Performance Analysis of Publicly Listed Companies: Noble Group Limited and China Hongxing Sports Limited
1. Executive Summary (Pg2)
This report seeks to analyse the performance of three publicly listed companies and their shares’ values. These companies are Noble Group Limited and China Hongxing Sports Limited which are listed on the Mainboard and Oceanus Group Limited which is listed under SESDAQ.
Our group started off with 100,000 hypothetical dollars to create a portfolio of ordinary stocks of three companies and a fixed-return money market fund. Our investment objective was to achieve a 8% annualized return over a five-year investment horizon. After the creation of the initial portfolio, our group made use of various frameworks, accounting principles and the Business Analysis and Valuation (BAV) software to analyse these companies. Apart from that, we conducted an in-depth analysis of the companies’ industry, their external business environments and strategies and also evaluated the companies’ key accounting policies and estimates. Subsequently, cash flow analysis, trend and cross-sectional comparisons of key financial ratios were performed under the financial analysis. Lastly, out group considered the industry outlook, government policies, corporate governance and specific economic and business conditions of the three companies among other relevant information and news to form our outlook on the companies’ prospect.
With the obtained findings, our group considered the re-allocation of our portfolio in light of new knowledge and development of related events. Re-allocation was eventually made and at the end of the 8-week investment period, our group made a loss of 49%, in comparison to the Straits Times Index which dipped 35% in the same period.
2 Analysis of Noble Group Limited
2.1.1 Company Background/Industry Analysis
Noble Group is a market leader in managing the global supply chain of agricultural, industrial and energy products. They source from low-cost producing countries and supply to high-growth demand markets. They are at the same time
This report seeks to analyse the performance of three publicly listed companies and their shares’ values. These companies are Noble Group Limited and China Hongxing Sports Limited which are listed on the Mainboard and Oceanus Group Limited which is listed under SESDAQ.
Our group started off with 100,000 hypothetical dollars to create a portfolio of ordinary stocks of three companies and a fixed-return money market fund. Our investment objective was to achieve a 8% annualized return over a five-year investment horizon. After the creation of the initial portfolio, our group made use of various frameworks, accounting principles and the Business Analysis and Valuation (BAV) software to analyse these companies. Apart from that, we conducted an in-depth analysis of the companies’ industry, their external business environments and strategies and also evaluated the companies’ key accounting policies and estimates. Subsequently, cash flow analysis, trend and cross-sectional comparisons of key financial ratios were performed under the financial analysis. Lastly, out group considered the industry outlook, government policies, corporate governance and specific economic and business conditions of the three companies among other relevant information and news to form our outlook on the companies’ prospect.
With the obtained findings, our group considered the re-allocation of our portfolio in light of new knowledge and development of related events. Re-allocation was eventually made and at the end of the 8-week investment period, our group made a loss of 49%, in comparison to the Straits Times Index which dipped 35% in the same period.
2 Analysis of Noble Group Limited
2.1.1 Company Background/Industry Analysis
Noble Group is a market leader in managing the global supply chain of agricultural, industrial and energy products. They source from low-cost producing countries and supply to high-growth demand markets. They are at the same time
Bibliography: 25th October, 2008, from FRS 18 - Revenue: http://www.asc.gov.sg/frs/attachments/2004/FRS_18.pdf Accounting Standards Council. (2007, February). Financial Reporting Standards. Retrieved 25th October, 2008, from FRS 2 - Inventories: China Hongxing Sports Limited. (n.d). 2007 Annual Report. Retrieved 20th October 2008, from company website: http://www.chinahongxing.com.sg/ir.html Noble Group Oceanus Group. (n.d). 2007 Annual Report. Retrieved 20th October 2008, from company website http://www.oceanus.com.sg/index.php?option=com_content&view=article&id=11&Itemid=10 Philipp Mettler Dennis Chan. (2008, October 25) Noble Group reassures investor. Retrieved from The Strait Times, 25th October 2008 Christine Loh 2008 Chris Sanda (2008, June 17) Oceanus report from the Daiwa Institute of Research Ltd.