On April 27, the National Bureau of Statistics released data showing that from January to March, industrial enterprises above designated size realized a total profit of 1,516.74 billion yuan, a year-on-year decrease of 21.4%.
Zhou Maohua, a macro researcher at the Financial Market Department of China Everbright Bank, told the “Securities Daily” reporter that the profits of industrial companies fell year-on-year in the first quarter, mainly due to the current stage, domestic demand is in the recovery stage, commodity prices such as energy have fallen, and the overall price of industrial products has been sluggish and affected by the base. In addition, the impact of automobile price fluctuations in February also dragged down the profits of the industrial sector in the entire first quarter.
Among them, in March, driven by the sound macroeconomic performance and the recovery of market demand, the operating income of industrial enterprises above designated size increased by 0.6% year-on-year, while it fell by 1.3% from January to February, reversing the continuous decline since November last year. The growth of operating income has promoted the improvement of the profits of industrial enterprises. In March, the profits of industrial enterprises above the designated size fell by 19.2% year-on-year, a decrease of 3.7 percentage points compared with the first two months.
Among the 41 major industrial sectors, the profit growth rate of 22 industries accelerated or the rate of decline narrowed compared with January-February, accounting for 53.7%.
“Since February, domestic demand has picked up steadily, domestic bailout support has not diminished, and the operating conditions of the industrial sector have shown signs of improvement.” Zhou Maohua said.
It is worth noting that the profits of the equipment manufacturing industry have improved significantly. In March, the operating income of the equipment manufacturing industry changed from a year-on-year decrease of 2.4% in January-February to an increase of 5.4%, and its profit decreased by 7.0% year-on-year, a sharp decrease of 19.1 percentage points compared with January-February. industry sector. Among them, due to factors such as the recovery of market demand and the recovery of production and sales, the profit of the automobile manufacturing industry turned from a 41.7% decline in January to February to an increase of 9.1%.
At the same time, the profits of the electrical and water industries maintained rapid growth. In March, the profits of the electricity, heat, gas and water production and supply industry increased by 27.6% year-on-year, continuing to maintain rapid growth. Among them, as the economy stabilized and recovered, the demand for electricity increased, and the production of electricity was significantly accelerated. The profit of the electric power industry increased by 41.9%.
In March, the effects of the policy of expanding domestic demand and promoting consumption continued to be released, and the recovery momentum of consumption was good, and the profitability of some consumer goods manufacturing industries improved. Among the 13 consumer goods manufacturing industries, the profits of 7 industries improved compared with the first two months. Among them, the profits of the wine, beverage and refined tea industries increased by 39.9% year-on-year, and the growth rate was significantly faster than that in January-February; the profits of the food and furniture industries increased by 0.8% and 0.7% respectively, and the profits all changed from decline to increase; textile, printing, chemical fiber , The decline in the profits of the paper industry has narrowed compared with that in January-February.
Sun Xiao, a statistician from the Industry Department of the National Bureau of Statistics, pointed out that the decline in the profits of foreign-funded enterprises has narrowed significantly. In March, policies and measures to stabilize foreign investment and foreign trade took effect, and the efficiency of foreign-funded enterprises improved significantly. The decline in operating income of foreign and Hong Kong, Macao and Taiwan-invested enterprises narrowed by 5.2 percentage points compared with January-February, and the profit fell by 7.1% year-on-year, a sharp decrease of 28.6 percentage points compared with January-February.
“Overall, the decline in profits of industrial enterprises is still relatively large, and the loss and amount of losses of enterprises are still relatively high, but the year-on-year decline in upstream prices will help improve the profitability of downstream industries.” Sun Xiao said that in the next stage, we should continue to focus on expanding market demand. Boost market confidence, improve business expectations, improve the level of production and sales, and accelerate the recovery of industrial enterprises’ profits.
From the perspective of trends, Zhou Maohua predicts that in the short term, the year-on-year growth rate of industrial sector profits will still be in the contraction zone, mainly due to the high base last year, the low prices of energy and other commodities, the demand is in the recovery stage, and some industries and enterprises are in the late stage of destocking, etc. The price of industrial products has increased. Vibration is limited. However, domestic demand is showing a good recovery trend, and the bailout support policies for industrial enterprises are strong and effective. It is expected that the operating conditions of the industrial sector will improve steadily.
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