89 Stocks Praised by Brokerages for Q1 Results, Averaging Over 10% Gains in April

89 Companies Earn Collective Praise from Brokerages for Q1 Reports

According to Securities Times, as of April 28, among listed companies that have released their 2025 Q1 reports, 89 firms received explicit "better-than-expected" ratings in brokerage research notes. These professionally endorsed companies also delivered strong performances in the secondary market, rising an average of over 10% since April and significantly outperforming the Shanghai Composite Index over the same period.

Notably, AI supply chain stocks stood out among these earnings outperformers. Optical module leader Innolight Technology saw cumulative gains exceeding 40%, once again confirming the powerful upstream demand driven by AI computing needs.

Trillion-Yuan Giants Converge as AI Supply Chain Becomes Top Highlight

Data shows that nearly 80% of the 89 outperforming companies have total market capitalizations exceeding 10 billion yuan, including 21 companies valued at over 100 billion yuan such as CATL, Kweichow Moutai, and China Mobile. The concentration of positive earnings among large-cap companies reflects the fundamental resilience of China's core assets.

In terms of individual stock performance, Sanen Electronics, Enpower Electric, and Innolight Technology each posted cumulative gains of over 40%, leading the entire outperformance cohort. Innolight Technology, as a global leader in optical modules, saw its Q1 earnings surge on the back of a massive increase in orders for 800G/1.6T high-speed optical modules driven by the ongoing explosion in global AI large model training and inference demand. Sanen Electronics similarly benefited from rapid growth in demand for high-end electronic components such as ceramic substrates used in AI servers.

Earnings Logic: AI Computing Demand Continues to Spill Over

From an industry perspective, this round of Q1 earnings outperformers exhibits several distinct characteristics:

First, the AI computing supply chain is experiencing the highest level of prosperity. From optical modules and servers to upstream electronic components, the order dividends from AI infrastructure construction are cascading down the supply chain. Multiple brokerages noted in their research reports that as domestic and international large model iterations accelerate, AI computing capital expenditure remains in an upcycle, providing strong earnings visibility for related suppliers.

Second, traditional industry leaders are demonstrating operational resilience. Q1 reports from consumer and telecom giants like Kweichow Moutai and China Mobile also received "better-than-expected" ratings, indicating that industry leaders with brand moats and scale advantages can still achieve steady growth even amid macroeconomic headwinds.

Third, the market's efficiency in pricing fundamentals is improving. The average gain of over 10% in April across 89 companies suggests that market capital is increasingly focused on earnings delivery, with the trend of "voting with their feet" becoming ever more pronounced.

Outlook: Earnings as the Anchor, Watch for AI Theme Sustainability

Industry insiders believe that amid the global AI industry wave, AI supply chain companies with genuine earnings support are poised to continue attracting capital. As more listed companies disclose operational data in Q2, earnings divergence is likely to intensify further, with a "winner-takes-all" dynamic most likely persisting.

However, some analysts caution that certain stocks with significant short-term gains face profit-taking pressure after earnings are realized. Investors should focus on whether a company's medium- to long-term growth thesis remains solid, particularly the order visibility and gross margin trends of AI-related businesses.

Overall, the Q1 "better-than-expected" rally is not merely a short-term catalyst but an important signal of the market's shift from thematic speculation to earnings-driven investing. Against the backdrop of accelerating AI technology commercialization, companies that can effectively convert technological dividends into financial returns will become the core investment theme for the next phase of the market.