Firms report improving profitability

▶ Chemicals, machinery, electronics best performers

A majority of Chinese listed firms expect improved profitability in 2018 as the country’s economy maintains its stable development.

Some 1,218 listed companies have already released their preliminary 2018 financial reports, with 781 companies expecting rising net profits or the turning of losses into gains, Shanghai Securities News reported on Tuesday.

Profit growth in 344 companies is expected to exceed 50 percent, while 170 companies predicted their 2018 net profits will more than double compared with 2017.

The newspaper said the improvements were caused by factors including strong performance in their primary businesses, restructuring and rise in efficiency.

Among them, chemicals, machine manufacturing and electronics were bright spots.

Rising prices for chemical products boosted profitability in the sector, with 91 companies reporting they expected a growth in profits, ranking the first, followed by 71 machine manufacturers and 68 electronics firms.

Yantai Jereh Oilfield Services Group Co Ltd predicted a net profit in the range of 529 million yuan ($76.67 million) to 563 million yuan, up 680-730 percent, due to recovery in the oilfield services market globally, which boosted demand for drilling equipment and oilfield technology services.

Zhejiang Supor Co Ltd, a cookware company, predicted a rise in profits of up to 30 percent year-on-year, thanks to increasing sales of cookware and electronic equipment.

The Chinese economy has displayed strong resilience, with GDP expanding 6.7 percent in the first three quarters of the year, above the government’s annual growth target of around 6.5 percent set for 2018, according to data from the National Bureau of Statistics (NBS).

The economy has expanded in a reasonable range and maintained a trend of overall stability and steady progress, the statistical authority said, while acknowledging that the country faces more external challenges and rising downward pressure.

Consumption still played a prominent role in driving growth, contributing 78 percent of the GDP.

Xinhua – Global Times