As at Oct. 31, 2007, all the 488 companies listed on the main board of the Shenzhen Stock Exchange had released their Q3 reports. Benefited from a steadily-growing macro economy and rising investment returns, they on the whole have maintained a rapid growth momentum.
Statistics show, the weighted earnings per share of those main-board companies averaged 0.2861 yuan in the first nine months, up 71.42% year on year. ROE averaged 10.35%, 3.67 percentage points higher than the same period of 2006. Business revenue totaled 1170.179 billion yuan, up 27.63% year on year. The 488 totally realized 99,172 million and 71,011 million yuan in operating profit and net profit, up 77.11% and 88.71% year on year.
During the Jan.-Sept. period, 391 of them posted profitability, accounting for 80.12% of the total. Among those, Jilin Aodong Medicine Industry Group Co, Weichai Power Co and Northeast Securities topped their peers on the Shenzhen main board, with an EPS of 2.914, 2.78 and 1.81 yuan respectively.
However, analysis also shows the performance of the said companies in the third quarter featured a gradual slowdown, outstanding investment returns, a substantial increase of tradable and sellable financial assets, a rising cross-shareholding effect, and obvious boom cycle for certain industries.
Yet 97 companies in the first three quarters posted losses of up to 4625 million yuan, averaging 0.1525 per share. The overall losses of firms under the ST status and *ST status reached 413 million yuan and 2257 million yuan. The 16 under trading suspension currently registered a total loss of 825 million yuan. So far, 48 main-board companies expected losses for the whole year; among them, 15 *ST companies risk trading suspension.
Therefore, investors are advised to analyze the factors behind the performance of listed companies, with special attention to the growth and sustainability of their major businesses, and adopt rational and prudent investment strategies.
