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economic observer reporter niu yu the disclosure of the 2024 semi-annual performance report has come to an end, and the mid-term report card of a-share listed companies has painted an important picture of domestic economic development.

wind data shows that as of september 4, a total of 5,348 a-share listed companies disclosed their 2024 interim reports. in the first half of 2024, the operating income of a-share listed companies totaled 34.84 trillion yuan, a year-on-year decrease of 0.54%; the net profit attributable to the parent company was 2.89 trillion yuan, a year-on-year decrease of 3.23%.

although the overall revenue and profits of listed companies declined year-on-year, there were many highlights in the interim report season of 2024. in addition to the record high amount of interim dividends, driven by the stabilization and recovery of global commodity trade and the improvement of export competitiveness, the overseas revenue growth rate of a-share listed companies has expanded.

economic observeroriental fortuneaccording to choice data statistics, among the 5,348 a-share listed companies that disclosed their semi-annual reports, 2,812 companies disclosed their hong kong, macao, taiwan and overseas business revenue (hereinafter referred to as "overseas revenue") data in the first half of the year, totaling 3.76 trillion yuan, a year-on-year increase of 9.99%.

ping an securities research report stated that in the first half of 2024, the macro-economy continued to be constrained by insufficient effective demand, and the profits of real enterprises recovered with twists and turns. the structural highlights were the marginal recovery of the export chain, price increase chain, service consumption, and the technology sector.shenwan hongyuanstatistics show that the booming external demand has accelerated the pace of companies' overseas expansion. according to the mid-term report disclosure, the proportion of overseas revenue of a-share listed companies has increased to 13.1%, a record high since 2005.

increasenew impetus

amid a new round of overseas expansion, the number of a-share listed companies exploring overseas markets and looking for new growth space increased in the first half of this year.

according to the statistics of oriental fortune choice data from the economic observer, compared with the end of 2023, there were 51 a-share listed companies that disclosed overseas revenue data in the first half of 2024, with a total overseas revenue of 497.189 billion yuan.

china merchants securitiesresearch report data shows that in the first half of the year, the overseas revenue growth rate of a-share listed companies was 7.2%, an increase of 5.9 percentage points year-on-year and 3 percentage points higher than the end of 2023. the proportion of overseas revenue of a-share listed companies in total revenue was 10.3%, an increase of 1.1 percentage points year-on-year and 3.2 percentage points higher than the same period in 2019.

according to oriental wealth choice data, in the first half of 2024, the top ten a-share companies with the highest overseas revenue had a total revenue of 807.093 billion yuan, accounting for 41.49% of the total revenue of the main businesses of these ten companies.

specifically, the listed companies with overseas business revenue exceeding 80 billion yuan in the first half of the year are:luoyang molybdenum co., ltd.（603993.SH）、midea group（000333.SZ）、luxshare precision（002475.SZ）、byd(002594.sz), cosco shipping holdings (601919.sh), and cnooc (600938.sh).

among them, luoyang molybdenum's overseas revenue in the first half of the year was 93.582 billion yuan, an increase of 73.06% year-on-year, accounting for about 91.08% of its total revenue. luoyang molybdenum is a producer of copper, cobalt, molybdenum, tungsten and niobium, with its main businesses in asia, africa, south america and europe. as an upstream cyclical enterprise, luoyang molybdenum is greatly affected by product price fluctuations. in the first half of the year, copper prices rose by 4.45% year-on-year. during the same period, its two world-class mines in congo achieved concentrated production release, which led to a substantial increase in the company's performance.

china communications construction（601800.SH）、bank of china(01988.sh) had overseas revenues of 69.637 billion yuan and 67.954 billion yuan in the first half of the year, respectively, with significant year-on-year growth. however, since the overseas business of these two companies accounted for a relatively small proportion, less than 1/4, they did not form a strong driving force for the overall performance. in the first half of the year, the main business revenues of china communications construction and bank of china fell slightly by 2.27% and 0.67% year-on-year, respectively.

