The FINANCIAL -- As of July 15, 2018, up to 1896 SZSE-listed companies have disclosed 2018 semi-annual performance forecasts, accounting for 89.6% of the total.
The disclosed forecasts show that the semi-annual performance of SZSE-listed companies increases steadily in 2018, with many highlights demonstrated. Steady performance lays solid foundation for stable market operation and provides strong support for high-quality development of the real economy.
Good Momentum in Overall Performance, 90% with Profits and 60% with Growth as Forecasted
Under the background of China’s accelerated economic transition and supply-side structural reform, the SZSE-listed companies demonstrate satisfactory performance. In the first half year of 2018, 1,896 companies are expected to reach a net profit attributable to the shareholders of the parent company (hereinafter referred to as “net profit”) totaling CNY243.8 billion to CNY299 billion. The average net profit per company hits CNY129 million to CNY158 million, scoring a year-on-year increase ranging from 10.49% to 35.51%. The average value of the highest and lowest year-on-year increase taps 23%.
As suggested by the performance forecasts, most of the companies harvest profitability and growth, and 30% of the companies maintain high growth. Based on the average forecast, 1,683 companies are expected to make a profit, accounting for 88.77% of the total; and 1,151 companies are expected to achieve a net profit increase from the same period last year, accounting for 60.71% of the total. And 638 entities out of the said 1,151 companies are expected to have a net profit growth of over 30%, and 439 units are expected to have a net profit growth exceeding 50%.
Growth Shown in All Three Sectors: Blue-Chip Enterprises, SMEs, and Startups Show Strong Performance
On the Main Board, 262 companies are expected to achieve a net profit of CNY63.1 billion (calculated based on the average forecast, same below), averaging CNY241 million for each company, a year-on-year increase of 48.91%, demonstrating strong growth in blue-chip enterprises. On the SME Board, 905 companies are expected to achieve a net profit of CNY152.9 billion, averaging CNY169 million for each company, a year-on-year increase of 19.46%, showing strong vitality in private economy and SMEs. On ChiNext, 729 companies are expected to achieve a net profit of CNY55.4 billion, averaging CNY76 million for each company, a year-on-year increase of 10.18%, revealing that the ChiNext Board continues to show its advantages in serving innovative companies and entrepreneurship.
From the perspective of the nature of enterprises, 278 state-owned enterprises on SZSE are expected to achieve an average net profit of CNY266 million, a year-on-year increase of 60.55%, indicating a fruitful SOE reform. Meanwhile, 1,618 private companies are expected to achieve an average net profit of CNY122 million, a year-on-year increase of 13.11%, telling that private companies maintain a good development momentum in the new era.
All Industries Maintain Stable Development, with Particularly Strong Performance in Emerging Industries
According to the CSRC industry classification methods, the companies that disclose performance forecasts cover 76 industries, of which 71 industries are expected to be profitable on the whole and 54 industries have achieved year-on-year growth. Thanks to the deepened supply-side structural reform, traditional industries have continued to recover, with industries such as retail, iron and steel, non-ferrous metals, chemical raw materials and chemical products manufacturing topping at a higher performance growth rate.
Among the SZSE-listed companies, 934 entities from strategic emerging industries disclose their performance forecasts. The net profit for the first half of the year is expected to reach CNY107.8 billion, up by 15.99% over the same period last year. Except the new energy vehicle industry, all other emerging industries are expected to grow. Among them, new materials, high-end equipment manufacturing and next-generation information technology industries are expected to grow by 37.69%, 31.7% and 23.54%, respectively. The role of capital market in advancing economic transformation and upgrading is remarkable.
Significant Contribution by Leading Companies, with Strengthened Competitive Advantage
Among the SZSE-listed companies that disclosed performance forecasts, 45 companies are expected to achieve a net profit of over one billion yuan each and CNY100.8 billion as a whole, accounting for approximately 37% of the profits of all SZSE-listed companies. Thus, the leading role of top companies is further highlighted. The most profitable leading companies include China Merchants Shekou Holdings, Weichai Power, Hikvision, and NHU. For instance, Weichai Power forecasts a profit of CNY4.24 billion, 60% higher than last year ago due to the advancement in old and new energy transfer and product structure upgrade and transformation. Hikvision keeps maintaining its leading position in the subdivided field by improving its solutions based on product innovation, expecting a profit of CNY4.114 billion, which is 25% higher year-on-year. On the ChiNext Board, 18 companies including Lepu Medical, Leyard and Three-Circle Group have a net profit exceeding CNY0.5 billion, and 121 companies including Zhifei Biological and East Money witness a 50% increase in net profit compared with that of the previous year.