A Shares Quarterly Report: 70% Companies Show Resilience To Maintain Profitability

April 30th is the end of 2019 annual report. It is also the official closing date for the first quarter reports of Listed Companies in 2020.

Compared with previous years, the market's attention to the quarterly reports of listed companies was not inferior to that of the 2019 annual report.

"The data of a quarterly report will have a very important impact on the investment decision and the forecast of the industry after the year." Cao Gang, an investment partner of zhe Hao, told the twenty-first Century business reporter.

As of press release, the Shanghai and Shenzhen two cities have 3162 companies released a quarterly report in 2020. From the overall data, the total income of the 3162 enterprises was 7 trillion and 800 billion yuan, and the net profit attributable to the parent company was 730 billion 678 million yuan, representing a decrease of 7.3% and 18.65% compared with the same period last year.

Listed companies also showed strong resilience during the epidemic. Although operating income and net profit declined over the same period last year, 70% of all more than 3000 companies achieved profits.

Epidemic impact appears

The arrival of the new crown pneumonia has a direct impact on the performance of Listed Companies in the first quarter.

According to the statistics of Wan Lian securities, there are 25 first tier industries and 84 two industries in the 28 first tier industries and 104 two tier industries. The industry's rolling price earnings ratio at the end of the first quarter has dropped compared with the previous quarter.

In addition, according to the listing board, in the first quarter of this year, the net profit of A shares fell to 23.45% compared with the same period last year, of which the motherboard decreased by 24.07% compared with the same period last year, while the small and medium size boards decreased by 15.73% compared with the same period last year, and the gem fell by 24.84% compared with the same period last year, and the Innovation Board increased 13.90%.

Wan Lian securities analyst Xu Fei analysis said: "according to the data we selected, upstream, middle reaches and downstream target companies in the first quarter of 2020 were lower than the fourth quarter of 2019, and the performance of upstream companies decreased significantly. We believe that the main reason for the performance of upstream companies is that these companies have increased the pressure on the demand side by the middle and lower reaches, resulting in a sudden increase in pressure. In addition, the upstream office can not replace the telecommuting companies in the resumption of production and recovery, and it is more difficult to resume production than those in the middle and lower reaches.

However, from the current situation of epidemic control in the country and the recovery of the national economic work, the negative effects of the epidemic will also come to an end.

A fund manager of the China financial foundation told the twenty-first Century economic report: "it is expected that domestic demand will gradually improve in May, and the two sessions will be held in May 21st. It will also eliminate economic uncertainty to a certain extent. In the short term, A shares will rebound slightly. In the long and medium term, A shares are relatively low and have high allocation value. A series of institutional reforms represented by the gem registration system will improve the capital market, improve the allocation efficiency of capital elements, and promote the long-term development of the A share market.

Several families are unhappy.

From the industry level, there has been a more obvious differentiation performance, the so-called "a few unhappy families."

"Agriculture, food, medicine, electrical equipment and other industries have a high degree of prosperity. Affected by the epidemic, in the case of a sharp decline in overall performance, there is not much industry that maintains a high growth rate or positive growth in a quarterly report. Demand for consumer goods such as agriculture, forestry, animal husbandry, fishery, food and beverages is stable, and at the same time, it is benefited from the growth of hog prices and the demand for leisure food at home. The industry has a high degree of prosperity. The demand for medical equipment and consumables is increased by the epidemic situation. The impact of the epidemic on electronic and electrical equipment is lagging behind, and benefited from the support of last year's orders, which is limited by the impact of domestic epidemic. Galaxy Securities analyst Hong Liang said.

Some industries have become the beneficiaries of the new crown pneumonia epidemic. A quarterly report by reporters showed that the changes in food consumption were most obvious.

Typical listed companies include Kaiming noodle, peach and plum bread. The Quarterly Bulletin released by the Kaiming noodle industry in 2020 showed that, thanks to "eating noodles at home", the Kaiming noodle industry achieved 886 million yuan in the first quarter, an increase of 12.83% over the same period, and a net profit of 103 million 800 thousand yuan, an increase of 69.72% over the same period.

The Keming noodle industry said that during the new crown pneumonia epidemic, household consumption demand was strong, and the main product noodle of the company belonged to the staple food demand of the staple food household, which was in short supply. In addition, the company spent a lot of sales promotion costs, a rise or fall between the company's performance has been significantly improved.

Chen Yan, director of the Kaiming noodle industry, also told reporters on twenty-first Century economic report: "before the capacity was not fully opened, the backlog of orders would be more, with 4-5 tons. Now all our production lines have been opened up, and the total order has not been reduced to more than 20 thousand tons. But orders are circular, and new orders will be received every day.

In addition, agriculture, forestry, animal husbandry and fishery industry also achieved operating income of 123 billion 790 million yuan in the first quarter, an increase of 17.32% over the same period, and a net profit of 14 billion 12 million yuan, an increase of 387.76% over the same period last year.

But in contrast, construction, textile and clothing, transportation, leisure services, and commercial trade have obvious pressure. Industries with a negative growth rate of more than 80% stocks include building decoration, textile and clothing, building materials, transportation and leisure services. Under the prevention and control of epidemic situation, enterprises are delayed in resuming work and resuming production, and residents' consumption intention and consumption ability are restrained. Therefore, the profits of manufacturing industry, industry, optional consumption and service consumer enterprises are greatly affected.

According to the statistics of journalists, the 6 industries, such as media, building materials, automobiles, textile and clothing, and leisure services, have seen a decrease of more than 20% in the first quarter, of which the leisure service has dropped by 48.19%.

"The reason for the decline of these industries is also obvious, because the residents of the epidemic situation can not go out. The leisure services consisting of tourism, catering and hotels are in a state of stagnation in February or even in some parts of the country in March. With the control of the epidemic in the country and the resumption of consumer behavior, these industries will gradually pick up in the two or three quarter. But the volatility of the first quarter has a great impact on the whole year's performance. Cao Gang told reporters.

Xu Fei also said: "compared with the rolling price / earnings ratio at the end of last year, the end of the first quarter of this year, the highest price earnings ratio fell by the largest industrial sectors, including leisure services, real estate, and non banking finance. Because of the favorable policies to encourage consumption, interest rate cuts and gem reform and pilot registration system, short-term or probabilistic valuation is restored."