1, information collection

This is the work that securities analysts must complete before making specific analysis. Analysts should not only collect all public information about listed companies, but also obtain first-hand information of listed companies through government leaders, industry organizations, listed companies or other informal departments. Only by fully possessing information can we make accurate and valuable analysis.

2. Communicate with listed companies

Analysts must establish a stable and long-term relationship with the listed companies they study. On the one hand, communication can be achieved through the annual general meeting of shareholders and direct visits to listed companies. On the other hand, analysts regularly organize analyst meetings including personnel of listed companies. Because listed companies generally pay more attention to their image in the secondary market, they are usually happy to attend such meetings.

3. Actual combat analysis This is the core work of securities analysts and can be divided into the following three aspects:

(1) Macroeconomic and industry analysis. By studying the macro and industrial environment of the company and the internal management mechanism of listed companies and their competitors, we can judge the past and present development of the company and predict the future business strategy and development of the company. Generally speaking, qualitative analysis is used for macroeconomic and industrial analysis. Although it is of little significance in guiding investment decisions that need quantitative analysis, it is the starting point of future financial analysis and investment analysis. Many assumptions in financial analysis and investment analysis are actually the results of macroeconomic and industry analysis.

(2) Financial analysis. The purpose is to use the company's financial information (mainly published accounting data) obtained through various channels to understand and analyze the company's past and present operating conditions through certain analysis procedures and methods, and to find out the factors that affect the realization of the company's operating objectives and the role played by the changes of various factors in realizing the operating objectives. By analyzing the changes of various influencing factors, we can judge the future operation of the company, thus studying the future trend of the company's stock price and providing decision-making information for internal and external accounting information users who have interests with the company.

(3) Investment analysis. It is to study the stock market and estimate the price of the stock, with the purpose of making suggestions for the trading of the stock. As an analyst in the securities industry, the previous economic analysis and financial analysis are actually preparations for the investment analysis here. Securities analysts must make specific judgments on the future trend of stock prices through comprehensive analysis. In a rational stock market, the actual change of stock price is also the best test of the work done by analysts. Investment analysis is the ultimate goal of all analysts' work.