The Valuation of China Steel Corporation
Date Issued
2009
Date
2009
Author(s)
Lin, Keng-Yi
Abstract
2008, the subprime mortgage crisis hits U.S., and it further spreads to the whole world, causing global economic recession and credit crunch. Asset value, international trade, and economic activities were all being impacted. According to the prediction of IMF, the GDP growth rate of Taiwan will be down by -7.4% YoY, and the worldwide GDP growth rate will be down by -0.5% as well, the worst numbers after World War II. TAIEX has dropped from 9859 - the peak point of 2007 to 3955 at the end of 2008. INDU has also plummeted from 14198 - the peak point of 2007 to 6469. This economic recession is a nightmare for all investors.teel industry is very sensitive to economic cycle. China Steel, the leader company of fundamental industry, acts as an important role in the Taiwanese economic development has also faced challenges from gloabal economic illness. To be specifics, the merger and acquisition trend of the global steel industry and the forming of Association of South-east Asian Nations. In this thesis, it will focus on the discussion the actual stock value of China Steel. To begin with, the history of steel industry, understand the competition situation of upstream and downstream and the trend of global steel industry, then analyze the possible changes in the future. In the end, using Discounted Cash Flow Method to estimate what is the most conservative value of China Steel.n this thesis, it will analyze the stock value of China Steel by using the following steps: Firstly, analyzing the exapanding project of Dragon Steel how will it affect the demand of Taiwanese market. Secondly, calculating its revenues by assuming export market unchaned, or Southeast Asian market has been elimated. Under the export market unclanged, it will have the most conservative value of NT 27.46 per share; but in the situation of Southeast Asian market has been eliminated the most conservative value will be NT 26.83 per share.
Subjects
China steel
dragon steel
valuation
steel
SDGs
Type
thesis
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