China's Nonferrous Metals Industry Listed Company Value Investment Analysis

A non-ferrous metal as important industrial raw material is essential strategicresource in the economic growth. It has been widely used in electronics, machinery,automotive, construction, packaging, metallurgy, national defense and high-tech fields.It is of course considerable importance in national economic development status. Atpresent, China’s economy is in a period of economic transition and structural adjustment.Structural adjustment of the non-ferrous metals industry will provide investors with newinvestment opportunities. Scarcity, non-renewable and the shortage of global resourceswill sustain. However, it indicates that small metal and rare earth permanent magnetprices will continued to rise in the volatility. As the non-ferrous metal industry is full ofinvestment opportunities, this article select this industry companies for research, thefundamental and technical analysis as reference for investors.This paper`s analyzes vestment value is based on previous research, the analysis isinclude the macroeconomic situation, the development of the industry state and theintrinsic value of companies. the macroeconomic analysis including the current situationof international economic and non-ferrous metals, domestic non-ferrous metals in theenvironment, and national policy guidance etc, the purpose is to grasp the appropriateinvestment opportunities, the conclusion by analyzing is in the momentum of the overalleconomic recovery slowing down, only scarce and policies to protect non-ferrous metalhas investment value. In the development of the industry state, this paper analyzes thecharacteristics of the development of domestic industry. Come to the small metal andrare earth permanent magnet still have the investment value.In the analysis of company intrinsic value have two aspects from the corporatefinance to market.but previous studies mainly from the financial aspects of theevaluation. Firstly, this paper selected seven aspects company financial evaluation Theinvestment value of the evaluation system including company’s short-term andlong-term solvency, company profitability and shareholder profitability, capacitydevelopment, the cash flows and stock price a total of18indicators. And then use thestock market moving average analysis and reference the premise of the market index, conduct a preliminary evaluation of the study of listed companies by the threshold ofthe120-day stock price average and from62companies listed reaches a critical valueselected31companies. Reuse use the2011annual report data and the evaluation indexsystem of32listed companies to do further principal component analysis, use the resultof principal component analysis to calculate the composite score ranking of eachcompany. Finally, with the latest stock market price movements ranked before and afterthe three companies, prove the draw of this study is correct, effective and applicable.