Shanghai Securities News | 507 STAR Market Companies Disclose 2022 Performance with Estimated Operating Revenue of Over RMB One Trillion Yuan and Net Profit of Over RMB 100 Billion Yuan in Total
Source: Shanghai Securities News
As of February 28, 2023, 507 STAR Market companies have disclosed their performance in 2022. Among them, 504 have disclosed their preliminary earnings estimates, 2 have disclosed their annual reports and 1 has disclosed its performance forecast for 2022.
Several "firsts" outline the growth process of STAR Market companies: In terms of 2022 performance, the operating revenue and net profit of STAR Market companies in total are expected to exceed RMB one trillion yuan and 100 billion yuan respectively for the first time. In terms of R&D, in the first three quarters of last year, the R&D spending of STAR Market companies totaled RMB 82.2 billion yuan, and the total R&D spending is expected to exceed RMB 100 billion yuan for the first time.
According to the disclosed data, in 2022, more than 80% of the STAR Market companies achieved profitability, and 70% saw an increase in their operating revenue, hinting at great resilience. In terms of sub-sectors and attributes, top companies of the STAR 50 Index led the whole performance, with areas such as photovoltaics, power batteries, and semiconductor equipment materials showing strong momentum and companies of special types operating well with great vigor.
Over 80% of the companies achieved profitability
According to the statistics of Shanghai Securities News, the operating revenue of STAR Market companies in total in 2022 is expected to be RMB 1.21 trillion yuan, up by 29% year on year; net profit attributable to the parent company to be RMB 114.4 billion yuan, up by 8% year on year; and net profit attributable to the parent company after deducting non-recurring gains and losses to be RMB 92 billion yuan, up by 11% year on year. Given that the STAR Market allows the listing of non-revenue and non-profit companies, after excluding 47 unprofitable listed companies, the Market's overall operating revenue, net profit attributable to the parent company and net profit attributable to the parent company after deducting non-recurring gains and losses respectively increased by 30%, 13%, and 14%.
Specifically, 70% of STAR Market companies are expected to see an increase in their operating revenue in 2022, with 76 of them growing by over 50% and more than 40% reporting revenue of over RMB 1 billion yuan. In addition, more than 80% of STAR Market companies made a profit; nearly 50% reported year-on-year net profit growth; 79 companies reported net profit growth of over 50%; and 41 companies reported double net profit.
Shanghai Allist Pharmaceuticals Co., Ltd. led the growth of the board with a net profit growth of over 600% thanks to the steady commercialization of its core product Furmonertinib. As an innovative drug company in oncology treatment, Shanghai Allist Pharmaceuticals Co., Ltd. has built a refined R&D framework in the field of small molecule targeted drugs for non-small cell lung cancer.
However, due to changes in market conditions, adjustments in industry demand, and impacts of the pandemic, some STAR Market companies have suffered performance declines. Among them, 45 are expected to experience a net profit drop of over 50% last year, and 73 to see their profits turn into losses or loss expansion.
New energy and semiconductor achieved accelerated growth
The STAR Market is witnessing the accelerated formation of a "characteristic chain" of outstanding quality and resilience covering photovoltaic, wind power, energy storage, power batteries, and many other fields. Under the concept of "green development", how fast were new energy companies on the STAR Market developing? Statistics show that in 2022, the above companies are expected to report an operating revenue of RMB 285.4 billion yuan in total, up by 66% year on year; and a net profit of RMB 32.7 billion yuan, up by 126% year on year.
Take the photovoltaic sector of the STAR Market for example: With the increased advantages in technology and scale, relevant companies achieved an operating revenue of RMB 232.304 billion yuan in total, up by 99% year on year; and a net profit attributable to the parent company of RMB 29.995 billion yuan, up by 173% year on year. Among them, Xinjiang Daqo New Energy Co., Ltd., the silicon leader, and Trina Solar Co., Ltd. and Jinko Solar Co., Ltd., the photovoltaic module leaders, posted net profits of RMB 19.1 billion yuan, 3.7 billion yuan, and 2.9 billion yuan, respectively, which are expected to double their performance year on year.
