A-shares companies kick off first-quarter reports, with three major industries leading the positive outlook trend

On the evening of April 7, as Haisi Information and Wuhua Pharmaceutical released their Q1 reports, the official disclosure of A-share companies’ Q1 2026 reports was set in motion.

As of 7:00 p.m. on April 7, 48 listed companies on the A-share market had already released their performance forecasts for Q1 2026. The data show that 29 companies saw year-on-year performance increases, 3 returned to profit after losses, 7 reported slight growth, and the “positive outlook” ratio reached 81.25%. Among them, 24 companies are expected to see year-on-year growth in net profit attributable to shareholders of more than 100%, with another 4 companies showing year-on-year increases of over 20 times.

Notably, companies with explosive performance growth are mainly concentrated in sectors such as semiconductors, non-ferrous metals, and basic chemicals, continuing the high level of market momentum since 2025. A reporter from the Shanghai Securities News reviewed the reasons behind the high growth in these companies’ performance and found that the core drivers mainly come from two factors: the AI development wave and product price increases.

AI sparks “hard technology” performance

In Q1 2026, China-made compute chips and the semiconductor supply chain such as PCB (printed circuit boards) continued the high level of market momentum from 2025, becoming a relatively more certain area for performance growth.

As a leading player in domestically produced high-end chips, Haisi Information posted operating revenue of RMB 4.03B in Q1, up 68.06% year over year; net profit attributable to shareholders was RMB 687 million, up 35.82% year over year. The company said that, with rising demand from the artificial intelligence industry, demand for domestically produced high-end chips continues to climb.

Strong One Co. Ltd. expects net profit attributable to shareholders of RMB 106 million to RMB 121 million in Q1, up 654.79% to 761.60% year over year. The company said that benefiting from rapid growth in global AI compute chip testing demand, along with the semiconductor industry entering an upward, favorable cycle overall, downstream customers’ testing demand is strong, and the company’s mature MEMS probe card product orders have continued to expand.

Benefiting from strong demand in downstream application areas such as AI, new energy vehicles, energy storage, and industrial control, Yangjie Technology expects net profit attributable to shareholders to grow 20% to 40% year over year in Q1. Dinglong Shares, meanwhile, expects net profit attributable to shareholders to increase 70.22% to 84.41% year over year, supported by steady growth in its semiconductor materials business.

Dongshan Precision expects net profit attributable to shareholders of RMB 1.0 billion to RMB 1.15 billion in Q1, up 119.36% to 152.27% year over year. “Strong AI compute demand is driving faster investment in AI infrastructure. Our optical module products are being introduced to new key customers, becoming a new core profit growth point,” Dongshan Precision said.

A research note from Aeon Jian Securities stated that, driven jointly by continued breakout growth in AI compute demand, steady improvement in the penetration rate of automotive electronics, and the cyclical recovery of consumer electronics, the global semiconductor industry in 2026 is expected to continue the upward cycle that began in 2024.

Non-ferrous metals drive “volume and price rising together”

Benefiting from simultaneous improvement in both product volume and pricing, the non-ferrous metals sector showed a clear performance uptrend in Q1.

Shenhuo Co. Ltd. expects net profit attributable to shareholders of RMB 2.25 billion in Q1, up 217.68% year over year. The company said that, due to factors such as a year-on-year increase in the sales price of electrolytic aluminum products and a year-on-year decline in the price of major raw material—alumina, the profitability of its electrolytic aluminum business has increased significantly. Shengtun Mining, meanwhile, benefits from increased copper product output. With copper prices maintaining historically high levels and rising year over year, it expects net profit attributable to shareholders of RMB 950 million to RMB 1.15 billion in Q1, up 226.27% to 294.95% year over year.

Shanjin International, Tianshan Aluminium, Xinco Materials, and other non-ferrous metal companies all expect large year-on-year growth in their Q1 reports.

A portion of non-ferrous metal prices surged significantly, which also directly boosted the business outlook in downstream sub-sectors; the CNC cutting tools industry is a typical example.

In Q1 2026, three companies—OK Silicon, Huarui Precision, and Xinjui Shares—delivered impressive performance results. Among them, OK Silicon expects net profit attributable to shareholders to increase by as much as 2,248.89% to 2,770.86% year over year. The growth rates for Huarui Precision and Xinjui Shares also both exceed fourfold. All three companies stated that their substantial performance growth is mainly driven by sustained increases in the price of key raw materials, tungsten carbide.

As tungsten carbide is the main raw material for hard alloy cutting tools, it accounts for more than 50% of cost. Since Q2 2025, the average price of tungsten carbide rose from RMB 340 per kilogram to RMB 1,035 per kilogram by year-end, an increase of more than 200% within two quarters. Entering Q1 2026, the price continued to climb to RMB 2,290 per kilogram, achieving a doubling again.

According to Huarui Precision, although tool costs account for only 1% to 4% of mechanical machining manufacturing costs, as the core component that executes metal cutting on machine tools, it directly determines the precision of machined workpieces, surface roughness, and qualification rates. Therefore, machining companies will not easily switch tool suppliers, which creates a certain degree of “stickiness.” For leading companies, therefore, price increases are transmitted relatively smoothly.

“CNC blade sales models are generally order-based. It takes some time from placing an order to shipping, so the industry’s collective price increases in March have not been fully reflected in Q1 performance. The shipping prices for tool products still have room to rise,” a research note from GF Securities believes.

Chemical sector performance concentrated and delivered

Affected by factors such as the situation in the Middle East, the global chemical industry supply chain structure continues to be reshaped. Starting April 1, chemical giants at home and abroad such as Invista, Wanhua Chemical, Covestro, and Covestro (Covestro/“科思创” and Covestro/“科慕” as named)纷纷 raised product prices, covering multiple categories including nylon, polyurethane, titanium dioxide, organosilicon, and semiconductor materials. In turn, the A-share chemical sector’s Q1 earnings have been gradually realized.

Dongyue Silicon Materials expects net profit attributable to shareholders of RMB 183 million to RMB 203 million in Q1, up 397.02% to 451.34% year over year. The company said that benefiting from improvements in market conditions and industry supply-demand patterns, the prices of major organosilicon products have risen and returned to a reasonable range, and the company’s product gross margin has improved significantly. As the market price in the titanium dioxide industry rebounds, Kuncai Technology expects net profit attributable to shareholders to grow 151.56% to 235.41% year over year in Q1.

In fact, after completing three rounds of price increases in March this year, the upward momentum in titanium dioxide pricing has continued. On April 1, CITIC Titanium announced it would raise the price of chloride-process titanium dioxide: in China, prices increased by RMB 1,000 per ton, while overseas prices increased by USD 200 per ton. Subsequently, companies including Longbai Group, Jinpu Titanium Industry, and Shandong Dongjia released the next round of pricing adjustment letters for April.

Zheims Asset Management’s chemical ETF fund manager Zhang Chaoliang believes that the chemical industry in 2026 may be in the early stage of the launch of a new cycle. In the next 1 to 2 years, the industry is expected to rise with volatility. With the cyclical repair of industry fundamentals, improvements in profitability will bring double enhancements in both cash flow and dividend capacity, and some chemical leaders may become high-quality dividend assets with long-term allocation value.

In addition, some leading companies in certain sub-sectors have achieved high growth in performance by leveraging their own competitive advantages. Wanbangde expects net profit attributable to shareholders of RMB 165 million in Q1, up 985.4% year over year. The company said that its substantial year-on-year performance growth is mainly attributable to the early results of its strategic transformation from generic drugs to innovative drugs, progress in business expansion, and new performance growth drivers.