CITIC Securities reviews July profits from industrial enterprises: The impact of "anti-internal competition" on profit margins is preliminary evident.

The CITIC Securities research report stated that in July, industrial enterprises withstood pressure from tariffs and extreme weather to achieve stable revenue growth and narrow profit decline. In terms of structure, the profit growth in the midstream sector was more evident. The continuous improvement in "profit margin" was a major driving factor for the continued improvement in profits of industrial enterprises in July. The improvement may be attributed to the "anti-insulation" policy beginning to boost profit margins in certain industries. At the industry level, material manufacturing industries that experienced a significant rebound in prices in July under the influence of "anti-insulation" performed well, as well as emerging industries such as semiconductors, aerospace, and pharmaceuticals. Looking ahead, although economic data in July showed some pressure on investment, consumption, and other domestic demand indicators, industries with significant "anti-insulation" efforts and those benefiting from the trend of going global are expected to become structural highlights.