As the Shanghai Composite Index reclaims the 4100-point level, a number of individual stocks have seen their profit forecasts downgraded by brokerages, including several large-cap market leaders.
According to a recent disclosure from Everbright Securities, the firm now forecasts Gree Electric Appliances,Inc.Of Zhuhai (SHE: 000651) to report a net profit attributable to shareholders of 29 billion yuan for 2026, a 4% reduction from its previous estimate. Changjiang Securities also recently revised its forecast downward, projecting Gree's 2026 net profit at 29.104 billion yuan, a 3.5% decrease from its prior forecast.
Other companies, including Naura Technology Group Co.,Ltd. (SHE: 002371) and Norseland (BJ: 920047), have also had their profit forecasts trimmed by analysts recently. China Post Securities, for instance, lowered its 2026 net profit forecast for Naura to 5.918 billion yuan, a cut of nearly 30% from its previous projection.
Timing of Forecast Revisions
Brokerage adjustments to profit forecasts typically occur following the release of periodic financial reports, as analysts update their models based on the latest annual and quarterly results from A-share companies. It is noted that some brokerages, while lowering their profit forecasts for certain stocks, have maintained their "buy" or "overweight" ratings.
Multiple Brokerages Adjust Gree's Outlook
The downward revisions for Gree come as its share price hit a new low for the year. On June 23, the stock closed at 37.28 yuan, up 0.78%, with a total market capitalization of 208.8 billion yuan. The previous day, it touched an intraday low of 36.27 yuan.
Regarding the latest forecast, Everbright Securities analyst Hong Jiran noted that Gree's current PB valuation is at a bottom range. The firm's data shows that as of June 17, Gree's PB ratio was 1.4x, situated in a historically low region.
"Compared to the two low points in 2022 and 2023, investors are similarly concerned about demand slowdown and rising raw material costs. The difference is that the current market's fervent pursuit of tech stocks has compressed the space for value stocks," Hong mentioned.
Consequently, Everbright Securities stated that, considering the diminishing marginal effects of government subsidies for home appliances, it forecasts Gree's net profits for 2026 to 2028 at 29 billion, 30 billion, and 32 billion yuan respectively. These figures represent a 4% downward revision from prior estimates, corresponding to P/E ratios of 7.2, 6.9, and 6.5 times. The firm maintained a target price of 54.1 yuan and a "buy" rating.
Just over a month ago, Everbright had also lowered its profit forecast for Gree. Changjiang Securities has similarly adjusted its forecasts for the company over the past two months.
In terms of actual performance, Gree's revenue and profit both declined in 2025. However, the company reported both revenue and profit growth for the first quarter of this year.
Overall, several brokerages remain positive on Gree's long-term development and share price performance. Analysts cite the company's solid operational foundation, relatively high stability, historically low valuation, and substantial dividend payouts as reasons for confidence.
Naura and Others Also See Forecast Cuts
Similarly, a number of other A-share companies have seen their profit expectations downgraded this year. In a recent research note, China Post Securities analysts forecast Naura's 2026-2028 net profits at 5.9 billion, 10.7 billion, and 16.6 billion yuan respectively. This represents a significant reduction from the firm's earlier projections made last December.
Naura's actual 2025 performance showed revenue growth but a slight decline in net profit. Prior to China Post's revision, other institutions like Soochow Securities and AJ Securities had already lowered their profit forecasts for Naura.
Despite the forecast cuts, Naura's share price recently hit a new annual high, closing at 747.49 yuan on June 23.
Additionally, some companies listed on the Beijing Stock Exchange, such as Norseland, have also faced profit forecast downgrades.
Some Companies Receive Brokerage Support
Conversely, several A-share companies have received "strong support" from brokerages, with the latest profit forecasts showing substantial increases compared to their 2025 annual results.
Envicool Technology Co.,Ltd. (SHE: 002837) reported a net profit of approximately 500 million yuan for 2025. Despite a significant year-on-year decline in net profit for Q1 2026, several brokerages believe its full-year 2026 profit could surge dramatically. West Securities, for example, forecasts a 2026 net profit of around 1.4 billion yuan, representing an increase of over 160% from the 2025 figure.
Some loss-making companies have also garnered brokerage optimism, with predictions they will return to profitability in 2026. For instance, Xinzhu Machinery Co.,Ltd. (SHE: 002480) reported a net loss of 168 million yuan for 2025. However, Lianchu Securities recently forecast net profits of 370 million, 426 million, and 559 million yuan for 2026-2028. The analyst cited the company's ongoing major asset restructuring, aimed at focusing on the clean energy industry, as a key driver expected to lead to a revaluation and fundamentally improve profitability.
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