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Instrument and meter listed companies under both opportunities and challenges
- Categories:Company news
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- Time of issue:2020-07-21 15:17
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Instrument and meter listed companies under both opportunities and challenges
(Summary description)Correctly choose financing methods to promote enterprise development Financing is divided into internal financing and external financing: internal financing is to rely on the cash flow generated within the enterprise to meet the new capital needs of the enterprise's production, operation and investment activities. Internal financing uses the after-tax profits retained by the enterprise and the funds formed by the depreciation of fixed assets as the source of funds.
- Categories:Company news
- Author:
- Origin:
- Time of issue:2020-07-21 15:17
- Views:
Correctly choose financing methods to promote enterprise development Financing is divided into internal financing and external financing: internal financing is to rely on the cash flow generated within the enterprise to meet the new capital needs of the enterprise's production, operation and investment activities. Internal financing uses the after-tax profits retained by the enterprise and the funds formed by the depreciation of fixed assets as the source of funds. External financing refers to obtaining funds from outside the enterprise, including direct financing and indirect financing. Direct financing refers to a financing method in which companies do not use banks and other financial institutions, but directly issue stocks, corporate bonds, and trust products to investors through the securities market to obtain funds. Indirect financing refers to a financing method in which enterprises obtain funds through banks and other financial institutions. Therefore, bank loans have become an important way of indirect financing for enterprises. Factors influencing the choice of corporate financing methods Internal factors include factors such as the company’s development prospects, profitability, operating and financial status, industry competitiveness, capital structure, control rights, corporate scale, and reputation. Under the action of the market mechanism, these internal factors are constantly changing, and corporate financing methods should also be flexibly adjusted along with the changes in these internal factors to adapt to the changes in the financing needs of enterprises in different periods. External factors refer to various external objective environments that affect the choice of corporate financing methods. Mainly refers to the legal environment, financial environment and economic environment. Whether the external objective environment is loose or not will directly affect the choice of corporate financing methods. When choosing a financing method, an enterprise must abide by tax laws and regulations, while considering the impact of changes in tax rates on financing. Changes in financial policies will inevitably affect corporate financing, investment, capital operations and profit distribution activities. At this time, the risks and costs of financing methods will also change. The economic environment refers to the macroeconomic conditions in which companies conduct financial management activities. During periods of rapid economic growth, companies need to raise a large amount of funds through debt or additional stock issuance in order to share the fruits of economic development. And when the government's economic policies are adjusted with changes in economic development, the financing methods of enterprises should also be adjusted with the changes in policies. The selection strategy of financing methods According to the priority theory in modern capital structure theory, the first choice for corporate financing is the internal capital of the enterprise, which mainly refers to the retained after-tax profits of the enterprise. When internal financing is insufficient, external financing will be carried out. When it comes to external financing, first choose low-risk debt financing, and then choose to issue new stocks. At present, the financing sequence of most listed companies in my country is to put the issuance of stocks first, then consider debt financing, and finally internal financing. This kind of financing sequence is likely to cause inefficient use of funds, weakening of financial leverage, and boost the preference for equity financing. Choosing a more appropriate financing method has an important impact on the later development of the enterprise. Therefore, many factors must be considered in the financing process, such as: how large is the current market economic environment, how much is the capital cost of the financing method, and what risks exist in the financing method , Whether the profitability and development prospects of the enterprise are suitable for financing, whether the competition in the industry in which the enterprise is located is fierce, etc. This determines the actual situation that the enterprise needs to consider in its development, and it is foolproof in advance. Listing opportunities and risks coexist. Listing is one of the important factors in the external financing of companies. Companies directly issue stocks, corporate bonds, and trust products to investors to obtain funds through the securities market. It is also the most extensive choice for the development and construction of social enterprises today. Financing methods. There are more than 1,800 listed companies in my country, involving all walks of life. Here we need to use a single field to explain the opportunities that companies face through listing. There are many risks in the listing of enterprises, but they are also a booster for the rapid development of enterprises. First, going public can reduce excessive reliance on bank loans. After listing, the company received capital from the capital market, and the debt-to-asset ratio was greatly reduced. Reliance on bank loans is reduced, and the bank's credit rating will also be improved. When the policy slams into a halt, we will not be too worried about a break in the capital chain. Secondly, after listing, it is necessary to introduce scientific corporate governance methods and establish a set of standardized management and financial systems in accordance with regulations, which will promote the improvement of the company’s management level. The stock market is like a magnifying glass. Good or bad will arouse strong reactions. Listing can increase the flexibility of corporate governance, and listing of family companies can move from a closed family system to an open one. In addition, listed companies have independent directors who are experts in various industries, which is equivalent to hiring an expert around at a low price. Third, there are free consultation and advertising effects. After a company is listed, it becomes a public company, which has a certain effect on enhancing the company's brand. At the same time, major media and related securities companies will often conduct research and forecasts on industry prospects for free. Instrument company listing pattern and prospects Instrument listed companies occupy a certain share of the entire listed company. According to preliminary statistics, there are 59 listed companies engaged in instrument and meter manufacturing and services. Among them, 37 are instrument-oriented businesses, and 22 are companies that include instrumentation businesses and cross-industry businesses. There are 51 domestic listed companies, of which 16 are in Shanghai and 35 are in Shenzhen, of which 14 are small and medium-sized boards and 11 are on ChiNext. There are 8 overseas listed companies, including 5 in Hong Kong and 3 on Nasdaq. There are 19 IA companies, 11 medical instruments, 11 medical instruments, 10 special instruments, and 8 electricians and supply companies. As one of the hottest developments in the manufacturing industry in recent years, the instrumentation industry involves energy saving and emission reduction, green environmental protection, Internet of Things, power grid target="_blank">smart grid, etc. It ushered in a new round of development opportunities. If many companies want to seize and expand the current scale of development, they can accelerate their development through financing. Some powerful companies have reached the scale and have been reluctant to go public. One reason is that they hope to take a ride through the introduction of a certain government policy. The second reason is that the current environment and other factors cannot reach the market. conditions of.
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