BEIJING, July 16 (Xinhua) -- China's listed companies have forecast robust performance for the first half of 2024, further indicating a steady recovery in the wider economy.
As of July 15, more than 1,500 public firms have disclosed their earnings forecasts for the January-June period. Among them, around 660 companies, accounting for over 40 percent of the total, anticipated profit growth, according to financial data provider Wind.
Industries including petroleum and petrochemicals, electronics, non-ferrous metals, and automobiles saw remarkable profit increases, emerging as the bright spot on the market, said Yang Chao, an analyst with China Galaxy Securities.
The encouraging corporate performance could be attributed to a favorable external environment, driven by better industrial conditions and increased market demand, analysts said. China's new round of large-scale equipment upgrades, trade-in of consumer goods and the adoption of innovation-driven strategy by companies were pivotal in propelling growth.
The renewal program for equipment and consumer goods launched in March has unlocked new market demand and contributed to the upward profit trajectory for companies in related sectors.
Zhejiang Dibay Electric Company Limited, which produces refrigerator and air conditioning compressor motors, exemplified the benefits of the policy. The company forecast a net profit of 36.7 million yuan (5.15 million U.S. dollars) to 40.49 million yuan for the first half, marking a year-on-year increase of over 150 percent to nearly 180 percent. An improved refrigerator and air conditioning market led to increased sales of compressor motors, it said.
When commenting on the first-half economic data, a spokesperson from the National Bureau of Statistics said on Monday that the renewal policy has stimulated consumer potential, particularly in durable goods such as automobiles and household appliances.
Many listed companies, spanning sectors from machinery to recycling, anticipated significant profit increases for the first half, citing opportunities arising from the demand for equipment upgrades.
Shandong Linglong Tyre Company Limited said the government policies will help generate new demand growth in the tire market. Similarly, UniTTEC Company Limited expects strong demand for urban rail transit signal system upgrades over the next three to five years.
Moreover, technology and innovation have also became new growth drivers for listed companies, in particular for those in the automotive industry.
Substantial profit increases were seen in companies from new energy vehicle (NEV) manufacturers like Great Wall Motor Company Limited to upstream companies, such as Zhejiang Songyuan Automotive Safety Systems Company Limited.
Seres Group Company Limited, a traditional carmaker collaborating with Huawei on AITO cars, has turned a corner after four years of losses. The company predicted revenues of up to 66 billion yuan for the first half, surging by nearly five times from a year ago, with its net profits expected to reach 1.7 billion yuan at most.
Kang Bo, vice president of Seres, said the company has focused intensely on developing core technologies, with cumulative core R&D investment in AITO exceeding 12 billion yuan.
China's NEV sector continued vibrant development this year. The NEV production and sales reached 4.93 million and 4.94 million units, respectively, in the first half, up 30.1 percent and 32 percent year on year. Fu Bingfeng, executive vice president and secretary general of the China Association of Automobile Manufacturers, expects the NEV sales to reach 11.5 million units this year. ■
