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<Research>Daiwa Expects Structural Recovery in CN Stocks' 2025 Results w/ Limited Surprises; 65% of Consumers See Profit Deterioration
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Daiwa published a research report providing a foresight on the 2025 results of Chinese stocks, and predicting a structural recovery but with limited surprises. The broker estimated the A-share market in 2025 to temporarily reverse the earnings deterioration trend in 2022-2024.

As of 30 January 2026, among over 2,500 companies that announced earnings forecasts, 40.3% reported earnings improvement, higher than 33.5% in 2024, but lower than 43.8% in 1H25. However, most companies still reported 'negative results'.

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On the flip side, as the stimulus effects fade, over 65% of companies in the consumption sector (covering food & beverage, retail, home appliances and furniture) saw earnings deterioration in 2025. The oil and coal industries also recorded poor earnings due to weak oil prices.
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