their recommendations that CNOOC’s dividend policy states that from 2025 to 2027, the dividend payout ratio will not be less than 45%. By the end of 2025, CNOOC plans to distribute a total dividend of HKD 26.14B (tax included). Including interim dividends paid, the total dividend for 2025 will reach HKD 60.84B (tax included), with a payout ratio of 45%.

Currently, A-share listed companies are gradually disclosing their annual reports. Among the top recommended stocks, there is some divergence in performance. For example, CATL, Zijin Mining, and China Intercontinental Communication’s net profits attributable to parent in 2025 are projected to increase by 42.28%, 61.55%, and 108.78%, respectively, while CNOOC and BYD are expected to see declines of 11.49% and 18.97%.

Energy sectors remain in focus, and high-dividend sectors can serve as core holdings

Looking ahead to April, many brokerages mention investment opportunities in traditional energy and new energy sectors. Some also suggest that during market volatility, investors can consider allocating to high-dividend, low-volatility, and cash-flow-stable dividend sectors.

Guojin Securities believes that, amid global turbulence, energy security becomes especially important. They recommend focusing on investment opportunities in crude oil, shipping, coal, copper, aluminum, gold, and rubber. China’s manufacturing industry remains a global ballast, with slow physical asset flow compared to financial assets, awaiting revaluation. They suggest paying attention to sectors such as power equipment, new energy, machinery, and chemicals. Additionally, as negative factors diminish, structural opportunities in consumer sectors—like tourism and scenic spots, flavoring and fermentation products, beer and other alcohols, pharmaceuticals, and medical aesthetics—may emerge.

Galaxy Securities states that with the start of U.S.-Iran ceasefire negotiations and the gradual resolution of uncertainties in earnings season, the market is expected to enter a phase of fluctuation and structural rotation. Policy support, capital inflows, and the revaluation of Chinese assets remain unchanged. The downside risk of A-shares is relatively limited, and the U.S.-Iran conflict has not shaken the long-term foundation of a slow bull market in China. They recommend paying attention to sectors such as gold, copper, rare earths, and key materials for strategic resource revaluation. Meanwhile, April will host several major tech summits, likely catalyzing industries like AI computing power, optical modules, semiconductors, high-end manufacturing, humanoid robots, and low-altitude economy. During market fluctuations, sectors with high dividends, low volatility, and stable cash flows—such as utilities, environmental protection, and medical outsourcing (CXO)—are preferred for core holdings.

According to Wind data, the sectors with the highest dividend yields in 2025 are coal, banking, home appliances, and petrochemicals, with yields of 6.55%, 5.07%, 4.09%, and 4.00%, respectively.

Everbright Securities believes that Chinese assets are internally stable. Although they inevitably face impacts from oil price fluctuations and short-term risk appetite declines, China’s high energy self-sufficiency provides some resistance to external energy price increases. Past overseas shocks have often benefited domestic exports amid rising external uncertainties. They suggest focusing on industries likely to benefit from rising commodity prices, including resource products, essential consumer goods, hard technology, and sectors related to government investment.

Yang Delong, chief economist at Qianhai Kaiyuan Fund, told Times Weekly that recent escalation of Middle East tensions has caused a sharp rise in international oil prices, which may slow global economic growth and boost inflation expectations, unfavorable for risk assets. The unpredictable stance of Trump on Iran conflicts has led to market volatility, with large fluctuations in commodities like gold and oil. He believes that in the short term, “more observation and less action” is advisable, while in the long term, seizing the opportunities of this slow and long-lasting bull market is a good strategy.