A-Share Earnings Outlook Brightens as 37 Companies Issue Forecasts

Preface

China’s A-share market has entered a busy period for third-quarter earnings forecasts. By the evening of October 9, 37 listed companies had disclosed projections for the first three quarters, and more than four-fifths expected earnings to improve or to turn from a loss to a profit. The latest announcements point to strength in several areas, including glass fiber, printed circuit boards (PCBs), and liquid cooling. This article reviews the figures and company explanations in the disclosures, while placing them in the broader pattern emerging across the reporting season. The forecasts are preliminary company estimates rather than final results, so they should be read as indicators, not confirmed outcomes. The central question is whether demand-led growth in technology supply chains and improving conditions in selected industries can sustain the momentum reflected in these projections.

Lazy bag

As of the evening of October 9, 37 companies had issued forecasts for the first three quarters; 30 were expected to report improved results or a turnaround, a share of about 81%. Five of six companies reporting that evening forecast year-on-year earnings growth, while one expected a decline. Strong demand for AI computing infrastructure is supporting PCB, liquid-cooling, and high-speed communications businesses, while glass-fiber producers are benefiting from greater demand and improved product pricing. At the same time, cost pressures and weaker margins remain risks: Chuanjinnuo expects earnings to fall. Forecasts signal broad optimism, but results vary substantially by company and sector.

Main Body

Third-quarter earnings forecasts are arriving in a concentrated wave across China’s A-share market. On the evening of October 9, six companies disclosed estimates for the first three quarters. Five—China Jushi (中国巨石), Guanghe Technology (广合科技), Jingwang Electronics (景旺电子), Hongfuhan (鸿富瀚), and Shaoneng (韶能股份)—expected earnings to increase. Chuanjinnuo (川金诺) was the exception, forecasting a decline. The announcements illustrate both the strength of several industries and the uneven performance behind the overall positive tone.

China Jushi expects net profit attributable to shareholders of the parent company to reach 5.136 billion yuan to 5.393 billion yuan for the first three quarters, representing year-on-year growth of 100% to 110%. The company said demand had increased across major downstream applications for glass fiber, supporting gains in both sales volume and prices. It also cited improvements to its product mix, greater investment in technological innovation, and expanded market development as measures that have helped profitability. Based on the company’s forecast, third-quarter net profit is estimated at approximately 2.203 billion yuan to 2.46 billion yuan, up 32% to 47% from the previous quarter.

The results of companies in the PCB supply chain were particularly strong. Guanghe Technology forecasts first-three-quarter net profit attributable to the parent company of 1.45 billion yuan to 1.5 billion yuan, up 100.33% to 107.23% year on year. It said it had acted on opportunities created by a surge in demand for computing hardware. Its focus includes computing-related PCB markets serving general-purpose servers, AI servers, switching products, and accelerator cards. The company also reported that its Thailand facility, Guanghe Technology Thailand, completed core-customer certification, gradually released capacity, and became profitable during the reporting period.

Jingwang Electronics forecasts third-quarter net profit attributable to the parent company of 912 million yuan to 1.089 billion yuan. That would represent year-on-year growth of 205.46% to 264.74% and quarter-on-quarter growth of 147.20% to 195.18%. The company attributed the sharp increase primarily to faster mass shipments of high-performance PCBs for high-speed communications and AI data infrastructure. By the end of the reporting period, it said orders were strong in AI servers and data centers, as well as in high-speed optical modules. Capacity utilization and product yield were also reported to be high.

Hongfuhan expects net profit attributable to the parent company of 170 million yuan to 200 million yuan for the first three quarters, a year-on-year increase of 108.19% to 144.93%. Its liquid-cooling business is an important source of incremental growth: the company said its integrated liquid-cooling plate and cabinet-module products had completed mass-production deliveries. The forecast suggests that cooling systems are becoming a meaningful part of the wider investment and demand cycle around computing infrastructure.

Shaoneng forecasts first-three-quarter net profit attributable to the parent company of 278 million yuan to 302 million yuan, up 61.12% to 75.03% year on year. The company said its clean and renewable energy business improved its operating results substantially by working to increase revenue and reduce costs. Its precision and intelligent manufacturing business also recorded year-on-year growth through tighter attention to production and operations. In its paper-making business, operating performance improved through better production management, resulting in a substantial reduction in losses compared with the same period.

Chuanjinnuo presents a contrasting picture. It expects first-three-quarter net profit attributable to the parent company of 160 million yuan to 180 million yuan, down 40.87% to 47.44% year on year. The company cited higher sulfur procurement costs, a lower overall gross margin, and increased period expenses as the main factors weighing on earnings. Its projection is a reminder that favorable trends in some sectors do not remove company-specific cost and margin pressures.

Across the market, the number of disclosed forecasts had reached 37 by the evening of October 9. Thirty companies expected earnings to improve or to turn from a loss into a profit, equivalent to about 81% of those that had reported. This proportion indicates a broadly positive tone in the forecasts available at that point, although it is not a final measure of market-wide performance. Forecasts cover a limited and changing sample of listed companies, and their estimates may be revised when formal results are released.

Several companies projected that first-three-quarter net profit would more than double. Dongyue Silicon Material (东岳硅材) had the largest estimated increase, with the midpoint of its forecast representing nearly 194 times the comparable figure. The article attributed its expected performance to an improved industry supply-demand balance, rising prices for major products, and lower production costs per unit. Fu Xiang (富祥股份) and Xingyun Technology (行云科技) ranked second and third by forecast growth, with midpoint increases of more than 700% and 460%, respectively. Benchuan Intelligent (本川智能), Nexchip (芯联集成), Huahai Pharmaceutical (华海药业), and Guanghui Energy (广汇能源) also expected net profit growth exceeding 100%.

By projected profit scale, Luxshare Precision (立讯精密) had the highest disclosed upper-end estimate, with first-three-quarter net profit forecast at approximately 14.4 billion yuan. China Jushi and Guanghui Energy were among the next largest estimates. This distinction matters because percentage growth and absolute profit size describe different aspects of performance: a company starting from a smaller base can post a very large growth rate while still reporting a lower total profit.

Industry patterns in the forecasts are concentrated in electronics, pharmaceuticals and biotechnology, basic chemicals, and computers. Two themes stand out. The first is the AI computing infrastructure supply chain, including PCBs, liquid cooling, and high-speed optical modules, where demand for servers and data-center equipment is supporting shipments and capacity use. The second is cyclical products benefiting from higher selling prices or improving supply-demand conditions. These drivers help explain why some companies forecast substantial growth, but their effects can differ according to a company’s product mix, cost structure, production capacity, and customer base.

Wohua Pharmaceutical (沃华医药) disclosed the first third-quarter report among A-share companies on the evening of October 9. It reported first-three-quarter net profit attributable to the parent company of 92.6545 million yuan, up 44.78% year on year. Its report formally opened the third-quarter results season. As more companies publish results, investors will be able to compare preliminary forecasts with reported figures and assess whether the growth drivers described by companies have translated into realized earnings. The forecasts currently point to strong activity in selected technology and industrial segments, alongside continuing differences in costs, margins, and performance across the broader market.

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