What's NOEs' Worth

Inspired by Prof. Lang, here’s some stats from the State-owned Assets Supervision and Administration Commission, collectively owned by the good people of China:

“2006年，全国国有企业户数共计11.9万户，比2003年减少3.1万户，年均减少8%。但累计实现销售收入16.2万亿元，比2003年增长50.9%，年均增长14.7%；实现利润1.2万亿元，比2003年增长147.3%，年均增长35.2%；上缴税金1.4万亿元，比2003年增长72%，年均增长19.8%；企业资产总额29万亿元，比2003年增长45.7%，年均增长13.4%；户均资产2.4亿元，比2003年增长84.6%，年均增长22.7%。”

Here’s a simple valuation:

Net Income of all NOE is RMB 1.2 trillion, Market Value =

• RMB 6 trillion @5x P/E
• RMB 12 trillion @10x P/E
• RMB 18 trillion @15x P/E
• RMB 24 trillion @20x P/E

It’s roughly the total market value of listed on Shanghai Stock Exchange or Hong Kong Stock Exchange, or the worth of Mongolia, or any of a list of African countries.