CITIC SEC has released a research report stating that, looking ahead to the entire second quarter, amid elevated external uncertainties, high-certainty sectors whose demand is less affected or even benefits from rising crude oil price trends are expected to withstand market volatility. The firm maintains a positive outlook on high-certainty sectors experiencing robust demand, including storage materials, nuclear power materials, and OLED materials. It also recommends flexible trading based on external developments. For instance, should war-related disruptions subside, participating in thematic trading opportunities within sectors like solid-state batteries, advanced ceramics, and rockets & satellites—which are expected to see frequent catalysts—is advised. Conversely, if pessimistic scenarios materialize, such as a renewed deterioration in the Middle East situation, engaging in crude oil-related trading opportunities is suggested. Since March 2026, the US-Israel-Iran conflict has been a primary factor influencing A-share market trends. Although preliminary intentions for a ceasefire negotiation emerged in early April, leading to some market recovery, significant differences in negotiation objectives between the parties mean subsequent developments remain highly uncertain. CITIC SEC believes that throughout Q2, high-certainty sectors with demand resilience to or benefits from rising oil prices are well-positioned to navigate market fluctuations. While the market has shown some desensitization to the US-Israel-Iran conflict, the direction of future developments and crude oil prices are still expected to cause disturbances while presenting trading opportunities. Should the situation improve, reducing inflation and recession expectations, market risk appetite is likely to recover, increasing thematic trading opportunities. If the situation worsens again, leading to elevated short-term crude oil prices and a higher medium-to-long-term price floor, related trading opportunities may also arise. High-certainty sectors with strong demand include: 1) Storage Materials: AI-driven demand is propelling the storage industry into a super cycle. Chinese storage manufacturers are accelerating capacity expansion, potentially gaining market share during this cycle, with core suppliers of materials and components poised to benefit significantly. 2) Nuclear Power Materials: Statistics show high numbers of approved and commenced nuclear power units. Core components for previously approved units are being delivered progressively, with a peak delivery period for components expected from 2026 to 2027. Concurrently, frequent catalysts in nuclear fusion could substantially elevate nuclear power valuations following a shift in valuation benchmarks. 3) OLED Materials: According to TrendForce, with new 8.6-generation OLED panel production capacity becoming operational in the second half of the year, shipments and penetration rates of mid-sized OLED screens are expected to increase, supporting demand for related OLED panel materials. Thematic trading opportunities include: 1) Solid-State Battery Materials: Policy, technological, and industrial factors are aligning, with numerous new product launches and tender catalysts expected in Q2 2026, accelerating the commercialization of solid-state batteries. 2) Advanced Ceramic Materials: A sharp year-on-year decline in rare earth oxide exports and depleted overseas inventories present a historical opportunity for accelerated import substitution in high-end ceramics within China. 3) Rocket & Satellite Materials: Q2 2026 is expected to see密集 catalysts, including developments in reusable rockets and the SpaceX IPO. A breakthrough in China's reusable rocket technology could trigger another major uptrend for the sector. Regarding crude oil-related trading opportunities: Even if a full ceasefire is achieved, damage to certain Middle Eastern infrastructure is likely to constrain crude oil supply for some time. Combined with global inventory replenishment demand, CITIC SEC anticipates that crude oil prices will remain at relatively high levels for an extended period, with costs and prices of petrochemical products expected to fluctuate at elevated levels. Under this expectation, certain coal-based products, bio-based products, and recycled plastics that can substitute for petrochemicals may see improved unit profitability or increased penetration rates, making related beneficiaries attractive.