Research On The Application Of Harvard Analysis Framework In CSEC

Coal is the main energy to support China's economic development,however,with the slowdown of economic growth,as a major energy producer and consumer,China has increasingly prominent environmental problems.In recent years,while vigorously advocating energy conservation and emission reduction,the country has also put forward higher requirements for coal and other energy enterprises.Guided by the goal of carbon neutrality and emission peak,the 14 th Five-Year Plan further deepens the supply-side structural reform,and puts forward the new goal of accelerating energy restructuring and strengthening the construction of intelligent coal digitalization.This is both a challenge and an opportunity for coal companies.China Shenhua Energy Company Limited(CSEC)is the largest comprehensive coal enterprise in China,with a complete and diversified industrial chain,and its coal reserves and production are ranked first in China.In the increasingly tight coal market environment,why does CSEC still maintain a good level of profitability and sufficient cash flow,and even maintain a continuous high cash dividend distribution? This deserves further attention and research.As a complete set of financial analysis system,the Harvard Analytical Framework has a scientific and logical path.To explore CSEC's operational effectiveness and financial status and assess its corporate value,this paper conducts an in-depth study on CSEC based on the Harvard Analysis Framework,with the following main contents:(1)In the strategic analysis,this paper uses the PEST model,Porter's Five Forces model and SWOT models to have a comprehensive understanding of CSEC's macro environment,industry development and the current situation faced by CSEC;(2)in the accounting analysis,starting from the accounting policies and accounting accounts,we study the changes in CSEC's accounting policies and accounting estimates,identify and evaluate its key asset accounts,and lay a good foundation for financial analysis;(3)in the financial analysis,we select the relevant data of CSEC from 2016 to 2020,and separately study CSEC's solvency,operating capacity,profitability indicators and some correlation indicators are analyzed respectively,and the results of the indicators are comprehensively evaluated in the context of CSEC's business strategy and asset quality status;(4)based on the above analysis,the prospect analysis further predicts the development prospects of the coal industry and CSEC,and uses PE,PB and FCFF models to evaluate the value of CSEC,so as to more scientifically judge the development potential and corporate value of CSEC and explore business strategies that better meet the development needs of CSEC.The analysis revealed that CSEC has a unique management style,and has developed strong profitability and profit accumulation capacity with its own advantages.It has strong monetary capital,stable operating conditions and low financial risks,which provides a foundation for the realization of high cash dividend distribution.However,CSEC has a single major competitive resource and a highly prudent business strategy,resulting in limitations on its operational efficiency and development potential.In view of the current situation and the problems and challenges faced by CSEC,this paper hopes that CSEC can accelerate the upgrading of the enterprise and promote long-term development through the following measures: strengthening advantageous effects,optimizing industrial philosophy,improving operational efficiency,promoting industrial expansion and advancing energy transformation.