Exploration of Sany Heavy Industry's Market Value Management: Relying on Value to Enhance Market Value

(Securities Daily, June 10)

"The spring of China's capital market began with the reform of Sany Heavy Industry's equity division." This is the prophecy of Xu Qinfang, a shareholder of Shanghai * Shenzhen, at the shareholders' meeting of Sany Heavy Industry's equity division reform five years ago.

The old man, who sold the four stocks in hand and bought 10,000 shares of Sany Heavy Industry, still has a soft spot for Sany. He revealed that investing in Sany is very profitable.

It's a microcosm. In the current era of full circulation, the interests of large and small shareholders of listed companies tend to be the same, and they jointly pursue shareholder value*5655.

China's securities market has lasted for 20 years, but the market value management of listed companies started relatively late, and it was born from the reform of equity division. "Share reform * 5656 shares" Sany Heavy Industry has become one of the 5656 A-share listed companies in China that practices market value management.

Wu Xiaoqiu, a well-known economist, believes that the market value of listed companies is a comprehensive indicator to measure their strength, which not only reflects the quality of the current operating ability of the enterprise, but also reflects the expectation of the future profit of the enterprise, and also reflects the interactive relationship between the enterprise and the shareholders, the enterprise and the society.

■The charm of the market capitalization

Mr. Zhao Xiangzhang, director of Sany Heavy Industry and vice president of Gao*, said in an interview with reporters a few days ago: "We have long understood the importance of market value management from the ideological point of view, from the chairman to the ordinary employees, all concerned about the company's stock price. At the weekly business environment discussion meeting attended by the company's senior management, the performance of Sany stock in the secondary market is also an important content that everyone pays attention to. ”

He said that after experiencing the company's development, many ordinary employees of the company bought the company's shares. With the growth of the enterprise, employees enjoy the increase in salary, but also obtain the benefits from the capital market from the appreciation of Sany stocks, which in turn promotes the enthusiasm of employees.

Zhao Xiangzhang recalled: In 2000, when I first came to Sany Heavy Industry, the company's sales revenue was only 390 million, and this year it is expected to be close to 30 billion. If the company is not listed and there is no market value management, it is impossible to achieve such leapfrog development.

After listing, Sany Heavy Industry's sales revenue and profits have moved forward with an average annual growth rate of more than 50%, and correspondingly, the market value of Sany Heavy Industry has also jumped from 3.7 billion yuan at the beginning of the listing on July 3, 2003 to more than 54 billion yuan at the end of 2009, becoming a listed company with a market value of 5655 in China's construction machinery industry, and its market value is also among the best among private listed companies.

He Zhenlin, vice president of Sany Group, commented that this is the charm of market value, which has built a platform for the rise of rising stars to surpass quickly, and it demonstrates the strength of the enterprise through the wealth that investors can realize at any time with real gold and silver.

■Value creation is the foundation, and value management is the key

In the past 7 years since its listing, Sany Heavy Industry has transformed from a simple concrete machinery leader to a comprehensive construction machinery manufacturer.Piling machineryand so on to become the first brand in China - this is the main reason why Sany Heavy Industry has been favored by investors for a long time.

Sany Heavy Industry, which has stepped into the high-track development track, has successively launched and completed a series of injections of the major shareholder Sany Group's * quality assets into Sany Heavy Industry through capital innovation. In February this year, Sany Heavy Industry was injected with the excavator assets of Sany Heavy Machinery. In April this year, the company launched the acquisition of all the assets and businesses of Sany Automobile Manufacturing Co., Ltd. and Hunan Automobile Manufacturing Co., Ltd.

This not only fulfills the commitment of the major shareholders to avoid intra-industry competition, but also enables the rapid expansion of the asset scale of the listed company and the rapid improvement of the industrial height.

With the improvement of the company's operating capabilities, Sany Heavy Industry will look at the world and effectively use international resources (quotes, information, reviews) to achieve the dual strategic goals of alleviating the pressure on domestic production capacity and increasing overseas market share. At present, the Indian industrial park, the German industrial park, and the Brazilian industrial park are all in full swing under construction.

The main business is the foundation of the listed company, value creation is the foundation and essence of market value management, in the final analysis, it is necessary to rely on and enhance the company's value to increase the company's market value, otherwise it will fall into the quagmire of manipulating stock prices. In an emerging market like China, the reflection of the product market to the capital market is sometimes distorted, so another important aspect of market value management is value management. Value management can effectively restore the real picture of the product market and eliminate the lag of the capital market relative to the product market.

Value management is the key to market value management. In terms of value management, Sany Heavy Industry is mainly reflected in the accurate understanding of macro policies, long-sleeved capital operation, painstaking management of brand image, correct guidance of social public opinion, timely, fair and accurate information disclosure, and good communication with investors.

When the company's stock price is undervalued, it boosts market confidence through various forms such as increasing holdings and lock-ins, and when the stock price is ridiculously high, it gives investors a kind warning.

Sany has formed a harmonious interactive relationship with shareholders. Many retail investors have invested in Sany and have received real returns, and they are very concerned about Sany's products and markets. And institutional investors become the backers of the company's refinancing. Every time the company holds a general meeting of shareholders, investors gather together to make suggestions. The expansion of the product market attracts the attention of the capital market, and the operation of the capital market delivers funds for the product market, realizing a virtuous circle.

■Whenever there is an important juncture in history, you can see the figure of Sany

In June 2008, the stock market was depressed due to investors' concerns about large and small non-cash-outs. On June 18, Sany Group, the major shareholder of Sany Heavy Industry, promised to lock up 518 million shares that have been released from circulation for two years, and the remaining shares will not double or reduce their holdings within two years.

The voluntary lock-in commitment of Sany major shareholders is a successful case of market value management, which boosted the confidence of the entire market during the low tide period and reversed the dilemma of the stock market in one fell swoop.

Another case of Sany Heavy Industry in market value management is the widely praised "Liang Wengen's 1 yuan annual salary". At the beginning of 2009, when the financial tsunami swept through, Chairman Liang Wengen took the initiative to make a commitment to receive only 1 yuan annual salary in 2009, and all directors of the company also took the initiative to reduce the annual salary by 90%, and other executives also responded to the request for a 50% annual salary reduction, and all the reduced salary was converted into profits to return to investors. This shows that Sany puts the handling of investor relations at the core of market value management.

Sany Heavy Industry is enthusiastic about public welfare, which has improved the reputation of the brand and contributed to the successful construction of the market value management building.

On April 30 this year, Sany Heavy Industry invested 15 million yuan to initiate the establishment of the domestic *5658 "China Sany Post-disaster Orphan Relief Fund" to explore the long-term post-disaster relief mechanism of enterprises. After the 2008 Hunan Ice Disaster, the Wenchuan Earthquake in Sichuan, and the 2009 Chongqing Wulong Mine Disaster, Sany Heavy Industry Disaster Relief Service Team and Sany's rescue machinery rushed to the disaster area at *5656 time.

A vice governor of Hubei Province sighed during a visit to Sany Heavy Industry: "Whenever there is an important juncture in history, you can see Sany's figure. ”

It is the market value management driven by value creation and value management that enables Sany Heavy Industry to realize the benign interaction between the real economy and the virtual economy, and solve the problem of dislocation between the real economy and the virtual economy.