In the previous external report of Anxin strategy team, we summarized four sets of financial frameworks of "brave", "capable", "resourceful" and "wise" according to the characteristics of the company's business model in different fields. Facing the financial data of the newly released 2021 annual report and 2022q1 quarterly report of listed enterprises, we have updated the stock selection system and stock selection results for your reference.
The so-called "brave" model: for the heavy capital expansion manufacturing industry. Among the "brave" who dare to expand against the trend, select manufacturing companies that can ensure debt risk and investment efficiency and achieve performance return, mainly for listed companies in the fields of machinery, electrical equipment, auto parts, nonferrous metals, chemical industry, electronics, medicine, environmental protection and communication. Core indicators: monetary capital / interest bearing debt + income / fixed assets + net cash flow from operating activities / net profit; Auxiliary indicators: growth rate of total assets + goodwill / net assets + inventory turnover rate.
The so-called "capable person" model: for consumer companies and mature manufacturing industries. Among the "capable" enterprises, the selected shareholders continue to be optimistic about companies with strong profitability and high dividend rate, mainly for food and beverage, home appliances, automobiles, textiles and clothing. In this type of company, we should choose the company with strong profitability and high dividend rate. Indicator selection: net profit growth + roe + net asset growth + cash income ratio.
The so-called "seeker" model: for asset light manufacturing and flexible adjustment companies. Among the "seeker" companies, the companies that can realize the increase of sales revenue by adjusting their business strategies (commodity management and capital management) are mainly aimed at leisure services, trade and retail, textile and clothing, light industry manufacturing, some chemical industry and machinery. In this type of company, we need to choose the company that can realize the increase of sales revenue against the trend by adjusting the business strategy. Indicator selection: gross profit margin + inventory turnover rate + operating leverage coefficient + financial leverage coefficient + net cash inflow from operating activities / operating income.
The so-called "wise man" model: for high-quality high-end manufacturing and technology-based companies. Under the new normal of economic growth, choose the stocks of companies that have long-term growth prospects and can achieve compound growth of capital value at a high rate of return. Profit growth and high return on invested capital are the dual engines of high return for enterprises, mainly in the fields of electronics, communications, computers, military industry, media, medicine and high-end manufacturing. Indicator selection: ROIC + free cash flow + asset growth rate + asset reinvestment rate + R & D revenue ratio + gross profit margin.
Risk tips: data statistical error, large economic fluctuation, deviation between model setting and actual situation, stock selection results do not constitute investment suggestions, etc.
