The Valuation Of Changchun Gas Co., Ltd.

Changchun Gas Co., Ltd. ("Changchun Gas"), which was listed in Shanghai Stock Exchange in December, 2000 with stock code 600333, is a public utility enterprise provides city gas services, including gas production, transmission and distribution. Its businesses contain the production and marketing of coke oven gas, mixed gas, metallurgical coke, coal tar, and the supplying of natural gas, liquefied petroleum gas, and also the gas installation works. It is the largest piped gas supplier in Changchun and Yanji city. And it is one of the major domestic companies in high efficient coal resources utilization.In recent years, due to price fluctuation, energy source has become the focus of attention. Gas as an energy source also becomes more and more important in the people's social life. In this paper, "Changchun Gas" has a certain representation of the gas distribution companies.With a certain understanding of the company's status and future development, the author forecasts the company's future profitability and cash flow. Using the discounted cash flow model, three-stage dividend discount model and relative valuation methods, the author will calculate the valuation of "Changchun Gas".In this paper, the author obtains the valuation of "Changchun Gas" for 5.01 Yuan, higher than the closing price of 4.40 Yuan on December 31, 2008. Taking into account the future development, "Changchun Gas" has a potential investment value.By studying the investment value of "Changchun Gas", the author aims to organize the investment ideas and discusses the impact factors of the listed company. The author also wants to provide a guide to the practice of actual investment and to explore a self-analysis method for the future.