| Economic Value Added (EVA, Economic Value Added), is an equity fund that reflects the opportunity cost measure. Traditional indicators considered only the cost of debt, but neglected to pay the shareholders the opportunity cost of investment. The EVA theory advanced in the investment of its shareholders the opportunity cost considerations. As early as 1777, economists had proposed a similar concept, economists Hamilton that the company wants to create value and earn the reward should be higher than corporate debt and equity cost of capital. In 1890, the classical economist Alfred Marshall also believe that corporate earnings should be equal to corporate profits net of capital interest. However, in subsequent studies, specifically proposed the concept of EVA is a financial analyst with American Joe ? Independence and the Knight ? Stuart, they believe does not reflect the traditional income statement, including shareholders, providers of finance, including the minimum required return, and this index stressed that all enterprises should earn more than the cost of funds paid, for maximizing shareholder value, and pursue value maximization With the birth and development of capital markets, to expand the capital market as the core of enterprise investment and financing activities are inseparable from the inside and outside the enterprise valuation, business value analysis has become a capital market stakeholders in the focus of attention. Therefore, the enterprise value evaluation and application of methods of great significance. Business valuation, is an enterprise as an organic whole, according to its own or occupy all of the assets condition and overall profitability, give full consideration to affect the profitability of various factors, combined with the macroeconomic environment in which business and industry background, the fair market value of their overall comprehensive assessment, it is a measure of quality of enterprise management pros and cons of a more comprehensive, more systematic indicators. Era of large capital makes the goals of financial management to maximize shareholder wealth maximization of profits, and eventually turned to maximize enterprise value. And financial-related activities are to enhance the company's value as a starting point, and then analyzes affect the various factors that increase their value. Corporate merger, reorganization, sale and other economic behavior only through the assessment of the value of the company to find undervalued by the market to invest in target companies. The investor decides to buy or sell securities at the time, also need to carry out scientific assessment of the company, then the intrinsic value of securities and securities market prices compare the value of investments can adhere to the correct orientation, the maximum reduce risk, and share the stable development of business benefits. Jilin Aodong Pharmaceutical Group Co., Ltd. is a pharmaceutical industry, the securities industry, road construction, mining as one of the holding-type group. Ended December 31, 2008, the company's total share capital of 573,357,970 shares of the company a total staff of 29 people, including senior management 5; Group's main pharmaceutical industry, a total of 3,225 employees, of whom 54 licensed pharmacists, have a college education 1,056, 240 senior professional titles. Registered address is 2158 Dunhua City, Jilin Aodong Street No., legal representative Li Xiulin.Company, formerly state-owned Yanbian Dunhua deer farm was built in 1957, field of land reclamation enterprises, the accumulation of several decades, enterprises have continuously developed, in 1993 three menstrual Provincial Economic Restructuring Commission approved to establish the Jilin Aodong Pharmaceutical Group Co., Ltd. , October 28, 1996 listed in the Shenzhen Stock Exchange. Investment holding company of a listed company Yanbian Road Construction Company Limited, seven pharmaceutical manufacturing subsidiary, Jilin Aodong Yanbian Pharmaceutical Co., Ltd., Jilin Aodong Taonan Pharmaceutical Co., Ltd., Jilin Aodong Pharmaceutical Group Stock Co., Yanji Company, Jilin Aodong Pharmaceutical Group Co., Ltd., Dalian, Jilin Aodong Pharmaceutical Group Co., Ltd. Jinhai hair, Jilin Aodong security interests Pharmaceutical Co., Ltd., a subsidiary of Jilin Aodong pharmaceutical sales pharmaceutical Co., Ltd., 2 supporting subsidiary Jilin Aodong Medicine Capsule Co., Ltd., Jilin Aodong deer industry limited liability company, the two joint venture companies GF Securities Co., Ltd., Tonghua Steel Group Dunhua Tower East Mining Co. Ltd., with participation, the holding company 13. End of 2008, total assets 577,755 million and net assets of 484,431 million bank credit grade is AAA level, the balance was 10.99%, 2008 sales revenue of 92,782 million yuan, net profit of 86,161 yuan.Company after 10 years of development, developed a unique brand, the leading product of "Anshenbunao Syrup", "Xuefuzhuyu Oral Liquid," "benefit brain capsule," "Heart Brain Capsules "and so on. State Economic and Trade Commission in 1998 the company was recognized as a national technology center, a technological progress and technological innovation in the technical support. December 11, 2001 the Ministry of Personnel approved the establishment of post-doctoral workstations, in the "15" during the Jilin Aodong National Technology Center into a new technology through Cooperative Research and Development Center and the exchange of technical decision-making centers and counseling centers. In 2002, the company was approved by the Ministry of Agriculture and other ministries for the nine key national agricultural industrialization leading enterprises; in September 2003 by the National Science and Technology as a "Torch Program outstanding high-tech enterprises." In the "Eleventh Five-Year" period, the company will be the economic efficiency, restructuring as the main line, to enhance competitiveness and to market-oriented, play a lead role in the brand, highlighting innovation and accelerate the modernization of Chinese medicine to work to achieve pharmaceutical industry, the securities industry, road construction, mining development simultaneously, with excellent results bring good returns for shareholders, to create greater wealth for society.This paper focuses on the economic value added (EVA) theory of the origin. Then, after using the first foreign domestic law, namely analysis of the macroeconomic environment, medicine, industry and Jilin Aodong Pharmaceutical Group Corporation. Pharmaceutical Group of the Jilin Aodong 2005 -2 008 years, results of operations, a preliminary analysis of the Jilin Aodong Pharmaceutical Group, the investment value. Circulation background, the focus of the use of economic value added (EVA) evaluation method, in the Jilin Aodong Pharmaceutical Group to a reasonable value based on the assessment of the value of the enterprise, to further reveal the Jilin Aodong Pharmaceutical Group the company's investment value. Writing in the framework of this paper is as follows: Chapter 1 of the main body of introduction, proposed research background, significance, research methodology and structure of frame and made a more detailed theory; Chapter 2 is the Jilin Aodong Pharmaceutical Group profile, using the method from outside to inside, respectively, on the macro economy, the pharmaceutical industry and Jilin Aodong Pharmaceutical Group for analysis from the Jilin Aodong Pharmaceutical Group's profitability and growth; in Chapter 3 is a corporate value and valuation theory, introduced the concept of value investing as defined under the corporate value and the related valuation theory; Chapter 4 is the value of Jilin Aodong Pharmaceutical Group, details of the EVA calculation process and application of their estimated Jilin Ao East Pharmaceutical Group's values; Chapter 5 is conclusion, Tong Guo Jilin Aodong Medicine Group value of the calculation results, Touzi Zhe starting from the concept of value investing for growth Xingshang Shi companies, thus sharing China's economy develop Dailai economic success, and pointed out the shortcomings of this article. |
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