China Merchants Securities Co.,Ltd. released a research report indicating that following the disclosure of listed companies' mid-year performance reports, stocks with earnings upgrades were primarily concentrated in pharmaceuticals (chemical formulations, medical R&D outsourcing, other biological products, pharmaceutical raw materials), TMT (digital chip design, IT services III, vertical application software, communication network equipment and devices, gaming III, printed circuit boards, analog chip design), high-end manufacturing (chassis and engine systems, other specialized equipment, energy and heavy equipment, aviation equipment III, lithium batteries), as well as securities, copper, pesticides, other chemical products, and thermal power sectors.

**Performance Upgrades: Concentrated in Pharmaceuticals, TMT and High-End Manufacturing**

As of August 31, A-share listed companies had essentially completed their mid-year performance disclosures. Compared to pre-disclosure levels (July 15), 794 individual stocks saw upward adjustments in their 2025 consensus earnings growth expectations.

Companies achieving performance upgrades were mainly concentrated in:

**Pharmaceuticals:** Chemical formulations, medical R&D outsourcing, other biological products, pharmaceutical raw materials, etc. These benefited primarily from innovative drug overseas revenue generation and accelerated BD growth, driving higher growth across related industry chains. Some companies also saw better-than-expected profit recovery driven by new product launches.

**TMT:** Digital chip design, IT services III, vertical application software, communication network equipment and devices, gaming III, printed circuit boards, analog chip design, etc. These mainly benefited from better-than-expected domestic and overseas cloud vendor capital expenditure, accelerated semiconductor domestic substitution driving related industry chain profits beyond expectations, improved sentiment in information technology innovation, stock market recovery boosting rapid performance recovery for some software companies, and gaming benefiting from incremental contributions from new games and IP.

**High-End Manufacturing:** Chassis and engine systems (new energy vehicle penetration rate increase + domestic substitution of core components), other specialized equipment (computing power demand driving liquid cooling-related revenue growth), energy and heavy equipment (emerging countries' infrastructure acceleration, overseas revenue generation), aviation equipment III (military trade breakthroughs + civilian volume expansion), lithium batteries (both volume and price increases).

**Others:** Securities (active market trading), copper (both volume and price increases), pesticides, other chemical products (some products with volume and price increases + overseas revenue), thermal power (declining costs, better-than-expected performance recovery), etc.

**Revenue or Profits Reaching Record Highs**

Stocks with 2025H1 cumulative revenue and 2025Q2 quarterly revenue reaching historical highs for the same period were concentrated in:

**TMT:** Consumer electronics components and assembly, printed circuit boards, digital chip design, other computer equipment, other electronics III, communication network equipment and devices, analog chip design. Hardware mainly benefited from the upward technology cycle, strong demand for computing power and AI servers, with PCB and domestic chip orders expanding; along with some software including IT services III and vertical application software.

**High-End Manufacturing:** Chassis and engine systems, other auto parts, automotive electronic and electrical systems, body accessories and trim (supported by automotive intelligence and trade-in programs for downstream demand), metal products, instruments and meters (strong downstream demand from consumer electronics, robotics, etc.), other specialized equipment (strong liquid cooling demand), other general equipment (tool electrification and overseas expansion), home appliance components III, grid automation equipment, wind power components (strong domestic and overseas demand, accelerated wind power construction), lithium batteries, etc.

Additionally, sectors such as gold (price increases), clean small appliances (government subsidies boosting domestic and export sales), express delivery (increased online shopping penetration, volume growth), and aviation transportation (passenger recovery, declining oil prices) showed high proportions of companies with record revenues.

Stocks with 2025H1 cumulative net profit and 2025Q2 quarterly net profit reaching historical highs for the same period were concentrated in:

**TMT:** Consumer electronics components and assembly, digital chip design, communication network equipment and devices, etc.

**High-End Manufacturing:** Chassis and engine systems, metal products, instruments and meters, other specialized equipment, etc.

**Pharmaceuticals:** Chemical formulations, other biological products.

**Others:** Gold, beer, civil explosive products, thermal power generation, rural commercial banks, city commercial banks.

In summary, the 2025 mid-year report upgrades and record-high sectors were mainly concentrated in TMT, high-end manufacturing, and pharmaceuticals. The firm recommends focusing on digital chip design, communication network equipment and devices, gaming, chassis and engine systems, other specialized equipment, lithium batteries, chemical formulations, and gold sectors.