What do listed companies need to analyze?
First, understand the industry
To analyze a listed company, we must first understand the industry in which the listed company is located. The understanding of the industry in which listed companies are located mainly starts from five aspects, namely, market characteristics, whether they belong to cyclical industries, the stage of the industry, the degree of dependence on assets and the driving force of the industry.
(1) Market characteristics: This is mainly to know which of the four listed companies' industries is free competition market, monopoly competition market, oligopoly market and complete monopoly market, which determines the pricing strategy, cost control ability, market segmentation characteristics and other factors within the industry.
(2) Whether it is a cyclical industry: Identifying listed companies has a great influence on investors' analysis of listed companies. Cyclical industries refer to industries with strong correlation with domestic or international economic fluctuations. Cyclical industries include steel, coal, real estate, finance and other industries, and non-cyclical industries include catering, food and beverage, medicine, transportation and so on. Assuming that the performance of a catering industry has been declining, it may indicate that this company is really weak. If the company is engaged in steel, the decline in performance will be affected by the domestic economic recession, and the industry will recover when the economy is good.
(3) Industry stage: analyzing which stage the industry is currently in, which is an emerging industry, which is a growing industry, which is a mature industry and which is a declining industry will help investors analyze the performance growth ability of listed companies.
(4) Dependence on assets: analyze whether the industry's valuation of assets is light or heavy.
(5) Industry Driving Force: Analyze which industry is policy-driven, product-driven, sales-driven, operation-driven, and capital-driven, so that investors can locate which data needs attention. For example, in the game industry, you will pay attention to the data of several fist products, while the non-ferrous industry will pay attention to market prices and resource reserves.
Second, understand the profit model.
To understand a company, in addition to analyzing its industry, investors should also understand how the company makes money. By reading the annual report, investors should know what products listed companies mainly sell, how to sell them, to whom, and whether the products are necessities.
Three. Financial statement analysis
After understanding how listed companies make money, it is necessary to evaluate their profitability. The financial statements in the annual report can help investors complete various quantitative analysis. Financial statements include balance sheet, income statement and cash flow statement. The disclosure time of listed companies' annual reports is usually within four months after the end of the year.
The balance sheet contains three items: assets, liabilities and shareholders' equity. Assets tell investors where the money goes, while liabilities and shareholders' equity tell investors where the money comes from. The balance sheet shows the financial situation of listed companies at a certain point in time. The income statement tells investors how much the listed company has earned now and how much it may earn in the future. It represents the profit situation in the past period. The cash flow statement tells investors how the increase or decrease of cash occurs in the process of business activities, investment activities and fund-raising activities. Because cash is related to the life and death of the enterprise, the changes of cash in the above three activities describe the risk situation of the enterprise.
Investors often use various financial indicators to describe the financial situation of listed companies. Common financial indicators are: gross profit margin, net profit margin, turnover rate, return on net assets and so on. Regarding financial analysis, Winner Wealth has related columns. You can learn from them.
Fourth, the potential risk analysis
There are many potential risks in the operation process: policy changes, industry environment changes, upstream and downstream industry changes, exchange rate changes, uncollectible accounts receivable and so on. The potential risks of different enterprises will be different, so it is necessary to pay special attention to the risks indicated in the annual report.
Five, enterprise strategy analysis
Investors should carefully read the enterprise strategic plan in the annual report and analyze whether it will enhance profitability or resist potential risks.
Generally speaking, in order to analyze listed companies, we need to know some information about listed companies. In short, this amount of information is relatively large, and investors need to calm down and learn more about it, which is beneficial to investors' operations.