Listed firms log stellar performances, boosted by bright spots in consumption, exports

BEIJING - China's listed companies recently released their annual 2023 reports, reporting robust performances with bright spots noted in the consumer and export markets, analysts have said.

Buoyed by consumption boom

In 2023, listed companies in the transportation, warehousing, and postal industry generated 2.07 trillion yuan ($291.35 billion) in operating revenue and reaped 170 billion yuan in net profits, a year-on-year increase of 4.78 percent and 57.13 percent, respectively, according to the China Association for Public Companies (CAPC).

"The full-year performance of listed companies in 2023 has shown that industries that had suffered greatly, such as commercial and retail, consumer services, and transportation, performed well with fast growth and reversed their previous losses," said Li Qiusuo, an analyst with the research department at China International Capital.

Li especially highlighted the aviation sector, which reduced losses significantly in 2023. Net profits of listed companies in the sector climbed 96.37 percent year-on-year during the period, according to the CAPC.

Analysts attribute the palpable improvement in performances of consumer-related listed companies to China's consumption recovery. Last year, China's final consumption contributed 82.5 percent to GDP growth, with retail sales of consumer goods up 7.2 percent year-on-year to over 47 trillion yuan.

The warmer sentiment for travel spending also extended to this year's five-day May Day holiday. Data from the Ministry of Culture and Tourism revealed that about 295 million domestic tourist trips were made during the holiday, up 28.2 percent from the same period in 2019. Domestic tourist expenditure during the holiday totaled 166.89 billion yuan, up 13.5 percent from the same period in 2019.

Noting that some listed companies have tapped into the consumption boom and tourism hot spots to innovate new trends, such as combining skiing, drifting and hiking in one experience, "consumer enthusiasm has been consistently ignited by the emerging models, formats and scenes," commented Sun Jinju, an analyst with Kaiyuan Securities.

Boosted by tech-intensive industries

In 2023, China's exports of the tech-intensive green trio -- lithium-ion batteries, photovoltaic products, and NEVs -- amounted to 1.06 trillion yuan, marking a year-on-year robust increase of 29.9 percent.

In lockstep with the country's export data, listed companies related to the tech-intensive green trio recorded a revenue growth of over 10 percent in 2023. On the Shenzhen bourse, such firms saw their combined overseas income reach 350 billion yuan, surging 25.46 percent from the previous year.

Some market players have already noticed the gradual shift of China's industrial chain and invested big. Last year, more than 60 percent of funds raised by Shenzhen Stock Exchange's initial public offerings (IPO) and refinancing activities flowed to strategic emerging industries.

To date, the number of listed firms in the advanced manufacturing, digital economy and green and low-carbon development sectors on Shenzhen bourse has amounted to 489, 495 and 330, respectively.

"High-tech manufacturing enterprises in sectors such as the photovoltaic equipment, aviation equipment, and specialized equipment displayed an intensified willingness to invest in 2023, indicating the beginning of industries related to new quality productive forces to speed up their business development," said Li.