Data available as of Sunday showed that 333 A-share companies expected higher 2018 earnings, most of them listed at the ChiNext board and the SME board, reported China Securities Journal on Monday.
As of Sunday, 1,436 A-share companies had released forecasts for their 2018 results. Among them, 333 posted higher profits, with eight of them expecting a tenfold surge, 13 a fivefold jump and 13 a tripled increase.
Of these 333 companies, 257 firms, or 77.18 percent, are those at the ChiNext board and the SME board of the Shenzhen Stock Exchange (SZSE), which respectively serve as a platform for innovative enterprises and small and medium-sized enterprises (SMEs) to float and trade their stocks.
The SMEs in China once experienced some difficult times last year, but the large-scale tax cuts and relief measures that followed had helped tide them over and their profits were beginning to recover, said Zhao Yayun, a research fellow of Housheng Thinktank.
Sector-wise, nearly half of these 333 gainers are concentrated in five industries, with 53 in the chemical engineering industry, 34 from the electronics fields, 28 dealing in mechanical equipment, 26 involved in medicine and biotechnology and 20 specializing in electrical equipment.
In these technology-intensive industries, many companies had made successful technological upgrading in the past few years under supportive policies, and as a result their profit margins rose, said Zhao. The drop in the raw material costs also contributed to their surging earnings, he said.
As China's economic growth eased, the electronics and chemical engineering companies were expecting higher earnings. This was thanks to the robustness of the industries they operate in and was also boosted by the relatively low level of profits in 2017, said Yang Delong, chief economist of First Seafront Fund Management Co., Ltd.
At the main boards of the SZSE and the Shanghai Stock Exchange (SEE), 24 and 52 companies forecast higher 2018 profits respectively.
As of Sunday, 1,436 A-share companies had released forecasts for their 2018 results. Among them, 333 posted higher profits, with eight of them expecting a tenfold surge, 13 a fivefold jump and 13 a tripled increase.
Of these 333 companies, 257 firms, or 77.18 percent, are those at the ChiNext board and the SME board of the Shenzhen Stock Exchange (SZSE), which respectively serve as a platform for innovative enterprises and small and medium-sized enterprises (SMEs) to float and trade their stocks.
The SMEs in China once experienced some difficult times last year, but the large-scale tax cuts and relief measures that followed had helped tide them over and their profits were beginning to recover, said Zhao Yayun, a research fellow of Housheng Thinktank.
Sector-wise, nearly half of these 333 gainers are concentrated in five industries, with 53 in the chemical engineering industry, 34 from the electronics fields, 28 dealing in mechanical equipment, 26 involved in medicine and biotechnology and 20 specializing in electrical equipment.
In these technology-intensive industries, many companies had made successful technological upgrading in the past few years under supportive policies, and as a result their profit margins rose, said Zhao. The drop in the raw material costs also contributed to their surging earnings, he said.
As China's economic growth eased, the electronics and chemical engineering companies were expecting higher earnings. This was thanks to the robustness of the industries they operate in and was also boosted by the relatively low level of profits in 2017, said Yang Delong, chief economist of First Seafront Fund Management Co., Ltd.
At the main boards of the SZSE and the Shanghai Stock Exchange (SEE), 24 and 52 companies forecast higher 2018 profits respectively.
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