How to analyze the operation of the company

I. Analysis of Industry Position \x0d\ The analysis of the company's industry position includes two aspects: one is the overall analysis of the company's industry, and the other is the analysis of the company's position in this industry. \x0d\ 1) The overall analysis of the company's industry is very important for value investment. On the one hand, the operation and development trend of an industry is a comprehensive reflection of the operation and development trend of all companies in this industry. On the other hand, the operation and development trend of the whole industry is the background factor of every company in this industry. \x0d\ 2) When an industry as a whole is on the rise, all companies in this industry will generally have better performance and more room for development. On the other hand, when an industry is in a period of overall decline, even high-quality leading companies in this industry can hardly have good performance and great development. \x0d\ 3) Growing industries are usually called sunrise industries. A declining industry is usually called a sunset industry. Investors should choose companies in sunrise industry and avoid companies in sunset industry. \x0d\ 4) The distinction between sunrise industry and sunset industry is relative. The sunset industry in one country may be the sunrise industry in another country, for example, in the United States, the industries related to highway construction are already sunset industries; In China, there is still great room for the development of expressway construction and related industries. \x0d\ 5) Different enterprises in an industry are also in the growth period and decline period. For example, the textile industry in China has been declining, but textile enterprises adopting new technologies, new processes and new materials are on the rise. \x0d\ 6) A company that is in the leading position in this industry or belongs to a famous enterprise is often the first to benefit from the rising prosperity of the industry, and should pay special attention to it. \x0d\ II。 Location analysis \x0d\ The location analysis of the company is to link the investment value of the company with the economic development of the region, and judge the investment value of the company by analyzing the natural conditions, resources and industrial policies of the region. \x0d\ 1) Mineral resources, water resources, energy, transportation and communication facilities play an important role in promoting or restricting the development of the company. If the industry the company is engaged in is inconsistent with the local natural and basic conditions, the company's development may be limited. If you engage in industrial projects that consume a lot of water in inland areas where water resources are scarce, its prospects will be difficult to be optimistic. ? \x0d\ 2) The local government will give financial, credit and tax incentives to industries that are given priority development and key support in a region. If the company's main business conforms to the preferential policies of the local government, it will be very beneficial to its own development. \x0d\ 3) The economic development environment and conditions in one region are different from those in other regions, which is an advantage. Companies whose main business embodies regional advantages have found a good starting point for development. For example, if a certain region has its own characteristics and advantages in the automobile industry, the related companies in this region will have greater competitive advantages and development space than similar companies in other regions under the same conditions.