Table of ContentsPart 1: Introduction 1Part 2: VINASUN’S Company Profile 3Part 3: Risk Profile 5Part 4: Cash Flow and Investment Analysis 8Part 5: Dividends and Valuation 12Part 6: Conclusion and Recommendation 17References 20List of TablesTable 3.1: Change in Taxi fees and fuel price from 2009 – 2012 6Table 4.1: Balance Sheet of VINASUN from 2009 – 2012 8Table 4.2: Cash Flow of VINASUN from 2009 – 2012 9Table 4.3: Business Result of VINASUN from 2009 – 2012 10Table 5.1: Financial Ratio of each indicator for VINASUN from 2009 – 2012 13Table 5.2: Summarize actual and forecasting VINASUN’s business performance 13Table 5.3: Peers comparison with VINASUN in the same industry 17Table 6.1: Forecasted Cash flow in the next 4 years 18Table 6.2: Business plan of VINASUN 19List of ChartsChart 1.1: Growth in Taxi number in HCM City from 2007 – 2012 2Chart 5.1: Revenue and profit after Tax of VINASUN6Chart 5.2: Growth in ROA and ROE of VINASUN from 2009 – 2014F 15List of FigureFigure 3.1: VINASUN’S Stock performance within 3 latest months 6Introduction:VINASUN is a Vietnam-based passenger transportation services provider. Predecessor of the company is the Trade Travel Services and Investment Consulting Vietnam Sun Co. Ltd., was established on 15/06/1995, with registered capital of VND300 million. On 17/7/2003, the Company renamed to Vietnam Sun Joint Stock Company with registered capital of VND8 billion. On 25/5/2006, the Company increased its chartered capital to VND 16 billion to invest in new vehicles for taxi services. On 2/2007, the Company issued VND 84 billion par values to increase charter capital to VND 100 billion to restructure debt and invest more cars in the year of 2007. To 10/2007, the Company issued VND 70 billion face value for big investors; increase the Company''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''s share capital to VND 170 billion.In addition, the company has its presence in development of commercial and residential buildings as supporting activities to tourism operation. On 29/7/2008, the company officially listed its shares on the stock exchange in Ho Chi Minh City. As of December 31, 2008, taxi operation contributed to 97% of total revenue. In 9/2009, the company issued additional shares to increase charter capital to VND 200 billion. The charter capital of the company increased to more than VND 299 billion on 7/2010.On 3/09/2013, Forbes Vietnam, the Vietnamese version of the leading business magazine in the world, announced the list of 50 best listed companies on the stock market in Vietnam. This is the first company ranked by Forbes Vietnam perform research. Vietnam Sun Joint Stock Company (Vinasun Corp.) was ranked at 34th on the list with a market capitalization of VND 1,701 billion; revenue in 2012 was VND 2,713 billion.However, the author still expect Vinasun sustain current growth while promoting activities in the nearby market access as Binh Duong, Dong Nai and Vung Tau.
Trang 1MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
ASSIGNMENT
CORPORATE FINANCE
Submitted to: Dr Cao Minh Man
Submitted by: Huynh Thi My Dieu
ID No.: CGSVN00014998
Class: MBAOUM0313 – K08A
Ho Chi Minh City, March 2014
MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
ASSIGNMENT
CORPORATE FINANCE
Submitted to: Dr Cao Minh Man
Submitted by: Huynh Thi My Dieu
ID No.: CGSVN00014998
Class: MBAOUM0313 – K08A
Ho Chi Minh City, March 2014
MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
ASSIGNMENT
CORPORATE FINANCE
Submitted to: Dr Cao Minh Man
Submitted by: Huynh Thi My Dieu
ID No.: CGSVN00014998
Class: MBAOUM0313 – K08A
Ho Chi Minh City, March 2014
Trang 2A completed report would not be done without any assistance First of all, I would
like to express my endless thanks to lecturer Dr Cao Minh Man His kindly support
and continuous advices went through the process of completion of my report Without his motivation and instructions, the report could not be done effectively.
My special thanks approve to my parents for their endless love, care and have most assistances and motivation me I also would like to explain my thanks to my siblings, brothers and sister for their support and care me all the time.
As last, my deeply thanks come to all colleagues Their kindly help, care, motivation gave me strength and lift me up all the trouble for the rest of my life.
With kindest regards,
Huynh Thi My Dieu
Acknowledgement
A completed report would not be done without any assistance First of all, I would
like to express my endless thanks to lecturer Dr Cao Minh Man His kindly support
and continuous advices went through the process of completion of my report Without his motivation and instructions, the report could not be done effectively.
