The Research On The Investment Value Evaluation Of The Listed Companies In China’s Nonferrous Metals Industry

Nonferrous metal materials are the foundation of national economic development,they are widely used in almost every industry in China nowadays. Nonferrous metal isan essential strategic resource which guarantees economic construction, state securityand the fast growth of high-tech. As a traditional industry in China, the industry has astable foundation, as the domestic and international demand increase steadily, theoverall development is sound. At present, China’s economy is in a critical period oftransformation and structure adjustment. For the industry itself, it is a challenge and atthe same time, it is an opportunity.In2009China officially issued the document "adjustment of the nonferrousmetals industry and revitalization planning", the document has a great effect onpromotion of industry strategic adjustment and transformation. The plan says the mainpoints of promoting industrial structure adjustment are to strictly control the totalscale, accelerate the elimination of backward productivity, promote developmentthrough improving technical innovation capability, encourage recombination toimprove the upgrading of industry layout in total, promote circular economy mode tohelp the non-ferrous metal resources recycling, etc. The purpose is to improve thetraditional industry’s overall competitiveness and enterprise investment value.In response to this trend, this paper researches the investment value evaluation ofthe listed companies in China’s nonferrous metals industry. On one hand, the resultprovides a reference for investors, on the other hand, it puts forward suggestions onthe development of enterprises in the industry. The first part of this paper is theintroduction with6aspects included: background, purpose and significance, theexisting state of related research in our country and overseas, main line of researchand content, research methods, the innovation. The second part is the investmentvalue assessment theory on listed companies, in accordance with the current development status of securities market and the chosen companies in our country, thefundamental analysis method is chosen. The third part is the current development ofChina’s nonferrous metal industry, analysis three factors which affect investmentvalue evaluation, they are macroeconomic trends, medium industry present situationand the microcosmic aspects from internal situation. The fourth part selects keyindicators to establish industry investment value evaluation system of listedcompanies, selects samples and data and we also decide the methods and proceduresof the assessment. The fifth part is the quantitative analysis and application of theevaluation model, this paper carries on the financial reporting data from2010to2012of66nonferrous metals industry listed companies in Shanghai and Shenzhen A shares,and use these data to get the comprehensive ranking of overall investment valueduring the three years, this paper also gives advice to investors and the enterprises atthe same time. The sixth and also the last part shows the conclusion of the paper,summarizes the full text and puts forward the deficiencies and prospects.