Strategy Note /

CN : Strategy - Overall industry profit resumed positive yoy growth in Jun 22

    Mark Po
    Mark Po

    Research Analyst

    28 July 2022
    Published byCGS-CIMB

    China’s industrial profit growth improved to 0.8% yoy in Jun 22 from -6.5% in May 22 and the ytd yoy growth rate remained at 1%, unchanged mom. The improvement was due to: a) easing of COVID-19 control measures, and b) the resumption of production and logistics activity. Upstream (mining and oil gas) outperformed downstream manufacturing in Jan–Jun 22. But downstream manufacturing reported faster yoy growth in Jun 22. Industrial profit growth is expected to normalize in the coming months. The potential shift in policy focus in 2H22 may boost the performance of both upstream and downstream names in the property sector. The analysis in this report is based on industry and macro figures and may differ from the views of individual analysts, in some cases.