My special thanks approve to my parents for their endless love, care and have most assistances and motivation me I also would like to explain my thanks to my siblings, brothers and sister for their support and care me all the time.
As last, my deeply thanks come to all colleagues Their kindly help, care, motivation gave me strength and lift me up all the trouble for the rest of my life.
With kindest regards,
Huynh Thi My Dieu
Acknowledgement
A completed report would not be done without any assistance First of all, I would
like to express my endless thanks to lecturer Dr Cao Minh Man His kindly support
and continuous advices went through the process of completion of my report Without his motivation and instructions, the report could not be done effectively.
My special thanks approve to my parents for their endless love, care and have most assistances and motivation me I also would like to explain my thanks to my siblings, brothers and sister for their support and care me all the time.
As last, my deeply thanks come to all colleagues Their kindly help, care, motivation gave me strength and lift me up all the trouble for the rest of my life.
With kindest regards,
Huynh Thi My Dieu
Trang 3Table of Contents
Part 1: Introduction 1
Part 2: VINASUN’S Company Profile 3
Part 3: Risk Profile 5
Part 4: Cash Flow and Investment Analysis 8
Part 5: Dividends and Valuation 12
Part 6: Conclusion and Recommendation 17
References 20
List of Tables Table 3.1: Change in Taxi fees and fuel price from 2009 – 2012 6
Table 4.1: Balance Sheet of VINASUN from 2009 – 2012 8
Table 4.2: Cash Flow of VINASUN from 2009 – 2012 9
Table 4.3: Business Result of VINASUN from 2009 – 2012 10
Table 5.1: Financial Ratio of each indicator for VINASUN from 2009 – 2012 13
Table 5.2: Summarize actual and forecasting VINASUN’s business performance 13
Table 5.3: Peers comparison with VINASUN in the same industry 17
Table 6.1: Forecasted Cash flow in the next 4 years 18
Table 6.2: Business plan of VINASUN 19
List of Charts Chart 1.1: Growth in Taxi number in HCM City from 2007 – 2012 2
Chart 5.1: Revenue and profit after Tax of VINASUN 6
Chart 5.2: Growth in ROA and ROE of VINASUN from 2009 – 2014F 15
List of Figure Figure 3.1: VINASUN’S Stock performance within 3 latest months 6
Table of Contents Part 1: Introduction 1
Part 2: VINASUN’S Company Profile 3
Part 3: Risk Profile 5
Part 4: Cash Flow and Investment Analysis 8
Part 5: Dividends and Valuation 12
Part 6: Conclusion and Recommendation 17
References 20
List of Tables Table 3.1: Change in Taxi fees and fuel price from 2009 – 2012 6
Table 4.1: Balance Sheet of VINASUN from 2009 – 2012 8
Table 4.2: Cash Flow of VINASUN from 2009 – 2012 9
Table 4.3: Business Result of VINASUN from 2009 – 2012 10
Table 5.1: Financial Ratio of each indicator for VINASUN from 2009 – 2012 13
Table 5.2: Summarize actual and forecasting VINASUN’s business performance 13
Table 5.3: Peers comparison with VINASUN in the same industry 17
Table 6.1: Forecasted Cash flow in the next 4 years 18
Table 6.2: Business plan of VINASUN 19
List of Charts Chart 1.1: Growth in Taxi number in HCM City from 2007 – 2012 2
Chart 5.1: Revenue and profit after Tax of VINASUN 6
Chart 5.2: Growth in ROA and ROE of VINASUN from 2009 – 2014F 15
List of Figure Figure 3.1: VINASUN’S Stock performance within 3 latest months 6
Table of Contents Part 1: Introduction 1
Part 2: VINASUN’S Company Profile 3
Part 3: Risk Profile 5
Part 4: Cash Flow and Investment Analysis 8
Part 5: Dividends and Valuation 12
Part 6: Conclusion and Recommendation 17
References 20
List of Tables Table 3.1: Change in Taxi fees and fuel price from 2009 – 2012 6
Table 4.1: Balance Sheet of VINASUN from 2009 – 2012 8
Table 4.2: Cash Flow of VINASUN from 2009 – 2012 9
Table 4.3: Business Result of VINASUN from 2009 – 2012 10
Table 5.1: Financial Ratio of each indicator for VINASUN from 2009 – 2012 13
Table 5.2: Summarize actual and forecasting VINASUN’s business performance 13
Table 5.3: Peers comparison with VINASUN in the same industry 17
Table 6.1: Forecasted Cash flow in the next 4 years 18
Table 6.2: Business plan of VINASUN 19
List of Charts Chart 1.1: Growth in Taxi number in HCM City from 2007 – 2012 2
Chart 5.1: Revenue and profit after Tax of VINASUN 6
Chart 5.2: Growth in ROA and ROE of VINASUN from 2009 – 2014F 15
List of Figure Figure 3.1: VINASUN’S Stock performance within 3 latest months 6
Trang 4ANALYSIS OF FINANCIAL SITUATION
FOR VIETNAM SUN JOINT STOCK COMPANY - VNS
(VINASUN CORP.)
