Chapter 163 Three Important Points for Understanding Financial Reports
Gu Junhao came to the company on Tuesday morning; there were already a large number of documents in the office. Recently, financial reports have been frequently released, and major listed companies have successively released their performance expectations for the first half of the year.
In addition to paying attention to the individual stocks currently held by the fund, Gu Junhao will also ask the market intelligence department to collect more stocks with outstanding performance or particularly severe losses.
As for the intelligence analysis of the fund's holdings, Gu Junhao chose to mix it up among these analysis targets in order to maintain confidentiality to the greatest extent possible.
Every private equity company has a confidentiality system, and relevant employees will sign confidentiality agreements when they take up their posts. But no matter what, fund holdings are considered company secrets before they are officially announced, and it is necessary to try to avoid leakage during the position building period.
Since the expansion of the market intelligence department, Gu Junhao has positioned it to not only collect well-known news including financial reports, but also to conduct research and market analysis, laying the foundation for Junshi Capital to have its own R&D team in the future.
Therefore, they will also collect a large amount of research reports for analysis, and send research teams to relevant companies when necessary.
On the evening of July 14, Yinzhijie, Dongfang Fortune, and Tonghuashun successively released their first-half performance forecasts; Yinzhijie's net profit attributable to shareholders of listed companies decreased by 20% to 50% compared with the same period last year, with a profit of 2.5 million to 4 million yuan; Dongfang Fortune turned losses into profits in the first half of the year, with profit expectations between 30 million to 35 million yuan, compared with a loss of 16.7258 million yuan in the same period last year.
Tong Huashun also turned losses into profits, with profit expectations between 10 million and 13 million yuan. Leaving Tong Huashun's analysis report, Gu Junhao came to the trading room with two reports from Yin Zhijie and Dongfang Wealth.
"The first half performance forecasts of Yinzhijie and Dongfang Wealth have come out. What do you think?" Still adhering to the habit of cultivating mature talents, Gu Junhao asked the three people.
Xu Jianqing took the lead and said: "I have looked at Yin Zhijie, and his performance has not changed much. The decline in profits is mainly due to the increase in R&D expenses. This is a good thing; a company willing to invest in R&D funds can be considered ambitious.
Besides, the two companies acquired in the last restructuring are the growth points of his future profitability. As for the first half report, it is actually not that important. What is important is the performance of the two companies after the merger of the financial statements. "
" Well , what next?" Gu Junhao nodded. If one wants to become a qualified investor, analyzing the pros and cons of listed companies from their financial reports is a necessary foundation.
Professional investors and fund managers can find out whether the financial reports of listed companies are exaggerated or even false. The financial reports of listed companies may not necessarily help us find big bull stocks, but by understanding the financial reports, we can use them as a reference for the operating capabilities of listed companies, and thus make decisions on our own stock investments.
For ordinary investors, few people can fully understand the financial reports of listed companies; however, there are three indicators that can be used as important references: the first is its revenue and net profit. Profit is the important core supporting the stock price of listed companies.
When you buy stocks, you are buying expectations. Changes in net profit often affect changes in its price-earnings ratio. In addition to net profit, revenue is also very important. Revenue growth and poor net profit may be caused by short-term fluctuations in performance or external factors, but if revenue drops sharply, you must be especially careful.
The second is to look at its cash flow, which is an important indicator to discover whether a listed company is suspected of financial fraud, and whether a company's cash flow matches its net profit; if the net profit is too high but the cash flow cannot keep up, this means that there is no real cash flow entering the company's account, and it is most likely just book profit.
In this situation, there may be suspicion of financial fraud. In addition, if a company has a large amount of accounts receivable or inventory, these are hidden dangers to financial security. An excellent company must have sufficient cash flow support.
The third point is to look at the debt-to-asset ratio. There is nothing much to say about this. Whether it is a company or an individual, if they owe a lot of debt, the pressure and ability to repay, as well as the risks of the overall environment, are all things that need to be paid attention to. As for the composition of liabilities, we need to focus on short-term liabilities, which are the biggest repayment pressure.
In response to Gu Junhao's question, Xu Jianqing seemed to be well prepared: "In addition to the impact of the GEM, the previous correction of Yinzhijie should also be due to this report . I guess the main funds want to take advantage of the negative impact of the decline in financial reports to clean up the market.
So I guess Yinzhijie should have another drop, and it would be even better if it could happen today, taking advantage of the negative news to clean up the market. And from a technical analysis, Yinzhijie is about to reach support, so we can slowly start to build positions at this time. "
"Okay, that's good; there is progress. Since you think you can start to gradually build a position, then do it. There is only one requirement: the position must be filled before the end of the month.
Please note that the position here is fully occupied except for your 2 million short-term funds, understand?" Looking at Xu Jianqing who was talking freely, Gu Junhao finally felt relieved.
