Performance Growth Exceeds Market Expectations, Twenty-Seven Stocks Still Trading Below 30x P/E Ratio

(This data is provided by the Securities Times Center Database)

Securities Times Reporter Liang Qiangang

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

According to Securities Times Data Treasure statistics, as of March 18, among the stocks that have announced 2025 annual reports, performance briefings, or performance forecasts, 62 stocks have been explicitly rated as “above expectations” in broker research reports. By industry, more than five stocks are listed in power equipment, electronics, pharmaceuticals and biology, and automotive sectors, with power equipment having the highest number at eight.

In terms of performance growth, a total of 21 stocks are expected to see their net profit in 2025 double (including turning losses into profits). Stocks that have turned profitable include Zhongtai Co., Ltd., Sanfu Outdoor, Rongchang Biological, Jifeng Co., Ltd., and Longitude 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 there is 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 delivery 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, Wancheng Group, and Century Huatong.

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%. On the overseas track, the company’s flagship product “Whiteout Survival” has hit new highs three years after launch, ranking first on China’s mobile game export list; the blockbuster new product “Kingshot” has created a rapid growth miracle for SLG games, ranking third on the export list; and new products like “Truck Star” and “High Seas Hero” are steadily growing.

The secondary market performance confirms investors’ recognition of stocks with performance exceeding expectations. Data Treasure statistics show 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 year-to-date increase of 124.84%, ranking first. Other stocks with notable gains include China Merchants Steamship, Yaxiang Integration, Gengneng Environment, Runtu Co., Ltd., and Rongchang Biological.

Regarding valuation, many stocks with performance exceeding expectations have relatively low P/E ratios. Data Treasure statistics show that as of March 18, 27 of these stocks have a rolling P/E ratio below 30.

Qingdao Bank has the lowest rolling 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. A research report from Changjiang Securities states that Qingdao Bank’s 2025 performance exceeds expectations. 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 strategy, 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 onward, the new three-year plan will continue to maintain leading performance, with ROE gradually increasing.

JianTou Energy’s rolling P/E ratio is 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 phased decline in 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 to optimize capital structure and reduce financial costs.

Jiansheng Group’s rolling P/E ratio is 11.81 times. The company expects a net profit of 405 million yuan in 2025, up 24.62%. 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 states that the company’s operations are improving quarter by quarter, and it is optimistic about continued order recovery and profitability enhancement.