ANALYSIS OF FINANCIAL SITUATION
FOR VIETNAM SUN JOINT STOCK COMPANY - VNS
(VINASUN CORP.)
ANALYSIS OF FINANCIAL SITUATION
FOR VIETNAM SUN JOINT STOCK COMPANY - VNS
(VINASUN CORP.)
Trang 5Part I: Introduction
Nowadays, citizens prefer to start using public transportation more because of rising petrolprices, unavoidable traffic jams and growing environmental pollution In the long run, privatecar ownership will rise, although much of the current generation has calculated that this does
not make sense In general, Vietnam’s roads are poor and complex Despite of concerning on
construction new highway, only 13.5% of the road network is considered to be in goodcondition, 26% has two or more lanes and 29% is tarred (BMI report) Ruling of the Vietnamtaxi industry varies from city to city While almost all cities have had no licensingrequirements, larger urban areas had the strictest regulations Currently, HCM City, Hanoiand Danang have licensing regulations in force to regulate taxi numbers
Over the last five years, Vietnam’s taxi transportation sector in Ho Chi Minh City has grown
at a remarkable 16% CAGR in terms of cab numbers (from 6,000 in 2005 to 12,550 as ofMay 2010) The industry is expected to maintain an average growth rate of 10% annuallyover the 2010-2015 periods Rising living standards and high capita per cab (800 in HCMCversus 210 in Singapore) underpin growth
In Ho Chi Minh City, taxis are considered as a second ways of passengers’ publictransportation after bus transportation As of May 2010, there are 36 enterprises andcooperatives in the taxi service business with 12,550 registered taxis transporting 400,000passengers per day, occupy 30% of the carried volume of public passenger transportation.There are big market players in taxi sector such as Mai Linh, Vinasun, Savico, Future taxi,and Saigon Air; each of these companies has at least 100 taxis with the number rising everyyear In addition, there are 2,000-3,000 illegal taxis outside the authority’s control
Part I: Introduction
Nowadays, citizens prefer to start using public transportation more because of rising petrolprices, unavoidable traffic jams and growing environmental pollution In the long run, privatecar ownership will rise, although much of the current generation has calculated that this does
not make sense In general, Vietnam’s roads are poor and complex Despite of concerning on
construction new highway, only 13.5% of the road network is considered to be in goodcondition, 26% has two or more lanes and 29% is tarred (BMI report) Ruling of the Vietnamtaxi industry varies from city to city While almost all cities have had no licensingrequirements, larger urban areas had the strictest regulations Currently, HCM City, Hanoiand Danang have licensing regulations in force to regulate taxi numbers
Over the last five years, Vietnam’s taxi transportation sector in Ho Chi Minh City has grown
at a remarkable 16% CAGR in terms of cab numbers (from 6,000 in 2005 to 12,550 as ofMay 2010) The industry is expected to maintain an average growth rate of 10% annuallyover the 2010-2015 periods Rising living standards and high capita per cab (800 in HCMCversus 210 in Singapore) underpin growth
In Ho Chi Minh City, taxis are considered as a second ways of passengers’ publictransportation after bus transportation As of May 2010, there are 36 enterprises andcooperatives in the taxi service business with 12,550 registered taxis transporting 400,000passengers per day, occupy 30% of the carried volume of public passenger transportation.There are big market players in taxi sector such as Mai Linh, Vinasun, Savico, Future taxi,and Saigon Air; each of these companies has at least 100 taxis with the number rising everyyear In addition, there are 2,000-3,000 illegal taxis outside the authority’s control
Part I: Introduction
Nowadays, citizens prefer to start using public transportation more because of rising petrolprices, unavoidable traffic jams and growing environmental pollution In the long run, privatecar ownership will rise, although much of the current generation has calculated that this does
not make sense In general, Vietnam’s roads are poor and complex Despite of concerning on
construction new highway, only 13.5% of the road network is considered to be in goodcondition, 26% has two or more lanes and 29% is tarred (BMI report) Ruling of the Vietnamtaxi industry varies from city to city While almost all cities have had no licensingrequirements, larger urban areas had the strictest regulations Currently, HCM City, Hanoiand Danang have licensing regulations in force to regulate taxi numbers
Over the last five years, Vietnam’s taxi transportation sector in Ho Chi Minh City has grown
