Fundamental Analysis Workshop Series Session Two – Art of Reading Annual Reports.
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Transcript of Fundamental Analysis Workshop Series Session Two – Art of Reading Annual Reports.
![Page 1: Fundamental Analysis Workshop Series Session Two – Art of Reading Annual Reports.](https://reader033.fdocuments.us/reader033/viewer/2022051614/551b108f550346f70d8b5ec7/html5/thumbnails/1.jpg)
Fundamental Analysis Workshop Series
Session Two – Art of Reading Annual Reports
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Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
DISCLOSURES & DISCLAIMERSThis research material has been prepared by NUS Invest.
NUS Invest specifically prohibits the redistribution of this material in whole or in part without the
written permission of NUS Invest.
The research officer(s) primarily responsible for the content of this research material, in whole or
in part, certifies that their views are accurately expressed and they will not receive direct or
indirect compensation in exchange for expressing specific recommendations or views in this
research material.
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DISCLOSURES & DISCLAIMERSNothing in this research material constitutes a representation that any investment strategy or
recommendation contained herein is suitable or appropriate to a recipient’s individual
circumstances or otherwise constitutes a personal recommendation. It is published solely for
information purposes, it does not constitute an advertisement and is not to be construed as a
solicitation or an offer to buy or sell any securities or related financial instruments.
No representation or warranty, either expressed or implied, is provided in relation to the
accuracy, completeness or reliability of the information contained herein. The research material
should not be regarded by recipients as a substitute for the exercise of their own judgement. Any
opinions expressed in this research material are subject to change without notice.
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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SYLLABUS
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
SEMESTER 2
WK 2 • Introduction to Stock Investing
WK 3 • Art of Reading Annual Reports
WK 4• Picking the Right Stocks(Part I) – Top Down Analysis
WK 5 • Picking the Right Stocks (Part II) – Bottom Up Analysis
WK 6 • Picking the Right Stocks (Part III) – Dividend Investing
RECESS WEEK
WK 7 • Portfolio Management for the Retail Investor
WK 8 • Case Study 1
WK 9 • Case Study 2
WK 10 • Case Study 2
WK 11 • Traders Interview
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Common Issues
• Where to source out the important and relevant information?
• What do certain terms mean?
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Agenda
• Where to find Annual Reports?• Understanding an Annual Report– Income Statement– Balanced Sheet– Cash Flow Statement– Statement of Retained Earnings
• Applying the information
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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INTRODUCTION
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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PROFILE
• NUS Invest Research Analyst
• Year 1 BBA
• 2 years experience
• Pure Fundamental Analysis
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Where can I find Annual Reports?
Where to find? TECHNICAL ANALYSIS DOW THEORY Q & AIntroduction
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Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
Where can I find Annual Reports?
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Where can I find Annual Reports?
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Decrypting the Annual Report
Where to find? Basic Decrypting DOW THEORY Q & AIntroduction
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Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
Annual Report
• Released annually
• Snapshot of the business
• No two are the exactly same
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Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Main Components
• Chairman’s Statement
• Business Review
• Income Statement
• Balanced Sheet
• Statement of Cash flow
• Statement of Retained Earnings
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Chairman’s Statement
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Business Review
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Business Review
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Income Statement
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Balanced Sheet
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Statement of Cash Flow
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Statement of Retained Earnings
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Applying the Information
Where to find? Basic Decryption
Applying the Information
Q & AIntroduction
![Page 30: Fundamental Analysis Workshop Series Session Two – Art of Reading Annual Reports.](https://reader033.fdocuments.us/reader033/viewer/2022051614/551b108f550346f70d8b5ec7/html5/thumbnails/30.jpg)
Where to find? Basic Decryption
Applying the Information
Q & AIntroduction
Ratios
• NTA• EPS• PE• ROE• Current Ratio• Debt/Equity
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Where to find? Basic Decryption
Applying the Information
Q & AIntroduction
Mentality
• Be curious, inquisitive• Take nothing for granted• Don’t be swayed by neither optimism nor
pessimism• Make your own judgements• Stand by them
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Liquidating ValueAsset Class Coefficient
(%)
Cash and cash equivalents 100
Trade and other receivables 80
Inventories 66
Financial assets, available for sale 15
Property, plant and equipment 15
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Q & A
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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Summary
• Curiosity
• Patience
• Hardwork
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction
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THANK YOU!
Where to find? Basic Decrypting
Applying the Information
Q & AIntroduction