Chinese industrial profits jumped 24.7% year over year in April, rebounding to another record high during the month, led by technology-related goods, according to data from the National Bureau of Statistics released Wednesday.
The figure rose to a 52-month high in April, according to a note by ING analyst Lynn Song released the same day.
Year-to-date industrial profit increased 18.2% to 2.436 trillion yuan, rising from the 15.5% seen in the January-March period, the bureau said.
The January-April figure was the highest since March 2022, according to ING.
Signs point toward a sector-driven industrial profit recovery rather than a broad-based one, the Dutch bank said in its note.
Industrial profits in the computers, communications, and electronic equipment segment surged 108% to 316.5 billion yuan.
"The leading role of new growth drivers such as equipment manufacturing and high-tech manufacturing was evident," NBS statistician Yu Weining said in a note accompanying the release.
"Growth is mainly driven by upstream price increases and AI," Reuters reported separately Wednesday, citing Economist Intelligence Unit senior economist Tianchen Xu.
Profits in the mining industry grew 26% to 361.8 billion yuan, while that of the manufacturing sector jumped 20% to 1.802 trillion yuan, the NBS said.
The utilities sector saw profit slip 1.9% to 272.0 billion yuan, while electrical machinery and equipment manufacturing industrial profits slid 11% to 150.7 billion yuan.
"Downstream sectors still face significant profit pressure due to rising upstream costs and intensified 'involution'," Reuters quoted Xu as saying.
Overall operating revenue increased 5.2% to 4.489 trillion yuan, while operating costs jumped 4.5% to 3.813 trillion yuan, with the rate of increase unchanged from the first three months of 2026, ING said.
Growth in utilities costs accelerated to 0.6% in the January-April period from a decline of 0.2% in the January-March period.
Should energy prices stay high, they could impact profit growth, ING said.
China faces headwinds amid rising component costs worsened by the crisis in the Middle East, according to a separate Reuters report Wednesday.
Meanwhile, industrial profit data could signify uneven economic recovery in China as the economy lost momentum at the start of the second quarter, Reuters said.
Industrial production, for instance, slowed to 4.1% in April, a 33-month low, from a 5.7% growth in March, while retail sales reported a sluggish 0.2% rise.
