Caixin Securities reported on June 29th (edited by Pingfang Ruoyu) that the mid-term A shares continued to ferment this week. On the day after the performance announcement was published, Kaizhong Precision, which had the highest net profit growth in the first half of the year and exceeded 14 times, won 3 consecutive boards at the close of the trading day on Thursday. ST Yigou, which is expected to turn losses into profits in the second quarter, touched three consecutive boards on Friday. Dinglong shares, with the highest net profit increase in the first half of the year expected to be 1.3 times, closed up nearly 9% on Wednesday. In addition, Espressif Systems, which is expected to have a year-on-year net profit growth of 123.51% from January to May, hit the 20% limit at the close of the trading day on Thursday with an operating income of 4.01/12.88/0.06 billion yuan respectively for 100-300 billion yuan products.

According to Choice data, as of the time of publication, a total of 29 A-share listed companies have issued performance forecasts for the first half of 2024. Among them, eight stocks, including Kaizhong Precision, Qixiang Tengda, Novotech Bio, Guohang Ocean Shipping, Junhe Pumps Holding, Lite-On Technology, Dinglong shares, and Nanshan Technology, have a maximum year-on-year net profit growth rate exceeding 100% (see the specific situation in the figure below). In addition, Tianma Technology, BW Storage, and ST Yigou are expected to turn losses into profits in the first half of the year or the second quarter.

Looking at individual stocks, Kaizhong Precision temporarily leads with the highest growth rate of more than 14 times. Its performance forecasting announcement was disclosed after the market on Monday. On the next day, it hit the limit and won 3 consecutive boards at the close of trading on Thursday. The company expects a net profit of 70-90 million yuan in the first half of the year, an increase of 1068.44% -1402.28% year-on-year. The company's Q1 net profit was 27.9477 million yuan. Based on this calculation, it is expected that the net profit in Q2 will be 42.0523 million yuan to 62.0523 million yuan, an increase of 50%-122% month-on-month. The company stated that with the development of the integrated, high-voltage, and lightweight of new energy vehicles, as well as the development of automatic driving and inter-vehicle cooperation technology, the demand for precise embedded plastic components with high technology requirements in the market is growing rapidly, and the company's new energy precision connectors and other product orders are in high demand. After the production of the designated project, the sales revenue has grown rapidly.

Xu Qiaowei, an analyst at Guotai Junan Securities, stated in a research report on June 26th that Kaizhong Precision is deeply involved in the precision parts industry, expands new energy automotive components business with strong technical accumulation, opens up the second growth curve, and has obvious advantages in technology and product. It is expected that its own market share will rapidly increase.

Dinglong shares, the domestic leader in electronic imaging and imaging specific information chemical products, rose nearly 9% on the trading day after the release of its performance forecasting announcement after the close on Tuesday. Its announcement is expected to have a net profit of 201 million yuan to 221 million yuan in the first half of 2024, an increase of 110%-130% year-on-year. The company stated that in the first half of the year, affected by the down-stream operating rate of the domestic semiconductor and OLED display panel industry and the significantly increased market share of the company's products, the business of its optoelectronic semiconductor sector (including semiconductor material business and integrated circuit chip design and application business) achieved operating income of about 640 million yuan (including chip business revenue Excluding internal offset), the revenue accounted for about 42% of the proportion from 32% in 2023. The printing and copying consumables business maintained steady development and is expected to achieve an operating income of about 880 million yuan, a slight increase year-on-year.

Chen Yaobo, an analyst at Huaan Securities, said on June 26th that Dinglong shares' layout in the OLED display key material field is becoming more and more perfect. Benefitting from the significant increase in downstream operating rates and the company's market share in the OLED display panel industry, the company is expected to achieve single-quarter revenue of approximately 98 million yuan in YPI/PSPI and other display materials in the second quarter of 2024, an increase of 164% year-on-year and an increase of 40% month-on-month. The rapid increase in display material volume has further strengthened the company's overall profitability. In the future, with the improvement of the client-side division and the launch of new products, relevant revenue is expected to further increase.

Espressif Systems, which provides one-stop AIoT products and services, released its performance from January to May after the close of trading on Wednesday, and its share price hit the 20% limit at the close of the trading day on Thursday. The company is expected to achieve a net profit attributable to the parent of approximately 118.71 million yuan from January to May, an increase of approximately 65.60 million yuan, or 123.51% year-on-year. The company stated that benefited from the continuous improvement of digitalization penetration rate in downstream industries, the expanding global brand influence of Espressif, the wide support of the developer community, and the gradually improving competitive landscape, the Company has achieved new breakthroughs in the B-end performance, and May's operating income hit a record high. In the first five months of this year, the contribution from newly added customers in 2023 and 2024 accounted for the main growth. The current revenue increment is mainly contributed by the new product category (ESP32-S3, C2, and C3).

China Merchants analyst Yan Fan team's research report on June 28th stated that the demand for Espressif Systems both domestically and abroad continues to recover, with new products quickly gaining popularity and new applications and customers constantly increasing. The company has entered a normal replenishment cycle, and revenue in May 2024 reached a record high, with high year-on-year growth in performance from January to May. Looking ahead, multiple new products will be launched in 2025, and the company's revenue and profits are expected to continue to grow.

Suning.com Co., Ltd., one of China's leading e-commerce companies, announced after the close on Tuesday that it expects to turn a profit in the second quarter compared to the same period last year. After the announcement, Suning.com saw three consecutive daily limit increases on Friday. The company stated that in the second quarter of 2024, it will continue to focus on reducing costs, improving enterprise management and operational efficiency, and bring about improvement in sales per unit area, employee efficiency, and user conversion rates. The company seized the opportunity of the "old for new" industrial policy, relied on its store network advantages, and on the one hand, delved deep into new and old communities, closely connected with user needs to accurately attract customers; on the other hand, by leveraging local life platforms such as live streaming and instant delivery, expanded store customer acquisition channels. In the second quarter, the company accelerated the opening of new stores and upgrading of store images in core business districts to effectively improve store experience and individual store size, bringing about improvement in store sales compared with the previous quarter.