at a remarkable 16% CAGR in terms of cab numbers (from 6,000 in 2005 to 12,550 as ofMay 2010) The industry is expected to maintain an average growth rate of 10% annuallyover the 2010-2015 periods Rising living standards and high capita per cab (800 in HCMCversus 210 in Singapore) underpin growth
In Ho Chi Minh City, taxis are considered as a second ways of passengers’ publictransportation after bus transportation As of May 2010, there are 36 enterprises andcooperatives in the taxi service business with 12,550 registered taxis transporting 400,000passengers per day, occupy 30% of the carried volume of public passenger transportation.There are big market players in taxi sector such as Mai Linh, Vinasun, Savico, Future taxi,and Saigon Air; each of these companies has at least 100 taxis with the number rising everyyear In addition, there are 2,000-3,000 illegal taxis outside the authority’s control
Trang 6Source: Ho Chi Minh Department of Transportation, Mekong Securities
The growth rate of taxi at current is much faster than expected pace through eachdevelopment phase For example, in the study proposed to the Prime Minister approved atDecision dated 22/1/2007 101/QD-TTg on the HCMC Transport Development Plan to 2020and vision after 2020, the expected number of taxis for period 2010 - 2015 was 9,500vehicles But at the present, the actual figure is exceeding 13,000 units (up to 26.9%)
The service sector is one of the growth sectors likely positive Most of the macroeconomicsituations in the country at present prove proofs to estimate the market taxi steady growththanks to (1) increase per capita income, (2) the cost of buying a car individual are quiteexpensive, (3) the development of public transport plus not enough to meet the needs of thewhole market However, the growth rate of taxi service in Vietnam may be leveling off in totime by the limitations of transport infrastructure as well as restrictions HCM City's taxitraffic
Cab number (units)
2,000 4,000 6,000 8,000 10,000 12,000 14,000
Chart 1.1:
Growth in Taxi numbers in HCM City, 2007 - 2012
Source: Ho Chi Minh Department of Transportation, Mekong Securities
The growth rate of taxi at current is much faster than expected pace through eachdevelopment phase For example, in the study proposed to the Prime Minister approved atDecision dated 22/1/2007 101/QD-TTg on the HCMC Transport Development Plan to 2020and vision after 2020, the expected number of taxis for period 2010 - 2015 was 9,500vehicles But at the present, the actual figure is exceeding 13,000 units (up to 26.9%)
The service sector is one of the growth sectors likely positive Most of the macroeconomicsituations in the country at present prove proofs to estimate the market taxi steady growththanks to (1) increase per capita income, (2) the cost of buying a car individual are quiteexpensive, (3) the development of public transport plus not enough to meet the needs of thewhole market However, the growth rate of taxi service in Vietnam may be leveling off in totime by the limitations of transport infrastructure as well as restrictions HCM City's taxitraffic
2007 2008 2009 2010 2011 2012 Cab number (units) 8,000 9,395 10,710 11,500 12,550 13,000
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
Chart 1.1:
Growth in Taxi numbers in HCM City, 2007 - 2012
Source: Ho Chi Minh Department of Transportation, Mekong Securities
The growth rate of taxi at current is much faster than expected pace through eachdevelopment phase For example, in the study proposed to the Prime Minister approved atDecision dated 22/1/2007 101/QD-TTg on the HCMC Transport Development Plan to 2020and vision after 2020, the expected number of taxis for period 2010 - 2015 was 9,500vehicles But at the present, the actual figure is exceeding 13,000 units (up to 26.9%)
The service sector is one of the growth sectors likely positive Most of the macroeconomicsituations in the country at present prove proofs to estimate the market taxi steady growththanks to (1) increase per capita income, (2) the cost of buying a car individual are quiteexpensive, (3) the development of public transport plus not enough to meet the needs of thewhole market However, the growth rate of taxi service in Vietnam may be leveling off in totime by the limitations of transport infrastructure as well as restrictions HCM City's taxitraffic
2012 13,000
Chart 1.1:
Growth in Taxi numbers in HCM City, 2007 - 2012
Trang 7Part 2: VINASUN’S Company Profile
Stock Code: VNS, Stock Floor: HOSE
Industrials: Taxi Transportation Services
Charter Capital: VND 300 billions
Add: 306 Dien Bien Phu, Ward 22, Binh Thanh
District, Ho Chi Minh City.
