Zhou Yang’s cartography
According to data released by the National Bureau of Statistics on October 27, the operating income of industrial enterprises above designated size in the first three quarters increased by 8.2% year-on-year, continuing the rapid growth trend. Corporate profits fell by 2.3% year-on-year, but the industry structure of profits improved. Growth accelerated.
In terms of different industries, the profits of the equipment manufacturing industry, as well as the production and supply industries of electricity, heat, gas and water, have turned from decline to increase for the first time this year.
Data show that in the first three quarters, the profits of the equipment manufacturing industry increased by 0.6% year-on-year, driving the profit growth rate of industrial enterprises above designated size to rebound by 0.8 percentage points from January to August; the profits of electricity, heat, gas and water production and supply industries increased by 4.9% year-on-year. , the profit growth rate of industrial enterprises above designated size rebounded by 0.6 percentage points from January to August.
Zhu Hong, senior statistician of the Industrial Department of the National Bureau of Statistics, analyzed that the power industry was driven by factors such as the increase in electricity demand and the decline in coal price increases. Profits in the first three quarters increased by 11.4% year-on-year, reversing the decline that lasted for more than a year.
“Under the background of falling international oil prices and stable domestic supply, it is expected that the probability of coal prices rising sharply is low. In the future, the cumulative profit of the electricity, heat, gas and water production and supply industries will remain in a positive growth range year-on-year.” Zheng Houcheng, director of Yingda Securities Research Institute, told a reporter from Shanghai Securities News.
Affected by factors such as high commodity prices, the profit growth rate of the mining industry continued to maintain rapid growth. In the first three quarters, the profit of the mining industry increased by 76% year-on-year. Among them, the profit of coal mining and dressing industry increased by 88.8% year-on-year; the profit of oil and gas mining industry was 1.12 times that of January to August.
The profit growth rate of the electrical machinery industry in the equipment manufacturing industry is also relatively fast. Zhu Hong analyzed that the electrical machinery industry was driven by the production growth of photovoltaic equipment and energy storage equipment, and the profit in the first three quarters increased by 25.3% year-on-year, and the growth rate was 4.4 percentage points higher than that from January to August.
“The profits of the mid- and downstream equipment manufacturing, electric power and heating industries continue to improve, reflecting the gradual improvement of the upstream and downstream profit distribution structure of my country’s industrial manufacturing sector,” said Zhou Maohua, a macro researcher at the Financial Market Department of China Everbright Bank.
Another manifestation of the improvement in profit structure is the accelerated profit growth of SMEs. In the first three quarters, the profits of small and medium-sized enterprises increased by 1.5% year-on-year, 0.6 percentage points faster than the growth rate from January to August.
Zhu Hong analyzed that as the economic stabilization package and succession policies have taken effect, the recovery of the industrial economy has accelerated, and the efficiency of enterprises has gradually improved. The decline in profits of industrial enterprises in September narrowed by 6 percentage points compared with August.
“Multiple signs show that the profits of industrial enterprises in September have entered the track of bottoming out, stabilizing and rebounding. At present, the economic data for the third quarter has been released, and the trend of macroeconomic stabilization and operation has become clearer. my country’s industrial production is more capable of resisting risks and self-repairing. With the continuous efforts of the follow-up economic stabilization policy, the operating conditions of industrial enterprises will be further improved, and the profit growth rate of industrial enterprises above designated size is more likely to turn from negative to positive during the year.” Luo Huanjie, a senior macro researcher at Zhixin Investment Research Institute predicted .
Zhou Maohua also said that from the trend, the profit structure of the industrial sector will be further improved, and the operating efficiency is expected to gradually improve. At present, domestic demand continues to recover, and a series of policies to help, maintain supply and stabilize prices, reduce costs and increase efficiency, and expand effective demand will help improve the operating efficiency of the industrial sector from both the supply and demand sides.
Zhu Hong said that in general, the benefits of industrial enterprises continue to recover, but it should also be noted that the current profits of industrial enterprises are still declining year-on-year, the cost level of enterprises is still high, and there are still certain difficulties in the production and operation of some industries and enterprises. The economic situation has become more severe and complex, and the continuous recovery of industrial enterprises’ efficiency is facing risks and challenges. In the next step, the focus of economic development should be placed on the real economy, efficiently coordinate epidemic prevention and control and economic and social development, focus on promoting a series of measures to stabilize the economy, and consolidate the momentum of the recovery of the industrial economy.
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