Can the surge in U.S. stocks ignite a red envelope market in A-shares? The company with five consecutive years of net profit growth is revealed, and the leading optical module company's performance has exploded.

As the annual report season is in full swing, listed companies’ 2025 annual reports (including quick reports) are being released in rapid succession, bringing a number of high-performing companies into the spotlight.

Over 80% Probability of the Shanghai Composite Rising in the First 5 Days Before the Spring Festival

Last week (February 2 to 6, 2026), the A-share market was in a correction phase, with the Shanghai Composite Index declining by 1.27% cumulatively. This week is the only five trading days before the Lunar New Year; will the “red envelope” arrive as scheduled before the holiday?

From 2000 to 2025, the performance of the Shanghai Composite Index in the first five days before the Spring Festival shows that the probability of an increase exceeds 80%, with an average gain of 1.76%.

It is worth noting that last Friday (February 6, 2026), the Dow Jones Industrial Average first crossed the 50,000-point mark. By the close, the three major U.S. stock indices all surged, with the Dow rising by 2.47%, the S&P 500 up by 1.97%, and the Nasdaq up by 2.18%. The U.S. tech sector led the rally, with the Wind U.S. Information Technology Index soaring by 4.38% last Friday, followed by the Wind U.S. Industrial Index, which nearly gained 3% on the same day. Additionally, the Wind China Concept Tech Leaders Index and the Nasdaq China Golden Dragon Index rose by 2.9% and 3.71%, respectively.

Data from the past 15 years indicate a certain correlation between U.S. stock index performance before the Chinese New Year and A-shares. From 2008 to 2025, the probability that the Dow Jones Industrial Average’s change on the sixth trading day before the Chinese New Year aligns with the A-shares’ five-day change before the festival exceeds 75%.

CITIC Securities states that, considering current market incremental funds and sentiment index components, the overall A-shares index has limited room for correction and is expected to stabilize before the Spring Festival, potentially ushering in a new upward trend around the holiday.

62 Companies Report Net Profit Growth for 5 Consecutive Years

According to Securities Times·Data Treasure statistics, as of February 8, among companies that achieved profits in 2020 and disclosed their 2025 annual reports (including quick reports and performance forecasts), 62 companies have experienced net profit growth for five consecutive years.

In terms of industry distribution, these 62 companies are mainly concentrated in machinery equipment, banking, automotive, and pharmaceuticals and biotech sectors, with the machinery equipment sector accounting for as many as 9 companies.

The machinery equipment industry is expected to see a significant increase in overall net profit in 2025. Among companies that have disclosed their 2025 performance, the comparable net profit for 2025 has increased by over 290% year-on-year, ranking among the top 31 first-level industries in Shenwan. Companies citing reasons for performance growth mainly attribute it to two factors: first, actively reducing costs and increasing efficiency to boost profitability; second, accelerating the development of emerging markets while consolidating traditional market business, thereby promoting globalization strategies.

The banking sector includes 8 companies, mainly city commercial banks and joint-stock banks. China Merchants Bank’s net profit in 2025 is expected to surpass 150 billion yuan, reaching a record high.

In the automotive and biotech sectors, each has 6 companies on the list. Notably, automotive companies Asia-Pacific Shares, Lintai New Materials, and Ninebot-WD all expect net profit growth of over 50% in 2025.

Looking at the change in net profit compared to five years ago, 49 companies have doubled their profits, 14 companies have increased profits by more than five times, and 6 companies have grown by over ten times, including Asia-Pacific Shares, Ninebot-WD, Taishan Petroleum, Bojun Technology, Batian Shares, and Zhongji Xuchuang.

Among them, Zhongji Xuchuang, a leader in optical modules with a current market value exceeding 600 billion yuan, ranks second in the communications industry. Its net profit in 2025 is projected to reach 9.8 billion yuan, with a minimum year-on-year increase of nearly 90%, setting a new record. The company states that benefiting from strong investments by terminal customers in computing infrastructure, its product shipments have grown rapidly, with high-speed optical modules continuously increasing in proportion. As product solutions are optimized and operational efficiency improves, both revenue and net profit are expected to grow significantly compared to the same period last year.

11 Companies Surpass 20% Growth This Year

Supported by strong performance, these companies’ stock prices have performed well overall. As of February 6, the average cumulative increase of the 62 companies in 2026 is close to 8%, significantly outperforming the market. Eleven companies have seen cumulative gains of over 20%, including several in the non-ferrous metals sector.

Textile and apparel company Caibai Shares and non-ferrous metals companies Hunan Gold and Xiamen Tungsten have all seen cumulative gains of over 35% since 2026. Caibai Shares has increased by over 71% since 2026, with 2025 net profit not less than 1.06 billion yuan, a year-on-year increase of over 45%. The main reason for the forecasted performance increase is the accelerated consumer trend change in the gold jewelry industry, with 2025 net profit increasing by over 190% compared to five years ago.

Hunan Gold, in the non-ferrous metals sector, has gained over 70% since 2026, with 2025 net profit growth of no less than 50%, and an increase of over 460% compared to five years ago. Xiamen Tungsten and CICC Gold have each gained over 25% since 2026, with their 2025 net profits increasing by over 200% compared to five years prior.

13 Companies Receive Heavy Institutional Research

Furthermore, as of February 6, nearly 20 of the 62 companies have been visited by institutions in 2026, with 13 companies receiving research from more than 12 institutions. Ninebot-WD, Zhongji Xuchuang, and Nanjing Bank have each been visited by over 75 institutions.

Ninebot-WD has been visited by 160 institutions this year. The company states that it is well-prepared in product reserves, channel coordination, and compliance readiness, and is confident in seizing opportunities amid industry structural adjustments to achieve a steady start.

Zhongji Xuchuang has been visited by 137 institutions this year. The company notes that many customer orders extend into Q4 2026, indicating high industry demand and sustainability.

Nanjing Bank has been visited by 76 institutions this year. In 2025, the bank’s net profit reached 21.807 billion yuan, an increase of over 65% from 2020. The company states that in 2026, it will continue to optimize credit structure, precisely control lending pace, deepen regional market development, and strengthen risk management to ensure a balanced growth in loan volume, price, and risk, providing solid financial support for high-quality regional economic development.

Caibai Shares has been visited by 51 institutions this year. The company plans to continuously optimize product structure, deepen IP cooperation, and enhance shopping experience, actively seizing consumption opportunities during holidays like New Year’s Day and Spring Festival to boost sales at the start of 2026.

In terms of market performance, the average increase of these 13 companies in 2026 exceeds 10%. The stock prices of Ninebot-WD, Bojun Technology, and Zhongji Xuchuang have declined this year; however, Suyuan Electric, Guangha Communication, and Weichai Heavy Machinery have each gained over 15% since 2026.

(Article source: Securities Times Web)