"companies with a higher proportion of overseas revenue are showing a better trend in the growth rate of revenue and profits." according to a research report by shenwan hongyuan, for example, the group of companies with overseas revenue accounting for 80% to 100% will have revenue and profit growth rates of 11.7% and 33.2% respectively in the second quarter of 2024, while the group of companies with overseas revenue accounting for less than 20% will have revenue and profit growth rates of only -2.9% and -2.7% in the second quarter.

what to expect?

the world is currently entering the fifth international industrial transfer, and the global value chain division of labor system is accelerating its reconstruction. under this macro background and with the support of relevant policies, chinese companies are becoming more and more enthusiastic about going overseas.

which industries have had the fastest growth in overseas revenue in the past two years?

data from china merchants securities research reports show that from the first half of 2022 to the first half of 2024, compared with the first half of 2019 to the first half of 2021, the industries with a significantly higher proportion of overseas revenue include beauty care, machinery and equipment, electronics, automobiles, power equipment, textiles and apparel, basic chemicals, etc., which increased by 8.9, 7.7, 7.5, 7.2, 5.9, 4.6 and 4.4 percentage points respectively.

from the performance point of view, ping an securities found that in the midstream manufacturing industry, some industries that benefited from going overseas were in a better state of prosperity. for example, the overseas business revenue of the construction machinery and marine equipment industries increased by 9.4% and 81.4% year-on-year respectively in the interim report, and the profit growth rate in the interim report was 6.3% and 132.5% respectively, which was significantly better than the overall manufacturing sector, and the market also gave it more attention and premium.

in addition, on the downstream consumer side, the automobile and home appliance industries benefited from some incremental demand brought about by going overseas and the domestic "old for new" policy. overseas business revenue increased by 10.7% and 13.9% year-on-year respectively, and profit growth rates reached 22.1% and 8.1% respectively.

for example, midea group (000333.sz) had overseas revenue of 91.076 billion yuan in the first half of the year, a year-on-year increase of 13.09%, higher than the 8.37% growth rate of domestic market revenue. the reason behind its continued growth is the rapid expansion of the export scale of the home appliance industry. according to data from the general administration of customs, in the first half of this year, the cumulative export value of china's home appliances was 347.9 billion yuan, a year-on-year increase of 18.3%, maintaining a relatively fast growth rate.

from the perspective of capital market performance, wind data has included 120 companies whose main business income comes mostly from overseas into the overseas index (8841070.wi). from 2018 to the end of 2020, the increase in the overseas index was significantly lower than that of the csi 300 index, but since the second half of 2021, the overseas index has been ahead of the csi 300 index.

since the beginning of this year, the index has not risen well. from the beginning of this year to the close of september 5, the index fell by 13.73%, while the csi 300 index fell by 5.05% during the same period. the constituent stocks with higher gains this year are: pengding holdings (002938.sz) rose by 55.56%, shenghong technology (300476.sz) rose by 53.93%, luoyang molybdenum co., ltd. rose by 35.31%, fuyao glass (600660.sh) rose by 32.28%, and byd (002594.sz) rose by 29.27%.

ping an securities said that the logic of enterprises going overseas to seek new growth is still continuing. looking ahead, there are still many uncertainties in the changes in the external environment. the fed’s interest rate cuts in september are a foregone conclusion, but the subsequent rate cut rhythm and the impact on the demand side are still unclear; geopolitical uncertainties remain, and trade protectionism is still heating up.

huachuang securities research report pointed out that from the perspective of total volume, external demand has objectively cooled down, and the downward pressure on exports may intensify in the future; and the risks may be relatively greater from november to december. first, in july, the jpmorgan chase global manufacturing pmi (purchasing managers index) fell below the boom-bust line again after half a year; second, the average manufacturing pmi of major economies continued to decline in august; third, from the historical median of the pmi new order index in the same period, the seasonal weakening may occur from november to december, which may also become one of the potential factors for the intensification of export fluctuations in the fourth quarter.

according to a research report by cicc, the essence of enterprises going overseas is the logic of "market growth" or "market re-growth". the pricing demand side of leading enterprises with global competitiveness is expanding, and in the process of extending from the original domestic market space to the global market, it may bring about revaluation and become one of the core logics of future investment. the process of enterprises going overseas is also accompanied by the process of industrial upgrading. great enterprises are often born in changing situations.