Key investment points:
This report comments on the profit data of Chinese industrial enterprises published every month.
Profits of industrial enterprises increased by 5% from January to February
From January to February, the profits of Industrial Enterprises above designated size increased by 5% year-on-year, down 29.3 percentage points from the previous value; However, the monthly profit growth rate rose slightly by 0.8 percentage points compared with that in December last year.
The profits of state-owned enterprises increased by 16.7% year-on-year, down 39.3 percentage points from the previous value; The profits of private enterprises decreased by 1.7% year-on-year, down 29.3 percentage points. The profit growth rate of all kinds of ownership enterprises fell sharply, and the profit growth rate of private enterprises turned negative.
The profit of manufacturing industry increased negatively, and the mining industry maintained high growth
From January to February, the profit of mining industry increased by 132% year-on-year; Manufacturing profits decreased by 4.2% year-on-year; The profit of power, heat and gas industry decreased by 45.3% year-on-year. The profits of the mining industry continued to grow at a high speed, the profits of the manufacturing industry fell, and the profit decline of the power industry further increased.
From the profit proportion of the three major industries, the profit proportion of the mining industry increased significantly from 11.9% of the previous value to 20.2% from January to February; The proportion of manufacturing profits decreased from 84.5% to 75.7%.
Among the 31 manufacturing industries, 13 industries have achieved year-on-year growth in profits, and continue to show differentiation among industries: the profits of some upstream industries still maintain a high growth rate, such as non-ferrous metal smelting and rolling processing industry, chemical raw materials and chemical products manufacturing industry, etc; The equipment manufacturing industry in the middle and lower reaches generally fell. For example, the profits of general equipment manufacturing industry, computer communication equipment manufacturing industry, instrument manufacturing industry, automobile manufacturing industry and other industries decreased year-on-year.
The profitability declined significantly and the inventory turnover slowed down
From January to February, the operating revenue increased by 13.9% year-on-year, down 5.5 percentage points; Operating costs increased by 15% year-on-year; The profit margin of operating revenue was 5.97%, down 0.84 percentage points month on month. Enterprise sales fell significantly, resulting in a marginal decline in profitability.
At the end of February, the inventory turnover days of finished products were 19.8 days, an increase of 3 days month on month; The growth rate of finished goods inventory fell by 0.3 percentage points to 16.8%. The inventory margin has been removed, but the growth rate of finished product inventory is still at a high level; The speed of inventory turnover slowed down significantly.
It is expected that the differentiation pattern of upstream and downstream profits will continue in March
From the high-frequency data, the price of upstream industrial products continued to rise in March. We expect that the profits of upstream industries such as mining industry will maintain high growth in March, while the erosion effect of high upstream prices on the profits of downstream manufacturing industry will continue to appear, and the pattern of differentiation of industrial profits between upstream and downstream will continue.
Risk tips
The economy has changed more than expected.
