This report comments on the profit data of Chinese industrial enterprises published every month.
In November, the monthly growth rate of profits of industrial enterprises decreased significantly
From January to November, the profits of Industrial Enterprises above designated size were 38.0% year-on-year, and the two-year compound growth rate was 18.9%, down 0.8 percentage points.
In November, the two-year compound growth rate of industrial enterprise profits in a single month was 12.2%, down 14.2 percentage points from the previous month. Affected by the sluggish downstream demand and other factors, the growth rate of industrial profits fell significantly in November, the compound monthly growth rate fell to the low point since April this year, and the imbalance of profit growth between upstream and downstream continued to deepen.
Profit growth differentiation further intensified
From January to November, the two-year compound growth rate of mining profits was 38.6%, continuing to rise by 3.6 percentage points; Manufacturing profits grew at a compound growth rate of 19.5% in two years, down 0.8 percentage points; The two-year compound growth rate of power, heat and gas industry was – 13.3%, with a decline of 5.5 percentage points. Profits are further concentrated upstream: the high profit growth rate of the mining industry continues to rise; The profit decline of power, heat and gas industry increased; Manufacturing profit growth fell again.
The profit growth rate of various industries in the manufacturing industry generally fell compared with the previous month: the profit growth rate of upstream industries such as ferrous metal smelting and rolling processing industry, petroleum processing industry and chemical fiber manufacturing industry fell from a high level; The profit growth of general and special equipment manufacturing, computer communication equipment manufacturing, instrument manufacturing and other industries decreased; The profit growth rate of electrical machinery and equipment manufacturing industry and railway, shipbuilding, aerospace and other transportation equipment manufacturing industry increased.
Profit margin fell and inventory continued to rise
From January to November, the two-year compound growth rate of operating revenue was 9.7%, the two-year compound growth rate of operating cost was 9.4%, and the profit margin of operating revenue was 6.98%, down 0.03 percentage points month on month. The sales situation of the enterprise was basically the same as that of the previous month, and the profit margin fell slightly.
At the end of November, the inventory turnover days of finished products were 17.4 days, unchanged month on month; The growth rate of finished goods inventory continued to rise by 1.6 percentage points to 17.9%. The industrial production end continued to be repaired, but the downstream demand did not improve significantly, resulting in a continuous increase in the growth rate of finished product inventory.
It is expected that the cumulative growth rate of profits in December will slow down slightly
In December, the prices of industrial products generally continued to fall; In terms of industrial production, it is expected that the growth rate of industrial added value in December may be roughly the same as that in November. Therefore, it is expected that the cumulative profit growth of industrial enterprises will slow down slightly in December, and the upstream profit growth may fall.
Risk statement
The economy has changed more than expected.
