The first batch of Q1 2026 earnings forecast is released, with many companies expecting net profit to increase by over 100% in the first quarter.

Securities Daily reporter Ding Rong

As the first quarter of 2026 is nearing its end, as of 4:00 p.m. on March 30, when the reporter’s copy was filed, the A-share market has already issued earnings guidance for the first quarter from 18 listed companies. Among them, Tianshan Aluminum Group Co., Ltd. (hereinafter referred to as “Tianshan Aluminum”), Jiangxi Fuxiang Pharmaceutical Co., Ltd. (hereinafter referred to as “Fuxiang Pharmaceutical”), Zhuzhou Ouke Yi CNC Precision Cutting Tool Co., Ltd. (hereinafter referred to as “Ouke Yi”), Wanbangde Pharmaceutical Holding Group Co., Ltd. (hereinafter referred to as “Wanbangde”), and other 9 A-share listed companies are expected to have a year-on-year increase in their net profit for the first quarter of 2026 with a lower bound exceeding 100%.

General expectations: earnings performance is looking positive

The reporter from Securities Daily found that in their first-quarter report previews, multiple listed companies mentioned that product sales are seeing “both volume and price rising together.”

Tianshan Aluminum’s earnings guidance disclosed on March 30 for the first quarter of 2026 shows that it expects net profit attributable to shareholders of listed companies to be RMB 2.200 billion, a year-on-year increase of 107.92%.

Regarding the main reasons for the growth in performance, Tianshan Aluminum said: “Part of the capacity of the 1.40 million-ton green low-carbon energy-efficiency improvement project for electrolytic aluminum has been put into production, and the volume and sales volume of electrolytic aluminum products have increased by about 10% year over year. At the same time, the sales price of electrolytic aluminum products has risen by about 17% year over year, production costs have been effectively controlled with a year-on-year decrease, and volume-and-price coordination has been leveraged to achieve a good start to the full year.”

Ouke Yi’s first-quarter earnings guidance shows that it expects net profit attributable to owners of the parent company to be RMB 180 million to RMB 220 million, a year-on-year increase of 2,248.89% to 2,770.86%.

Ouke Yi said: “The main raw material prices of cemented carbide cutting tools, specifically tungsten carbide, have continued to rise significantly. The company has advantages in terms of capital and scale effects, enabling it to achieve simultaneous increases in both the volume and price of its products. In the first quarter of 2026, the company’s CNC inserts and CNC tooling industrial park projects have seen their capacity utilization rates continue to rise. The company correspondingly raises product prices, and both the gross margin and net margin have improved year over year, driving an improvement in the company’s profitability.”

Fuxiang Pharmaceutical, which tops the list in terms of the year-on-year increase in net profit in its first-quarter report, expects net profit attributable to shareholders of listed companies of RMB 52 million to RMB 75 million, a year-on-year increase of 2,222.67% to 3,250.01%.

Fuxiang Pharmaceutical’s first-quarter earnings guidance states: “Benefiting from the continued improvement in the new energy industry’s market conditions, demand in the power battery market is growing steadily, and demand in the energy storage battery market has surged rapidly, driving sustained increases in demand for upstream lithium battery materials. The company’s lithium battery electrolyte additive business is operating well, and some core products have seen simultaneous increases in both volume and price, thereby driving a significant year-on-year growth in the company’s first-quarter performance.”

Fu Yifu, a special researcher at Sushang Bank, said in an interview with Securities Daily: “Simultaneous increases in both volume and price are the core logic behind the performance growth of high-quality companies during upswings in cyclical industry markets. During industry up cycles, high-quality companies often achieve full production and full sales first, and, backed by stronger pricing power, fully benefit from price increases, thereby achieving outsized growth in profits.”

Reflecting industry development trends

The transformation and development results of Wanbangde, which focuses on medical and healthcare as well as the big health industry, are becoming evident. In the company’s first-quarter 2026 earnings guidance, it expects net profit attributable to shareholders of listed companies to be RMB 165 million, a year-on-year increase of 985.40%.

Wanbangde said that the company’s strategic transformation from generic drugs to innovative drugs has shown initial effectiveness, business expansion has made positive progress, bringing new performance growth drivers, and the company continues to increase R&D efforts.

In the digital economy sector, AIDC (automatic identification and data capture) vendors and IoT (Internet of Things) solution providers, Shenzhen Youbo Xun Technology Co., Ltd. (hereinafter referred to as “Youbo Xun”), achieve high-quality development by promoting intelligent product upgrades and integrating industry scenarios deeply. The company’s first-quarter 2026 earnings guidance shows that it expects net profit attributable to shareholders of listed companies to be RMB 38 million to RMB 48 million, a year-on-year increase of 79.23% to 126.40%.

Youbo Xun said: “Our main business continues to improve, and our overseas market expansion has achieved remarkable results. Revenue from overseas operations has increased rapidly year over year, driving an expansion in the overall operating scale. At the same time, the company continues to promote optimization of product structure and refined operational management, improving operating efficiency continuously and further strengthening its overall profitability.”

Yuan Shuai, deputy secretary-general of the Zhongguancun IoT Industry Alliance, told Securities Daily: “By observing the sample of first-quarter earnings guidance from A-share listed companies, one can not only verify industry business conditions and companies’ development levels, but also capture industry development trends and the direction of market evolution.”