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Before that, it is important to mention one point:
Do not spend too much time looking for the perfect research report
The industry is good, the national policy is supportive, the company has a turning point in performance, the team is also very good, and the valuation is still low, but there is no perfect stock like this.
When everyone agrees on a research report, we find that it always has flaws. A truly perfect research report is difficult to afford.

So how should we read research reports?#

Seller's report & Buyer's report

One type is the research report of securities companies, also known as seller's research report. Ordinary investors can browse for free online, mainly the research reports of securities companies. The reason why it is called seller's report is because the main income of securities companies comes from the commission (handling fee) generated by their clients' transactions.

Another type is the buyer's research report. Funds, private equity, etc. are used for self-management of capital transactions, rather than making money through other people's transactions. Their research reports are mainly for self-use, and the content of the research reports is relatively objective.

Another type is the buyer's research report.

Funds, private equity, etc. are used for self-management of capital transactions, rather than making money through other people's transactions. Their research reports are mainly for self-use, and the content of the research reports is relatively objective.

Another type is the buyer's research report.

Funds, private equity, etc. are used for self-management of capital transactions, rather than making money through other people's transactions. Their research reports are mainly for self-use, and the content of the research reports is relatively objective.

What needs to be paid attention to in research reports?

1. The so-called "hard data": the actual product data of the company, including product types, output, prices, etc., as well as financial data of the company, these are all factual data.

Reading brokerage reports can save you time and effort in searching for information and summarizing data.

2. In-depth research reports. This type of research report will have some content introducing related industry policies, development prospects, and macroeconomic data, which are difficult for individuals to collect.

For example, if you are researching liquor companies, you need to know the development trend of the entire liquor industry, tax policies, and the position of individual stocks in the industry.

3. Survey reports. Survey reports are generally questions raised by institutions to companies in the near future, and the company's answers to these questions. Reading this type of report can understand the recent development of the company and the handling of focus issues.

4. Industry reports. Generally speaking, there is a type of company where the impact of industry changes is greater than the company's own changes, such as the engineering machinery industry and the securities industry. When an industry is doing well, all companies in the industry are doing well, and when the industry is not doing well, good companies are inevitably affected.

Therefore, reading such reports is a window to understand macro changes in the industry!

What can be ignored?#

2. In-depth research reports. This type of research report will have some content introducing related industry policies, development prospects, and macroeconomic data, which are difficult for individuals to collect. For example, if you are researching liquor companies, you need to know the development trend of the entire liquor industry, tax policies, and the position of individual stocks in the industry.

3. Survey reports. Survey reports are generally questions raised by institutions to companies in the near future, and the company's answers to these questions. Reading this type of report can understand the recent development of the company and the handling of focus issues.

4. Industry reports. Generally speaking, there is a type of company where the impact of industry changes is greater than the company's own changes, such as the engineering machinery industry and the securities industry. When an industry is doing well, all companies in the industry are doing well, and when the industry is not doing well, good companies are inevitably affected. Therefore, reading such reports is a window to understand macro changes in the industry!

What can be ignored?

1. Assumptions about the future growth rate of the company.

This data is the most speculative in all reports, and in most cases, it is not accurate when looking back. Because even the company's leaders dare not guarantee this data, let alone the brokerage. It can only be guessed!

2. In-depth research reports. This type of research report will have some content introducing related industry policies, development prospects, and macroeconomic data, which are difficult for individuals to collect. For example, if you are researching liquor companies, you need to know the development trend of the entire liquor industry, tax policies, and the position of individual stocks in the industry.

3. Survey reports. Survey reports are generally questions raised by institutions to companies in the near future, and the company's answers to these questions. Reading this type of report can understand the recent development of the company and the handling of focus issues.

4. Industry reports. Generally speaking, there is a type of company where the impact of industry changes is greater than the company's own changes, such as the engineering machinery industry and the securities industry. When an industry is doing well, all companies in the industry are doing well, and when the industry is not doing well, good companies are inevitably affected. Therefore, reading such reports is a window to understand macro changes in the industry!

