Last years report card of GEM companies: nearly 90percent of profits exceed 60percent of net profit growth

category:Finance
 Last years report card of GEM companies: nearly 90percent of profits exceed 60percent of net profit growth


The disclosed performance data also shows that in 2019, the operating profit of GEM companies increased by 49% compared with 2018, close to the growth rate of net profit; the proportion of operating profit in total profit was 111%, 11% higher than 2018; the ending asset liability ratio was 46%, 1% higher than the end of 2018, maintaining a reasonable level. This shows that the main business of GEM companies has developed steadily, and its position as the main source of the companys net profit has been further improved. In addition, the average operating profit margin of GEM companies in 2019 is 6.35%, 1.3 percentage points higher than that in 2018; the return on net assets is 4.42%, 1.5 percentage points higher than that in 2018, and the companys profitability has improved.

In terms of industries, the unbalanced development of GEM companies still exists: among the companies that have disclosed performance express or annual report, the performance of six industries, such as electrical equipment, national defense and military industry, automobile, electronics, public utilities, agriculture, forestry, animal husbandry and fishing, has a large increase, all of which are higher than 100%; the performance of pharmaceutical, media and other industries is basically the same as that of 2018; the performance of chemical, mechanical equipment, communication, computer and other industries is basically the same as that of 2018 The performance of construction and decoration industry has declined year on year; the operating profit rate of medicine and biology, national defense and military industry, agriculture, forestry, animal husbandry and fishery industry is higher, all of which are above 10%; the return on net assets of agriculture, forestry, animal husbandry and fishery, medicine and biology industry is higher, respectively reaching 25% and 10%.

The performance growth of leading companies is higher than the average level. In 2019, there are 51 GEM companies with a net profit of more than 500 million yuan, an increase of 7 over 2018. Nearly 90% of these leading companies achieved a year-on-year growth in net profit, with nearly 30% of the companies growing by more than 50%, and nearly 20% of the companies doubled their net profit, which is higher than the average level of the companies that have disclosed performance express. Lansi technology, Tianyu Co., Ltd., Wanji technology and Wenshi Co., Ltd. are all affected by multiple factors such as favorable industry, increase in sales revenue, and increase in gross profit rate, with the growth rate of net profit reaching more than 200%.

In addition, the growth rate of net profit of GEM companies in 2019 is much higher than the growth rate of operating revenue. Considering that the overall performance of GEM companies has declined significantly due to the provision of large amount of goodwill impairment in 2018, it is expected that the goodwill impairment loss of GEM companies in 2019 will drop significantly, and the risk of goodwill impairment will be resolved to a certain extent.

Source: responsible editor of Securities Daily: Yang qian_nf4425