Research On Investment Value Of Listed Wine Companies

Chinese wine culture has a very long history, which takes a very important position in the eyes of consumers. Ever since the economic reform and open-door in China, wine-making industry has developed rapidly, creating leading economic benefits in the food industry and making great contribution to national finance. Now, there are more than 20 wine companies, and many investors begin to pay attention to wine companies and invest them.Firstly, the paper summarizes theoretical and empirical research on enterprise value appraisal both at home and abroad, and introduces the Reason-Result theoretical framework and practical application model. Then, the paper adopts Reason-Result framework to analyze industry features of wine-making industry, so we can have a thorough knowledge of industry characteristics. On the basis of industry analysis, this paper selects listed wine companies as research objects and chooses 14 financial indicators of them. Then we use factor analysis to make listed wine companies an investment evaluation, and there are totally five factors being extracted, including profitability factor, operational capacity factor, growth factor, cash factor and liquidity factor. The result shows that, in compositive score, Guizhoumaotai, Wuliangye, Yanghe, Luzhoulaojiao, Zhangyu, Tsingtao brewstery score highest marks, and that is to say their performance are excellent. However, there are also some companies, such as Tuopai, Xizangfazhan, Mogao, Guyuelongshan, whose performance belong to the lowest level. The rest, such as Shuijinfang, Gujing, Yanjing Beer, Chongqing Beer etc, are in the middle. Next, this paper chooses four representative enterprises of the wine industry-- Kweichow Moutai, Tsingtao, Zhangyu, Guyuelongshan as the subjects of "casual analysis" case study, and then makes detailed contrast to their financial consequences of the four companies from 2004 to 2010, trying to find the reason of the differences from the macroscopical, industrial and corporate aspects. According to the causal analysis in detail, this paper makes an estimate of intrinsic value of the four companies, and the results show that, in the end of 2010, the intrinsic value of Kweichow Moutai, Tsingtao, Zhangyu was higher than their stock prices, while Guyuelongshan’s intrinsic value was lower than its stock price. Finally, this paper makes a summary of the analysis of listed wine companies’investment value and put forward some prospects for future research.