| The occurrence of COVID-19 in 2020 and the promulgations of various domestic laws and regulations on improving the capital market make more investors turn to value investment.The market volatility caused by COVID-19 brought more value investment opportunities to the A share market.The introduction of new securities law,amendment to criminal law,new delisting rules and other policy documents has provided a basic legal and regulatory environment for the establishment of the concept of value investment in China,guiding investment to return to the enterprise itself,and value investment is gradually rejuvenating.This paper takes case study as the research method and analyzes whether Mindray Medical can be used as a value investment subject through two dimensions of fundamentals and valuation.In terms of fundamentals,based on the special background of the epidemic,this paper conducted a top-down analysis of the macro and industry environment of Mindray Medical as well as the individual stocks themselves.Macroeconomic analysis mainly discusses that the international economic recovery process is slow,and the domestic capital market will be stable and progress in the future.The industry analysis mainly demonstrates and analyzes the future development potential of the medical device industry from three aspects of track space,track cycle and track environment.And through the competitiveness analysis of leading companies in each segment of the industry,it is found that Mindray Medical is the target company that most conforms to the value investment concept in the industry.At the level of individual stocks,Mindray Medical has demonstrated its huge potential for future development from its competitive advantages,product layout,research and development strength and management,which is the basis for value investment.Under the influence of COVID-19,the company has further expanded its overseas business channels,promoted its growth rate,and the investment value is significant.Then,this paper conducts valuation analysis on Mindray Medical to determine its safety margin,and uses relative valuation method to estimate the market value of its three business lines after the impact of the epidemic.Based on special events such as COVID-19,the performance growth of the last five years is analyzed separately in the valuation.After 5 years of steady growth,the PEG valuation method is used to estimate the market value of the company after 5 years according to the comparable benchmark PEG value corresponding to the multinational giants.Finally,this paper draws the following conclusions after case analysis: First,the COVID-19 epidemic accelerates the development of the medical device industry,the normalization of the collective purchase and the tightening of supervision enhance the market concentration,and the industry leader is about to usher in a golden period of development;Second,Mindray Medical has excellent fundamentals and meets the requirements of traditional and modern value investment.Mindray can be used as a value investment target.The current stock price is undervalued and has the room to double in the next five years,so investors should pay attention to it. |
PDF Full Text Request