| The equipment manufacturing industry of power generation is the foundation industry that props up national economy to continuously healthily development. Along with the rapid growth of our country’s economy, the equipment manufacturing industry of power generation rapid develops. The production ability of the equipment manufacturing enterprise of power generation is gradually strengthened, international market quotas gradually increase, the capability of international competition is continuously strengthened. Now, the equipment manufacturing industry of power generation in our country has the production ability and yield of generating electricity that has already been resided to the first in the world.The three greatly power generation equipment manufacturing group in our country has occupied a majority of domestic market share, including the large Thermal power equipment, the Hydropower equipment, Gas turbine equipment, Nuclear power equipment. Till2009, Dongfang Electric Co., Ltd. has already continuously reached the top-grade level of the world for six years in yield of power generation equipment. The revenue of Shanghai Electric Group Co., Ltd. is the first group of China’s equipment manufacturing industry. Two of the company has important influence to our country in developments of the equipment manufacturing industry of power generation.The paper analyses and contrasts financial report of Dongfang Electric Co.. Ltd. and Shanghai Electric Group Co., Ltd. in the period of2008-2010, and combines with the average finance data of the power generation equipment manufacturing industry. Analyze financial standing of China’s power generation equipment manufacturing enterprise and two of the company’s financial competition ability. Adopted horizontal and history comparison method to compare the ability of can keep on development.Analyze cash flow statements combine with the balance sheet, income statement for keep on production management and development needs. Through this comparison, analyzing and reflecting the ability that the company obtains cash. Contrast the two companies’ profitability through raise property and shareholder guerdon rate and raise sales profits through sales revenue. Compute lever coefficients affect to the two companies, analyzed the risk-controlling abilities of the two companies. Analyze the Economic Value Added and evaluation the value creation ability in the companies. Made use of DuPont Financial Analysis method to multiple layers resolve the factor of influence the shareholder rights guerdon rate and completely compare total finance circumstance of the two companies. Make use of financial strategy matrix model to analyses the financial strategy that the two companies make use of. Hope to provide reference with textual analysis that the power generation equipment manufacturing company and related business enterprise.Through comparison and analysis, can see the development ability of Dongfang Electric Co., Ltd. better than Shanghai Electric Group Co.. Ltd.. In2008-2009, Dongfang Electric Co., Ltd. has the ability of obtains cash better than Shanghai Electric Group Co., Ltd, LTD. The ability of obtains cash constantly Change in Shanghai Electric Group Co., Ltd. and exceeds Dongfang Electric Co., Ltd. in2010.So Dongfang Electric Co., Ltd. needs to strengthen the management of the cash flow statements. Shanghai Electric Group Co., Ltd. has not greatly change for the profitability ability through three years, Dongfang Electric Co., Ltd. has strengthen in profitability ability year by year and has exceeded Shanghai Electric Group Co., Ltd.. Dongfang Electric Co.. Ltd. well made use of the leverage effect to create value for shareholder, but the risk is stronger. In the other had the risk of Shanghai Electric Group Co., Ltd. is smaller. Dongfang Electric Co., Ltd. growth quickly in the shareholder rights guerdon rate, in2009-2010higher than Shanghai Electric Group Co., Ltd.. So Shanghai Electric Group Co.. Ltd. needs to raise the shareholder rights guerdon rate. Dongfang Electric Co.. Ltd. need to strengthen operation ability. Dongfang Electric Co.. Ltd. develops rapidly, property scale and operating revenue increase quickly, profit ability increase rapidly, the ability of value creation is strengthen year by year. Shanghai Electric Group Co.. Ltd.develops steadily and has stronger ability in value creation. |
PDF Full Text Request