Only 9 listed companies with 10percent or more net profit growth in 10 years!

category:Finance
 Only 9 listed companies with 10percent or more net profit growth in 10 years!


Who is going through the cycle

Wind data shows: in 2010, excluding the unlisted / unpublished annual performance of listed companies, 2650 listed companies were effective in the whole market, of which 1708 listed companies increased their net profit by more than 10%.

In 2011, among the 1708 listed companies mentioned above, 982 listed companies had a net profit growth rate of more than 10%, accounting for about half of the total; in 2012, of the 982 listed companies, 450 had a net profit growth rate of more than 10%, equivalent to another half being eliminated; similarly, among the 450 listed companies in 2013, 283 had a net profit growth rate of more than 10%.

It can be found that almost every year, on the basis of the previous year, half of the listed companies (with a net profit growth rate of less than 10%) will be eliminated.

In 2014, among the 283 listed companies mentioned above, 187 listed companies had a net profit growth rate of more than 10%; in 2015, 93 of the 187 listed companies had a net profit growth rate of more than 10%; in 2016, 59 of the 93 listed companies had a net profit growth rate of more than 10%; in 2017, 30 of the 59 listed companies had a net profit growth rate of more than 10%.

In 2018, more than half of the 30 listed companies were excluded, and only 14 listed companies had a net profit growth rate of more than 10%. Sofia, a Furniture Customization head company, which had been performing well in the early stage of net profit growth, experienced a V-shaped reversal in this year, and then failed to make the list.

In 2019, only 9 out of the 14 listed companies will have a net profit growth rate of more than 10%. Hikvision and Songcheng performing arts, which had been growing at a high speed, suddenly stopped that year, and their growth rate dropped to single digit range, while Dean diagnosis showed negative growth.

The relationship between performance and stock price

Generally speaking, between 2010 and 2019, there are only 9 listed companies whose net profit growth rate can exceed 10% every year.

From the industry point of view, these nine listed companies are highly concentrated in the financial industry, health care industry and information technology industry. Except for the total market value of Ping An of China exceeding 1.4 trillion, the rest are small and medium market value stocks.

If the above ten years are divided into two periods, the net profit of 127 listed companies has maintained a continuous growth of more than 10% from 2010 to 2014, among which 39 listed companies have maintained a growth of more than 20%.

From 2015 to 2019, with the increase of the sample number of listed companies, the net profit growth of 191 listed companies has maintained a continuous growth of more than 10%, of which 64 companies maintain a growth of more than 20%.

Through the above data analysis, it is found that in the two five-year period, only about 30% of the listed companies with net profit growth of more than 10% can continuously maintain the rapid growth of more than 20% of the annual net profit growth.

However, the growth rate of net profit is not completely positively correlated with the performance of secondary market share price. Taking these nine listed companies as an example, the range of the rise and fall of Guanghuan new network is more than 6 times, and that of Guiyang bank is only 18%. In terms of valuation, the valuation of financial stocks is obviously low, especially the bank stocks, while the valuation of software service industry is relatively high.

Looking at the whole market, the same is true of the whole market. Li Xunlei said that if the 10% companies with the worst roe in A-share industries are selected and rolled to form a performance portfolio, which represents the share price performance of the companies with the worst performance in the market, it will be found that from 2005 to the end of 2016, the total growth rate of the performance poor portfolio is about 13.5 times, while that of the whole a index is only 6 times in the same period, especially after 2009, the performance difference group will be improved The trend of joint stock price is ahead of all a index. However, it changed after 2016. The stock price trend of the performance poor portfolio and the all a index began to change in reverse, tending to a reasonable valuation level. After the market has experienced two waves of quotations and the style has been rotated for several times, the investment philosophy of investors has become more and more mature, with good performance, fast growth, popular track and head companies being more sought after by funds. Source of this article: Guo Chenqi, editor in charge of first finance and Economics_ NBJ9931

Looking at the whole market, the same is true of the whole market. Li Xunlei said that if the 10% companies with the worst roe in A-share industries are selected and rolled to form a performance portfolio, which represents the share price performance of the companies with the worst performance in the market, it will be found that from 2005 to the end of 2016, the total growth rate of the performance poor portfolio is about 13.5 times, while that of the whole a index is only 6 times in the same period, especially after 2009, the performance difference group will be improved The trend of joint stock price is ahead of all a index.

However, it changed after 2016. The stock price trend of the performance poor portfolio and the all a index began to change in reverse, tending to a reasonable valuation level.

After the market has experienced two waves of quotations and the style has been rotated for several times, the investment philosophy of investors has become more and more mature, with good performance, fast growth, popular track and head companies being more sought after by funds.