Category: Money tips Release Date: 2006-02-25
Since the line below the six months since the Shanghai Composite has been in a consolidation phase of shock, short-term market outlook pulled up the space is very limited. We believe that the macro-economic growth began to slightly adjust the listed company's overall revenue growth rate fell, stocks a comprehensive reform forward, the company's overall valuation of the mainland market to speed up convergence with international standards, against the backdrop of the valuation investors should take the initiative to look for the safety of public company, move forward and attack or retreat and defend.
First, the "Eleventh Five-Year Plan" highlights the national economy even more emphasis on recycling economy, attaches great importance to the three agricultural issues and continue to activate the consumer market points. Investors should alternative energy, energy conservation, environmental protection, consumer point of view the promotion of macro-related industries to focus on listed companies, to avoid overcapacity in some industries due to the economy and the sharp drop in degree of risk.
Second, the listed company's overall downward trend earnings growth, we are particularly optimistic about those who rely on independent innovation and technological research and development capabilities (such as 3G industry), brand reputation and customer loyalty, modern corporate governance, capacity, cost control and product pricing capacity, industry consolidation and reorganization of resources and thus the ability to be able to enjoy the comprehensive advantages of the industry excess profits of the listed companies.
Third, mainland-listed company's overall valuation of progressive integration with international standards, the trend is irreversible. Lower level of valuation are talking about here, is no longer a dynamic price-earnings ratio or book value lower, should also be considered because of its unique advantages in resources (irreplaceable natural resources, vast market and client resources, brand resources or licenses resources, etc.) and highlights the potential revaluation of the listed companies.
Finally, the share-trading reform of the majority of investors, the opportunities and challenges. With the deepening of reform to promote a comprehensive stock, refinancing, new and old draw up the rear of the IPO, and the existing G-floating shares of the outstanding shares of the limited sale of the conditions listed on the circulation of expansion after a few years will gradually open the gate, plates and thus a smaller value is expected to be in circulation of listed companies are also less pressure on the natural expansion is also small; cash flow sufficient, a good financial situation faced by listed companies to refinance the pressure is relatively small.
In the above-mentioned four factors, the former three belong to the long-term factor is the investment philosophy issue. Listed companies with these advantages will be multi-year investment in the election fever. Whereas the fourth factor is the stage of investment in skills problems, investors need to determine both the right price for their short-term factors, but also consider adding the stock market capital and expansion of the dynamic balance of the pressure problems in the market expansion pressure was significantly more than incremental funding Weak equilibrium situation the opportunity to select the entry, but in the opposite situation of strong balance of opportunities for select departure.
China Unicom (600.05 thousand quotes, information, advice, more): The company first three quarters of net profit of 2.25 billion, although down 0.7% over the same period the previous year, but the good earnings trend appears to improve quarter by quarter. Expects 2005 and 2006 earnings per share were 0.14 yuan and 0.15 yuan. The value of the company's largest customer is the huge resources and a nationwide network applications. CDMA and GSM total number of customers the company has more than 110 million, such a large customer base in the world are a handful of. We believe that the stock's valuation has a greater long-term room for growth.
Yueyang Paper (600,963 market, information, advice, more): The company is the only paper that listed companies in a "forest - pulp - paper" a complete industrial chain business, the leading newsprint and paint finishing products offset of paper, the existing mechanism can produce 400,000 tons of paper, paper pulp production capacity of 380,000 tons, 85 million mu of various types of fast growing forest. This is 85 million mu of fast-growing forest resources is the company's core competitive advantage. More potential is, if this 85 million mu of high-yielding Carolina into the Clean Development Mechanism (CDM) under the afforestation or reforestation carbon sink projects, will enable the company to benefit significantly. Is expected in 2007, the company EPS of 0.70 yuan, taking into account the 10 to send three pairs of stock price effects of the dynamic price-earnings ratio will be significantly lower than the current average level of G shares, the investment more valuable.
