Analysis On The Investment Value Of Zhonglian Heavy Industry Co., Ltd

More than twenty years have passed since the establishment of China’s securities market in the early1990s. China’s securities market witnessed rise and fall during those years. At the end of2011, the number of companies listed on Shanghai and Shenzhen stock exchanges is larger than2300. The total market value reached21.48trillion yuan.Looking back to the two decades’economic reform and opening up, we can easily conclude that listed companies share some common characteristics:Although our listed companies can be ranked as the top ones according the capital size, we can’t see them on the ranking list base on their performance and investors’returns. It is still too early to say that China’s securities market is mature. Abnormal speculation of investors, irregular operation of trading process, political intervention, all these factors contribute to the rise and fall of China’s securities market. However, we can hopefully see that personal investors are becoming more and more rational and professional. Leaning from Warren Buffet’s value-invest strategy, they combine technical analysis and fundamental analysis. This leads to more stable returns.I have been focusing on the blue-chip sectors for several years. All the experience tells me that machinery manufacturing plays a more important role than other industries in economic development. Zoomlion Heavy Industry Science&Technology Development Co., Ltd., which was founded in1992, stands out from all the listed companies in machinery manufacturing sector. Zoomlion’s subordinate operation units achieved a sales revenue of nearly85billion yuan, ranking7th in the global construction machinery industry. This helps to illustrate that China’s machinery manufacturing is leading the global market of this sector.Hereby, I combine theoretical analysis and technical analysis methods, especially focusing on the intrinsic value of the listed company. This article will also employ time-series analysis and cross-sectional analysis by using accurate and fresh data collected from reliable resources. On the one hand, I will focus on the influence of macro economy to Zoomlion. On the other hand, I will compare the operation performance and financial statements of Zoomlion with those of other companies in machinery manufacturing sector. With a series of analysis, I will illustrate the factors that attribute to the investment value variation of Zoomlion at the end of the article and help investors to get informed of how and to what extent will those factors influence the stock price of Zoomlion.