Title: High-Yield, Low-PE, Record-Profit Stocks Emerge in China’s A-Share Market—Top Picks for Income-Focused Global Investors
Author: Arvin
Date: January 27, 2026
As Chinese equities enter the earnings disclosure season for 2025, a compelling cohort of stocks is catching the attention of value-oriented global investors: companies delivering record-high profits, trading at low price-to-earnings (PE) multiples, and offering attractive dividend yields—some nearing 8%. For overseas investors with exposure to A- and H-shares, this convergence of fundamentals presents a rare opportunity in today’s volatile macro environment.
The Big Picture: 158 Companies Set New Profit Records
According to a recent analysis by Securities Times and East Money’s Data Bao, 158 A-share companies are projected to report all-time high net profits in 2025, based on official earnings pre-announcements and fast reports (excluding firms listed within the past two years).
These record-breakers are concentrated in five key sectors:
- Electronics (25 companies)
- Machinery & Equipment
- Automobiles
- Basic Chemicals
- Power Equipment
Notably, 147 of these firms (over 90%) are expected to earn more than RMB 1 billion in net profit, with 12 giants crossing the RMB 100 billion mark, including:
- China Merchants Bank & 招商银行 & 600036.SH & Banking
- CITIC Securities & 中信证券 & 600030.SH & Capital Markets
- Zijin Mining & 紫金矿业 & 601899.SH & Metals & Mining
- Yangtze Power & 长江电力 & 600900.SH & Utilities
Low Valuation + High Dividend: A Sweet Spot for Income Seekers
Among these high-performers, 66 stocks trade at trailing PE ratios below 30x as of January 26, 2026. Even more striking: 9 of them have PE ratios under 10x, dominated by financial institutions and select industrials:
- Suzhou Rural Commercial Bank & 苏农银行 & 603323.SH & Banking
- CITIC Bank & 中信银行 & 601998.SH & Banking
- Nanjing Bank & 南京银行 & 601009.SH & Banking
- Hangzhou Bank & 杭州银行 & 600926.SH & Banking
- Ningbo Bank & 宁波银行 & 002142.SZ & Banking
- Langzi Shares & 朗姿股份 & 002612.SZ & Textiles, Apparel & Luxury Goods
- Gansu Energy & 甘肃能源 & 000791.SZ & Utilities
- Ganyue Expressway & 赣粤高速 & 600269.SH & Transportation Infrastructure
Critically, 13 of these low-PE stocks offer dividend yields above 3% (based on trailing 12-month payouts). At the top sits:
China Merchants Bank & 招商银行 & 600036.SH & Banking — 7.92% dividend yield
Despite near-term headwinds from China’s economic transition, Ping An Securities recently reaffirmed CMB’s long-term competitive edge, citing its superior retail banking franchise, asset quality discipline, and consistent capital return policy.
Performance Divergence: Winners vs. Laggards
Year-to-date (as of Jan 26), this low-PE, high-profit group has delivered an average gain of +9.1%, significantly outperforming the broader market. Standout performers include:
- Chifeng Gold & 赤峰黄金 & 600988.SH & Gold Mining: +36.65% YTD
→ Expected 2025 net profit: RMB 30–32B (+70% to +81% YoY), driven by surging gold prices (+49% YoY) and record production (~14.4 tonnes).
However, not all are rising. Several fundamentally sound names are lagging:
- Nanjing Bank & 南京银行 & 601009.SH & Banking: –8.57% YTD
→ Yet reported solid 2025 net profit of RMB 21.8B (+8.08% YoY), with corporate loans and deposits both exceeding RMB 1 trillion. - LUXSHARE Precision & 立讯精密 & 002475.SZ & Electronics Manufacturing
- Dongpeng Beverage & 东鹏饮料 & 605499.SH & Beverages
This disconnect may signal potential value opportunities for contrarian investors.
Strategic Takeaway for Global Portfolios
For overseas investors seeking income, stability, and exposure to China’s domestic recovery, the intersection of record earnings + low valuation + high dividend yield offers a robust filter. While many of these stocks are A-share-only, their underlying businesses often serve multinational supply chains or benefit from national strategic priorities (e.g., energy security, financial stability, resource sovereignty).
Top considerations for portfolio inclusion:
- Prioritize firms with sustainable dividends (payout ratios <60%) and clean balance sheets.
- Favor sectors with pricing power (e.g., utilities, mining) or structural tailwinds (e.g., domestic consumption, infrastructure).
- Monitor policy signals—especially around bank capital rules and SOE dividend mandates—which could further boost yields.