Leading the four major high-growth sectors: semiconductors, pharmaceuticals, biotechnology, and others

As of yesterday, more than 30 listed companies in China’s A-share market have released advance guidance for their first-quarter results. The proportion of companies expected to perform well exceeds 90%. Three companies reported year-over-year net profit growth of more than 10 times, with the highest year-ahead increase reaching 5383.14%. Against the backdrop of steady macroeconomic recovery, the explosive surge in demand for AI computing power, and the upward shift of industry cycles, four key sectors—semiconductors, pharmaceutical and biologicals, non-ferrous metals, and high-end manufacturing—have become the main drivers of performance growth. The core logic centers on a simultaneous increase in both volume and prices, domestic substitution, and policy tailwinds.

Judging from the guidance already disclosed, A-share first-quarter performance overall has been impressive. Among 32 companies, 29 are expected to deliver positive results (forecast of profit increase, slight increase, or turnaround), while only 3 are expected to incur losses or continue losses. Among them, Deliming, Fuxiang Pharmaceutical, and Oke Yi have become the “front-runners” for earnings growth, with year-over-year net profit growth of 5383.14%, 3250.01%, and 2770.86%, respectively.

Deliming expects its net profit attributable to shareholders for the first quarter to be RMB 3.15 billion–3.65 billion, turning from loss to profit year over year, with growth of more than 46 times. Its single-quarter earnings are close to 5 times the full-year 2025 figure. The company benefits from the surge in demand for AI servers and a sharp increase in enterprise-level storage orders, together with the strategic stockpiling of raw materials in the earlier period, which has significantly improved its gross margin. Fuxiang Pharmaceutical expects net profit of RMB 52 million–75 million, up more than 22 times year over year, benefiting from higher prices of its electrolyte additive products and capacity release. Wanbangde expects net profit of RMB 165 million, up 985.4% year over year; its pharmaceutical manufacturing business has clearly rebounded.

With the rebound of industry cycles resonating alongside the explosive surge in AI computing power demand, the semiconductor sector has become the biggest highlight of the first quarter. Hygon Information (Haiguang Information) expects net profit of RMB 620 million–720 million, up 22.56%–42.32% year over year, as high-end processors continue to benefit from sustained AI demand expansion. Dinglong Co., Ltd. expects net profit of RMB 240 million–260 million, up 70.22%–84.41% year over year, with steady growth in its semiconductor materials business.

Industry insiders said that first-quarter earnings guidance reflects an intensifying structural split in the A-share market: high-excitement sectors and high-quality leading companies continue to stay out in front. With the advancement of the AI industry and deeper economic recovery, companies with high growth in earnings are expected to keep attracting ongoing capital preference, becoming the main theme of the market.

By/Reporter Zhu Kaiyun

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