What can be ignored?

1. Assumptions about the future growth rate of the company.

This data is the most speculative in all reports, and in most cases, it is not accurate when looking back. Because even the company's leaders dare not guarantee this data, let alone the brokerage. It can only be guessed!

2. All hypothetical data for valuation.

The biggest characteristic of company development is uncertainty and change. Either the analyst believes that they know the company better than the company's leaders, or they have to make assumptions because they must provide a valuation!

3. Conclusions.

Looking back, the conclusions given in the reports are basically inaccurate. Hehe, conclusions made by guessing can't be correct! And you will find that all the evaluation prices given in the reports are a price range that is 10%-30% higher than the current price.

Key points for reading research reports provided by securities companies#

(1) Facts are more important than opinions, and objective descriptions are more important than subjective inferences.

A few research reports mainly include communication records with relevant personnel of listed companies and survey reports. These reports often reveal some details that are not detailed in the information disclosure of listed companies, so they have a greater reference value.

(2) Pay attention to knowledge popularization.

These investment reports often provide opportunities for investors to learn about industry knowledge. In addition, in research reports, macroeconomic data or industry data are often collected and organized. Investors who are interested in macroeconomics may collect them for future reference and comparison.

(3) About the reliability of the report.

From an objective point of view, in research reports, the content related to macroeconomic forecasts is relatively reliable, followed by industry research, and listed company reports are the least reliable. This is because the judgment of macroeconomics is farthest from the timing of operations, so even if there are some negative judgments, researchers do not have too much consideration.

(4) Silence is better than sound.

If a listed company has not received attention from securities companies for a long time, it is likely that the company lacks attractiveness and its development prospects are worrying. After all, for many listed companies that lack attractiveness or have significant risks, researchers can choose not to issue research reports.

There is another situation,

that is, securities companies that have been paying attention to a certain listed company, but there are no corresponding research reports at important points (such as the publication of regular reports, announcement of asset reorganization, etc.), which may indicate that the researcher believes that the company's value is significantly overestimated. However, if the researcher expresses the opinion truthfully in the research report, it is difficult to avoid offending the listed company, but they are unwilling to make controversial comments, so they choose to remain silent.

(5) Pay attention to contrarian opinions.

Considering that the possibility of a sell recommendation in research reports of listed companies is very small, especially in a bull market, once such a report appears, investors should pay special attention. Researchers who dare to take risks often reveal risks.

(6) The conclusion is secondary, and the process of inference is important.

Many investment reports are just for the occasion. When important conclusions are made in the report, pay attention to whether the process of inference is credible. In short, research reports cannot replace investors' thinking, they can only provide a source of information.

(7) Read research reports continuously and compare them.

For key companies, brokerage analysts will continue to pay attention. Comparing research reports written by the same analyst for the same listed company continuously, investors will have a clearer understanding of the analyst's research ideas, value judgment orientation, and research level. Comparing research reports on the same issue by different analysts is more conducive to inspiring investors' thinking and taking advantage of their strengths.

(8) Pay attention to the level of the researcher.

It is also advisable to pay attention to research reports from the perspective of researchers. At present, the most recognized institution for evaluating the level of researchers is the analyst ranking published by "New Fortune" magazine every year.

Eight special considerations for research reports#

1. Changes in policies
2. Technological innovations
3. Expanding into new markets

Whether it is overseas markets or regional new markets

4. Entering new fields

(such as entering modern fields from traditional fields)

5. Launching new products
6. Corporate transformation

(Analyze the market space, competition, and evaluate the success rate of the company)

7. Look at asset injections and turning points

(See if the company has a new story)

8. Look at its story and whether the logic is coherent

Research reports generally require covering the current development status of the industry, competition patterns, benchmark company analysis, industry investment analysis, and trends.