Industrial profit in October increased 25.1%. Growth slowed down

In October, the profits of industrial enterprises above designated size in the Mainland totaled 745.41 billion yuan, up 25.1% year-on-year, a deceleration of 2.6 percentage points from 27.7% in September.

National Bureau of Statistics data released yesterday showed that from January to October this year, the country’s large-scale industrial enterprises realized a total profit of 6,245.808 billion yuan, up 23.3% year on year, an acceleration of 0.5 percentage points from January to September.

State-owned enterprises profits by nearly 50% year on year

From January to October this year, of the industrial enterprises above designated size, the total profits of state-controlled enterprises amounted to 14,097.1 billion yuan, up 48.7% from the previous year, an increase much faster than that of other types of enterprises.

Heping Industrial Bureau of National Bureau of Statistics said yesterday that this year, the cost of enterprises above designated size continued to decline, profit margins continued to rise. Turnover of funds accelerated, business efficiency continued to improve, corporate leverage dropped, and business risk continued to decrease. Loss-making enterprises to reduce losses.

From January to October this year, among the above-scale industrial enterprises, the number of loss-making enterprises decreased by 1.6% year-on-year; the total loss of loss-making enterprises decreased by 18.1% year-on-year.

However, analysts pointed out that with the real estate sales growth rate plunged and negative, real estate investment will continue to decline, while the producer of ex-factory price (producer price index, PPI) increase will also fall, industrial enterprises in 2018 profit pressure increases, Growth may slow down.

The macro team of China Merchants Securities expects the profit growth of industrial enterprises above designated size next year will fluctuate from 10% to 15%, returning to a more regular rate of growth.