Category: Money Tips Date: 2007-04-25
At present, the time when annual reports of listed companies to disclose period. Read the Annual Report has also become an important part of Investor necessary. As a complete annual report, the cumbersome, data, many investors do not pay attention to sort out, not to master certain skills and methods, it is difficult in a short time reading annual reports of all listed companies, select a higher value investing stocks. In my opinion, read the annual reports from the following three aspects also need to seize the main points in order to guide their own investments.
First of all, the main industry is the uniformity or diversity. A single main business, but also look at the market competitiveness of their products to maintain the main business development resources and scarcity of sustainable development, and understanding and attention to their market share in the monopoly situation and the region. One of the main business model, its main business revenue growth, the need to consider the development of stability and sustainable development capacity, and its ability to supply the resource-dependent. Therefore, the main business of listed companies faster income growth, it should be a focus of attention. In addition, for listed companies with a diversified investment, because its main industry is relatively fragmented, its main business income of the assessment should be divided into two parts. First of all, the main industry competitiveness is weakened, or to rely on resources are affected, whether there is momentum in the growth. Secondly, the main business is still a strong development potential, but to business expansion needs, and try to make the transformation. Diversification of investment and a single channel for listed companies to avoid business risks that can play a positive role. However, as a diversified investment will become a listed company's existing management system and technical strength of the impact and challenges arising from a number of uncertain risks. Therefore, investors look at a diversified investment, should also be fully tapped and the search for growth and sustainable development with the potential of business projects, the focus tracking and analysis, can not ignore the current growth rate of diversification of investment projects are facing investment opportunities. On the contrary, has been ignored by investors, listed companies in diversified investment projects, often become the profits of listed companies, an important future growth. Therefore, investors read the annual reports, analysis of listed companies main business composition, not just to see how much in absolute terms, but also depend on its margins and growth rates. Only by maintaining a monopoly of resources or markets, the diversification of capacity expansion projects long will it be possible to become a listed company's next major profit source.
Second, the cost is excessive, or to effectively expand savings. The use of the realization of cost savings and profit margin, is a listed company management in general management measures, is also a popular and effective use of resources and management of resources model. But the listed company's business development and market competitiveness enhanced through conservation of existing resources are limited. By contrast, revenues, expenses reasonably necessary to achieve growth of more objective. Such as the share of the market share and new product development resources of the excavation is entirely dependent on new investment, will have a good output. Therefore, to some extent the cost savings or expansion is a mutually supportive relationship, in short, any development of the extreme are not desirable. Resources, and reduce excessive savings will affect its effectiveness. Of course, we have talked about the cost of expansion is an income-relationship between the effective ratio. Thus, investors in the process read the statements of listed companies should be concerned about the ratio of indicators related to costs, is not carried out the rational allocation and optimization. Which can not be simply the absolute amount of savings to a one-sided measure and evaluate the sustainable development of the ability of listed companies.
Third, the non-recurring items on the net profit impact. The net profit of listed companies, investors, investment indicators are an important reference, but not the only reference. Behind the earnings per share, investors should see their profits to achieve the main channel and source of growth. As the non-recurring gains and losses do not have the long-term nature and stability of the impact on profit is mainly short-term and temporary. Investors look at non-recurring gains and losses, they need to see the existence of its risks, but also see their investment opportunities exist. But no matter what kind of investment out of its mind, in the face of non-recurring gains and losses arising from the risks and benefits are temporary, and investors should read the annual report of such shares of listed companies think twice before they act.
In short, income, costs and profits of listed companies constitute the entire business process framework. Investors reading the annual reports of listed companies, it should learn to read the way things simple, but in reading the content of the simplification of complex, learn to grasp the structure, while the analysis of minutiae. The relationship between profits of listed companies for the annual reports of the project implementation process should be more research and analysis, rather than to treat the current reality of the listed company's share price performance and annual reports of listed companies to make a simple comparison. Implicit in many of the annual report and the potential profit improvement and development of the "bright spots", only the intentions of the investors could not comprehend.
