CITIC Securities: Hydrogen Energy Industry Expected to Accelerate Industrialization During the 14th Five-Year Plan Period

On March 17, CITIC Securities stated that on March 16, the Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission jointly issued the “Notice on Conducting Pilot Work for Comprehensive Hydrogen Energy Applications,” proposing that various regions apply for hydrogen energy comprehensive application pilot projects mainly through city clusters, with the central government providing a total of up to 8 billion yuan in demonstration application incentives over four years. Since the beginning of this year, policy support has continued to strengthen. CITIC Securities believes that during the 14th Five-Year Plan, the hydrogen energy industry is expected to accelerate industrialization, with a positive outlook for operators of green hydrogen ammonia projects, electrolyzer manufacturers, and companies in the fuel cell vehicle industry chain.

Additionally, CITIC Securities pointed out that the U.S.-Iran conflict is developing toward a long-term situation, with the “blockade” of the Strait of Hormuz driving crude oil prices sharply higher. They believe that sustained high oil prices will enhance the competitiveness of pure electric and low-fuel hybrid vehicle models worldwide. Chinese automakers’ technological advantages are expected to accelerate their global market share. CITIC Securities also noted that after a deep adjustment in the passenger car sector since September 2025, upstream costs such as lithium carbonate and storage have been fully priced into sector profitability. They recommend paying attention to the revaluation of domestic high-quality new energy vehicle companies driven by high oil prices and suggest focusing on automakers with clear overseas growth potential and leading domestic high-end car manufacturers.