China's National Bureau of Statistics announced on Wednesday that in January-February, the total profits of Industrial Enterprises above the national scale reached 708.01 billion yuan, down 14.0% from the same period last year. After estimating, excluding the Spring Festival factors, the total profits of Industrial Enterprises above the national scale fell slightly from the same period last year. This is the lowest monthly figure since Reuters recorded the data in October 2011 (combined January-February calculations).
"In the future, as the pressure of volume and price fall increases, profits will remain low." Li Chao and Sun Ou, analysts at Huatai Securities, predict that the first three quarters will continue to bottom out, and only the fourth quarter will have a chance to rebound. At present, there is no significant recovery momentum on the demand side this year, but the bigger poor expectation is whether PPI has bottomed out ahead of expectation due to environmental factors, which will also boost profits.
Zhu Hong, a senior statistician in the Industry Department of the Bureau of Statistics, said that the decline in profits in some key industries and the Spring Festival holidays were the main factors affecting the decline in industrial profits.
First, the profit of major industries such as automobile, petroleum processing, iron and steel, chemical industry declined significantly; second, the influence of the moving factors during the Spring Festival holidays. Compared with last year - February, this Spring Festival holiday has a longer period of influence on the production and operation of industrial enterprises, objectively affecting the production and operation of enterprises. In addition, the growth rate of industrial production and sales has slowed down slightly, which also affects the profit growth of enterprises to a certain extent.
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