Fundamental Analysis Workshop Series Session Two – Art of Reading Annual Reports
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Fundamental Analysis Workshop Series
Session Two – Art of Reading Annual Reports
Where to find? Basic Decrypting
Applying the Information Q & AIntroduction
DISCLOSURES & DISCLAIMERSThis research material has been prepared by NUS Invest.
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No representation or warranty, either expressed or implied, is provided in relation to the
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opinions expressed in this research material are subject to change without notice.
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SYLLABUS
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SEMESTER 2WK 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
Common Issues
• Where to source out the important and relevant information?
• What do certain terms mean?
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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
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INTRODUCTION
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PROFILE
• NUS Invest Research Analyst
• Year 1 BBA
• 2 years experience
• Pure Fundamental Analysis
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Where can I find Annual Reports?
Where to find? TECHNICAL ANALYSIS DOW THEORY Q & AIntroduction
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Where can I find Annual Reports?
Where can I find Annual Reports?
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Decrypting the Annual Report
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Annual Report
• Released annually
• Snapshot of the business
• No two are the exactly same
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Main Components
• Chairman’s Statement
• Business Review
• Income Statement
• Balanced Sheet
• Statement of Cash flow
• Statement of Retained Earnings
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Chairman’s Statement
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Business Review
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Business Review
Income Statement
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Balanced Sheet
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Statement of Cash Flow
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Statement of Retained Earnings
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Applying the Information
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Ratios
• NTA• EPS• PE• ROE• Current Ratio• Debt/Equity
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Mentality
• Be curious, inquisitive• Take nothing for granted• Don’t be swayed by neither optimism nor
pessimism• Make your own judgements• Stand by them
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
Q & A
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Summary
• Curiosity
• Patience
• Hardwork
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THANK YOU!
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