The Value-Investing Analysis Of China Railway Group Limited

Securities market as an important part of the financial market, with its unique features and charm connects with the financing/factor, investors and managers. So, more and more attentions have been paid to value investing by investors. How to choose a good enterprise in the investment process in the future, how to assess the value of the company stock, which is to be value investors concerns. This paper selects China Railway Group Limited for analysis, using knowledge learned during three years of study in the MBA to research and analyze its intrinsic value.This thesis is divided into five chapters. First, the research background and significance is introduced to begin, the development mainstream of the value investment at home and abroad is briefly reviewed, and the valuation idea of the value investment is straightened out. Then, the current situation and the future planning of China railway industry, the opportunities of the China railway construction industry and their competitive structure were overall analyzed. And, the China Railway Corporation is served as research object. From the company basic situation, main business, subsidiaries, controlling shareholders and their ownership structure etc to deeply analyze the effect of the business operations of the Corporation due to these factors. Second, from the micro-environment of the China Railway Corporation to start, make use of their annual report published data, ratio analysis and cash flow analysis to conduct a comprehensive analysis of the company, and similar indexes were compared with the industry to understand the company profitability, operations capacity and its growth. Through predicting the company future performance, and based on the predicted data, carrying on the valuation of the company value by discounted cash flow and profitability of two kinds of valuation methods for the stock value of the China Railway Corporation. And finally come to our own view:The current value of the shares of China Railway Corporation from the thesis valuation has a lot of space. So, there will be a better return for investors in the current price to buy the shares. This thesis argues that combined with features of the current development of Chinese railway construction industry and the technical differences and leading dominance in the strategies of China Railway Group, China Railway Group will become the investment targets of the large capitalization companies, which is the most promising in construction industry of China. Its long-term investment value cannot be estimated by the simple mathematical quantification in the present stage to manifest, which should be based on various angles (e.g. the development of the corporation, the model of profit, competitive advantage and so on.) in order to reacquaint and track for understanding for a long time. This is also the purpose of this thesis is to reveal.