Huatai Securities says focus for the earnings season is on three signals: the AI
value chain, beneficiaries of price increases, and manufacturing exports.
Interim earnings pre-announcement disclosure rates remain low; sectors with
higher disclosure and positive surprise rates include petrochemicals, non-bank
financials, nonferrous metals, chemicals and electronics. Median YoY net-profit
growth in current previews is highest in agriculture, petrochemicals, military,
computers and media, though rankings may change as disclosure rises. Over the
past month, upward revisions were largest in coal, building materials,
electronics, telecoms and chemicals; revision breadth was widest in building
materials, coal, nonferrous metals, telecoms and machinery. Micro-level signals
of improving cyclical momentum concentrate in the AI chain (components,
semiconductors, optical communications, optoelectronics, gaming), price-rise
chains (shipping, fiberglass, coal, paper, select chemicals, copper) and
manufacturing export names (maritime equipment, general automation, batteries,
construction machinery).
