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

Securities Times reporter Liu Junling

Recently, listed companies have successively released forecasts of first-quarter performance, directly reflecting industry business conditions and profitability. This provides investors with an important basis for assessing market trends and making investment decisions.

19 companies expected to increase first-quarter earnings

According to Securities Times · Data News statistics, as of the close on April 1, 26 listed companies have disclosed their 2026 first-quarter performance in the form of performance forecasts or prospectuses. Based on the lower bound of the forecasted net profit attributable to the parent company, 19 are expected to see year-on-year growth in net profit attributable to the parent, 2 are expected to turn a loss into a profit, and 2 are expected to reduce losses. The overall “good news” ratio is nearly 90%.

Okey and Fosang Pharmaceutical are both expected to see year-on-year increases in net profit attributable to the parent of over 2000%. Okey expects net profit attributable to the parent of RMB 180 million to RMB 220 million, up 2248.89% to 2770.86% year on year. It is expected to set a new high since the company’s listing. In its announcement, the company said that the main raw material for hard-metal cutting tools, tungsten carbide, continues to rise sharply, and the company has advantages in terms of funding and scale effects, enabling both volume and price to rise for its products.

Fosang Pharmaceutical expects net profit attributable to the parent of RMB 52 million to RMB 75 million, up 2222.67% to 3250.01% year on year, and is expected to achieve the highest quarterly net profit attributable to the parent since 2022. The company said that benefiting from the continuous improvement in the new energy industry’s business conditions, demand in the power battery market grows steadily, while demand for energy storage batteries rapidly surges, driving sustained increases in upstream lithium battery material demand. The company’s business for lithium battery electrolyte additives is operating well; key products such as VC and FEC have seen both volume and pricing rise together, thereby driving a large year-on-year increase in the company’s performance.

Two major sub-sectors show strong earnings

Looking at sub-sectors, among listed companies with positive earnings in the first quarter, companies in the general equipment and semiconductor industries rank relatively high, with 3 companies in each. Among the three general equipment companies, their main businesses all include hard-metal 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 price of tungsten carbide, a key raw material, listed companies have raised prices for their hard-metal and tool products, driving growth in their operating performance.

A research report from Guotou Securities believes that in the short term, as prices of major raw materials such as tungsten carbide powder continue to rise, the schedule for passing price changes from upstream to downstream for tool products is expected to accelerate; for leading companies with low-cost raw-material inventories, profit elasticity may become even more pronounced. Looking at the medium to long term, the continued development of China’s advanced manufacturing industry and strong demand for supply chain “independent and controllable” will speed up the import substitution of the tool industry.

Semiconductor industry listed companies have benefited from the development of the artificial intelligence industry. For instance, Aisource Co., Ltd.-U said the company is actively advancing deep integration of artificial intelligence technology with various industries, and that its business scale achieved significant growth compared with the same period last year. Hygon Information stated that as market demand for domestic high-end chips rises with demand from the artificial intelligence industry, market demand continues to increase; the company has increased investment to expand the market footprint of its high-end processor products.

11 stocks with net financing purchases exceeding RMB 100 million

According to Data News statistics, as of March 31, since March, the total amount of net financing purchases for the above 26 stocks reached RMB 3.7311 billion. Among them, the net financing purchases of 11 stocks exceeded RMB 100 million. DeMingLi, Okey, and Xinying Shares rank at the top, reaching RMB 2.48B, RMB 610 million, and RMB 503 million, respectively.

DeMingLi recorded net financing purchases of RMB 2.48B in March. The company expects first-quarter net profit attributable to the parent of RMB 3.15 billion to RMB 3.65 billion, turning a loss into a profit. Since the second half of 2025, the AI industry has continued to maintain a high level of business optimism, driving the pricing cycle in the memory chip industry to continue rising. The company said that, relying on the ample raw-material strategic reserves planned earlier, its profitability has been continuously optimized, leading to a significant increase in profit levels.

From secondary market performance, the stock price trends of companies that disclosed earnings forecasts have diverged notably. For companies with positive earnings expectations, their average stock price increased by 5.89% since March. Among them, Wanbangde, DeMingLi, and Kuncai Technology are among the top performers in cumulative gains, at 76.88%, 45.49%, and 38.56%, respectively. In contrast, for companies whose year-on-year performance declined, their stock price trends faced pressure, with an average drop of 10.45%.

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