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Research On Optimizing The Financial Strategy Of HBIS Company Limited

Posted on:2019-10-22Degree:MasterType:Thesis
Country:ChinaCandidate:R GongFull Text:PDF
GTID:2371330548479221Subject:Accounting
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In recent years,China’s economic development has entered a new normal,and the rate of economic growth has gradually changed from high-speed growth to high-and medium-speed growth.China’s steel industry faces huge inventory pressures,pressures to remove capacity,and deleveraging pressures.The article studies the financial strategy of iron and steel enterprises in the context of supply-side reform to promote the realization of the overall corporate strategy and promote the transformation and upgrading of steel enterprises.The paper selected HBIS Company Limited as the research object and put forward a plan to optimize the financial strategy of HBIS Company Limited based on the financial strategy theory.The paper first uses PEST and Porter’s five force model to analyze the internal and external environment of HBIS Company Limited.The study found that the company has a large internal advantage,external opportunities and challenges coexist,the steel market is picking up,the competitive environment is gradually fair,and there is a large market demand for high-end steel products.HBIS Company Limited should increase its research and development efforts to produce high-end products,and the company also It is necessary to broaden the financing channels and enhance short-term solvency.The article analyzes the current financing strategy,investment strategy and income distribution strategy of HBIS Company Limited,and combines the background of supply side reform to analyze the existing problems of Hegang’s current financial strategy.The study finds that Hegang’s financing strategy has high debt-to-assets ratio,high debt-repayment risk,single financing channels,high financial costs,unbalanced financing structure,and long-term fundraising problems;investment strategies have unreasonable growth in investment scale,and investment returns Low investment,single investment direction,and low R&D investment;income distribution strategies have unstable earnings quotas,falling investment attractiveness,low per-share earnings,poor performance of the stock market,single distribution forms,and increased financial risks.The article also proposes an optimization plan for HBIS Company Limited.in conjunction with the financial strategy matrix,and proposes optimizing the company’s financial strategy from three aspects:financing strategy,investment strategy,and income distribution strategy,including adjusting the capital structure,increasing the proportion of equity capital,and increasing long-term debt financing.,Obtaining government subsidies,implementing diversified investment,increasing R&D investment,improving product R&D efficiency,rationally control investment scale,concentrate resources and develop core business,raising their investment levels,and adopting low normal and extra dividend policies.Finally,in order to guarantee the effective implementation of the Hegang’s financial strategy optimization plan,the paper clarifies the safeguard measures for implementing the plan.The research of the paper’s financial strategy optimization plan will provide practical experience for companies to strengthen risk awareness,guard against financial risks,and formulate reasonable financial strategies.
Keywords/Search Tags:financing strategy, investment strategy, income distribution strategy
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