- Dang Phuoc Thanh (Chairman): 24%
- Dang Thanh Duy (Deputy CEO): 14%
- Vietnam Investment Fund (VIF): 12%
- Red River Holding: 13%
- Sai Gon Trading Group (SATRA): 13%
- Others: 28%
Business sectors:
- Operating in taxi transportation with the
brand-name Taxi Vinasun;
- Operating in travel, air travel with the
brand-name Vinasun Travel;
- Operating in restaurants, food and beverage;
- Operating in real estate Currently, the
company invested constructing the Tan Da
Retail Center with a total area of 1,200m2.
The residential project at 103 Truong Dinh
Hoi in District 8 with an area of 2,659 m2and
land locates at 26-28-30-32 Thu Khoa Huan.
Board of manager:
- Dang Phuoc Thanh: Chairman
- Huynh Van Minh: Vice Chairman
- Dang Thi Lan Phuong: Member of BOM
- Ta Long Hy: Member of BOM
- Truong Dinh Quy: Member of BOM
Board of director:
- Dang Thi Lan Phuong: CEO
- Ta Long Hy: Deputy General Director
- Truong Dinh Quy: Deputy General Director
- Ngo Thi Thuy Van: Deputy General Director
- Huynh Van Sy: Deputy General Director
- Tran Anh Minh: Deputy General Director
- Dang Phuoc Hoang Mai: Deputy General Director
The memorable numbers of Vinasun Taxi in 2012:
- Average revenue was VND1,828 million/ day/ car (increase of 11.13% compared to 2011);
- 27,154 calls for services/ day, up 6.6% compared to 2011;
Part 2: VINASUN’S Company Profile
Stock Code: VNS, Stock Floor: HOSE
Industrials: Taxi Transportation Services
Charter Capital: VND 300 billions
Add: 306 Dien Bien Phu, Ward 22, Binh Thanh
District, Ho Chi Minh City.
- Dang Phuoc Thanh (Chairman): 24%
- Dang Thanh Duy (Deputy CEO): 14%
- Vietnam Investment Fund (VIF): 12%
- Red River Holding: 13%
- Sai Gon Trading Group (SATRA): 13%
- Others: 28%
Business sectors:
- Operating in taxi transportation with the
brand-name Taxi Vinasun;
- Operating in travel, air travel with the
brand-name Vinasun Travel;
- Operating in restaurants, food and beverage;
- Operating in real estate Currently, the
company invested constructing the Tan Da
Retail Center with a total area of 1,200m2.
The residential project at 103 Truong Dinh
Hoi in District 8 with an area of 2,659 m2and
land locates at 26-28-30-32 Thu Khoa Huan.
Board of manager:
- Dang Phuoc Thanh: Chairman
- Huynh Van Minh: Vice Chairman
- Dang Thi Lan Phuong: Member of BOM
- Ta Long Hy: Member of BOM
- Truong Dinh Quy: Member of BOM
Board of director:
- Dang Thi Lan Phuong: CEO
- Ta Long Hy: Deputy General Director
- Truong Dinh Quy: Deputy General Director
- Ngo Thi Thuy Van: Deputy General Director
- Huynh Van Sy: Deputy General Director
- Tran Anh Minh: Deputy General Director
- Dang Phuoc Hoang Mai: Deputy General Director
The memorable numbers of Vinasun Taxi in 2012:
- Average revenue was VND1,828 million/ day/ car (increase of 11.13% compared to 2011);
- 27,154 calls for services/ day, up 6.6% compared to 2011;
Part 2: VINASUN’S Company Profile
Stock Code: VNS, Stock Floor: HOSE
Industrials: Taxi Transportation Services
Charter Capital: VND 300 billions
Add: 306 Dien Bien Phu, Ward 22, Binh Thanh
District, Ho Chi Minh City.
- Dang Phuoc Thanh (Chairman): 24%
- Dang Thanh Duy (Deputy CEO): 14%
- Vietnam Investment Fund (VIF): 12%
- Red River Holding: 13%
- Sai Gon Trading Group (SATRA): 13%
- Others: 28%
Business sectors:
- Operating in taxi transportation with the
brand-name Taxi Vinasun;
- Operating in travel, air travel with the
brand-name Vinasun Travel;
- Operating in restaurants, food and beverage;
- Operating in real estate Currently, the
company invested constructing the Tan Da
Retail Center with a total area of 1,200m2.
