Investment Value Analysis And Assessment Of Jiangxi Copper Corporation

The share price of a company fluctuates around its value and will finally return to its value.If we are able to find out the values of listed companies by adopting certain analytical model,and compare the result with the corresponding share prices,then we can provide clear investment evidence to investors in the market.As a fundamental material industry for economic development,nonferrous metal industry involves the interests of the state and the people,and it is considered irreplaceable particularly in fields such as electricity and electronics,consumer goods,machinery,transportation,and construction industry.This paper chooses Jiangxi Copper Limited Liability Company(Jiangxi Copper,code: 600362.SZ)as the research object of nonferrous metal industry investment value,and complete the evaluation and research using the knowledge learned during MBA period.This paper uses a top-down investment value evaluation approach.Through the analysis of macro-economic situation,we realize that the investment policy of Chinese fixed assets has a major influence on t he development of nonferrous industry,and that import,export and consumption have a great effect on the price of copper.Secondly,we analyze the financial ratio indicators,growth possibility and industry of Jiangxi Copper,and find that the company is in good financial condition and is competitive in nonferrous industry.Thirdly,we evaluate the value of Jiangxi Copper using P/E ratio,P/B ratio and discounted cash flow technique in combination with financial indicators and expected profit.Finally,we give an appropriate evaluation range for Jiangxi Copper and present corresponding investment advice.This paper argues that: Firstly,based on P /E ratio,P/B ratio and discounted cash flow technique,the value of each share issued by Jiangxi Copper is estimated at 18.44 yuan,and the corresponding closing price on December 30 th,2016 was 16.73 yuan.Hence the value of the share is undervalued,and we suggest investors buy in stocks.Secondly,nonferrous industry is a cyclical industry and is in its trough at present.As a leading enterprise in nonferrous industry,Jiangxi Copper has solid resource advantages,which will lead to great profits for shareholders with the recovery of the industry.The research significance of this paper: We evaluate the investment value of Jiangxi Copper through multiple analysis methods,find that there is a positive correlation between the development of nonferrous metal industry and macro economy development,and obtain the evaluation approach of investment value according to the feature of the industry.On the other hand,this paper helps investors understand the current development of Jiangxi Copper and its industry,and provides an appropriate evaluation range for investors.