An Analysis Of Shanghai Jihua Financial Strategy Matrix

Daily chemical industry is one of the fastest growing industries after reform and opening up.With the continuous development of the chemical industry,national brands in order to gain a comparative advantage in the fierce competition,have to enlarge the investment of capital and technology in the key points,such as improving quailty,increasing additional value,strengthening the brand building,etc.Shanghai Jahwa Union Co.,Ltd.(hereinafter referred to as Shanghai Jahwa)as a representative of China’s national chemical industry in recent years,faced with severe internal and external situation.Specifically:external,international large-scale enterprises continue to erode the Chinese market;internal,domestic chemical products on the phenomenon of homogenization of serious.Based on this,the use of financial strategy matrix analysis tool for the Shanghai Jahwa’s value creation ability and capital surplus status evaluation,is conducive to understanding the development trend of enterprises,more conducive to investors and stakeholders to provide valuable reference,and help companies adjust their financial strategies.At present,there are very few articles on the case study of listed companies from the perspective of financial strategy matrix,especially in the industry.Therefore,this paper chooses from the perspective of financial strategy matrix to carry on the thorough analysis to the enterprise’s value state and the financial state,and combines the financing strategy,the working capital management strategy,the investment strategy and the income distribution strategy to carry on the comprehensive appraisal to the financial situation of Shanghai Jahwa.In this paper,the CAPM model,the OJ model and the PEG model are combined to make the measurement of the equity capital more scientific and reasonable when the equity capital cost is measured on the basis of the relevant excellent articles at home and abroad.In this paper,through the construction of Shanghai Jahwa financial strategy matrix,it is clear that Shanghai Jahwa is in a state of value creation between 2011 and 2015,but its capital status is transformed between surplus and shortfall.The company is at the value of creating temporary funds The state of development.And through the analysis of the company’s four major financial strategies can be drawn,In the financing strategy,companies use low debt strategy,this approach does not make full use of financial leverage,so the company should make full use of financial leverage;In the working capital management strategy,company inventory and accounts receivable management efficiency is inefficient.It is not conducive to alleviating the shortage of funds,the company should strengthen inventory management and tighten accounts receivable collection policy;In the investment strategy,the company insists on taking the road of differentiation and emphasizing on R&D investment.In the aspect of the profit distribution strategy,the company adopts the high distribution and t-he cash distribution,and the company should take the form of stock dividend to distribute the income when there is a shortage of funds.