Almost all SZSE A-share companies projected to make profits

Ninety percent of A-share companies on Shenzhen Stock Exchange are expected to make profits, according to their disclosed 2022 annual report or performance as of April 8, China Securities Journal reported on Sunday.

The 848 companies in total on the Shenzhen A-share market achieved a net profit of 691.41 billion yuan ($100.54 billion), showing an overall positive trend.

Each company is expected to earn an average net profit of 815 million yuan, with a three-year compound growth rate of 19.77 percent.

Among them, 763 are expected to make profits, while 484 will record year-on-year growth in net profit, accounting for 90 percent and 60 percent, respectively, said the journal.

Large enterprises dedicated to serving major national strategies have played an exemplary role and "little giant" companies in niche industries with cutting-edge technologies have shown strong momentum in the stock market.

Contemporary Amperex Technology Co Ltd, the world's largest electric vehicle battery maker, earned operating revenue of 328.59 billion yuan and net profit of 30.73 billion yuan in 2022, an increase of 152 percent and 93 percent year-on-year, respectively.

China's largest NEV maker BYD generated revenue of 424.06 billion yuan and net profit of 16.62 billion yuan in 2022, up 96 percent and 446 percent, respectively from a year earlier.

It has held the top spot in China's new energy vehicle sales for 10 consecutive years, with a 27 percent market share in 2022, up nearly 10 percentage points year-on-year.

The 196 "little giant" companies posted an average revenue of 8.69 billion yuan with the average net profit of 612 million yuan, said the journal citing their released performance for 2022.

Among them, TCL Zhonghuan Semiconductor Co Ltd, a subsidiary of TCL that focuses on semiconductors and new energy, recorded 6.82 billion yuan in net profit in 2022, up 69 percent on a yearly basis.

The net profit of JA Solar Technology Co Ltd and Semcorp rose 171 percent and 47 percent year-on-year to 5.53 billion yuan and 4 billion yuan, respectively.

The robust performance of those listed companies in SZSE hinged on continuous investment in R&D and innovation.

Of 647 listed companies in the Shenzhen A-share market that have reported their annual results, 615 have published their R&D investment, with a total of 275.17 billion yuan. The average R&D investment per company was 447 million yuan, taking up 3.7 percent of the average operating revenue.

ZTE Corporation currently topped the R&D investment list in the Shenzhen stock market with an annual R&D investment of 21.60 billion yuan, accounting for 17.6 percent of its operating revenue.