CITIC Securities: 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 recovery can exceed expectations, and the progress of domestic demand repair and improvement.

The research report of CITIC Securities pointed out that industrial enterprise profits and revenues in January-February 2026 both showed significant increases. In terms of structure, the margin of profit growth of state-owned enterprises was the most significant, while private enterprise profit growth was the fastest. Improvements in "quantity-price-profit rate" collectively supported 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, profit growth in the middle and upper reaches all showed significant marginal increases, with profit growth in the upstream industry turning positive, mainly due to the narrowing of profit declines in the petroleum and ferrous metal industries and the high profit growth in the non-ferrous industry. The rapid growth in profits in the high-tech manufacturing industry has enhanced the leading role. Looking ahead, the overall trend of industrial enterprise profits is showing a clear recovery trend, but future developments still need to pay attention to the impact of geopolitical trends, whether the speed of price recovery can exceed expectations, and the progress of internal demand recovery and improvement.