According to the data released by the National Bureau of statistics on October 27, in the third quarter, the profits of Industrial Enterprises above designated size increased by 14.3% year-on-year, continuing to maintain double-digit growth; The average growth rate in the two years was 15.1%, slightly lower than that in the second quarter, and generally maintained a good growth trend. Zhu Hong, Senior Statistician of the industry department of the National Bureau of statistics, said that in the third quarter, industrial production continued to recover, profits maintained a good growth trend, enterprise efficiency continued to improve, and the profitability, asset liability ratio and capital turnover continued to improve year-on-year. Two industries form support Data show that in the first nine months, the profits of Industrial Enterprises above designated size increased by 44.7% year-on-year, with an average increase of 18.8% in the two years. More than 70% of the industry's profit scale exceeded the pre epidemic level. Among the 41 major industrial industries, the profits of 29 industries increased over the same period in 2019, accounting for 70.7%. The overall benefits of most industries were better than before the epidemic. Among them, 18 industries have an average profit growth rate of 10% or more in two years. Why did the profits of China's industrial enterprises maintain a good growth trend in the third quarter? Zhu Hong said that in the third quarter, the profits of the mining industry increased by 2.04 times year-on-year, and the raw material manufacturing industry increased by 42.5%, continuing to maintain a rapid growth trend, providing important support for the improvement of the profits of industrial enterprises. Zhu Hong said that driven by factors such as the continuous rise of product prices, the profit of the coal industry increased by 2.72 times year-on-year in the third quarter, significantly faster than that in the second quarter; The profits of oil and gas exploitation, nonferrous metals, petroleum processing, chemical industry and steel industry increased by 2.97 times, 77.6%, 70.8%, 69.3% and 42.6% respectively, all of which achieved rapid growth. It is worth noting that the profits of industrial enterprises increased by 16.3% year-on-year in September, 6.2 percentage points faster than that of the previous month. This is a rise again after the year-on-year growth rate of profits of Industrial Enterprises above the designated size in a single month fell for several consecutive months. Zheng Houcheng, director of Yingda Securities Research Institute, said that the accelerated profit growth of industrial enterprises in September was mainly affected by price factors and base factors. In September, PPI increased by 10.7% year-on-year, 1.2 percentage points higher than that in August; In addition, the industrial profit base was low in the same period last year. The foundation for enterprise benefit recovery needs to be consolidated "In the third quarter, the profits of national industrial enterprises above Designated Size maintained a good growth trend, but factors such as high commodity prices and insufficient smoothness of the supply chain affected the continuous recovery of enterprise profits. At the same time, the imbalance of profits between upstream and downstream industries was more prominent, and the foundation for the recovery of industrial enterprises' benefits still needs to be further consolidated," Zhu Hong said. Looking forward to the profit trend of industrial enterprises, Zheng Houcheng believes that although the local spread of the epidemic and the shortage of energy supply in some regions may have a certain impact on the profits of industrial enterprises in the later stage, considering the introduction and implementation of a number of national energy supply and price stabilization policies, local epidemic prevention and control measures are strong and orderly, In October, the two-year average growth rate of industrial enterprise profits remained at a high level. Wu chaoming, chief economist of Caixin securities, expects that the profit growth of industrial enterprises will show a moderate slowdown in the future. The high level operation of PPI will bring some support to the profits of industrial enterprises, especially the profits of upstream enterprises, but the cost pressure of middle and downstream enterprises is large. Zhu Hong stressed that in the next step, we should pay attention to normalized epidemic prevention and control, maintain the continuity and stability of macro policies, do a good job in cross cycle economic regulation, stabilize commodity prices, continue to expand domestic demand, promote transformation and upgrading, stimulate the vitality of market players, and ensure that the industrial economy operates within a reasonable range. (outlook new era)