Analysis of enterprises
Report of 004
Air companies.
Actually, security pricing is the confirmation of the asset represented by the security. The effective function of the security market assures that the pricing process can be determined by the competition of the security demand and supply. And this reflects the demand and supply condition. We should obey several rules when we analysising. 1. Intrinsic Value. This is the basic point when analysising the stock. The intrinsic value is the stock value determined by asset, revenue, management status and so on. Not all company have a stable intrinsic value. Usuallly, the net profit of the mature company increases stably and the intrinsic value is easy to ascertain. On the other side, some new industries have not the stable intrinsic value for their unstable and unreliable. 2. Margin of Safety The basic of the concept of the margin safety is the seperation of the value and the price. This principle required us not to buy the stock whose price is equal the intrinsic value. And this resolve the problem of time for invest. That is to buy when the margin of safety is flush and sell when it is 0. 3. Hold long Principle We should have more patients when invest in the stock market and at least five years. Because the stock transcation needs the commission and fees. Let‟s analysis the security of Air China. It entered the security market in 18 Aug 2006 and issued about 819500 thousands of Stock A. The security is called “Air China”. The code is “601111”. The Air China is the third largest stock in the market. The Air China is ￥2.8 per. Price/Earning Ratio and the P/B is the lowest since revolution. Some specialists analysis that the whole capital stock is 11072 millions and the market value is about 31000 millions, the issue of the Air China will not affect much to the stock index.
The reasonable price evaluation of Air China Stock is between ￥2.43 to ￥3.08. Air China made about 1700 millions net profit last year regardless of the recession of the whole air industry. It became the only profitable air company among the three biggest air companies. PB is thought to be the best index in analysising the air company. Take the major air company as the example and compared each other, the fluctuate ranges are mostly between 1.1-1.35. So we predict that the PB of the company in 07 is about ￥2.278, so the reasonable price range is between ￥2.43 to ￥3.08
The analysis of the stock of Sinopharm
The stock of Sinopharm become a special stock under this floating market. .From last Tuesday, the stock of Sinopharm become the forcus of the stock market, and at the meanwhile, it brought Shanghai Pharmaceaticul and other companies in pharma industy become strong. We could see from Sinpharm(600511)'s trend, the price always up from 5.18 to 12.35 and now the increasing range has up to 130%.Why? Because from November,2005 to January,2007, the situation is nor very good. But with the bird flu and other flun, the pharma industy recovered.Also the bull market provides an opportunity to the short-term investor to make the mondy and rasie the money. The
potential financial effect attract the mean power of the asset with the pharma's stock. Although the situation of the pharma's industy was not very good in the past but it has high potential. Becuase the development of this industry and maket is good. China has so many people and with the old people become more and more and the concept of the health existing in the people's mind, so the consume is increaingly large in the pharma's market. With China entering WTO, Pharma industy become an investor focus. Sinopharm as an leading company in this industry it has itself strength. Firstly is its reputation. This is a famous company and sell many kinds of drugs and has a good base of agency. Secondly，it is in the monopolization. It manages many special drugs only sold by Sinopharm. So I think the stock of Sinopharm will recover from the difficulty and become a good stock in the stock market.
