The Application Research Of Havard Analytical Framework In Huayin Electrical Power Company

Listed electrical power companies is the window to reflect the power industry operators, and they gradually become the focus of the capital market. DATANG HUAYIN ELECTRIC POWER CO,LTD (HHEP) is the only listed electricity company in Hunan Province, the current state of operation and the ability of future development of this company have a significant impact on the energy supply in Hunan Province. Therefore, this paper will set HHEP as a research object, comprehensively analysis and evaluate its finances to grasp the financial situation of enterprise, provide a basis for the managers to improve decision-making, and provide information purposes for the majority of investors.In order to get rid of the lack of traditional financial analysis framework, the paper select the famous Harvard analytical framework to analysis the2008-2012Hua yin Electric Power’s financial statements. Firstly, this paper will introduce the basic logic of the analysis dimension of the Harvard analytical framework. As follows, it will make strategic analysis, accounting analysis, financial analysis and prospects analysis of HHEP correspond to the four analytical dimensions of the Harvard analytical framework. Strategic analysis acknowledge the strategic context, operational risks and the profit motive. Accounting analysis objectively evaluate the quality of accounting information of HHEP to ensure the reliability of financial analysis conclusions. Based on the results of strategic analysis and accounting analysis, financial analysis section focus on evaluation of the company’s growth, profitability, risk, and uses DuPont analysis and EVA to evaluate the comprehensive financial standing of the enterprise. Finally, it will make qualitative predictions of the prospects for development of HHEP, and make reasonable suggestions for the development of the company. After these analysis, the following conclusions will come out. Currently, HHEP is in a critical period of industrial restructuring, however, the level of profitability is low, lack of effective growth, the level of operational risks and financial risks is high, the ability to create value is not strong. However, the company’s cash flow is sufficient, the company’s operational efficiency continue to improve, along with the start of a new round of national electric power system reform, coal prices become reasonable, and the improvement of the enterprise management level, it can be predicted that the operating results of HHEP will continue to improve.In this paper, Harvard analytical framework is applied to the electric power listed companies’ financial analysis, it can be reference and guidance of the analysis of other similar enterprises.