First-quarter earnings forecast is very encouraging, with nearly 90% of disclosed companies reporting positive results.

Securities Times reporter Liu Junling

In recent days, listed companies have successively released forecasts of their first-quarter performance. This directly reflects industry conditions and profitability, and provides important reference for investors to assess market trends and make investment decisions.

19 companies expect higher profits in the first quarter

According to Securities Times · Data Bao statistics, as of the close of trading on April 1, 26 listed companies have disclosed their 2026 first-quarter performance through performance forecasts, prospectuses, and other means. Based on the lower bound of forecast net profit attributable to shareholders, 19 companies are expected to achieve year-on-year growth in net profit attributable to shareholders, 2 are expected to turn losses into profits, and 2 are expected to narrow losses. Overall, the proportion of companies with good news is close to 90%.

Both Okiay and Fuxiang Pharmaceutical are expected to see year-on-year increases in net profit attributable to shareholders of over 2,000%. Okiay expects to achieve net profit attributable to shareholders of RMB 180 million to RMB 220 million, up 2,248.89% to 2,770.86% year-on-year, with the potential to set a new high since the company’s listing. The company stated in its announcement that the key raw material for cemented carbide cutting tools, tungsten carbide, has continued to rise sharply, and the company has advantages in funding and scale effects, enabling product volume and pricing to rise in tandem.

Fuxiang Pharmaceutical expects to achieve net profit attributable to shareholders of RMB 52 million to RMB 75 million, up 2,222.67% to 3,250.01% year-on-year, with the potential to record the highest quarterly net profit attributable to shareholders since 2022 for the company. The company said it benefits from the continuous improvement in the new energy industry’s market conditions: demand for power battery markets is growing steadily, and demand for energy storage batteries is rapidly surging, driving sustained increases in demand for upstream lithium battery materials. The company’s business of lithium battery electrolyte additives is operating well; the quantities and pricing of core products such as VC and FEC rise in tandem, thereby leading to a significant year-on-year increase in the company’s performance.

Two major sub-sectors see strong performance

From the perspective of sub-sectors, among listed companies with positive first-quarter performance forecasts, companies in the general equipment and semiconductor industries rank higher, with 3 each. Of the three general equipment companies, their main businesses all include cemented carbide and tools.

Wind data shows that as of April 1, the quotation for tungsten carbide powder (purity ≥ 99.7%, particle size 2–10μm) was 2265 yuan per kilogram, up more than 122% from the end of 2025. With the rise in the prices of major raw materials, listed companies raised prices for cemented carbide and tool products, driving growth in their operating performance.

A research report from Guotou Securities believes that in the short term, as the prices of key raw materials such as tungsten carbide powder continue to rise, the pace of price transmission from tool products to downstream customers is expected to accelerate. For leading companies with low-cost raw material inventory, their profit elasticity may be even more pronounced. In the medium to long term, the ongoing development of China’s advanced manufacturing industry and strong demand for “independent and controllable” supply chains will speed up the import substitution in the tool industry.

Semiconductor industry listed companies have all benefited from the development of the artificial intelligence industry. As stated by Muxi Co., Ltd.-U, the company is actively advancing the deep integration of artificial intelligence technology with various industries, and its business scale has achieved significant growth compared with the same period last year. Hygon Information stated that with the increasing market demand for domestically produced high-end chips driven by the rising demand from the artificial intelligence industry, market demand continues to climb; the company is increasing investment to expand the market footprint of its high-end processor products.

11 stocks have net purchases from financing exceeding RMB 100 million

According to Data Bao statistics, as of March 31, since March, the total amount of net purchases from financing for the above 26 stocks reached RMB 8B. Among them, the net purchase amount for 11 stocks exceeded RMB 100 million. Among the top are Demingli, Okiay, and Xinhua New Talent Co., Ltd. (Xinruixi). They reached RMB 8B, RMB 610 million, and RMB 503 million, respectively.

Demingli saw net purchases from financing of RMB 3.73B in March. The company expects first-quarter net profit attributable to shareholders of RMB 3.15 billion to RMB 3.65 billion, turning losses into profits. Since the second half of 2025, the AI industry has continued to maintain high levels of enthusiasm, driving storage chip companies’ pricing cycle to keep moving upward. The company said that relying on its ample strategic raw material inventory reserves built in advance, its profitability has been continuously improving, and its profit level has increased significantly.

Judging from performance in the secondary market, the stock price trends of companies that disclosed performance forecasts have diverged significantly. For companies with positive performance forecasts, their average stock price increased by 5.89% since March. Among them, Wanbangde, Demingli, and Kuncai Technology ranked among the top in cumulative gains, at 76.88%, 45.49%, and 38.56%, respectively. In contrast, for companies whose performance declined year-on-year, their stock price trends faced pressure, with an average decline of 10.45%.

(Data in this issue is provided by the Securities Times Center database.) Image source: AI generated