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As of January 31, 2018, 298 companies out of the 476 listed on the SZSE main board have made their 2017 performance forecasts. Among the 298 companies, more than 60% estimate growth and nearly a half foresee significant increases. The 298 listed companies forecast the net profit of RMB151.117-170.701 billion attributable to equity shareholders (hereinafter “net profit”), achieving average net profit of RMB507-573 million, year-on-year growth of 126% to 198%, representing a significant hike compared with the previous year. 195 companies, 65% of the 298 units, estimate year-on-year growth. Among them, 136 entities predict to achieve performance rise of over 50%, accounting for nearly a half of the companies having made performance forecasts. In addition, 42 companies estimate performance turnarounds and 39 companies losses, with the number of companies recording losses decreased to some extent.
According to the Rules Governing Listing of Stocks on the SZSE Main Board, performance forecasts shall be made in cases that the main board companies record negative net profit, an increase or decrease of over 50% in net profit compared with the same period of previous year, or performance turnarounds. Therefore, it is expected that more than 90% of the SZSE main board companies will record profits, and nearly 30% with a growth rate of over 50%. Provided that the performances of the remaining 178 companies, which have not made the forecasts, are to be even compared with the same period of previous year, the overall growth of the main board in 2017 would be 28% to 36%, indicating an obvious high-growth trend.
Among the companies having made the forecasts, the top five companies in terms of profits are BOE, WEICHAI POWER, ANSC, KONKA GROUP and STSS, which are expected to record the average profit of RMB7.65 billion, RMB6.3 billion, RMB5.678 billion, RMB5.03 billion and RMB4.65 billion respectively in 2017, representing respective growth (based on the average) of 306%, 158%, 251%, 5158% and 306% compared with the same period of previous year.
By industries, the 298 companies which made forecasts are distributed in 18 sectors, of which 17 sectors are expected to record profit. Especially, the manufacturing sector shows an explosive growth, with sub-sectors such as steel and iron, coal and nonferrous recording high growth.
By nature of companies, 148 out of the said 298 companies are state-owned listed companies which are expected to record high net profit growth in 2017, suggesting an SOE reform success.
