The first batch of Q1 earnings previews has been released, with many companies expecting over 100% growth, and the highest projected increase reaching 32 times.

Ask AI · How does new energy sector optimism drive Fuxiang Pharmaceutical to achieve a 32x performance growth?

As the first quarter of 2026 comes to a close, the A-share market has entered a dense disclosure period for the first batch of quarterly earnings forecasts.

21st Century Business Herald’s AI Express reporter, citing Tonghuashun iFinD statistics, as of March 29, 18 listed companies have already released their “report cards” for the first quarter. Against the backdrop of generally favorable market conditions, good earnings news has become the main theme: 10 companies expect earnings to increase, 5 companies expect a slight increase, and 1 company expects to turn a loss into a profit; the combined proportion of favorable-earnings companies reaches 88.89%; only 2 companies are expected to continue to post losses, and overall earnings expectations remain positive.

In terms of growth magnitude, the high-growth targets are mainly concentrated in three sectors: machinery and equipment, pharmaceutical and biologicals, and basic chemicals, where both volume and price rising together is the core logic behind these companies’ performance growth. Among them, Okai Technology and Fuxiang Pharmaceutical are leading the whole market with astonishing growth rates.

Benefiting from the simultaneous rise in volume and price of hard alloy cutting tools and the low base effect from the same period last year, Okai Technology expects first-quarter net profit to be between 180 million yuan and 220 million yuan, which is expected to increase by 172 million yuan to 212 million yuan compared with the same period last year. Based on this, the year-on-year net profit growth rate for Q1 2026 is expected to reach 2248.9% to 2770.9%.

Fuxiang Pharmaceutical, the leading stock in electrolyte additives for the same reason—higher volume and price across its business—also benefits. The earnings forecast shows that its first-quarter 2026 net profit is expected to be between 52 million yuan and 75 million yuan, a year-on-year increase of 2222.67% to 3250.01%, making it the current king of profit growth. Triggered by the big jump in first-quarter performance, Fuxiang Pharmaceutical surged quickly after the market opened on March 24; in just 1 minute and 51 seconds, it hit the “20CM” daily limit. This week, its cumulative gain has exceeded 27%.

Fuxiang Pharmaceutical has stated clearly that the sharp increase in performance is mainly driven by the continued improvement in the new energy sector’s outlook: steady growth in demand in the power battery market and rapid爆發 in demand in the energy storage battery market, which in turn drives a sustained rise in demand for upstream lithium battery materials. The company’s business for lithium battery electrolyte additive is performing well; key products such as VC and FEC have seen both volume and price rise, thereby pushing the company’s year-on-year performance to grow significantly.

In addition, Kuncai Technology in the basic chemicals industry also sees a significant boost. The earnings forecast indicates that as prices in the titanium dioxide sector rebound and capacity is released, the company’s titanium dioxide and iron oxide business turns from loss to profit. Its first-quarter net profit is expected to be between 60 million yuan and 80 million yuan, up 151.56% to 235.41% year on year.

Besides cyclical price-increase factors, increased R&D investment and business-structure optimization have become important supports for performance growth for some companies. For Wanfangde in the pharmaceutical and biologicals industry, it expects that in Q1 2026, net profit attributable to shareholders of listed companies will be 165 million yuan, up 985.4% year on year. The company clearly said that the transformation from a strategy focused on generic drugs to one focused on innovative drugs is showing early results; during the reporting period, business expansion achieved positive progress, bringing new performance growth points, and the company continues to step up R&D efforts.

In the auto sector, Gudian Ruicai is gaining momentum by successfully expanding its copper-aluminum composite materials business and entering the Ningde Times supply chain system, enabling sales revenue to climb rapidly. It expects first-quarter operating revenue to increase 41.41% to 53.89% year on year, and expects net profit of between 48 million yuan and 51 million yuan.

Also in the electronics sector, Aolai De expects first-quarter net profit of between 70 million yuan and 85 million yuan, up 175.2% to 234.17% year on year. Its competitive advantage in the field of evaporation source equipment continues to stand out, and revenue related to equipment has grown significantly.

Although the two companies continuing to post losses are still loss-making, their operating conditions have shown clear improvement. Yishi Technology expects a first-quarter loss of between 55 million yuan and 65 million yuan; the year-on-year loss is expected to narrow by 15.53% to 27.60%. In the same period, operating revenue is expected to increase 235.35% to 294.53% year on year.

Muxi Co., Ltd. expects a loss of between 90.76 million yuan and 182 million yuan. The loss margin is expected to narrow by 21.93% to 60.97% year on year. It said that benefiting from the rapid development of the artificial intelligence industry, and relying on its excellent product performance and a complete software ecosystem, the company’s products and services have been widely recognized by downstream customers. Compared with the same period last year, the company’s business scale has achieved a notable increase.

And when looking at the absolute value of net profit, Tianshan Aluminum has become the “profit hero” of this earnings season. The company expects to achieve first-quarter net profit of 2.2 billion yuan, up 107.92% year on year. Tianshan Aluminum’s strong performance is mainly due to capacity release from its 1.4 million-ton green and low-carbon electrolytic aluminum project.

（Statement: The article content is for reference only and does not constitute investment advice. Investors act on it at their own risk.)