The Real Investment Value Of Gem

Many investors believe that gem can hardly exceed the 70 times price earnings ratio "Curse".

Indeed, when the Shanghai Composite Index hit a record high of 1500 in 1997, the P / E ratio was about 60 times, so it dropped to 1000 near the summit.

Then the market rose to 2245 in 2001, and the P / E ratio reached 66.99 times. The Shanghai composite index began to enter the long bear road and return to the 1000 point.

In 2007, the Shanghai Composite Index hit a record high of 6124, with a P / E ratio of 71.5 times.

After that, the market began to plummet and fell to 1664 points.

Therefore, when faced with 70 times price earnings ratio of gem, investors are very scared. They are afraid that the gem will go into a long-term bear market.

But it turns out that the gem not only failed to reproduce history, or even completely broke the curse of 70 times price earnings ratio, this week once again hit a record high of 2232 points, why the gem is so capricious, for the following reasons.

First, the growth of performance.

Although the original intention of the Chinese stock exchange to set up a growth enterprise market is to imitate the Nasdaq market in the United States, and push a group of energetic high-tech innovation small and micro enterprises into the gem, but because of the worry that the gem fails to issue shares, the small and medium-sized enterprises that are relatively mature and have continuous profit records are listed on the growth enterprise market.

From the performance point of view, the growth enterprise market realized the synchronous growth of profits and revenues in 2014. According to statistics, 421 companies operating income and net profit of gem 2014 increased by 27.03% and 22.71% respectively, the growth rate of operating income and net profit was the highest in the past three years, and the gem in 2014.

Net profit growth rate for the first time in nearly three years is close to the operating revenue growth rate, and realized the synchronous growth of profit and income.

Two, merger and acquisition factors.

With the continuous development of the world economy, the process of global economic integration is further accelerating, which provides an opportunity for mergers and acquisitions among enterprises around the world.

In the global wave of mergers and acquisitions, there have been five mergers and acquisitions.

The first wave of M & A from 1897 to 1904 was mainly horizontal mergers and acquisitions, with large machinery, chemical and petrochemical industries as the direction.

During the period from 1916 to 1929, the second wave of mergers and acquisitions was mainly vertical mergers and acquisitions, forming a number of oligarchs.

The third wave of mergers and acquisitions from 1965 to 1969 is a mixed merger.

From 1984 to 1989, mainly leveraged mergers and acquisitions and management buyouts.

During the period from 1991 to 2000, the fifth wave of mergers and acquisitions was characterized by globalization, and cross-border mergers and acquisitions became the main way.

Since 2010, the sixth wave of mergers and acquisitions has entered the world. China will play a very important role as China's economic development drives the world economy.

Since 2013, the number of mergers and acquisitions of Chinese enterprises is about 1232, and the number of overseas mergers and acquisitions has increased by more than 30%.

China's participation

The leading industry is mainly listed companies, because the listed companies are bigger and stronger.

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In addition, the difference between the one or two tier market also gives the shareholders of the listed company the desire to merge.

Through mergers and acquisitions, it will play a very good role in improving the industrial structure of listed companies, optimizing resources and managing market capitalization.

But the M & A is not the patent of the gem, and the main board's large cap stocks also carry out a lot of mergers and acquisitions. Most of the main board stocks are traditional sunset industries. Even if mergers and acquisitions take place, such as the handover steel, Tang Gang and Chengde vanadium and titanium restructuring become Hebei iron and steel, the share price is still in the doldrums; and the merger and acquisition of gem, such as Shanghai's lex and Tong Tong Education, after the merger, the share price has climbed sharply, constantly refresh the historical high.

Three, scientific and technological progress.

Most of the listed companies on GEM are the technology stocks of emerging industries, and the current discussions on the acceleration of Internet + technology progress are expected to become the logic of the gem index to continue to refresh its history and continue to move forward.

Because before nineteenth Century, when the productivity level was limited, the progress of human technology was very slow. After entering the 1990s, with the development of Internet technology, human technological progress showed a leaping and accelerating development trend, and rapidly changed the way of life. It can be said that a new technological revolution has been spawned, and continuous industrial investment opportunities have been spawned. The related listed companies of Internet companies have seen blowout rising, and a large number of new Internet companies have sprung up, and soon developed into world-famous listed companies.

In a few years, they have gone beyond the decades of development of traditional enterprises and created a new wealth legend.