The Analysis Invest Environment And Valuation Of Nanjing Iron & Steel Co.,Ltd.

Established in 1999, Nanjing Iron & Steel Co., Ltd. with 120,000,000 public shares in Chinese yuan was listed in shanghai Stock Exchange in September, 2000. With the help from the capital market, the company has kept growing rapidly. Invested 3.38 bilion Chinese yuan, it's first production line in the world to produce wide middle thinkness plates operated September 2004, which is the fist nationally and the third in the world.Analysis to the company's basic face is the key to value it. To find out Nanjing Iron & Steel Co., Ltd.'s extenal factors, the company's macro environment is studied at first, including economic, legal, financial and industial environment as well as national steel-iron policies. Then Nanjing Iron & Steel Co., Ltd.'s internal conditions are studied in detail, including business, finance, wide middle thinkness plates project and competitieness in past, present and future.Based on the analysis to the company, this paper applies PE , DCF and DDM to value Nanjing Iron & Steel Co., Ltd.'s share, and concludes that the share price should be at 5.55 to 6.3 yuan. The close price on September 16, 2005, is 3.36 yuan, which is far lower than the evalution, even less than it's net share asset value. Take the recompensation from split-share reform into account, A share has the good potential for investment.By studying the investment value of Nanjing Iron & Steel Co., Ltd., this papar aims at to find out factors which affact listed companys, especially in traditional industries, as wel as degrees of their influence. By analysis the valuation of Nanjing Iron & Steel Co., Ltd., this paper provides a guide to the stock market practice.