CICC: Signs of improvement in non-financial performance are showing, suggesting opportunities can be found in the recovery of the economy and the reduced impact of tariffs.

Zhongjin Securities released a research report stating that the non-financial ROE of A-shares remained relatively unchanged on a month-on-month basis. Combined with the significant rebound in first-quarter earnings and the positive changes mentioned above, it is expected that the lowest point of this round of profit downturn cycle has passed, but attention needs to be paid to the impact of tariff policies on the fundamentals of companies after the second quarter. Zhongjin judged that the impact of tariffs on the sales of listed companies is better than that on the real economy, but it is necessary to pay attention to the decrease in profit margins caused by price reductions and supply-demand imbalances. In terms of allocation, it is recommended to search for opportunities from the perspectives of a recovery in the economy and low impact of tariffs.