A Case Analysis On Value Comparision Of CITIC Securities And HAITONG Securities

After more than 20 years of development, China's capital market has become an important part of the national economy, and enhances the vitality of economic development. As a main media of the market, the securities companies are playing a very important role in the course of cultivating and developing our capital market, which have prospects of development. It's important for the investors who want to capture investment opportunities in the securities industry, evaluating the intrinsic value of securities firms, and comparing the investing objects.In this paper, the author selects CITIC Securities Co., Ltd. (thereinafter referred to as CITIC Securities) and Haitong Securities Co., Ltd. (thereinafter referred to as Haitong Securities) for the study. CITIC Securities and Haitong Securities are listed companies in the securities industry,and their core business are securities brokerage, underwriting and securities investment, the evaluation of the companies has different characteristics with other listed companies in general industries.In this paper, a top-down research method was used to compare and analysis both the intrinsic value of securities companies and the competitiveness of the situation. First of all, the text outlined the development background, status and trends of the securities industry in which the two companies are operating and pointed out that the securities companies should face opportunities and risks by judging status of the securities industry as well as China's macro-economics. Second, quantitative analysis means as financial analysis model, dividend discount model and economic value-added model are mainly used to fully reveal the two listed companies with the industry's financial condition and intrinsic value. Finally, the paper draw a conclusion that CITIC Securities is more valuable than Haitong Securities,and the conclusion was based on the results that CITIC Securities were significantly better than Haitong Securities in comparison on the health of financial state as well as on the dividend discount valuation and economic value added valuation.The paper analysis that except the three elements which affected the core competitiveness of the firms (the strategic vision and implementation of management talent and strong business core, a strong and sustainable sources of capital to strengthen, the capacity of to nurture and to seize the unique and exclusive advantage of resources ), the return on investment capital (ROIC) and the cost of capital (Ke, WACC) are also important factors which affected the value of the listed companies in the securities industry.