Research On The Value Evaluation Of HLW Joint-Stock Company

Under the background of domestic substitution in the chip industry,the capital market is playing a huge supporting role.In 2019,the Shanghai Stock Exchange set up a Science and Technology Innovation Board to allow loss-making enterprises to go public and raise funds,and support capital operations such as listing,mergers and acquisitions,and restructuring of "hard technology" enterprises.In November 2022,Yi Huiman,chairman of the China Securities Regulatory Commission,proposed to explore the establishment of a valuation system with Chinese characteristics to promote the better play of the market resource allocation function.Whether it is the investors in the primary market,the investors in the secondary market,or the enterprises themselves,the valuation and pricing of the transaction target is the core link of the transaction.How to find the fair value of the transaction object is the core issue that both buyers and sellers are most concerned about and also the key factor that restricts the success of the transaction.In the market,enterprise valuation methods are generally divided into four categories: market method,income method,cost method and real option method.Each category of valuation methods contains a variety of specific valuation models,each of which has its applicability and limitations.For the same valuation object,it may be one of the most effective ways to find the fair value of the trading object by selecting multiple valuation models to measure the measurement results and cross-verifying each other.The author chooses HLW Co.,LTD.(hereinafter referred to as HLW Stock or company or target company),which is currently applying for IPO and is mainly engaged in memory chip industry,to analyze the main factors affecting the valuation of HLW stock,and to study and measure its market value by using three valuation models: market sales ratio,market research rate and enterprise free cash flow.For this,this thesis firstly introduces the selected topic background,significance,basic theory,literature review,four categories of valuation methods,literature review at home and abroad,four categories of valuation methods respectively market method and income method,cost method and real options method.Secondly,this paper introduces the chip industry situation of HLW shares,the operation situation of HLW shares and the project of HLW shares IPO.Thirdly,the price-to-sales ratio,market-research ratio and enterprise free cash flow model are used to calculate the valuation of HLW shares,and the calculation results of the three valuation models are evaluated and analyzed to obtain the final valuation range and market value point.Finally,the paper summarizes and analyzes the conclusions,and puts forward relevant suggestions for intermediaries,investors and enterprises.