The Research Of Investment Yield For The Telecommunication Equipment Listed Company

The main purpose for stock investors to conduct securities transactions is to gain the investment yield. In the Chinese stock market, the capital benefit is the main source of gaining investment yield due to reasons such as fewer dividends in cash from listed companies. In recent years, fund companies on behalf of institutional investors have superseded medium and small-sized investors to absolutely become the main force in the investment market. During the three years from 2006 to 2008, the Chinese stock market witnessed the most rapid increase of institutional investors, and experienced the most intense fluctuations between bear market and bull market. The Composite Index of Shanghai Stock Exchange rose by 56.9% in these three years; however, the amplitude of vibration reached 426.8%, which is rare in the history.Meanwhile, with the increasing development and expansion of the securities market in China, more and more telcommunication equipment manufacturers grasped the opportunity of securities market expansion to conduct the financing by means of the listing. The reconstructing in the telecom industry, the issuance of 3G License and other relevant issues make the telecommunication equipment board the attention focus of investors. This paper will, taking example for telecommunication equipment listed companies, study the following issues: what kinds of methods and tools to be used to study and evaluate the investment value of a listed company, the investment yield of the stocks selected as per these methods, etc.At first, this paper introduces the concept of corporate investment interests and elaborates theoretical concepts related to investment value evaluation including relative valuation method, discounting cash flow method and economic value added evaluation model which are widely used for investment decision-making.Next, this paper analyzes the status quo in the telecommunication equipment manufacturing industry, indicates that the telecommunication equipment manufacturing industry has the growing characteristics related to the telecommunication diffusion rate, and determines that the market profit rate method and the absolute valuation method are more suitable for evaluation of the value of a telecommunication equipment listed company.At last, this paper reaches a conclusion that the economic value added evaluation model better contributes to the gaining of investment yield of a telecommunication equipment listed company through the comparison and analysis method as well as the empirical research method. In the end, by taking into consideration the relevant policies, the financial data is adjusted and the economic value added and the corporate equity value of a telecommunication equipment listed company in the coming several years are estimated.