E Fund Zhang Kun: When researching companies, free cash flow is always one of the most concerned financial indicators – yqqlm

Securities Times e Company News, on March 30, E Fund Blue Chip Selected Hybrid Securities Investment Fund managed by Zhang Kun disclosed its 2021 annual report. The fund’s equity positions are largely stable in 2021, and the structure has been adjusted. In terms of industries, the allocation of industries such as finance and consumption has been increased, and the allocation of industries such as medicine has been reduced; in terms of individual stocks, the investment ratio of individual stocks with distinctive business models, clear long-term logic, and reasonable valuation levels has been increased. Manager’s Outlook: Free cash flow is always one of our top financial metrics when we research companies. Although there will be fluctuations from year to year, it is not difficult to distinguish whether a company can generate sufficient free cash flow for shareholders if it is extended to the dimension of 5-10 years. Further from the bottom, to what extent the products produced by an enterprise are desired by its customers, whether it has an excellent business model, and whether it has a moat to maintain a good competition pattern in the long-term cycle, these are all factors that enable the revenue to be smoothly transformed into Net income then translates into an important determinant of free cash flow.