| Chinese electric appliances industry is the first one opened to world, with the fastest growth and the highest internationalization. Midea, as the subject of this study, is one of excellent enterprises in this industry. Applying corporate finance theory, this study thoroughly and deeply analyzes Midea's financial performances, financial strategy, corporation value creation and investment feasibility.This study contains two sections. Section 1 analyzes Midea's annual financial statements ranging from 2001-2005, covering 6 aspects with 14 financial indexes, such as profitability, liquidity, risk, asset turnover, market performances and growth capacity. The writer also compares Midea with Qingdao Haier, Gree and Hisense on historical performances, business structure. By factoring Midea's profitability, sustainable growth rate and risk, the writer precisely elaborates Midea's financial feature and the factors influencing its financial feature, examine and evaluate its current financial and business policy, and make advices against its existing and potential problems. Based on above work, the writer draws conclusion: Midea, with healthy finance and good performances on its primary business, has a bright prospect.Section 2 analyzes corporate value of Midea. By calculating "β" and applying CAPM model, the writer firstly determines both expected annual margins and WACC from 2001 to 2005, then evaluates its EVA and WVA during those periods, next, analyzes process of the value creation, finally, gives the suggestions. Meanwhile, the writer analyzes the difference between value of Midea and market price by means of Three Stages DDM model. From these, the writer concludes that Midea is a good creator of value.Finally, this study gives general evaluation of Midea's value creation. Meanwhile, this study analyses Midea's financial strategy and gives advices of financial strategy by using Financial Strategy Matrix model. |
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