Analysis Of Investment Value Of Listed Companies In China's Communication Equipment Manufacturing Industry

Nowadays,the development of 5G has become the technological highlight that every country in the world is competing to seize.The changes it brings can penetrate into every corner of social life and economic development.Communication equipment industry is the most direct beneficiary.So for the market,how to correctly play the role of capital market in investment and financing and provide financial support for the development of communication industry is particularly important.For communication equipment manufacturers,capital and technology intensive is the industry characteristics,but also the bottleneck of enterprise development.For investors,how to accurately seize investment opportunities and realize capital appreciation in this tide is an urgent concern of every investor.Based on the above considerations,starting from the research and investigation of China's telecommunication equipment industry,combined with macro-environment and industrial policies,this paper uses PEST analysis method to analyze the survival environment and growth prospects of the telecommunication equipment industry.With the support of 5G,the telecommunication equipment industry is facing a new round of growth opportunities,so how to select high-quality enterprises among a large number of equipment manufacturers?This paper tries to construct a set of value evaluation system for telecommunication equipment industry.Starting from typical financial indicators,factor analysis method is used to reduce the dimension of indicators to make them centralized and representative,so as to judge the investment value of enterprises more conveniently and accurately.Through the comprehensive analysis of the results given by factor analysis,this paper chooses Zhongji Xuchuang,which has a bright performance in various indicators,to carry out specific valuation analysis.Through combing the basic valuation theory,this paper chooses the residual income model reflecting the value creation ability of the enterprise to carry out specific valuation analysis,and through relatively conservative valuation.This paper evaluates International Xuchuang from the perspectives of per share index,Dupont analysis system and PE multiplier.The results show that the current market price is obviously underestimated.There are three reasons for the analysis:firstly,the telecommunications industry has been in a depressed industry environment in recent years,the inertia effect makes it difficult to quickly reverse the industry atmosphere;secondly,the frictional events between ZTE and Huawei cause industry panic,which leads to investors'worries,especially the huge amount of ZTE fines,which directly leads to the decline of the whole telecommunications industry's revenue level to the reciprocal of the whole industry.Third,Zhongji Xuchuang is in the initial stage of restructuring.Although the business income has undergone tremendous changes due to the change of its main business.I hope this article can play a guiding role in rebuilding investors'confidence.