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All 488 companies listed on the Shenzhen main board market except Lan Bao Technology Information Co had released their interim reports ended Aug.31, 2007. In spite of leapfrog rises in the overall performance of main-board listed companies in the first half year, analysts remind investors of accumulating bubbles and potential risks and advocate prudent and cautious investment.
Statistics show the said companies realized substantial growth in net profit with rising EPS. Among them, large-cap blue chips contributed the most, with top performers in the finance, nonferrous metal, mining and real estate sectors. Listed companies achieve rapid growth through refinancing and more firms are willing to go public by means of whole listing. Corporate mergers and acquisitions are also on the rise.
However, due attention should be paid to the following aspects:- Investment income accounted for a large part of performance boost;
- Cash flow grew slower than account profit;
- Stock indices rose much higher than corporate growth;
- Poor-performers and losers still face quite gloomy prospect;
- High growth only brought scarce distributed profit;
- Corporate governance still poses as a great challenge;
- Some companies pending share reform and liquidation need to go through relevant procedures. ?
