Research On Market Value Management Of Low Valuation Listed Companies

After China’s split share structure reform in 2005,the concept of market value management came into being.Some domestic listed companies began to actively try market value management,constantly explore scientific market value management methods and try to establish an effective market value management model.After nearly a decade of development,the State Council and the CSRC have supported listed companies in market value management by incorporating the concept of "market value management" into national policy documents and the reform of gem registration system,which has greatly encouraged listed companies to establish market value management system.The exploration and research of market value management in China’s market has gradually entered the stage of standardization and institutionalization.According to the report released by the market value management research center of China’s listed companies,subject to China’s weakly efficient securities market and low market resource allocation efficiency,the internal value of some Chinese enterprises can not be effectively reflected in the market.This paper selects Haier Smart Home,a Chinese household appliance manufacturing enterprise,as a case company,through literature retrieval,statistical analysis and other means,using financial index comparison,free cash flow valuation and management repurchase behavior to prove that Haier Smart Home is undervalued.Combined with the market value management performance evaluation system,this paper analyzes its market value management status from 2017 to 2020 and the reasons for the decline of market value management performance ranking,evaluates Haier Smart Home’s basic value creation ability,growth value creation ability and internal value realization ability,and finds that the main problems of its market value management are as follows: the company’s management lacks attention to market value management,Overseas mergers and acquisitions lead to the decline of core profitability,the mismatch between R & D investment and profit output,and the lack of investor relationship management and marketing public relations ability.In view of specific problems and defects,this paper provides relevant suggestions from the aspects of constructing market value management system,enhancing core profitability,optimizing R & D investment and profit output,improving investor relationship management,and paying attention to media public relations management.Taking Haier Smart Home,a listed company under the background of weak efficiency in the current domestic securities market as an example,the author finds the problems and defects in its market value management ability under the condition of undervalued value,and tries to provide relevant suggestions in order to improve the mismatch between its internal value and market value.It is hoped that under the background of globalization,Haier’s listed companies will be able to accelerate the construction of the market value and underestimate the internal value of the securities market as much as possible,Improve the deviation and undervaluation of such enterprises,and realize long-term and healthy development.