Author: LI XINYING

Issue: 2023-2024

Abstract:

With the continuous development of the global economy, breakthroughs in medical technology, increasing awareness of health among people worldwide, and the rise in per capita disposable income, coupled with the advancement of new national urbanization projects and the continuous improvement of healthcare systems in various countries, the global pharmaceutical industry market has maintained a steady upward trend. Compared to the global healthcare industry, Chinese pharmaceutical enterprises face greater challenges and opportunities. Firstly, China has a large population. Secondly, the issue of population aging is prominent. Thirdly, the occurrence of the COVID-19 pandemic in recent years has had a significant impact. Fourthly, there are broad prospects for the development of green healthcare. Traditional Chinese medicine, as a traditional medical approach, still holds an important position in today’s society. From an environmental perspective, compared to Western medicine, Chinese medicine is more natural, ecologically friendly, and produces less pollution. Therefore, from a green perspective, the development of the traditional Chinese medicine industry should have vast prospects and tremendous investment potential.

This study takes A-share listed companies in the Chinese traditional Chinese medicine industry from 2020 to 2022 as the research sample. From a green perspective and based on green-related theories, corporate value theories, and value investment theories, it analyzes the impact of green elements on corporate value. It employs factor analysis models, discounted cash flow models, and valuation models based on price-to-earnings ratio and price-to-book ratio for empirical verification.

Based on the results of factor analysis, rankings of traditional Chinese medicine enterprises are determined. On one hand, it allows traditional Chinese medicine companies to have a clear understanding of their position in the industry, enhancing their confidence and identifying areas for improvement, thereby facilitating repositioning for future development. On the other hand, it enables investors to gain a clearer understanding of the overall status of the traditional Chinese medicine industry, as well as to discern and assess the strengths, weaknesses, and investment value of traditional Chinese medicine companies.

Keywords: green perspective; investment value; enterprise value, Factor Analysis Model, Discounted Cash flow Model