The residential project at 103 Truong Dinh
Hoi in District 8 with an area of 2,659 m2and
land locates at 26-28-30-32 Thu Khoa Huan.
Board of manager:
- Dang Phuoc Thanh: Chairman
- Huynh Van Minh: Vice Chairman
- Dang Thi Lan Phuong: Member of BOM
- Ta Long Hy: Member of BOM
- Truong Dinh Quy: Member of BOM
Board of director:
- Dang Thi Lan Phuong: CEO
- Ta Long Hy: Deputy General Director
- Truong Dinh Quy: Deputy General Director
- Ngo Thi Thuy Van: Deputy General Director
- Huynh Van Sy: Deputy General Director
- Tran Anh Minh: Deputy General Director
- Dang Phuoc Hoang Mai: Deputy General Director
The memorable numbers of Vinasun Taxi in 2012:
- Average revenue was VND1,828 million/ day/ car (increase of 11.13% compared to 2011);
- 27,154 calls for services/ day, up 6.6% compared to 2011;
Trang 8- Above 90 million was the number of customers served in 2011;
- VND7.2 million/ month is the average income of directly driving staff;
- VND5 million/ month is the average income of indirect staff, directly operating and business support;
- 13,488 personnel as of 31/12/2012;
- 7,287 employees must pay income tax on individuals while 6,779 of them are directly driving
employees;
- 4,622 is the number of Vinasun taxi vehicles up to date 31/12/2012.
Source: VNS prospectus, HOSE
VINASUN is a Vietnam-based passenger transportation services provider Predecessor of thecompany is the Trade Travel Services and Investment Consulting Vietnam Sun Co Ltd., wasestablished on 15/06/1995, with registered capital of VND300 million On 17/7/2003, theCompany renamed to Vietnam Sun Joint Stock Company with registered capital of VND8billion On 25/5/2006, the Company increased its chartered capital to VND 16 billion toinvest in new vehicles for taxi services On 2/2007, the Company issued VND 84 billion parvalues to increase charter capital to VND 100 billion to restructure debt and invest more cars
in the year of 2007 To 10/2007, the Company issued VND 70 billion face value for biginvestors; increase the Company's share capital to VND 170 billion
In addition, the company has its presence in development of commercial and residentialbuildings as supporting activities to tourism operation On 29/7/2008, the company officiallylisted its shares on the stock exchange in Ho Chi Minh City As of December 31, 2008, taxioperation contributed to 97% of total revenue In 9/2009, the company issued additionalshares to increase charter capital to VND 200 billion The charter capital of the companyincreased to more than VND 299 billion on 7/2010
On 3/09/2013, Forbes Vietnam, the Vietnamese version of the leading business magazine inthe world, announced the list of 50 best listed companies on the stock market in Vietnam.This is the first company ranked by Forbes Vietnam perform research Vietnam Sun JointStock Company (Vinasun Corp.) was ranked at 34thon the list with a market capitalization ofVND 1,701 billion; revenue in 2012 was VND 2,713 billion
However, the author still expect Vinasun sustain current growth while promoting activities inthe nearby market access as Binh Duong, Dong Nai and Vung Tau
- Above 90 million was the number of customers served in 2011;
- VND7.2 million/ month is the average income of directly driving staff;
- VND5 million/ month is the average income of indirect staff, directly operating and business support;
- 13,488 personnel as of 31/12/2012;
- 7,287 employees must pay income tax on individuals while 6,779 of them are directly driving
employees;
- 4,622 is the number of Vinasun taxi vehicles up to date 31/12/2012.
