The Valuation of Fluoro Company:Business Model in China

• Main Authors: Yueh-e Chen, 陳月娥
• Other Authors: Wen-yi Lin
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/02983113294207599530

碩士 === 逢甲大學 === 經營管理碩士在職專班 === 97 === The chemical industry of organic fluorine is a global emerging trade. Its product performance is really excellent, its application field is extensive, and China has become the major production base of fluorine chemical industry raw material in the whole world with rapid development in recent ten years. The dissertation took the way of case study, aimed at a certain chemical industry technology company operated by a Taiwanese businessman in Mainland China, adopted the operational mode of professionally producing specific fluorine-containing fine chemicals to explore and make the development trend analysis of dominant product Tetrafluoropropanol’s (TFP’s) application to recordable compact disc dye solvent in the sphere of optical storage media, as well as its newly developed products, and aimed at the case company’s project of expecting to go public in China stock market to do the research. First of all, SWOT analysis and five force analysis on the case company’s growth potential were done, and the Discounted Cash Flow Model was adopted to do valuation for the case company to assist the construction of enterprise value strategy and decide the IPO price. Meanwhile, the research aimed at the important parameters in the model to do Sensitivity Analysis in order to compare parameter variation’ s influence on the result of valuation. From the research findings, I discovered that within the rapid growing fluorine chemical industry, the case company had the industry’s crucial factors of success of cost advantage, production capacity advantage, quality advantage, and developing unique new products. Besides, with the Discounted Cash Flow Model, the research estimated that the case company’s value of each share should be RMB 6.74, and through Sensitivity Analysis, the result was that the value of each share should be between RMB 6.05~7.47, to be the reference basis for a policymaker to judge the reasonable IPO price. While valuating an enterprise’s value with the Discounted Cash Flow Model, it was deeply influenced by the estimation of growth rate and Weighted-Average Cost of Capital. The greater were revenue growth rate and gross profit rate, the greater was the stock ownership value of ordinary share; sales growth rate and gross profit rate had a positive relation with the variation of stock ownership value of ordinary share.