A-shares Q1 earnings forecast released: Many companies' net profits doubled, with new energy and semiconductors becoming growth engines

With the dense release of first-quarter earnings forecasts by A-share listed companies, a number of enterprises have stood out thanks to strong financial performance. According to Wind statistics, as of now, 35 companies have issued guidance; among them, 15 are expected to see year-over-year growth in attributable net profit exceeding 100%, with industries such as nonferrous metals and semiconductors becoming the main drivers of earnings growth.

Among the companies whose earnings are doubling, Fuxiang Pharmaceutical leads with the highest net profit growth rate, ranging from 2222.67% to 3250.01%. The company disclosed that the continued rise in the new energy industry’s market outlook has driven a surge in demand for lithium battery electrolyte additives. Its core products, VC and FEC, are seeing both volume and price grow at the same time, and the company expects quarterly profitability to reach a new high since 2022. Oklay? also benefits from both volume and price rising in its hard-alloy cutting tools business; it expects attributable net profit to increase 2248.89% year over year to 2770.86%. Meanwhile, the rise in the price of raw material tungsten carbide has instead boosted its scale-effect.

The nonferrous metals sector is performing particularly strongly. Tianshan Aluminum has released capacity through its green and low-carbon electrolytic aluminum project, achieving roughly a 10% year-over-year increase in both production and sales; combined with a 17% rise in aluminum prices and cost optimization, it expects first-quarter net profit to reach RMB 2.2 billion, up 107.92% year over year. Shengtun Mining’s copper-cobalt project in Congo (DRC) has increased output; combined with copper prices remaining at a high level, it expects attributable net profit to grow 226.27% year over year to 294.95%. The decrease in costs resulting from internal fine-grained management has also contributed significantly.

A number of “dark horses” have also emerged in the semiconductor industry. Higa? Information relies on growth in demand for domestic high-end chips and expects net profit to grow 22.56% to 42.32% year over year, expanding its footprint in the high-end processor market through increased R&D investment. Dinglong Co., Ltd.’s semiconductor materials business revenue is growing steadily; together with product-structure optimization and improvements in operating efficiency, it expects net profit to increase 70.22% to 84.41% year over year. Oulai De’s evaporative source equipment business revenue has grown sharply, driving net profit to grow 175.20% to 234.17% year over year, highlighting the advantages of its technical barriers.

Even though Muyi Co., Ltd.-U has not yet achieved profitability, it has narrowed its year-over-year loss in the first quarter through technological innovation and market expansion in the high-performance GPU field. The company said that the rapid development of the artificial intelligence industry has led its products to gain broad recognition from downstream customers, and its business scale has expanded significantly. This trend reflects the continued growth potential of semiconductor companies driven by technology and supported by industrial upgrading.