258 companies released their 2025 annual reports this week. More than four high-quality stocks attracted over 10 million yuan in funds last week.

Reporter Ren Shibi

As the disclosure of listed companies’ 2025 annual reports enters a dense period, the number of annual financial reports disclosed this week has shown a clear increase compared with last week. Based on statistics compiled by the information department of Securities Daily using Wind data, this week 258 listed companies will disclose their annual reports. Among them, 128 companies had already released earnings forecasts in advance, and there are 60 companies with upbeat earnings performance, accounting for nearly half.

In this regard, Yang Delong, chief economist of Qianhai Open-Source Fund, said in an interview with a Securities Daily reporter that, as the economic structure continues to be optimized, companies with relatively better 2025 earnings growth are expected to continue achieving earnings growth in 2026. Recently, some stocks with solid earnings performance have already won the favor of market funds. As the market moves into the earnings verification stage, funds may further concentrate on companies with strong fundamentals. Companies with excellent earnings performance are expected to continue to attract attention and are worth watching.

Judging by the types of earnings forecasts, among the above-mentioned 60 companies with upbeat earnings, 38 companies are expected to see earnings increase, 3 companies are expected to continue to generate profits, 16 companies are expected to turn a loss into a profit, and 3 companies are expected to see a slight increase. In terms of the earnings growth magnitude, 21 companies are forecast to have a maximum increase of more than 100%. Among them, Honghe Technology, Lingdian Electrical Control, Xinxing Casting & Pipe, Zhongke Blueson, Jieya Shares, Ningbo Yunsung and other 6 companies are expected to have year-on-year net profit growth in their 2025 annual reports of more than 2 times.

In terms of market performance, among the above-mentioned 60 upbeat-eared stocks, 15 of them saw their share prices rise last week. Lingdian Electrical Control had the highest cumulative gain last week, reaching 10.70%. Youxun Shares and Tianfu Communication also both recorded cumulative gains of more than 5% last week.

Although the A-share market last week showed a pattern of volatile consolidation, some funds have already started positioning for earnings-growth stocks. Data show that among the above-mentioned 60 upbeat-eared stocks, 18 of them were favored by market funds. Last week, the cumulative net buy amount by main funds was RMB 2.972 billion. Of these, 4 upbeat-eared stocks had a cumulative net buy amount by main funds of over RMB 10 million last week. Tianfu Communication was the most pursued by main funds last week, with a cumulative net buy amount by main funds of RMB 1.94 billion. Youxun Shares also reached RMB 112 million in cumulative net buy amount by main funds last week. Lingdian Electrical Control and Dahuxi Shares also each had cumulative net buy amounts by main funds of more than RMB 10 million last week.

Table: Upbeat-eared stocks with cumulative net buy amount by main funds exceeding RMB 5 million last week

Regarding investment opportunities in the annual report market, “Recently, in the A-share market, companies that bring good news on earnings have seen a clear split in their stock prices. Some companies saw their share prices gap up and keep rising after their earnings reports were released, while other companies saw their share prices fall after the earnings release. In trading, it is necessary to conduct careful analysis based on each listed company’s industry growth outlook and its own financial statements.” Lu Na, an analyst at Goldenberg Consulting, told a Securities Daily reporter.

(Editor: Cai Shandan)