How to manage market value
(1) Continuously improve business performance around the main business.
Main business is the core competitiveness of listed companies. State-controlled listed companies should have a clear main business orientation, strengthen their main business, enhance their profitability and competitiveness, and strive to grow into specialized companies with clear main business and transparent development path. In recent years, the pace of diversification of listed companies in China has been accelerating, but diversification is a double-edged sword, and some companies have greatly reduced their competitiveness because of blind diversification. State-owned enterprises should be more based on their main business and do better and stronger. At the same time, by integrating the industrial chain, we will expand our own scale and improve the influence and driving force of state-owned capital.
(B) establish a sound market value management system and mechanism
Market value management is a long-term work. State-controlled listed companies should formulate market value management measures and establish normal operation modes and mechanisms. First of all, cultivating the optimization of market value management is the enterprise culture of maximizing enterprise value, strengthening managers' understanding of market value management and strengthening employees' learning of market value management knowledge; Secondly, establish the organizational mechanism of market value management, strengthen leadership, set up posts, and have special personnel to dynamically monitor market value changes with reference to market value management measures, and timely feedback and deal with problems; Finally, the higher regulatory authorities should assess the market value management of listed companies and urge them to manage the market value scientifically and in compliance.
(C) to develop a scientific equity incentive and employee stock ownership plan
Equity incentive is an important tool for listed companies to implement market value management. The implementation of reasonable equity incentive scheme can improve the enthusiasm of company managers, fundamentally straighten out the interests differences between managers and shareholders, make their personal goals consistent with the company's goals, and promote them to create higher value for the company. Relevant research shows that the implementation of equity incentive in listed companies is conducive to improving the market value performance of the company's stocks. The compensation committee of state-owned listed companies should scientifically design the equity incentive scheme, and improve the equity incentive system from the aspects of the object of equity incentive, subscription price, time limit for selling shares, ways of acquiring shares, rights of shares, etc., so as to ensure the scientificity of the scheme and prevent managers from forming moral hazard by using their shares. In addition, we should actively formulate employee stock ownership plans to better stimulate the enthusiasm of employees, enhance the cohesion of the company, and maintain the stability of market value.
(4) Do a good job in the management of the four major relationships.
Listed companies mainly carry out relationship management from four aspects: investor relationship, firm relationship, media relationship and supervision relationship. Investor relationship management is to promote investors' understanding and recognition of the company through full voluntary information disclosure, reduce the impact of information asymmetry with investors, and maximize the value of investors; The relationship between firms is mainly to maintain good communication with third parties such as accounting firms and law firms. Through good communication, we can better disclose the real business situation of the company through the audit report, or when the company has legal-related problems, we can seek legal support and prevent legal risks through good communication with lawyers. Media relationship management means that a company can actively and effectively communicate with the media, resolve the crisis, maintain the company's image and stabilize the company's market value by maintaining good communication with the media and grasping the direction of public opinion. The relationship management of regulators is to maintain effective communication with regulators such as CSRC and SASAC, seek regulatory support and strive for a good regulatory environment.
(5) Improve the level of financial management and capital operation.
By improving the financial management level, listed companies can realize the rational allocation of internal resources, optimize the capital structure, make the core capital create the maximum value, improve the company's financing and investment efficiency, effectively reduce costs and improve efficiency. At the same time, we should learn to use the means of overall listing, share repurchase, major shareholders' increase or promise not to reduce their holdings, mergers and acquisitions, private placement, periodic operation and so on to improve the level of capital operation and maximize the stock market value and enterprise value. When the company's share price rises, the company's shares can be used as a means of payment to conduct mergers and acquisitions or divest non-performing assets in time; When the market is overly optimistic about a business unit of the company, it can be split and transferred to obtain a higher premium; When stock trading enters a downturn, in order to reduce losses and prevent hostile takeover, share repurchase can be implemented or the threshold for stock acquisition can be raised. State-controlled listed companies can operate normally in the capital market. On the one hand, they can enhance the value of enterprises; on the other hand, they can continuously convert the market value premium into shareholders' wealth through the market and improve shareholders' interests.
Four Characteristics of Market Value Management of New Third Board
First, SMEs with the same type of benchmarks have huge room for improvement. As long as there is an increase of 10%, it will be of great help to the company;
Second, there is arbitrage space for the landing of the New Third Board system. The landing of the New Third Board system this year is not very reliable, but it will be more reliable in two years. As long as the time is long, there will be opportunities, provided that the enterprise itself is good;
Third, the growth space of SMEs. Many new third board enterprises are still very young. I think they are high school students. I will graduate from college in a few years, and graduate with a master's degree in a few years. If you are lucky, you will definitely have a chance to study for a doctorate.
Fourth, we must persevere. Everyone who works hard to build the tower into a new third board will not see any effect in the short term, but if they persist in doing it in all aspects, it will definitely be beneficial to compare with small and medium-sized enterprises, and the gap will definitely be great, but compared with themselves, there will definitely be progress. The same company, the same net profit, your P/E ratio is higher than others, and others will be 10 times higher than your peers.
Misunderstanding of market value management:
Market value difference = share price difference (if the share capital remains unchanged)
The market value is indeed closely related to the rise and fall of the stock price; But what really determines the market value is not the stock price, but the deep-seated value factors behind the stock price (profitability, growth prospects, industry status, team quality, governance structure, operational norms, strategic thinking, investor relations). The market value can not be determined only by the stock price, but also by the deep-seated factors of the company.
Market value management = stock price management (even stock price manipulation)
Market value management really needs to pay attention to the stock price, but paying attention is by no means equal to direct management or even manipulation. Because the stock price is formed by the market, it cannot, cannot and cannot be managed. From this perspective, market value management is value management, and the key point is to determine the value of the price base.
Market value management = catering to the market (market main force)
Market value management needs to consider market factors (cycle, law, market sentiment, investment preference, valuation standards, etc.). ), but considering market factors does not mean catering to the market. Do not cater to ≠ ignore; You ignore the market value, and the market value ignores you; Market value management is a compulsory course; Market value management should follow the laws of the market, and it is important to guide it according to the situation.
Market value management = pursuing the highest share price.
The rise of stock price does have a direct impact on the promotion of market value, but the maximization of stock price is by no means the goal pursued by market value management; Maximizing the value of companies and shareholders does not mean maximizing the stock price. Value management originated from the theory of enterprise value maximization in mature capital market. We can define value management as "the enterprise realizes the highest possible capital gains higher than the investment cost of investors through various means". Value management is to improve shareholders' income through scientific and professional methods and tools-this income will mainly be reflected in the market value of enterprise stocks.