The power battery sector of the STAR Market also showed promise. Relevant companies had an operating revenue of RMB 189.131 billion yuan in total, up by 74% year on year; and a net profit attributable to the parent company of RMB 9.914 billion yuan, up by 55% year on year. Benefiting from the booming new energy vehicle market, Guizhou Zhenhua E-chem Inc., Hunan Changyuan Lico Co., Ltd. and Ningbo Ronbay New Energy Technology Co., Ltd. saw year-on-year growth in their net profits of 208%, 113% and 49%, respectively.
Currently, the integrated circuit sector of the STAR Market has nearly 90 companies. In 2022, they achieved an operating revenue of RMB 174.934 billion yuan, up by 21% year on year; and a net profit attributable to the parent company of RMB 29.929 billion yuan, basically unchanged over the previous year. Among them, Semiconductor Manufacturing International (Shanghai) Corporation is expected to post an operating revenue of RMB 49.516 billion yuan in 2022, up by 39% year on year; and a net profit attributable to the parent company after deducting non-recurring gains and losses of RMB 9.774 billion yuan, up by 84% year on year.
Besides, the upstream semiconductor equipment and materials sectors rose abruptly based on their accumulated strength. Companies including Piotech Inc., Hwatsing Technology Co., Ltd., Kingsemi Co., Ltd., Anji Microelectronics Technology (Shanghai) Co., Ltd., and Grinm Semiconductor Materials Co., Ltd. are expected to double their net profits in 2022 from a year earlier.
Nine companies of special types are expected to "remove the letter U" from their stock abbreviations
So far, the STAR Market has 48 unprofitable companies at the time of listing, 8 companies with weighted voting rights, and 6 red-chip companies. According to the preliminary earnings estimates, 9 unprofitable companies at the time of listing, including Shanghai Yizhong Pharmaceutical Co., Ltd., Vanchip (Tianjin) Technology Co., Ltd., Piotech Inc. and National Silicon Industry Group Co., Ltd., are expected to have positive net profit both before and after deducting non-recurring gains and losses in 2022. After disclosing their annual reports, the letter "U" will be removed from their stock abbreviations. By that time, 19 companies unprofitable at the time of listing on the STAR Market in total will get the letter "U" removed.
In the innovative drug industry, of the 18 innovative drug companies listed on the STAR Market under the fifth set of criteria, 13 have launched products on the market, and 10 have generated operating revenue of over RMB 100 million yuan. Among them, Shanghai Junshi Biosciences Co., Ltd., Cansino Biologics Inc., and Sinocelltech Group Limited generated revenue of over RMB 1 billion yuan in 2022; and 9 companies saw year-on-year growth in operating revenue.
In terms of net profits, 4 innovative drug companies on the STAR Market achieved profitability, including Shanghai Yizhong Pharmaceutical Co., Ltd. and Shanghai Allist Pharmaceuticals Co., Ltd., which is the first time since their listing. Shanghai Yizhong has officially launched the commercial production and sales of its core product "Paclitaxel Polymeric Micelles for Injection", which was approved for sale in the fourth quarter of 2021 and saw sales surge in 2022, significantly driving the company's revenue that year.
It should be noted that some innovative drug companies on the STAR Market suffered a performance decline in 2022. This is caused by several factors: R&D spending increased; milestone earnings in some companies' patent licensing businesses show volatility; and with their products just approved for sale in the last one to two years, the early stages of marketing and high sales costs put those companies under pressure in the short term.
The STAR 50 Index, which consists of 50 stocks with large market value and good liquidity, reflects the overall performance of the most representative STAR Market companies. The sample companies that make up the STAR 50 Index contributed outstanding performance. They are expected to achieve a total operating revenue of RMB 600 billion yuan and a net profit attributable to the parent company of RMB 68.6 billion yuan in 2022, accounting for 50% and 59% of the STAR Market's overall operating revenue and net profit attributable to the parent company, up by 43% and 36% year on year, respectively. Specifically, 42 of the sample companies in the STAR 50 Index reported revenue growth and 32 reported net profit growth.