Shenzhen Stock Exchange: SME Board keeps steady performance in 2017

Shenzhen Stock Exchange

The SME board companies informed that they have proactively optimized industrial structure, strengthened independent innovation and consolidated upstream and downstream industry chains in 2017, with solid performance delivered. The forecast of corporate performance as of 31 January 2018 indicates that 901 SMEs are expected to realize 287-million to 355-million-yuan average net profit attributable to the shareholders of listed companies (net profit) in 2017, a year-on-year increase of 15.02%-42.34%, demonstrating the economic vitality and sound development momentum of SMEs and the private sector.

854 SMEs, accounting for 94.78% of the total, are expected to make a profit. Among them, 38 companies pull themselves out of the red. And the 30 most profitable companies are concentrated in financial, IT communication, equipment manufacturing and medical sectors, averaging a net profit of 3.045 billion to 3.458 billion yuan, up by 30.80% to 47.37% year on year. 52 companies’ net profit is expected to exceed one billion yuan. Bank of Ningbo, Hikvision, Yanghe Holdings and Focus Media are expected to reap the net profit of 8.591-9.372 billion yuan, 8.538-10.023 billion yuan, 6.410-6.993 billion yuan, and 5.950-6.050 billion yuan respectively. A growing number of SMEs perform better and stronger, turning themselves into market-oriented blue chips. 47 companies may run a deficit, making up 5.22% of the total, dropping slightly compared with 2016.

565 companies are expected to see a net profit increase year-on-year, accounting for 62.71% of the total. Among them, 156 (or 17.31%) entities are estimated to reap over 50% net profit growth. Through industrial chain expansion and M&A, companies like Zhejiang Jiaoke, Shanghai Zhezhong, Ningbo Donly and Mizuda realize robust growth. The predicated net profit of 336 companies, 37.29% of the total, sees a year-on-year drop. And 15.32% of the 336 units, namely 138 companies, are expected to have a net profit down by over 50%.

14 industries such as manufacturing, R&D services, mining, wholesale and retail are expected to achieve year-on-year net profit growth in 2017, with the dominating manufacturing sector delivering a year-on-year average net profit growth rate of 18%-47% and keeping rapid development. 25 out of the 29 sub-industries of manufacturing are estimated to grow their average net profit compared with last year. Specifically, the average net profit of sub-industries like ferrous metal smelting and rolling processing, special equipment manufacturing, raw chemical materials and chemical products manufacturing are expected to grow by over 50%.

Since 2017, 81 companies have been newly listed on the SME board. Their estimated average net profit to be delivered is 136-159 million yuan, representing a year-on-year increase of 5.6%-23.59% and a steady performance.

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