Tonghua Dongbao Enterprise Value Analysis

The pharmaceutical industry has always been one of the more important industries in China's national economy.It is not only an integral part of the national economy,but also a key industry that affects people's lives.The sample company selected for this article is Tonghua Dongbao Enterprise,which is one of the giants of human insulin products in China's pharmaceutical industry and the only listed company in related companies in China.Therefore,the results of Tonghua Dongbao's enterprise valuation have certain guidance.effect.Valuing the company's value is conducive to the company's further strategic layout,improving its financial risk prevention and reasonable adjustment of asset usage,and it can also provide a reference for investors.At the same time,there are fewer cases for corporate value assessment at the current stage,which can provide case materials for the corporate value assessment system in the pharmaceutical industry.This paper starts with a case study.First of all,the external and internal macro-environmental environment the company is facing is sorted out,and the company is qualitatively analyzed using SWOT analysis and Porter's five-force model.Secondly,the relevant financial statement data of the company is collected for the next five years.The specific analysis of key financial indicators,and then adjust some of the data in the report to estimate the actual value of the company based on the EVA and PEG value evaluation model,and finally evaluate whether the company value is overestimated or underestimated,and give appropriate recommendations.Through qualitative analysis,it can be concluded that Tonghua Dongbao's current macro environment is better.On the one hand,there are tilted support from government policies,such as tax incentives and the landing of new medical insurance,and a unique natural and geographical environment as a support,which is conducive to exerting the agglomeration effect of the industry.On the other hand,as an enterprise that mainly administers human insulin,the competition among domestic related companies is relatively small,while the demand is relatively large and the market prospects are promising.Through quantitative analysis,Tonghua Dongbao's asset quality is relatively good,and the current market value is underestimated.The reason why the stock value is inconsistent with the accounting results is mainly due to the different needs and preferences of investors,plus the consideration of EVA when taking into account the cost of equity capital.According to the assessment results,the Tonghua Dongbao can rationalize the use of financial leverage,adjust the capital structure,and appropriately increase the debt capital;it must also change the management mode of the enterprise and change from profit management to value management;at the same time,it should further improve the company's performance assessment mechanism.The management's return is combined with the EVA's results,using economic profits instead of accounting profits.