Category: Money tips Release Date: 2007-07-31
We have always had a vision, it is hoped that Taiwan would see a large number of high-growth, leadership-oriented enterprises, and we invest in these companies to share the growth of these enterprises, along with their continued growth, we can also get a huge return on investment. At the same time, these enterprises grow, the need for capital support, we can also spare no effort to meet their funding needs. This is a win-win situation for investors and business model, is also the cornerstone of development of capital markets.
The domestic securities market after 10 years of development, there has emerged a number of outstanding companies, such as Guizhou Maotai, ZTE, Yantai Wanhua, Yunnan Baiyao so. These companies for investors over the past several times and even 10 times earnings, they grow and develop itself to become leaders in the domestic and global enterprises. These companies are located in different industries, there are cyclical, there are non-cyclical; a traditional mature industries, there is the emerging industry. They can succeed for many reasons, there are corporate leaders, products, technology, customer resources, and so reasons, but there is a common cause is the most important reason is that they have found a successful profitable business model, one with the enterprise itself resources matched the profit model.
Some people do not agree with their view the success of these companies because these companies have a unique product or technology. We know that any company is to make money by selling products, the products can be tangible, it can be invisible. Expect only through the invention of a unique product or technology to gain sustainable profitability is not realistic. We know that the computer configuration of the DOS operating system from the earliest to the current Windows system, not the beginning of Mi? Juan crosoft's invention, the invention of these systems people did not make a lot of money, while the Mi? Juan crosoft companies have been the help of the right profit model to obtain huge profits through these products.
In the traditional industries and even sunset industries, different profit model effect brought about by a great disparity. The cement industry is undoubtedly a traditional industry for decades the only change is the production process continues to improve. Production of cement in Anhui Province has two listed companies, one is a Conch Cement, one is a nest east of shares. The two companies a few years ago, is almost the same production technology company. Several years have passed, Conch Cement continuous development of China's cement industry leaders in enterprise, the nest has been on the East stock losses or meager profits to fall to be managed merger situation. This disparity is due to differences in Conch Cement discovered the weak link in the cement industry, establishing a new profit model. Cement industry is a radius of existing transportation industry, cement and the development of enterprises in the past been subject to transportation costs, limited room for development. Conch Cement to see the industry's weak link, the implementation of T-oriented development strategy, the traditional cement manufacturing process broken down into two parts, one is the clinker production is processed into a final product of cement grinding station. Conch cement in the Yangtze River continue to acquire or create a new clinker production base, monopolized the resources of limestone along the Yangtze River, while one of China's most economically developed regions, but the lack of resources in the Yangtze River Delta limestone continuous acquisition of small cement plants into its low-cost, the grinding station, processing its own production of cement clinker into finished products --- and then sell locally. Seems simple to bring a breakthrough in a new profit model, but also created an industry leader in enterprise.
In enterprise development, for-profit model is the key link, is the fundamental, the other everything is heading. Gang Zhang Ju in order to head. We analyze a business, you must first analyze the profit model. In general, each industry has several key profit-making point, they are, or a weak link in the industry, or bottlenecks, or areas of technological innovation in the product, or cost control link, or in the customer management aspects and so on. If a company's profit model of the industry covered by the enterprise for one or several key profit-making point, there is likely to be industry leaders in business, the other hand, if a company does not have a good profit model, it certainly can not be leaders in business, but also may be eliminated by the market.
Therefore, we invest in a business, not only to pay attention to how much profit, but also depends on how it to make money. How to make money is more important than how much money.
Yi Yang Fang, Economics MA, 9-year securities business experience, had engaged in stock offerings, asset management business, adding Guangfa Fund Management Co., Ltd., he worked as a self-GF Securities Co., Ltd. vice president for investments. Investment Management Department is currently the general manager of Guangdong Development Fund and the Guangdong Development Jufeng grand international fund fund managers.
