What are the methods of market value management
(A), outstanding and excellent main business premium
The main business of listed companies is focused, not too scattered, and it is even more taboo to be unclear. Looking at the big blue chips at home and abroad, only companies that focus on a certain field can have lasting core competitiveness, including brand, technology and precise production and operation control. Companies with relatively stable main business, broad market space and certain product pricing ability will enjoy more market premiums.
(B), good corporate governance and standardized management premium
Excellent management makes a great enterprise. The reason why corporate governance can bring a premium is that management is the foundation of the sustainable growth of enterprises, which can affect the company's ability to absorb social capital, investors' optimism about the company and the accumulation of social capital within the company.
(C), the resource monopoly asset premium
Agricultural resources, mineral resources, financial resources, etc. They are all investment objects and investment varieties that institutional investors like for a long time. If listed companies or group companies have related scarce or monopoly resources, they will inevitably enjoy the monopoly premium of resources. Here, I want to emphasize financial resources. The future trend of mixed operation will make China's financial resources particularly sought after by the market.
(4) Overall listing premium
On the one hand, the overall listing can inject high-quality assets into listed companies and improve their asset quality and growth rate; On the other hand, it can also reduce related party transactions, optimize corporate governance and improve the transparency of enterprise management. Therefore, the market will give such listed companies higher pricing, and the market value of the company will naturally be improved, which reflects the value creation effect of the capital market.
(5) Make rational use of the market cycle to increase the premium.
Market value management must fully consider and make use of the operating characteristics of the securities market, study, grasp and make use of the periodic change law of listed companies' share prices, and use different strategies at the right time to serve the bigger and stronger listed companies. In the bull market, some positive measures can be implemented, such as refinancing through additional issuance and rights issue, and appropriately reducing shares. When the stock market is in a downturn, it is suitable to increase or buy back the company's shares at a low price, and it is also possible to conduct mergers and acquisitions and implement employee incentives when the stock price is in a downturn.
(6) Investors prefer premium.
Its fundamental lies in perfecting the company's capital marketing function. That is to say, manage four relationships well: investor relationship (IR), media relationship (MR), researcher relationship (RR) and supervisor relationship (AR). Improve the transparency of the company and realize the effective communication between the company and the capital market and all walks of life. What needs to be declared is that this can only be used as an auxiliary means or work focus in a special period.
(VII) Asset allocation premium
Some listed companies or industry leaders with important strategic positions may be included in a specific index and become investment targets that institutional investors have to allocate, forming an asset allocation premium.
(VIII) Corporate culture premium
It depends on the social image, sense of social responsibility, internal cultural atmosphere and advanced cultural concepts of the enterprise. In addition, according to the different characteristics of listed companies, there are emerging market premiums and currency appreciation premiums, which are also worth studying by market value managers.
Precautions:
Analysis of several special cases of market value management
(1) Positioning of main business and asset integration
Many listed companies are faced with the problem of weak main business or unclear positioning. In principle, such companies have no investment value for the time being, and they should not enjoy a higher market value premium unless they have certain business transformation and asset restructuring. This kind of company is either determined to strengthen its main business, or it must change its course, which is better than tossing back and forth-typically manifested in opportunistic restructuring and speculation on unrelated assets.
(B), the controlling shareholder's shareholding ratio is low
The substantive controller of listed companies plays a decisive role in the market value management of listed companies. Generally speaking, the higher the shareholding ratio of major shareholders, the higher their enthusiasm. China's major shareholders have very different qualities. Living Lei Feng doesn't even think about it. There is a core issue of benefit sharing. For example, listed companies have low asset quality and low operating efficiency, and major shareholders are not willing to integrate and reorganize, or listed companies are profitable but rarely distributed. If this contradiction accumulates for a long time, it will bring bad consequences to everyone.
(3) The major shareholders are facing the survival crisis.
After many companies went public, the parent company, as the controlling shareholder of listed companies, became more and more unable to make ends meet. This situation will also have a negative impact on the operation and market value of listed companies. The parent company governance of such listed companies is often neglected, which is one of the important reasons for its deterioration. The status quo of governance should be changed first.