China Minsheng Banking Corporation Limited (600016)
The Company is a financial institution that is engaged in corporate, institutional and personal banking sectors in the People's Republic of China. Its corporate banking products and services include capital loans, corporate checking deposits, corporate time deposits, letters of credit, cashier's orders, securities underwriting, foreign exchange collection and others. Its institutional banking services cover foreign currency trade, bonds, foreign investment solutions and other inter-bank financial services. Its personal banking products and services encompass saving deposit accounts, personal loans, banking cards and others. The Bank also provides financial support, market investigation, management counseling, financial consulting and strategy design for capital manipulation. Headquartered in Beijing, the Bank has established 21 branches in the People's Republic of China. Since the listing of the Bank, CMBC has sought after improvements in development and management according to its principals of „Unity and Striving, Exploration and Innovation, Cultivation of Talents; Strict
Management, Normative Operation, Career Dedication with Law Rein; Quality Focusing, Efficiency Upgrading and Healthy Development‟. CMBC promoted its system innovation in five aspects, including establishing the technology platform of „Centralized Comprehensive Business System‟, the evaluation mechanism of „Two Rates‟, the project of „Three Cards‟, the grading system of sub-branches and the system of independent evaluation and examination. The Bank achieved the strategic goal of „Low Risk, Rapid Growth and High Profit‟ accordingly and emerged with a new image, vigorous and energetic. According to our market analysis, the stock has a potentially increase prospect, with regard to all the macro environment and industrial situations. The quotation is quite inconceivable these days, it goes higher and higher, I can‟t imagine how it will go then. Bank industrial and real estate industrial have broken their historical top digit, We thought they would adjust for a time of period, but they still create new top digit. Hearing that the hot spot will transfer to blue chip stocks, seeing the KDJ lines go together and the BOLL lines go expanding, we bought 20000 shares of 600058 and 20000 shares of 000488 on Nov. 24, they are the leader of their industry and they didn‟t behave well in the last quotation, We anticipate they will release their potential energy! Through efficient price analysis and enough diversification, we hope to make more profit and get an outstanding accomplishment in the near future!
China Merchants Bank
Founded on April 8, 1987 with its head office in Shenzhen, China Merchants Bank is the first share-holding commercial bank wholly owned by corporate legal entities. Since its establishment, the bank has undergone capital enlargement by 3 times, and launched IPO with the
issuance of 1.5 billion common shares in March 2002, and was successfully listed in Shanghai Stock Exchange on April 9, 2002 (Stock trading Code: 600036 ). It is the first listed company passed external auditing appraisal based on the international accounting standard. After the conversion of capital reserve to share capital in May, 2004, The Bank's total shares have been increased to 6.4 billion. At present, the total asset of China Merchants Bank is above 600 billion yuan, and is ranked the top 200 among "the world 1000 banks" by British financial journal The Banker. After 18 years of development, China Merchants Bank has transitioned itself into a national commercial bank with certain scale and influence, from a regional bank located in Shekou, Shenzhen. The Bank has been building up its business network and organizational structure with headquarter located in Shenzhen, and penetrated into both nation-wide domestic cities and overseas market. China Merchants Bank has set up branches in more than 30 major cities in China as well as in HKSAR with total business network over 400. In addition, China Merchants Bank also set up its US Representative Office in New York. At present, CMB has established correspondent relations with over 1000 banks in more than 80 countries and regions. Founded on April 8, 1987 with its head office in Shenzhen, China Merchants Bank is the first share-holding commercial bank wholly owned by corporate legal entities. Since its establishment, the bank has undergone capital enlargement by 3 times, and launched IPO with the issuance of 1.5 billion common shares in March 2002, and was successfully listed in Shanghai Stock Exchange on April 9, 2002 (Stock trading Code: 600036 ). It is the first listed company passed external auditing appraisal based on the international accounting standard. After the conversion of capital reserve to share capital in May, 2004, The Bank's total shares have been increased to 6.4 billion. At present, the total asset of China Merchants Bank is above 600 billion yuan, and is ranked the top 200 among "the world 1000 banks" by British financial journal The Banker. After 18 years of development, China Merchants Bank has transitioned itself into a national commercial bank with certain scale and influence, from a regional bank located in Shekou, Shenzhen. The Bank has been building up its business network and organizational structure with headquarter located in Shenzhen, and penetrated into both nation-wide domestic cities and overseas market. China Merchants Bank has set up branches in more than 30 major cities in China as well as in HKSAR with total business network over 400. In addition, China Merchants Bank also set up its US Representative Office in New York. At present, CMB has
