CITIC Securities: Price rebounds and strong exports drive significant improvement in industrial enterprises' profits.

According to the research report from CITIC Securities, the profits and revenues of industrial enterprises in January-February 2026 both saw significant increases. In terms of structure, the marginal growth of profits of state-owned enterprises showed the most significant recovery, while the profit growth of private enterprises was the fastest. Improvements in "quantity-price-profit margin" all contributed to the rebound in industrial enterprise profits at the beginning of the year, with the unexpected improvement in PPI and the increase in profit margins being important factors. At the industry level, the profit growth of midstream and downstream industries all saw significant marginal increases, with the profit growth of upstream industries turning positive, mainly benefiting from the narrowing decline in profits of the petroleum and ferrous metal industries and the high profit growth in the nonferrous industry, as well as the rapid growth in profits of high-tech manufacturing industries leading the way. Looking ahead, the overall profits of industrial enterprises are showing a clear recovery trend, but future developments still need to pay attention to the impact of geopolitical trends, whether the speed of price increases can exceed expectations, and the progress of improvements in domestic demand.