According to the National Bureau of industry statistics, the total profit of enterprises was more than 115.5 billion yuan, an increase of 27.0% year-on-year from January to March.
The reporter of “daily economic news” noted that Zhu Hong, a senior statistician of the industrial department of the National Bureau of statistics, said when interpreting the data that this reflected that enterprise profits maintained growth on a high base. From January to February, the profits of Industrial Enterprises above designated size increased by 5.0% on the basis of a higher base in the same period last year. Among the 41 major industrial industries, 22 industries achieved year-on-year profit growth or loss reduction, of which 15 industries had a profit growth rate of more than 10%.
energy and raw materials contribute greatly
The reporter of the daily economic news noted that from the profit data of Industrial Enterprises above Designated Size from January to February released this time, a more obvious feature is that the growth rate continues to remain in a stable range, with a slight recovery compared with the data in December last year.
Zhu Hong said that since the beginning of this year, in the face of the complex and severe economic situation outside China, all regions and departments have increased efforts to stabilize growth and support the real economy, the industrial economy has recovered steadily, and corporate profits have increased slightly. From January to February 2022, the profits of Industrial Enterprises above designated size increased by 5.0% year-on-year, with a growth rate of 0.8 percentage points higher than that in December last year.
What are the reasons for this trend of profit data of Industrial Enterprises above Designated Size from January to February? In this regard, Zhu Hong pointed out that from January to February, under the combined action of accelerated industrial production and higher year-on-year increase in ex factory prices of industrial products, the sales of industrial enterprises increased rapidly, and the operating revenue of Industrial Enterprises above designated size increased by 13.9% year-on-year, 1.6 percentage points higher than that in December last year. Among the 41 major industrial industries, the revenue of 40 industries increased year-on-year. The rapid growth of enterprise revenue has created favorable conditions for the growth of enterprise profits.
It is worth noting that the data from January to February show that the energy and raw materials industry has made a great contribution to the profit growth of industrial enterprises. From January to February, the profit of the mining industry increased by 1.32 times year-on-year, which was significantly higher than the industrial average, and the profit of some raw material industries increased rapidly.
In this regard, Hongta Securities Co.Ltd(601236) chief economist Li Qilin pointed out to the reporter of the daily economic news that the reasons are as follows: first, under the background of “double carbon”, the supply of traditional industries shrinks due to environmental protection and production restriction, and the uncertainty of expectation also weakens their willingness to increase production capacity. This year, under the pressure of steady growth, infrastructure investment is advanced and intensified, which has raised the purchase demand for raw materials, The mismatch between supply and demand has pushed up the price of raw materials. Second, the conflict between Russia and Ukraine has exacerbated the market’s concerns about supply, and the prices of non-ferrous metals, energy products, chemical fertilizers and other bulk commodities have risen.
continues the recovery trend since last year
For the current industrial operation trend reflected by the data, Zhu Hong analyzed that, on the whole, the benefit situation of industrial enterprises has continued the recovery trend since last year. However, it should also be noted that from January to February, the profit growth rate of industrial enterprises was significantly lower than that of last year due to the high base, the pressure on enterprise costs increased, and the profit margin and the level of production and marketing connection decreased; The improvement of enterprise profits is still uneven, the profit growth of downstream industries, especially small, medium-sized and micro enterprises, is slow, the production and operation of enterprises still face many difficulties and challenges, and the foundation for the continuous recovery of the efficiency of industrial enterprises is still not solid.
Western Securities Co.Ltd(002673) research report also pointed out that from January to February 2022, the total profits of upstream, midstream and downstream enterprises accounted for 44.4%, 25.1% and 30.5% respectively, and that in December 2021, the profits accounted for 21.5%, 35.5% and 43.0% respectively. The sharp rise in the price of upstream bulk commodities led to the squeeze of upstream profits compared with midstream and downstream enterprises, and the profit pattern did not continue to improve. In terms of specific industry performance, the superposition of various factors led to a significant increase in the profit growth of upstream industries, such as coal mining and washing (+ 98.23 percentage points), oil and gas mining (+ 149.45 percentage points), etc.
Citic Securities Company Limited(600030) research report pointed out that the profit differentiation of enterprises of different types and sizes has intensified. From January to February, the profit of state-owned industrial enterprises increased by 16.7% year-on-year, while the total profit of private enterprises decreased by 1.7% year-on-year. The gap between the two has widened. According to the interpretation of the Bureau of statistics, the improvement of enterprise profits is still uneven, and the profit growth of downstream industries, especially small, medium and micro enterprises, is slow. The profit gap between state-owned enterprises and private enterprises, large enterprises and small and micro enterprises is also a clear reflection of the contradiction between good macro data and weak micro feelings.
As for the future trend of China’s industrial operation, Li Qilin analyzed to the reporter of the daily economic news that the operation trend of subsequent industrial enterprises will be improved due to the policies of tax reduction and fee reduction, supply and price stability and the gradual passing of the epidemic in China.
Specifically, first, the negative impact of the epidemic on the production side is gradually weakening, and all localities have also issued relevant policies to reduce the impact of the epidemic on market operators; Second, exports will support the demand side; Third, under the policy of ensuring supply and price stability, the pressure caused by overseas imported inflation on China can be controlled; Fourth, the state continues to escort manufacturing enterprises from the policy level. One of the core of this year’s policy is to protect the main body of the market. For example, the government work report puts forward that the annual tax rebate and tax reduction is expected to be about 2.5 trillion yuan, of which about 1.5 trillion yuan is reserved for tax rebate, and all the tax rebate funds go directly to enterprises. At present, specific tax rebate schemes have also been put forward. Follow up can focus on the introduction of other policies.