Source: VNS prospectus, HOSE
VINASUN is a Vietnam-based passenger transportation services provider Predecessor of thecompany is the Trade Travel Services and Investment Consulting Vietnam Sun Co Ltd., wasestablished on 15/06/1995, with registered capital of VND300 million On 17/7/2003, theCompany renamed to Vietnam Sun Joint Stock Company with registered capital of VND8billion On 25/5/2006, the Company increased its chartered capital to VND 16 billion toinvest in new vehicles for taxi services On 2/2007, the Company issued VND 84 billion parvalues to increase charter capital to VND 100 billion to restructure debt and invest more cars
in the year of 2007 To 10/2007, the Company issued VND 70 billion face value for biginvestors; increase the Company's share capital to VND 170 billion
In addition, the company has its presence in development of commercial and residentialbuildings as supporting activities to tourism operation On 29/7/2008, the company officiallylisted its shares on the stock exchange in Ho Chi Minh City As of December 31, 2008, taxioperation contributed to 97% of total revenue In 9/2009, the company issued additionalshares to increase charter capital to VND 200 billion The charter capital of the companyincreased to more than VND 299 billion on 7/2010
On 3/09/2013, Forbes Vietnam, the Vietnamese version of the leading business magazine inthe world, announced the list of 50 best listed companies on the stock market in Vietnam.This is the first company ranked by Forbes Vietnam perform research Vietnam Sun JointStock Company (Vinasun Corp.) was ranked at 34th on the list with a market capitalization ofVND 1,701 billion; revenue in 2012 was VND 2,713 billion
However, the author still expect Vinasun sustain current growth while promoting activities inthe nearby market access as Binh Duong, Dong Nai and Vung Tau
- Above 90 million was the number of customers served in 2011;
- VND7.2 million/ month is the average income of directly driving staff;
- VND5 million/ month is the average income of indirect staff, directly operating and business support;
- 13,488 personnel as of 31/12/2012;
- 7,287 employees must pay income tax on individuals while 6,779 of them are directly driving
employees;
- 4,622 is the number of Vinasun taxi vehicles up to date 31/12/2012.
Source: VNS prospectus, HOSE
VINASUN is a Vietnam-based passenger transportation services provider Predecessor of thecompany is the Trade Travel Services and Investment Consulting Vietnam Sun Co Ltd., wasestablished on 15/06/1995, with registered capital of VND300 million On 17/7/2003, theCompany renamed to Vietnam Sun Joint Stock Company with registered capital of VND8billion On 25/5/2006, the Company increased its chartered capital to VND 16 billion toinvest in new vehicles for taxi services On 2/2007, the Company issued VND 84 billion parvalues to increase charter capital to VND 100 billion to restructure debt and invest more cars
in the year of 2007 To 10/2007, the Company issued VND 70 billion face value for biginvestors; increase the Company's share capital to VND 170 billion
In addition, the company has its presence in development of commercial and residentialbuildings as supporting activities to tourism operation On 29/7/2008, the company officiallylisted its shares on the stock exchange in Ho Chi Minh City As of December 31, 2008, taxioperation contributed to 97% of total revenue In 9/2009, the company issued additionalshares to increase charter capital to VND 200 billion The charter capital of the companyincreased to more than VND 299 billion on 7/2010
On 3/09/2013, Forbes Vietnam, the Vietnamese version of the leading business magazine inthe world, announced the list of 50 best listed companies on the stock market in Vietnam.This is the first company ranked by Forbes Vietnam perform research Vietnam Sun JointStock Company (Vinasun Corp.) was ranked at 34thon the list with a market capitalization ofVND 1,701 billion; revenue in 2012 was VND 2,713 billion
However, the author still expect Vinasun sustain current growth while promoting activities inthe nearby market access as Binh Duong, Dong Nai and Vung Tau
Trang 9Part 3: Risk Profile
VINASUN is not a big company but is a leading organization among players in Taxi sector
in Hochiminh City now Risk profile of VNS comes from many factors but in limited of thisreport, the author focus on two main factors represented for transportation business likeVINASUN which are scales of taxi fleet and fuel price
The taxi market is quite competitive, in which Ho Chi Minh City and Ha Noi are the twobiggest markets In Ha Noi, there are more than 100 taxi companies with around 17,400 cabswhile in Ho Chi Minh City, there are approximately 26 taxis with around 11,000 cabs.Prominent players in the taxi market are Taxi Group (more than 2,000 cabs, present mostly inHanoi and its neighboring provinces), Mai Linh Group (about 9,905 cabs, present in 50cities), Vinasun (4,622 cabs; present in 5 cities) … In the taxi market, fleet expansion greatlydepends on the ability to obtain taxi licenses, therefore, in some cases, to obtain newlicenses, taxi companies must dispose old cars in order to invest in new cabs At the end
