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 profit forecasts for the first quarter, which directly reflects industry business conditions and profitability. This provides investors with important reference for judging market trends and making investment decisions.

19 companies expected a year-over-year increase in first-quarter performance

According to statistics by Securities Times · Data 宝, as of the close on April 1, 26 listed companies have disclosed their 2026 first-quarter performance in forms such as profit forecasts or prospectuses. Calculated using the lower bound of the forecasted net profit attributable to shareholders, 19 companies are expected to achieve a year-over-year increase in net profit attributable to shareholders, 2 are expected to turn losses into profits, and 2 are expected to reduce losses. The overall share of positive news is nearly nine-tenths.

Both Ouke Yi and Fuxiang Pharmaceutical are expected to see year-over-year increases in net profit attributable to shareholders of over 2000%. Ouke Yi expects to achieve net profit attributable to shareholders of RMB 180 million to RMB 220 million, up 2248.89% to 2770.86% year over year. It is expected to set a new high since the company’s listing. The company said in its announcement that the main raw material for hard metal cutting tools, tungsten carbide, continues to rise significantly. The company has funding advantages and scale-effect advantages, enabling both volume and pricing of its products to rise together.

Fuxiang Pharmaceutical expects to achieve net profit attributable to shareholders of RMB 52 million to RMB 75 million, up 2222.67% to 3250.01% year over year. It is expected to deliver the highest single-quarter net profit attributable to shareholders since 2022 since the company’s listing. The company said that, benefiting from the sustained improvement in the new energy industry’s business conditions, demand for the power battery market is growing steadily, and demand for energy storage batteries is rapidly surging, which drives continued increases in demand for upstream lithium battery materials. The company’s business performance in lithium battery electrolyte additives is doing well; key products such as VC and FEC are seeing both volume and pricing rise together, thereby driving a large year-over-year growth in the company’s performance.

Performance strengthens in two major sub-sectors

By sub-sector, among the listed companies with positive first-quarter performance guidance, companies in general equipment and the semiconductor industry rank near the top. There are 3 companies in each, and in general equipment, all 3 companies’ main businesses 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 increase in the price of the main raw material tungsten carbide, listed companies have raised prices for their hard metal and tool products, driving growth in their operating performance.

In a research report, Guotou Securities believes that in the short term, as the prices of key raw materials such as tungsten carbide powder continue to rise, the transmission of price changes from cutting tools to downstream sectors is expected to accelerate. For leading companies with low-cost raw material inventories, profit elasticity is likely to be even more pronounced. Looking from the medium to long term, the sustained development of China’s advanced manufacturing industry and the strong demand for “independent and controllable” supply chains will speed up the import substitution of cutting tools.

All listed companies in the semiconductor industry have benefited from the development of the artificial intelligence industry. For example, Aubiscope Co., Ltd. U said that the company is actively promoting deep integration of AI technologies with various industries, and its business scale has achieved significant growth compared with the same period of the previous year. Hygon Information said that as market demand for domestic high-end chips rises with demand from the AI industry, market demand has continued to increase. The company is increasing its investment to expand the market footprint of its high-end processor products.

Financing net buys of over RMB 100 million for 11 stocks

According to data from Data 宝, as of March 31, since March, the total amount of net financing purchases for the above 26 stocks reached RMB 3.73B. Among them, financing net buy amounts for 11 stocks exceeded RMB 100 million. De Mingli, Ouke Yi, and Xinruishares ranked near the top, reaching RMB 2.48B, RMB 610 million, and RMB 503 million, respectively.

De Mingli received net financing purchases of RMB 2.48B in March. The company expects first-quarter net profit attributable to shareholders of RMB 3.15 billion to RMB 3.65 billion, achieving turnaround to profitability. Since the second half of 2025, the AI industry has continued to maintain high levels of business momentum, driving the storage-chip industry chain’s pricing cycle to keep moving upward. The company said that, relying on the ample raw-material strategic reserve it established earlier, its profitability has continued to improve, and profit levels have increased significantly.

Judging from performance in the secondary market, the stock-price trends of companies that disclosed profit forecasts have diverged significantly. For companies with positive performance news, since March their average stock price has risen by 5.89%. Among them, Wanfangde, De Mingli, and Kuncai Technology lead the cumulative gains, at 76.88%, 45.49%, and 38.56% respectively. In contrast, for companies whose year-over-year performance declined, stock price trends faced pressure, with average losses reaching 10.45%.

(Source: Securities Times)