thlsu.com.

The recent flurry of Q3 earnings forecasts from A-share companies has been sending waves of warmth. As of now, over a hundred listed companies have released their Q3 forecasts for the year 2024, with about 80% of them expecting good news. Phrases like "recovery in momentum" and "ample orders" have become common, reflecting not only the strong recovery in various industries but also the steady and improving macroeconomy.

On one hand, the continuous improvement of the macroeconomic environment and the "precise implementation" of economic and financial policies across different regions have been like a spring breeze and rain, greatly enhancing consumer market confidence and the stability of the capital market, fully stimulating market vitality. On the other hand, companies are also accelerating their move towards "new" and "quality", nurturing and strengthening the new drivers for a steady economic advance.

The author believes that listed companies should focus on three areas to seize opportunities and promote economic stability and growth with their own high-quality development characterized by "swiftness", "stability", and "strength".

Firstly, seize policy opportunities to promote quality and efficiency improvements. Currently, relevant policies mainly focus on directions such as technology, equipment renewal, and industrial upgrading. In the Q3 earnings forecasts released by listed companies, many shipping and machinery enterprises have gradually phased out or renewed their old coastal ships and equipment, achieving significant results in cost reduction and efficiency improvement.

Advertisement

Companies should seize policy opportunities to promote technological upgrades and management innovation, fully utilize new generation information technologies such as big data and cloud computing, deepen digital transformation, accelerate product structure adjustment and transformation, improve efficiency across the entire chain with refined business management, steadily enhance performance, and contribute to the adjustment of the economic structure.

Secondly, take market demand as the starting point and focus on key tracks. From the Q3 earnings forecasts released by listed companies, many industries are recovering at an accelerated pace, with a strong momentum. Among them, listed companies in the fields of consumer electronics, new energy vehicles, biomedicine, and intelligent transportation have seen significant performance growth.

Companies should be keenly aware of changes and shifts in market demand, seize development opportunities in emerging fields such as information technology, new energy, and biomedicine, enhance "hard power", and promote the safety and independent controllability of the supply chain, aiming to overtake on key tracks.

Thirdly, actively "go global", "expand" to create new opportunities, and stimulate new vitality.China's foreign trade import and export scale has maintained steady growth, providing a broad development space for export-oriented enterprises. At the same time, industries such as semiconductors and machinery manufacturing have shown clear signs of a global cyclical rebound. In the performance forecasts released by listed companies, "going global" has become a key word frequently mentioned by companies in the industrial chains of home appliances, sensors, charging piles, tires, etc.

It is better to expand outward than to "involution". Combining actual conditions and actively exploring the international market is conducive to reducing enterprises' dependence on external supply chains, enhancing their position in the global value chain, building an efficient internal and external linkage network, and achieving a comprehensive "going global" from products to brands.

The good performance forecasts of A-share listed companies in the third quarter reflect the strong recovery of all industries and the strong resilience of China's economy. As more enterprises adhere to innovation-driven development, they will bring more confidence to the capital market and inject strong momentum into the high-quality development of China's economy.