Performance Growth Exceeds Market Expectations, 27 Stocks Still Have P/E Ratios Below 30x

Currently, the A-share market is entering the peak period for annual report performance disclosures. Some listed companies have achieved unexpectedly strong performance growth due to significant improvements in operational efficiency, industry prosperity, product supply and demand patterns, overseas business expansion, and asset disposals.

According to data from Securities Times·Data Treasure, as of March 18, among the individual stocks that have announced their 2025 annual reports, performance briefings, or forecasts, 62 stocks have been explicitly rated as “above expectations” in broker research reports. By industry, more than five stocks are included in the list for each of the power equipment, electronics, pharmaceuticals and biotech, and automotive sectors, with the power equipment industry having the most, totaling eight stocks.

In terms of performance growth, 21 stocks are expected to see their net profit double in 2025 (including those turning losses into profits). Stocks that have turned profitable include Zhongtai Co., Ltd. (300435), Sanfu Outdoor (002780), Rongchang Biological, Jifeng Co., Ltd. (603997), and Jingwei Hengrun-W, among others.

Taking Zhongtai Co., Ltd. as an example, the company expects to achieve a net profit of 420 million to 480 million yuan in 2025. During the reporting period, its wholly owned subsidiary Zhongyu Gas has maintained stable operations, with no signs of continued impairment, and no need to consider goodwill impairment factors, so the consolidated performance has turned positive. Additionally, due to overseas orders in the manufacturing sector entering the shipping cycle in 2025, profits have increased significantly.

Among stocks that did not turn profitable, those with high net profit growth include Byte Storage, Huatu Shanding, Lead Intelligent (300450), Wancheng Group, and Century Huatong (002602).

For example, Century Huatong expects a net profit of 5.55 billion to 6.98 billion yuan in 2025, representing year-on-year growth of 357.47% to 475.34%. In the overseas mobile game market, the company’s flagship product “Whiteout Survival” reached new heights three years after launch, ranking first among Chinese mobile games going abroad; the blockbuster new game “Kingshot” created a rapid growth miracle for SLG products, ranking third among Chinese mobile games going abroad; and new products like “Truck Star” and “High Seas Hero” are steadily growing.

The secondary market performance confirms investors’ recognition of stocks with above-expected earnings. Data from Data Treasure shows that as of the close on March 18, the 62 stocks with above-expected performance have averaged a 16.92% increase this year, significantly outperforming the Shanghai Composite Index during the same period. Byte Storage rose 9.46% on March 18, hitting a new high, with a total increase of 124.84% so far this year, ranking first. Other stocks with notable gains include China Merchants Steamship (601872), Yaxiang Integration (603929), Gao Neng Environment (603588), Runtu Co., Ltd. (002440), and Rongchang Biological.

Regarding valuation, many stocks with above-expected performance have relatively low price-to-earnings ratios. Data from Data Treasure shows that as of March 18, 27 of these stocks had trailing P/E ratios below 30.

Qingdao Bank has the lowest trailing P/E ratio at 5.85 times. Its performance brief indicates a net profit of 5.188 billion yuan in 2025, up 21.66% year-on-year. According to research from Changjiang Securities, Qingdao Bank (002948) is expected to outperform expectations in 2025. Since the new management team took office in 2022, the company has emphasized quality and efficiency improvements. With the successful completion of its three-year strategic plan, the compound annual growth rate of total assets from 2023 to 2025 is 15.4%, and profit growth reaches 18.9%. Return on equity is steadily rising, and it is expected that from 2026, the new three-year plan will continue to maintain leading performance, with ROE gradually increasing.

JianTou Energy has a trailing P/E ratio of 10.62 times. The company expects a net profit of 1.877 billion yuan in 2025, up 253.38% year-on-year. During the reporting period, the company accurately grasped the phase of declining coal prices, continuously optimized coal resource allocation, and strengthened cost and expense management, resulting in increased profits from thermal power operations; it also actively promoted diversified financing strategies, optimized capital structure, and reduced financial costs.

Jiansheng Group has a trailing P/E ratio of 11.81 times. The company expects a net profit of 405 million yuan in 2025, up 24.62% year-on-year. Compared to historical data, the company’s net profit has reached a new high for the same period. Along with high growth, the company plans to distribute a cash dividend of 0.35 yuan per share (tax included) to all shareholders, totaling 115 million yuan. Northeast Securities (000686) states that the company’s operations are improving quarter by quarter, and they are optimistic about continued order recovery and profitability enhancement.

(Edited by: Zhang Yan)