Research On The Investment Strategy Of Chinese Agricultural Machinery Industry

In recent years, our country has paid more attention to Three Rural Issues.Modern agriculture significantly influenced the people’s living standard, whileraising the level of agricultural mechanization is the only way to promote t hehealthy and sustainable development of modern agriculture. Pulling farmmachinery purchase subsidy funds, lowering VAT rates and a series of measureshave showed that the agricultural machinery industry has become a focusrecently. Therefore, this paper aims to use the scientific method to assess theinvestment value in this industry and propose investment strategy which canguide investors to make rational investment.This paper reviews the domestic and foreign scholars on the theory,influencing factors and analytical methods of investment value. Then itsummarizes two schools of investment value and evaluation method. With theconsideration of characteristics of the agricultural machinery industry, the paperuses a large number of relevant data to make the deep analysis of presentsituation, development trend and the condition of the companies within thisindustry. After this, from the industry’s growth, profitability, and accessibilitythese three aspects, it makes a qualitative analysis of the investm ent value of thisindustry. On this basis, this paper selects the28listed companies in this industryas the research sample. According to the company size, these companies aredivided into the two categories, namely specialized agricultural machinerycompanies with large group background and integrated agricultural machinerycompanies. It selects the financial data from2008to2010and uses11financialindicators to establish the investment value evaluation index system to make afurther analysis on the investment value from the quantitative point of view.Then on this basis, clarifying the investment principles and putting forwardspecific recommendations for investment strategies.