First, the direct channel is to re-integrate existing assets and personnel, adopt effective incentive and reward and punishment mechanisms, and fully combine the company's resources and local advantages to realize asset revitalization and performance improvement; It is suggested that qualified enterprises take certain measures to support employees to start their own businesses again;
Second, the indirect channel is to strongly support listed companies to improve their performance and urge them to increase the dividend ratio on this basis;
Third, the concept of market value management can be introduced, and the investment income can be realized by increasing and decreasing the holdings in the secondary market within the scope of not exceeding 5% of the shares of listed companies.
(4) Related party transactions and spin-off listing
There is horizontal competition and related business relationship between listed companies and major shareholders, which is a hotbed of related party transactions. However, in the eyes of the market and investors, related party transactions are bound to be suspected of Gua Tian and Li Xia, no matter how repeatedly the regulatory authorities apply and what procedures are adopted to ensure their fairness and justice. In the long run, it is impossible not to affect the company's valuation. Judging from the development trend of China's capital market and the gains and losses of the overall market value, we should try our best to reduce or even resolutely put an end to such transactions.
Expanding reading: means and methods of market value management
First, the change of ideas.
It is necessary to completely correct the misconception that even market value management is a speculative means. In fact, I think market value management should be the most important goal and responsibility of the board of directors of listed companies. Then, the manager is mainly responsible for the creation of profits. How does the board of directors turn the creation of profits into the growth of market value? Therefore, it must think strategically, including the choice of financing instruments, the design of capital structure, the maintenance of investor relations and the arrangement of shareholder structure, including the arrangement of management incentive mechanism.
Second, we must innovate the system.
Then, the innovation of the system also includes many levels, and the macro level includes a series of innovation of the examination and approval system brought by changes in equity around it. Because there are two ways of market value management, one is natural growth, but generally speaking, it is relatively slow for listed companies to increase their market value by natural growth, and more importantly, it is done through mergers and acquisitions.
Third, a good market mechanism.
This market must be a good valuation mechanism. In fact, China's entire financial system has a major defect, that is, it lacks risk pricing ability. Our financial system should be market-oriented for so many years, but it lacks the ability of pricing. If this thing doesn't exist, you will earn 50% a year by speculating in stocks, and you will become Buffett's second. Find the government if you lose money. This will not work. The trust is now earning so much that the government will guarantee it if it defaults. Why? Because you don't have to, because you get the profit of 13%, you have to bear the risk of 13%. China's entire financial system lacks the ability of risk pricing. If it lacks risk pricing ability, it is actually difficult to manage the market value of this market. I think this should also be reformed.
Fourth, we need coordinated policies.
If there is no coordinated policy, it is a flawed policy or an unbalanced policy. At present, many enterprises in China market are not well valued, because our whole policy is not harmonious. On the one hand, we have no problem restarting the IPO. On the other hand, the policy of restarting IPO is not matched. Macro policies matching IPO need to be matched at the national level, including the capital level. This market will certainly not have a good valuation ability, and it is difficult to manage the market value. Therefore, we need to carry out substantive reform on the entry of funds, which is to have a coordinated policy.
Means and methods of market value management
1. What is the industrial layout and nature of this company, whether it is a diversified industry or a single industry, an emerging industry or a traditional industry, a cyclical industry or an aperiodic industry, a policy support industry or a policy exit industry, etc.
2. What is the business model of this company? Each company's business model is different, some are B2B and some are B2C. At present, many business models in the Internet age are "the wool is on the dog", and its business model is different. Therefore, it is necessary to find out how a company makes money;
3. What are the core competencies? The core competence of each company is different, which may be scale, marketing, brand and team. Every company has different core things to make money.
4. Entrepreneur team. Under the background of China's economic transformation, for private enterprises, the entrepreneurial team is often the core factor that affects whether a company can make money continuously, so an entrepreneurial team is very important;
5. This is earnings management. What is the difference between earnings management and false financial statements? Obviously, everyone understands the concept of financial statement fraud. Earnings management is a legal and compliant adjustment of financial statements under the condition of meeting accounting standards, which is called earnings management.