Listed Companies' 2024 Profit Surge: 187 Earn More Than Their Entire Share Capital โ Insider Names Two Sectors Where Profits Will Be 'Pretty Scary'
The annual results season is like exam results day for listed companies. And this year's report card โ I have to be honest, even as someone who's been poring over financial statements for over a decade, I had to rub my eyes in disbelief โ 187 listed companies earned more than their entire share capital. That's no joke. Even more exciting is that an industry insider has named two sectors where, in their words, profits will be 'pretty scary'. Today's listed companies guide will take you through how to interpret these numbers, and also show you how to use listed companies' public information to steer clear of problem stocks.
187 companies earned more than their share capital โ who's riding the wave?
Last year, overall listed and OTC companies posted record profits. A full 187 firms earned more than their share capital (meaning EPS above NT$10). The message behind this figure is straightforward: the economy isn't as gloomy as many thought, and some companies are quietly bagging big orders. In a recent assessment, a heavyweight industry figure highlighted two sectors with explosive potential: the upstream semiconductor industry and the AI server supply chain. The phrase they used was 'pretty scary'. Given their track record in recent years, the financial results from these two areas over the next few quarters are definitely worth keeping a close eye on.
Listed company review in three steps: don't just look at EPS
When many people do a listed company review, the first thing they check is earnings per share. That's fine, but it's only half the story. My own habit is to look at three additional metrics:
- Gross margin trends: If gross margins are rising for three consecutive quarters, it means the product mix or pricing power is genuinely improving โ not just relying on one-off non-operating income.
- Inventory turnover days: If this number suddenly increases, beware of weakening customer demand, which could lead to write-downs later.
- Free cash flow: Making a profit isn't the same as having cash in the bank. Companies with persistently negative free cash flow will struggle during a rate-hiking cycle.
Run that list of 187 names through these three filters again, and you'll see that fewer than half are truly worthy of long-term attention.
How to use listed companies' public information to avoid delisting disasters
When it comes to how to use listed companies' financial information, many people think it's an accountant's job. Not true. The most practical tip is to keep an eye on the financial report filing deadline. Last year, a large wind-power casting manufacturer was given a final deadline by the exchange โ 18 November โ because it kept delaying its Q2 report. If it still failed to file by then, delisting would be on the cards. There are usually warning signs: two consecutive delays, or a qualified opinion from the auditor, are red flags. Build this simple check into your investment process, and you can avoid at least 90% of delisting disasters.
The two sectors named by an insider โ what should you look for now?
The upstream semiconductor and AI server sectors named by the insider have already been reflected in some companies' share prices. But the truly scary profit growth typically lags the share price by a quarter or two. That means when you review these listed companies' quarterly reports now, the key isn't 'how much they've already earned', but rather 'orders on hand' and 'capital expenditure plans'. If a company dares to spend big on expanding capacity when the economic outlook is uncertain, it means they're seeing long-term demand that you and I don't know about. And that's the essence of how to use listed companies' earnings call transcripts โ management's tone and commitments are often more valuable than the numbers themselves.
One final reminder: during peak results season, a flood of information hits all at once. Instead of chasing every daily price swing, take the time to actually apply the few checkpoints in this listed companies guide. Whether you make or lose money is one thing, but at least it will help you sleep soundly at night.