VWDRY

Energy security is back in the spotlight as disruption in the Strait of Hormuz forces governments to rethink heavy reliance on oil and gas. That rethink is pushing more capital toward renewables, storage and grid infrastructure, creating fresh winners and leaving some assets exposed. This article unpacks the story and examines 3 stocks directly tied to this news shock that could either benefit or face pressure as the transition accelerates.

The three stocks that follow are just a sample of what this energy shock is pulling into focus. The full screen surfaced 52 more listed businesses with equally compelling narratives that are not covered here. To go straight to the wider opportunity set, use the Global Renewable Energy & Grid Infrastructure screener to identify, compare and analyze the highest conviction ideas tied to renewables, storage and grid upgrades.

Dajin Heavy IndustryLtd (SZSE:002487)

Overview: Dajin Heavy IndustryLtd manufactures offshore wind and solar power equipment, supplying foundations and towers that anchor large scale renewable projects.

Operations: The business generates about CN¥6.3b from metal products and CN¥250.6m from new energy power generation, with CN¥5.0b from exports and CN¥1.6b from China.

Market Cap: CN¥30.4b

Dajin Heavy IndustryLtd gives you focused exposure to the build out of wind and solar hardware at scale, as governments shift capital from fossil fuels toward secure domestic generation. Earnings are growing on top of index inclusion and a recent dividend, which highlights both income and expansion potential. However, one less visible pressure could still influence future pricing power and project margins.

That pressure is already baked into expectations, so use the 4 key rewards and 3 important warning signs (1 is major!) to determine whether Dajin Heavy IndustryLtd’s upside still outweighs the squeeze on margins.

Vestas Wind Systems (CPSE:VWS)

Overview: Vestas Wind Systems designs, builds, installs and services wind turbines worldwide, giving pure-play exposure to global wind power growth.

Operations: Vestas Wind Systems generates about €16.7b from Power Solutions and €3.6b from Service, linking turbine sales with recurring long term support.

Market Cap: DKK185.6b

Vestas Wind Systems sits right in the energy security conversation, since every turbine it delivers replaces future oil and gas use with local wind power and adds long lived assets to the grid focused screener universe.

"The ramp-up of Vestas Wind Systems offshore projects, including completion of all 64 turbines at the 960 MW He Dreiht project and faster takt and installation times on the 15 MW platform, is expected to move offshore activities from loss making in 2026 toward a profitable position in 2027, which would support group EBIT margins and earnings."

What happens to those margin ambitions depends heavily on how one less visible cost pressure evolves as this offshore buildout scales.

If that cost curve really is shifting, you will want the full narrative for Vestas Wind Systems to see what is accelerating, what is stalling, and why. full narrative for Vestas Wind Systems

Refrigeration Electrical Engineering (HOSE:REE)

Overview: Refrigeration Electrical Engineering generates, transmits, and distributes hydro, solar, and wind power in Vietnam, alongside engineering, real estate, and infrastructure services.

Operations: Refrigeration Electrical Engineering earns approximately ₫10.3b in revenue entirely from Vietnam, anchored in domestic renewable power and related infrastructure activities.

Market Cap: ₫28.0b

Refrigeration Electrical Engineering provides exposure to Vietnamese hydro, solar, and wind generation during a period in which governments are prioritizing domestic renewables over imported fossil fuels. The outlook for margins and future expansion depends significantly on how one currently unseen funding pressure develops.

That funding squeeze could reshape returns, so review the Refrigeration Electrical Engineering financial health report to see whether Refrigeration Electrical Engineering’s balance sheet can support its next phase of growth.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.