Comparative Analysis of Investment Value in Chinese Household Appliance Industry

Abstract

As an important part of the consumption field, household appliances play a key role in China's economic growth. After 30 years of development, China's home appliance industry has made remarkable achievements and occupies an important position in the world's home appliance industry. It has become the largest manufacturing base and consumer market of home appliances in the world, leading international counterparts in cost and quality, with obvious advantages. There is no doubt that the value of an investment in China's home appliance industry is also growing. Therefore, this paper adopts appropriate evaluation methods to study the investment value of three major home appliance companies in China -- Haier Zhijia, Gree Electric, and Changhong Meiling, so that the majority of investors can realize their investment value, and at the same time, it also contributes its own strength to guide investors to make rational value investment and promote the healthy development of Chinese capital market. This paper compares and analyzes their investment value from three aspects: risk ratio, profitability ratio, and market value ratio. Based on the analysis, the conclusion of this paper is that these three companies are basically excellent, have broad investment value, and Haier Zhijia has the most development prospects.