The Study Of Industry Analysis Method

With the development of security market of our country, market supervision from government has enhanced constantly, the transparency of the listed company improves day by day, different kinds of institutional investors developed rapidly, investors' theory of investment is changing gradually too, that kind of propagation concept and the banker mode has received the great impact, the diving quotations of the banker stock are of common occurrence. And with the development of institutional investors , such as mutual fund , National Social Security Fund (NSSF) , QFII ,etc., rational investment idea has been accepted by more and more investors, investors pay more attention to the basic side analysis of the listed company, most institutional investors have established research institution to excavates underestimates value and are in the hope of obtaining the long-term repayment , normally the institutional inverters construct their portfolio aggressively. This need the deep macroscopically economic analysis and industry analysis before structuring their investment portfolio, in order to choose the leading company's in potential industry to get higher return than the average income of the market. The first problem for the industry analysis to be solved is to give an objective, accurate description to the industry, the second problem is to carry on horizontal comparison to the industries, only we solve these two problems then could we find the periodic law of the industry and judge the industry tendency on this basis. The objective and accurate judgement to the industry is the prerequisite to compare in cross-industry way, the settlement of these two problems has offered the objective basis for constructing the portfolio. Investors could make up their carry on the industry assets disposition in view of the above, concentrate on disposing the limited fund in the industry with higher relative value, can make higher return. It has a great and realistic meaning in cross-industry analysis. When investors face of numerous industry analysis reports, they find out that all of the reports show very good prosperity. How to judge? How to make policy? In general, there is a ratio of increase compared with the same period of last year in the common industry analysis report, but foundations of the ratio are different, and a lot of industry production technology attribute differs significantly, it is difficult compare the different industry in technology and economical, investors hope to have a system could solve the problem of cross industry comparison. This will have great realistic meanings to institutional investors. The aim of the paper is to solve the problem that the compares different industry crossly, factor analysis method is used to compare the financial ratios of the different industries, because underlying concepts of different industry are different, the evaluation of financial ratio across industries are potentially meaningless, with the tool of the factor analysis , we build the factor pattern of different industries, and calculate the congruency coefficient between different factors of two different industries. By analysing the congruency coefficient of the factors in time series we could compare the different industry crossly, it has an advantage in selecting stocks within an industry because it is easy for the computer to give a score to each stock in the industry. There are four chapters altogether, chapter one has defined the industry, and analyzed the impact on industry classification that the trend of the industry brings, then has proposed the problem that the industry analyses has to solve. Chapter two introduced the procedure of the industry analyses, including the analysis on the basic influence factor of industry development, the analysis on industry organization, industry structure; this is a main content of a general professional industry analysis report. This chapter also provides the template used by the industry analysts. They could expend their research according to the template. In chapter three discusses...