Preface

Context: As mid‑year earnings previews roll out across China’s A‑share market, a notable group of companies is reporting exceptionally large forecast increases in net profit. This article summarizes the latest disclosures, highlights the firms that reported the most dramatic year‑over‑year gains, and examines the industry patterns and drivers behind those results. The purpose is to provide a clear, neutral overview for investors and analysts seeking to understand where rapid growth is concentrated and what factors are cited by companies for their strong performance. Key takeaway: a relatively small subset of listed firms account for outsized forecast growth, largely reflecting sector cycles and specific supply‑side developments.

Lazy bag

Quick summary: As of July 12, 359 A‑share companies had released 2026 half‑year profit previews. 177 firms forecast year‑over‑year net profit increases exceeding 100%; of those, 46 exceeded 500% and 23 exceeded 1,000%. Key contributors are in electronics, power equipment and non‑ferrous metals, with several companies attributing gains to stronger end‑market demand and secured supply agreements.

Main Body

The A‑share market’s 2026 half‑year earnings preview season has accelerated, with a large volume of listed companies disclosing early profit expectations. According to Wind data through the evening of July 12, 359 companies provided forecasts for their 2026 first‑half performance. Among them, 177 companies projected that their net profit attributable to shareholders would at least double year‑over‑year. Within that group, 46 companies indicated potential increases above 500%, and an especially concentrated cohort of 23 companies forecast year‑over‑year gains in excess of 1,000%.

Industry distribution among the highest‑growth forecasts shows particular concentrations: four companies are from the electronics sector, three are in power equipment, and three are in non‑ferrous metals. This pattern suggests that cyclical demand, supply constraints, and product‑specific recoveries are unevenly benefiting particular segments of the market rather than producing a broad‑based surge across all industries.

At the top of the list is Jiangbolong (江波龙), which on July 3 disclosed a preliminary profit estimate that, if realized, would make it the year’s most dramatic earnings rebound. The company expects net profit attributable to shareholders for January–June 2026 to be RMB 9.2 billion to RMB 11.0 billion, representing an astonishing increase of roughly 62,204% to 74,394% compared with the same period a year earlier. Jiangbolong explained the surge by citing stronger downstream demand and a global storage wafer capacity environment that has not expanded enough to meet growing needs, creating a favorable market for semiconductor memory products. The company also pointed to renewed long‑term supply agreements (LTAs or MOUs) with major global wafer foundries, which helped secure wafer supplies and underpin future growth visibility.

Following Jiangbolong, seven other listed companies — including Yisheng Shares (益生股份), Xianglu Tungsten (翔鹭钨业), Fuxiang Shares (富祥股份), Tianhua New Energy (天华新能), Hengyi Petrochemical (恒逸石化), Shannon Chip Innovation (香农芯创), and Sanwei Communications (三维通信) — each forecast maximum year‑over‑year net profit increases above 2,000%. These very large percentage moves often reflect a combination of low base effects from the prior period, one‑time gains, commodity price swings, or rapid demand recoveries in specific product markets.

Market reaction year‑to‑date has been mixed: among the 23 companies forecasting >1,000% growth, several experienced substantial stock price appreciation earlier in the year. For example, GigaDevice (兆易创新), Xianglu Tungsten, and Jiangbolong saw year‑to‑date gains of approximately 186%, 145%, and 140%, respectively. However, those sharp rallies have not been monotonic — since July these names have pulled back materially: GigaDevice down ~24.9%, Xianglu Tungsten down ~26.7%, and Jiangbolong down ~16.5%. Other names that have retreated more than 20% since July include Tianhua New Energy, Tinci Materials (天赐材料), and Rongjie Shares (融捷股份). These reversals illustrate the high volatility often associated with stocks priced for very rapid earnings acceleration.

Conversely, a handful of the 23 companies have continued to post positive cumulative returns in July, with four names recording month‑to‑date gains exceeding 10%: Huachang Chemical (华昌化工) +24.41%, Yuehai Feed (粤海饲料) +14.25%, Yisheng Shares +13.77%, and *ST Niya (+13.68%) — the latter still subject to investor rights‑protection labeling. These moves highlight that investor sentiment remains idiosyncratic, with some firms rewarded for clear operational improvements while others face profit‑taking or re‑rating risk.

Yuehai Feed represents a recent example of an earnings “fast‑mover.” In its July 12 update, the company estimated net profit attributable to shareholders for January–June 2026 of RMB 3.8 million to RMB 5.0 million, up 965.9% to 1,302.5% year‑over‑year; adjusted net profit excluding non‑recurring items was projected at RMB 3.67 million to RMB 4.87 million, implying an extraordinary increase of 2,603% to 3,421% compared with the prior period. The company explained that feed sales volume reached 450,000 tonnes in the reporting period, a 33% year‑over‑year rise, which was a primary driver of the profit acceleration.

When assessing these outsized forecast increases, investors should consider several cautionary points. First, very large percentage gains can reflect a low comparison base in the prior period, especially if the prior year included business disruptions, asset impairments, or one‑time charges. Second, some forecasts may incorporate non‑recurring items (asset disposals, extraordinary gains) that may not be sustainable. Third, stock prices often anticipate expected earnings improvements; when forecasts are already priced in, short‑term reversals are common if expectations are not further exceeded or if broader market risk sentiment shifts.

At the same time, the companies that point to structural demand improvements, secured long‑term supply contracts, or capacity constraints in supply chains may have more durable pathways to earnings recovery. For instance, firms in semiconductor supply chains citing renewed LTAs and tighter wafer supply can benefit from multi‑year demand trends in memory and other chips. Similarly, commodity‑exposed companies may enjoy sustained margins if raw material markets remain favorable.

In summary, the 2026 half‑year profit preview season has revealed a small group of A‑share listed companies forecasting extraordinary year‑over‑year net profit gains. These forecasts are concentrated in specific sectors and are driven by a mix of demand recovery, supply arrangements, and base effects. While such forecasts can signal real operational turnarounds, investors should analyze the underlying causes, distinguish recurring earnings from one‑offs, and be mindful of elevated price volatility around highly re‑rated names.

Key Insights Table