Analysis On Investment Value Of CR Power Holdings Co.,Ltd.

The stock market amidst the winds of change,for the domestic small and medium investors,short-term investments and obtaining investment income through bid-ask spread often occupy the dominant position,investment value is often ignored.Less people can explore the analysis of enterprise intrinsic value of selected stocks for long-term investment through the stock market of the layers of mist.For implementing the value-investment idea,this paper intends to choose China Resources Power(CR Power 0836.HK)as the analysis object which is listed in Hong Kong and incorporated into a constituent stock of Hong Kong Hang Seng Index.Using the value evaluation model to evaluate the potential value of CR Power,in order to guide investors to treat the stock market short-term ups and downs rationally and to pay close attention to the value investment.This paper is divided into five chapters,using the analysis method of top-down:the introduction part is the main research contents and chapters;the main content of the first chapter is macroeconomic analysis,industry status and future trends,to provide background information for subsequent analysis;the second chapter introduces the basic situation of CR Power company,combined with SWOT strategy to make a prediction of the future development of CR Power;the third chapter carry out financial analysis on CR Power,through the analysis of the financial index and the result of comparison with the other companies in the same industry,to understand the financial situation?business operation and the position in the same industry of CR Power,which lays the foundation for later evaluation;the fourth chapter is the valuation analysis process of CR Power,using the free cash flow valuation and relative valuation method combined with the operation and financial situation of CR Power?enterprise strategy to evaluate its operating performance and potential value;the fifth chapter is investment risk and suggestion.The final conclusions of the assessment in the evaluation of the day(30 June 2016)the reasonable price of China Resources Power should be between HK $13 and HK $24 per share,higher than the assessment day closing price of HK $11.56,to buy on the dips and hold them for the long-term is recommended.