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Interface News Reporter | Pang Yu

According to the plan, 385 listed companies will disclose their semi-annual reports this week, among which about 30% of the companies have disclosed their performance forecasts in advance.

Among the 127 companies that have released forecasts, 71 companies are expected to increase, 16 are expected to turn losses into profits, 14 are expected to decrease, and 26 are expected to make losses. The proportion of companies with good performance forecasts (expected increase + turn losses into profits) exceeds 70%.

Among the companies expected to increase their performance, there are seven companies whose net profit increased by more than 5 times, namely Xinxiang Chemical Fiber (000949.SZ), Yongshan Lithium (603399.SH), ST Shengtun (600711.SH), Juneyao Airlines (603885.SH), Shanghai Airport (600009.SH), Qinglong Pipe Industry (002457.SZ), and Darui Electronics (300976.SZ).

Xinxiang Chemical Fiber, a company in the basic chemical industry, expects to achieve a net profit of 130 million to 170 million yuan in the first half of 2024, a 10-fold to 14-fold increase year-on-year. The company's net profit in the first quarter was 62.2314 million yuan. Based on this calculation, the net profit in the second quarter is expected to be 67.77 million to 108 million yuan, a month-on-month increase of 9% to 73%. The reason for the company's performance growth is that the demand for biomass cellulose filaments has increased, sales have increased year-on-year, and at the same time, the price of raw materials and energy has decreased year-on-year, which has reduced the unit cost of products, increased the gross profit margin of biomass cellulose filaments, and significantly increased gross profit.

Against the backdrop of the overall downturn in the lithium salt market, Yongshan Lithium (formerly known as Jixiang Shares) is one of the few listed lithium companies that has achieved profitability and expected growth in the first half of the year. It is expected that net profit attributable to the parent company in the first half of this year will be 50 million to 75 million yuan, a year-on-year increase of 460% to 740%. The reason can be attributed to the company's increased capacity utilization and significant cost reduction results through expanding production scale under the overall decline in product prices.

However, judging from Yongshan Lithium's past financial reports, the company's performance is not stable. In the five years from 2019 to 2023, its net profit incurred losses in three years, namely -226 million yuan, -263 million yuan, 16.4615 million yuan, 492 million yuan and -337 million yuan.

ST Shengtun expects to achieve a net profit of 1.06 billion to 1.26 billion yuan in the first half of this year, an increase of 546% to 668% over the same period last year. The reason for the performance growth is that the company's main product copper has increased in volume and price. In the first half of the year, the company's copper production was about 80,000 tons, a year-on-year increase of 79%; the main metal copper market price continued to improve, and the price of the company's main product cathode copper increased compared with the same period last year.

It is worth mentioning that not long ago, ST Shengtun was subject to "other risk warnings" for financial fraud. According to the "Administrative Penalty Advance Notice", from December 2021 to the first half of 2023, the company carried out cobalt hydrometallurgical intermediate product sales business with relevant customers, and there were behaviors such as recognizing income when the goods were delivered to relevant customers without actually transferring the control rights, which led to errors in the company's financial data. This behavior touched on other risk warning situations, and the company's stock has been "capped" since August 1, 2024.

With the recovery of aviation market demand, Juneyao Airlines achieved good performance in the first half of the year, with an estimated profit of 450 million to 550 million yuan, a year-on-year increase of 460% to 584%. The company said that in the first half of the year, benefiting from the increase in travel demand during the Spring Festival and other holidays, the opening and resumption of international routes, domestic and international passenger turnover and passenger load factor increased year-on-year, and net profit increased significantly compared with the same period last year.

Among the airport sectors, Shanghai Airport has the highest growth rate in performance, with an estimated profit of 710 million to 870 million yuan in the first half of the year, an increase of 436% to 557% over the same period last year. The expected increase in performance is mainly due to the accelerated recovery of business volume at the two major airports in Shanghai since 2024, the company's efforts to resume international flights and open new routes, continuously improve the passenger route network, and increase aviation and non-aviation business revenue.

According to the semi-annual performance forecasts of 11 listed airlines and airports compiled by Choice, the fundamentals of the civil aviation industry continue to improve. In addition to Juneyao Airlines, Spring Airlines (601021.SH) is expected to increase its net profit, and China Express Airlines (002928.SZ) has turned losses into profits. Although China Southern Airlines (600029.SH), Air China (601111.SH), China Eastern Airlines (600115.SH), and HNA Holdings (600221.SH) are still in a loss-making state, they have all reduced their losses year-on-year. All members of the airport sector are profitable. In addition to Shanghai Airport, Baiyun Airport (600004.SH) and Xiamen Airport (600897.SH) are expected to increase their net profits, and Shenzhen Airport (000089.SZ) is expected to turn losses into profits.

Qinglong Pipe Industry, a building materials industry, expects to make a profit of 65 million to 90 million yuan in the first half of this year, an increase of 372% to 554% year-on-year. In the first quarter of this year, the company was still in a loss-making state (net profit of about -1.13 million yuan). Based on this calculation, its second quarter turned losses into profits and grew significantly, compared with the net profit of 15.56 million yuan in the second quarter of last year, a year-on-year increase of 3 to 5 times. However, Qinglong Pipe Industry's performance has fluctuated greatly in recent years, with profits of 143 million yuan, 168 million yuan and 24.8716 million yuan in 2021-2023 respectively.

Consumer electronics company Darui Electronics expects to make a profit of 93 million to 111 million yuan in the first half of this year, a year-on-year increase of 4 to 5 times. The company explained that the increase in orders for consumer electronics and new energy businesses, coupled with the company's internal cost control, has saved costs and led to growth in performance. Darui Electronics is mainly engaged in the research and development, production and sales of structural and functional devices, covering two major areas of consumer electronics and new energy. Since the beginning of this year, the consumer electronics market has shown signs of recovery, and some consumer electronics companies have recovered.

Among the 26 companies that are expected to suffer losses this week, five have losses of more than 100 million yuan, namely *ST Ningke (600165.SH), ST Zhongtai (002092.SZ), Hubei Radio and Television (000665.SZ), Longpan Technology (603906.SH), and Topsec (002212.SZ).

*ST Ningke has the highest expected loss, with a loss of about 400 million to 500 million yuan. The company explained that the reason for the loss was that the equity of Ningxia Yellow River Rural Commercial Bank Co., Ltd. held by the company no longer met the equity method accounting, and the company adjusted it to trading financial assets, resulting in an investment income of -257 million yuan. In addition, the company's important subsidiary Ningxia Zhongke Biological New Materials Co., Ltd. is currently in a temporary suspension state, the trial production output is low, and the accumulated depreciation and other fixed expenses and financial expenses have led to losses.

Prior to this, *ST Ningke had been in the red for three consecutive years, with net losses of 22.96 million yuan, 141 million yuan, and 466 million yuan in 2021-2023 respectively. The loss margin further expanded in the first half of this year.