Research On Value Promotion Of Beijing-shanghai High Speed Railway Company Based On EVA

The rapid development of high speed railway plays an important role in China’s economy.Its high efficiency,low energy consumption and small pollution meet the requirements of China’s environmental protection policy.At present,China’s high speed rail technology has entered the first place in the world,and its development has made remarkable achievements in the world.Beijing-Shanghai high speed railway is a representative enterprise of China’s high speed railway operation.Due to its listing in January 2020,its public information is difficult to obtain,and there is little research on the strategy of value promotion of Beijing-Shanghai high speed railway.This paper focuses on three issues:(1)which valuation method is conducive to the value management of Beijing-Shanghai high speed railway?(2)What factors affect the value of Beijing-Shanghai high speed railway?(3)How to improve the value of Beijing-Shanghai high speed railway? Based on the selection and comparison of various valuation methods,the two-stage value evaluation method of EVA is selected at last,and the driving factors influencing the value of Beijing-Shanghai high speed railway are extracted through literature.Through the multi factor decomposition method of DuPont financial analysis,the following conclusions are drawn through research:1.The Beijing-Shanghai high speed railway adopts EVA as the value promotion monitoring index,which not only considers all capital costs,but also readjusts the net profit by performance evaluation,such as adjusting the factors affecting the net profit such as R&D expenses,non business income and expenses and deferred income tax expenses.For the management team,it can more fairly reflect the management performance,and is more conducive to their long-term perspective Company value promotion decision.2.The driving factors of value management of Beijing-Shanghai high speed railway are mainly after tax net operating profit,total invested capital,weighted average capital cost,return on capital and sales profit rate,etc.through analysis,it is found that there may be such problems as too large proportion of equity capital weight,weak profitability and slow growth,high weighted average capital cost and slow asset turnover of the company.3.The suggested strategies to improve the Beijing-Shanghai high speed railway are to raise funds reasonably,reduce the cost of equity capital,expand the market,enhance the scale economic benefits,appropriately borrow debt,reduce the weighted average cost of capital and accelerate the asset turnover rate.Through the research on the value promotion of Beijing-Shanghai high speed railway,this paper provides the decision support foundation for the enterprise management decision-making,partially solves the management problem of "how to enhance the enterprise value",adds case samples for the practice of value promotion activities in high speed railway enterprises,and provides reference for the theoretical researchers and practitioners.