Numerous insights from various analysts can assist in uncovering potential investment opportunities!
As of now, nearly 28 listed companies in A-shares have published their third-quarter reports for 2025. Among these, 21 companies reported a year-on-year revenue increase, accounting for 75% of the total, while 26 companies achieved a year-on-year profit increase, representing an impressive 92.85%.
Among these 28 listed companies, only one is registered in Sichuan, and the results are somewhat disappointing.
Chengdu Qinchuan IoT: Improvement in Quarterly Operations As the first Sichuan company to release its third-quarter report, Chengdu Qinchuan IoT continued the trend of declining revenue and net profit seen in the first half of the year. The Q3 report revealed that the company’s revenue for the first three quarters was 219 million yuan, a year-on-year decrease of 16.24%, with a net profit attributed to shareholders amounting to a loss of 69.9 million yuan, further exacerbating the annual loss.
Key Financial Data of Chengdu Qinchuan IoT However, on a quarterly basis, Chengdu Qinchuan IoT showed signs of improvement. Financial data indicated that in Q3, the company generated revenue of 91.5 million yuan, marking a year-on-year increase of 26.41%. The net profit attributable to shareholders was a loss of 9.03 million yuan, significantly reducing the quarterly losses. The company noted that the decline in sales volume and sales price of domestic gas meters in the first half led to revenue reduction, while lowered production also increased the proportion of fixed costs like depreciation, further squeezing gross margins. Nonetheless, Q3 saw improvements with both revenue and gross margins increasing year-on-year, reflecting better operational results compared to the first half.
Despite Chengdu Qinchuan IoT still facing overall declines, its operational situation showed improvement in a singular quarter. Notably, multiple institutions have begun accumulating shares in the company. In the changes among the top ten circulating shareholders, CITIC Prudential Multi-Strategy Flexible Allocation Mixed Securities Investment Fund (LOF) newly increased its stake by 742,000 shares in Q3, making it the sixth largest circulating shareholder. China Ping An Life Insurance Co., Ltd.’s New Dividend No. 8 followed closely by adding 413,500 shares, ranking seventh among circulating shareholders.
Interestingly, Chengdu Qinchuan IoT has also attracted foreign investment attention. In Q3, J.P. Morgan Chase invested in 380,600 shares, becoming the tenth largest circulating shareholder.
Shenghe Resources: Profits Likely to Accelerate Apart from Chengdu Qinchuan IoT, seven other listed companies in Sichuan Province have released performance forecasts for the first three quarters. Among these, Shenghe Resources, Xichang Power, Shengnuo Biotech, Yahua Group, and Atlantic have all projected varying degrees of profit growth, while Tian’ao Electronics and Chengdian Optics expect declines in net profit.
Among the Sichuan stocks with disclosed forecasts, Shenghe Resources stands out with the most promising performance. According to the latest forecast, Shenghe Resources expects a net profit attributable to shareholders of between 740 million and 820 million yuan for the first three quarters, representing a year-on-year increase of between 696.82% and 782.96%. Its net profit excluding non-recurring items is projected to be between 727 million and 807 million yuan, reflecting an increase of 769.06% to 864.76% year-on-year.
Shenghe Resources attributed this profit increase to improved market demand and rising product prices for its main rare earth products, driven by changing market supply and demand dynamics. The company capitalized on market opportunities to optimize production and marketing while enhancing management effectiveness and cost control, achieving significant growth compared to the same period last year.
After facing operational declines in both 2023 and 2024, Shenghe Resources is experiencing a recovery in 2025. For the first half of the year, the company reported revenue of 6.179 billion yuan, up 13.62% year-on-year, and a net profit attributable to shareholders of 377 million yuan, skyrocketing by 650.09%, with a net profit of 364 million yuan, up 615.47% year-on-year.
During this recovery phase, Shenghe Resources’ performance accelerates. Based on the projected net profit in the third quarter, the company may achieve a net profit of between 363 million and 443 million yuan, as the quarterly profit is expected to surpass that of the first half.
Which Sichuan Stocks Have Strong Growth Expectations? While only a few Sichuan stocks have released their Q3 performance forecasts so far, numerous companies exhibit strong growth expectations based on their performance and operational conditions in the first half. Based on interim results and institutional opinions, companies like Huaxi Securities and New Relic are likely to see significant growth.
For instance, Huaxi Securities has benefited from an improving market environment, leading to notable increases in its brokerage and wealth management business revenues. Furthermore, the rebound in the capital market has also significantly boosted its investment income year-on-year. For the first half of the year, Huaxi Securities recorded revenues of 2.073 billion yuan, a year-on-year increase of 46.72%, with net profit attributable to shareholders swelling to 512 million yuan, nearly a twelvefold increase.
"Third-quarter performance in A-shares markedly improved compared to the first half, both in terms of overall market gains and transaction volumes, making brokerage stocks poised to exceed expectations once again." Industry analyst Li Wenwen commented, "While Huaxi Securities’ near twelvefold growth was partly due to a low base last year, there may be challenges in achieving proportional growth given higher comparisons in the latter half of the year. Nevertheless, the company’s continued operational growth is highly certain based on Q3 capital market performance."
With rapidly increasing product demands and diversified layouts providing new growth points, the consensus is that New Relic will continue its high-growth trend. For the first half of the year, New Relic reported revenues of 10.44 billion yuan, growing by 282.6% year-on-year, with a net profit of 3.94 billion yuan, reflecting a staggering year-on-year rise of 355.7%. In Q2 alone, revenues reached 6.38 billion yuan, increasing 295.4% and 57.6% quarter-on-quarter, while net profit amounted to 2.37 billion yuan, marking year-on-year growth of 338.4% and 50.7%.
Recent institutional perspectives suggest that New Relic may realize a year-on-year growth exceeding twofold for the entire year. Industrial Securities indicated that New Relic's self-developed silicon photonic chip module research is progressing smoothly, and it is expected to ramp up output gradually in the latter half of the year. With improved profitability due to enhanced processing, the company foresees substantial gross margin improvement as high-speed products continue to evolve. The company expresses confidence in future long-term demand, with expectations for sustained high growth in the second half of the year. The forecast is for New Relic to achieve net profits of 8.72 billion yuan this year, with nearly 5 billion in anticipated net profit during the second half, significantly higher than the first half's performance, resulting in an expected annual growth rate of 207%.
Comments