AYB227: INTERNATIONAL ACCOUNTING PROJECT: SUNSHINE GROWTH SUPER (SGS) GLOBAL INVESTMENT ANALYSIS SELECTION OF COMPANIES TO INVEST IN. The following three companies are recommended for SGS investment; 1. Tencent holdings. Shenzhen, China. 2. Capgemini. Paris, France. 3. CGI Group. Montreal, Canada. Preliminary Explanation for the Selection of the Three Global, Listed Companies. a) Industry selection. The three chosen companies have been identified from the computer service industry. This is because technology advancement has been a key initiative in the current world. Each and every entity is embracing technology for its daily activities. Business wise, organizations are becoming more vigilant and advancing their technology day in day out so as to be able to compete with the others. Hence; providing computer services doesn’t only provide a widely increasing market but also a job security (this is in the sense that once a company provides computer related services, it’s also entitled continuous maintenance and checks as to whether the systems are working well as well as related advancements). The three, having been chosen from stable developed counties, they have indicated an annual increase in net profit and divided increase whose payment is on time. The companies comply with global ISO and accounting regulations. b) Company selection. 1. Tencent Holding This company is located in Shenzhen, China. It’s the leading social networking company in china having developed weChat messaging app which has over one billion monthly users according to 2018 statistical results. It also hosts Qzone networking website and an instant messaging service
whopping over 629 and 820 million users respectively. This tech giant has a market cap of $491.3 billion. Having been founded in 1999, it’s able to make $35.3 billion yearly give a good return on investment to its shareholders. China Tech is advancing at a high rate and we expect this market share to increase rapidly hence your investment will be worth here. 2. Capgemini. This is a multinational corporation that provides proffesional technology, consulting, and outsourcing services to over 40 countries with a major stake in Indian economy. This is a company with strong roots since it was established in France in the year 1967. It makes an average sales of over $14.4 billion yearly with a market cap of $23.3 billion. With its advanced technological integration, it’s a trusted giant in the market and investment here is worth and secure. 3. CGI group. This is a trusted largest IT company in Canada serving as a long-term committed partner to its clients in Canada and international market with 41% stake in Europe, 29% in United States, 15% in Canada and 15% in the rest of the world. This is a well-established company in computing industry with a market cap of $17.2 billion and annual sales of $8.7 billion yearly sales and its worth investing in.
ANALYSIS OF STRENGTHS AND WEAKNESSES OF THE COMPANIES TENCENT HOLDING Strengths 1. They are leaders in technology in china 2. The company has a valuation of more than $400 billion 3.
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- Fall '19
- International Financial Reporting Standards