From the way Xu Jianqing answered his questions, it can be seen that after the research report came out last night, he had already conducted a detailed and thorough analysis. This is not the job of their traders, but he did it anyway.
"Ruoyu, what do you think of Dongfang Wealth's financial report?" After asking Xu Jianqing, Gu Junhao asked Wang Ruoyu.
"Dongfang Fortune and Tonghuashun are in the same industry and are very similar. In fact, their financial reports can be combined to analyze them. This year, Tonghuashun has turned losses into profits, which shows that the industry is improving.
Past financial reports do not represent anything. For emerging industries, we need to look at the subsequent business they develop. From the perspective of specific business, with the promotion of 4G networks, I believe that it will be more and more convenient for investors to trade stocks in the future. The apps of these two companies will become the Alipay and Weixin among investors in the future. "
"What's the reason? There are many similar software on the market. Why do you think they will lead the industry?" Gu Junhao asked again.
"Competitive advantage. For Internet companies, reputation is very important. With reputation, you have the first-mover advantage. And from the perspective of the business model, as long as they don't let down, this advantage will continue."
Dongfang Wealth’s financial report also highlighted some of its future business developments. Although there were no specific details, Gu Junhao knew that the company would develop proprietary businesses in the future.
At present, the two companies are similar in nature, but in their subsequent development, from the perspective of business structure, the two companies are still very different. Although there is a certain competitive relationship, fundamentally speaking, the two companies are gradually on different tracks.
Tonghuashun is more of a platform, leveraging its traffic advantage to provide transactions to most brokerages. Simply put, it can be regarded as a group in the stock market.
Dongfang Wealth focuses more on Internet financial services. It has its own brokerage license and uses its scarcity advantage to engage in the agency sales of securities and funds. Its competitors are more likely to provide third-party fund sales platforms and traditional brokerages.
The two have different focuses, but relatively speaking, Dongfang Wealth's ambitions are greater than Tonghuashun's, and it wants to take over everything; of course, this is also related to the different development opportunities of each company.
As for Dongfang Wealth’s buying plan, if there are no variables, it will be executed according to the original plan. After all, its semi-annual financial report forecast is not particularly impressive.
At 9:25, the two markets continued to open low yesterday, with the Shanghai Composite Index opening at 2065.65 points and the ChiNext Index opening at 1364.08 points. Yinzhijie, which rose yesterday, opened 0.78% lower due to the impact of the financial report.
Dongfang Wealth and Xibu Securities both opened slightly higher, up one cent; currently, among the four holdings, only Xibu Securities has not released its financial report.
However, his financial report does not seem to be that important. The market is more concerned about the progress of its private placement. Besides, the stock market was sluggish in the first half of the year, so the performance of the brokerage firm can be imagined.
After hitting the daily limit yesterday, Wan'an Technology opened at 11.88 yuan today, up 4.58%. A total of 2,372 lots were traded in the call auction, with a transaction amount of 2.8179 million yuan.
"Large orders have started to crash the market. Maybe it's the insider funds that sneaked in last week. In that case , let me help you." Gu Junhao said with a smile, and casually placed a sell order for half of the position, 4,500 lots, at the flat price.
Although this situation is common in the stock market, and even under strict supervision in later generations, it still happens from time to time, but if you catch it, you have the ability to influence the stock in the short term.
Just like Xu Jianqing said, it can't change anything, but at least it can make your shipment less easy. In short, you have to go through some trouble.
At 9:30, the transaction started. Gu Junhao's sell order of 4,500 lots was the largest sell order at the moment, and the price was low, so it was naturally given priority.
I don’t know where the funds came from, but Wan’an Technology also received a large buy order at the opening, with a fund amount of over 4 million, and a large buy order of 3,477 lots at 11.82 yuan, taking over Gu Junhao’s chips.
Except for this large order, the rest were buy orders of less than 200 lots. Unable to take over the orders, the share price of Wan'an Technology quickly fell to 11.62 yuan. Only at this time was there a buy order of more than 500 lots, but there was only one.
At 9:33, after three minutes of fluctuations, Wan'an Technology briefly rebounded to 11.80 yuan, but it only stayed above 11.80 yuan for less than 10 seconds before it once again received nearly a thousand sell orders.
But this sell order no longer belongs to Gu Junhao. Except for 3,477 lots of sell orders that were executed at the opening stage, the rest of the 4,500 lots of sell orders were executed during this three-minute period, with an average transaction price of 11.70 yuan.
Within three minutes of trading, 4,500 chips were sold, with a total of 5.3067 million yuan in funds recovered; at this time, the stock price of Wan'an Technology had fallen straight from 11.80 yuan to 11.50 yuan.
"There is not enough volume to take over the orders. I am going to fail today." Gu Junhao sighed as he stared at the trading quotation. It was a pity that the trading volume was not enough, otherwise it would not be as simple as hanging half of the position in the morning.