established correspondent relations with over 1000 banks in more than 80 countries and regions. In the past 18 years, China Merchants Bank has undertaken a number of measures that combined market explorations and innovations in respect of products and services, which enables the bank to perform well above its peers and created dozens of 'No.1' records. The Bank has been also constantly adjusting itself in an effort to meet the ever-changing demands of the market as well as its clients. China Merchants Bank is well recognized by its clients and the general public as a bank of innovation, quality service and advanced technologies. It not only results in a reform and development of Chinese banking industry, but also allows the bank to achieve excellent business performance. As per the annual report of 2004, the accumulated taxable profit was above to 30 billion yuan. The major operating indicators such as profit per capita, return on equity ranked the top among domestic commercial banks. In the recent years, China Merchants Bank won rewards and recognition granted by a number of domestic and overseas press organizations as 'The Best Domestic Commercial Bank in China', 'The most respectable Enterprises in China', and one of 'the Top 10 Public Companies in China' respectively. China Merchants Bank has been adhering to the "Technology Oriented" development strategy all the time. The Bank is also fully aware of the market and customer's demands. By enacting the substantial advantages of the unified electronic platform, the Bank has launched a series of industry leading financial products and services, and also successfully built up some well-known brand names such as 'All-in-one card', 'All-in-one net', 'Sunflower', 'Go Fortune', 'China Merchants Bank Credit Card', and 'Wealth Management Account' etc. which has been widely accepted by the society as an IT-driven commercial bank. The "All-in-one card", which was launched in July, 1995, was rewarded as the milestone invention of personal banking in the industry. Up to now, the accumulated issuing volume of the card has exceeded 33 million, while the deposits per card goes beyond 4500 yuan. China Merchants Bank remains the leading position in the domestic bank card arena. In September 1999, China Merchants Bank first launched on-line banking service platform "All-in-one net", which was once again in the leading place both in terms of technical capacity and business volume. The Bank was chosen by many leading enterprises and e-commerce websites as either the main or exclusive on-line settlement provider. In June 2, 2003, as the representative product of Chinese e-commerce and on-line banking, 'All-in-one net' was granted 'Nomination Award' by International Computer World Honors Program (CHP). It is also the unprecedented event for the Chinese enterprises. China Merchants Bank consistently carries on the service concept of
"We are here, just for you". Motivated by a number of reform and innovation on both service quality and service channel, The Bank uses its best practice to provide efficient, convenient, heart-touching services to make closer relationship with the customers, hence brought about the reform of service quality in domestic banking industry. China Merchants Bank is the first of the kind in developing a series of E-Banking distribution channel, such as On-line Banking, Phone Banking, Mobile Banking, and Self-service Banking, etc. in order to offer its clients with 'Triple A' financial services. Acting upon the principle of Market Segmentation, China Merchants Bank, expect for its efforts to provide quality services to the general public, it goes ahead further to develop 'one-to-one' tailor made services to its affluent clients with its ever-improving professional and individualized service quality. In August 2004, the bank created another 'No.1' in the country by establishing a 'Customer Satisfaction Index System' in order to achieve a sustainable competitive advantage of management and service quality. In the course of high-speed developing era, China Merchants Bank persistently adhered to its strategic guideline of balanced development with profitability, quality and scale. The bank fostered daringly the management culture with the main focus on risk management, hence gained recognition among the piers. At the early stage, CMB has applied the guidelines on Asset-liability management, separation of assessment and loan granting, and 5-tier loan classification. Therefore, CMB has constructed a sound internal control systerm, meanwhile, it has also received quality management certification in deposit and accounting arena. Specifically, the ISO9001 quality assurance certificate was granted jointly by the Brutish BSI Pacific LTD and China Classification Society Quality Assurance Ltd. (CSQA). Again the bank is the first domestic commercial bank that holds such certificate. Because of its constant effort and awareness of mitigation of the risks, the bank's asset quality is further optimized. The NPL for the newly granted loan in the past five years has been controlled within a narrow range of 1%, while the overall NPL is at 2.87% based on 5-tier classification. Facing the opportunities and challenges that come along with the world economic and financial globalization, China Merchants Bank will aim at achieving the target of "creating a blue-chip for the market, and building a century-lasting bank". Motivated by reform and innovation, the bank will continue the development strategy on business re-engineering, speed up the process of internationalization, and improve the comprehensive management quality based on the international standards. China Merchants Bank will continue to strengthen its core competence and strive to become a modern commercial bank with niche
features as well as brand names and market recognition from the society. The bank will also make every endeavor to maximize the long-term return to shareholders, employees and customers. And the Earnings per share: Net asset value per share: Return on net asset value:
CMB Stock Chart
0.31 Yuan 3.51Yuan 8.78%