The Research Of Saic Motor On Influence Factors Of Market Value And Roadmap For Market Value Management

Market value management is a unique product of China’s conditions.It has been put forward since the equity division reform,but has been in an embarrassing situation that “the system is encouraged but the practice is in dispute” for a long time.This article takes SAIC Motor Corporation Limited(hereinafter called “SAIC Motor” for short)as the research subject,starts with the issue of its “high market value but low valuation”,makes academic analysis on the relationship of the company’s market value and intrinsic value,and that of its market value management and value management.It is believed that there are distinctions between market value management and value management.According to its stage in the life cycle and the environment of the capital market,the company should analyze current factors influencing market value based on the market value signals,and choose proper market value management tools.In that way,the company can convey feedback signals to the market,reduce the information asymmetry in the stock exchange,and increase the company’s value and the shareholders’ value as well.Using the DuPont Analysis for reference,this article builds a model to analyze factors influencing the market value,and uses multiple regression analysis,studying the factors affecting SAIC Motor’s market value before and after it being listed as a whole respectively.After comparison,with the development of SAIC Motor and the expansion of its capital stock,the factors affecting its market value are changing: the relevance and influence of earning power,represented by ROE(Return on Equity),to the market value is decreasing.If taking no account of the Shanghai Stock Exchange Composite Index,NAVPS(Net Asset Value per Share)and institutional holdings have become the most important factors affecting the market value after SAIC Motor going listed as a whole.Based on this finding,this article analyzes current market value management strategy of SAIC Motor,and puts forward six suggestions according to the characteristics and problems of the company’s market value operation.Firstly,make a sound planning of market value.Secondly,set up incentive stock options as soon as possible.Thirdly,make timely stock buyback,reduce the capital stock scale moderately,and increase the EPS(Earnings per Share)and NAVPS.This article makes thorough analysis of the feasibility of stock buyback plan through case study and financial simulated calculation.Fourthly,accelerate the strip-off of bad assets and explore equity carve-out,to make subtraction of business scale.Fifthly,make M&A by stock-swap actively,and debt financing should take precedence.Sixthly,there shall be differentiated strategies of investor relation management,to focus on increasing attractions to long-term institutional investors such as social security funds.