of 2012, VNS boasts 4,622 taxis If we were to assume that VNS’s private placement provessuccessful in 2013, it would help VNS to acquire an additional 900 vehicles in 2013 VNSalready purchased 100 new cars in Q1/2013 and disposed 38 old vehicles, total vehiclescount to 4,684 cabs Increase in the number of taxis depends on the ability to be granted newtaxi licenses and it would affect to revenue of the company
On the other side, there will be a high correlation between taxi fare and fuel price whichcorrelates with international oil price According to an EIA forecast (Annual Energy outlook
to 2013 with projection to 2040), the annual growth of WTI oil price 2011 – 2040 would beapproximately 1.8% Therefore, we assume that taxi fares would also increasecorrespondingly by 1% per year from 2013 until 2017 as it is not easy to defer all increases incost to customers The sensitivity shows that for every change of 1% of average taxi fee,revenue would be affected by 1% and Net Profit After Tax would be affected by 2%
Part 3: Risk Profile
VINASUN is not a big company but is a leading organization among players in Taxi sector
in Hochiminh City now Risk profile of VNS comes from many factors but in limited of thisreport, the author focus on two main factors represented for transportation business likeVINASUN which are scales of taxi fleet and fuel price
The taxi market is quite competitive, in which Ho Chi Minh City and Ha Noi are the twobiggest markets In Ha Noi, there are more than 100 taxi companies with around 17,400 cabswhile in Ho Chi Minh City, there are approximately 26 taxis with around 11,000 cabs.Prominent players in the taxi market are Taxi Group (more than 2,000 cabs, present mostly inHanoi and its neighboring provinces), Mai Linh Group (about 9,905 cabs, present in 50cities), Vinasun (4,622 cabs; present in 5 cities) … In the taxi market, fleet expansion greatlydepends on the ability to obtain taxi licenses, therefore, in some cases, to obtain newlicenses, taxi companies must dispose old cars in order to invest in new cabs At the end
of 2012, VNS boasts 4,622 taxis If we were to assume that VNS’s private placement provessuccessful in 2013, it would help VNS to acquire an additional 900 vehicles in 2013 VNSalready purchased 100 new cars in Q1/2013 and disposed 38 old vehicles, total vehiclescount to 4,684 cabs Increase in the number of taxis depends on the ability to be granted newtaxi licenses and it would affect to revenue of the company
On the other side, there will be a high correlation between taxi fare and fuel price whichcorrelates with international oil price According to an EIA forecast (Annual Energy outlook
to 2013 with projection to 2040), the annual growth of WTI oil price 2011 – 2040 would beapproximately 1.8% Therefore, we assume that taxi fares would also increasecorrespondingly by 1% per year from 2013 until 2017 as it is not easy to defer all increases incost to customers The sensitivity shows that for every change of 1% of average taxi fee,revenue would be affected by 1% and Net Profit After Tax would be affected by 2%
Part 3: Risk Profile
VINASUN is not a big company but is a leading organization among players in Taxi sector
in Hochiminh City now Risk profile of VNS comes from many factors but in limited of thisreport, the author focus on two main factors represented for transportation business likeVINASUN which are scales of taxi fleet and fuel price
The taxi market is quite competitive, in which Ho Chi Minh City and Ha Noi are the twobiggest markets In Ha Noi, there are more than 100 taxi companies with around 17,400 cabswhile in Ho Chi Minh City, there are approximately 26 taxis with around 11,000 cabs.Prominent players in the taxi market are Taxi Group (more than 2,000 cabs, present mostly inHanoi and its neighboring provinces), Mai Linh Group (about 9,905 cabs, present in 50cities), Vinasun (4,622 cabs; present in 5 cities) … In the taxi market, fleet expansion greatlydepends on the ability to obtain taxi licenses, therefore, in some cases, to obtain newlicenses, taxi companies must dispose old cars in order to invest in new cabs At the end
of 2012, VNS boasts 4,622 taxis If we were to assume that VNS’s private placement provessuccessful in 2013, it would help VNS to acquire an additional 900 vehicles in 2013 VNSalready purchased 100 new cars in Q1/2013 and disposed 38 old vehicles, total vehiclescount to 4,684 cabs Increase in the number of taxis depends on the ability to be granted newtaxi licenses and it would affect to revenue of the company
On the other side, there will be a high correlation between taxi fare and fuel price whichcorrelates with international oil price According to an EIA forecast (Annual Energy outlook
to 2013 with projection to 2040), the annual growth of WTI oil price 2011 – 2040 would beapproximately 1.8% Therefore, we assume that taxi fares would also increasecorrespondingly by 1% per year from 2013 until 2017 as it is not easy to defer all increases incost to customers The sensitivity shows that for every change of 1% of average taxi fee,revenue would be affected by 1% and Net Profit After Tax would be affected by 2%
Trang 10Table 3.1: Change in taxi fee and fuel price from 2009 to 2012
Average taxi fee (VND/km) 10,674 12,416 14,549 16,472
[Source: Company data]
To overcome these risks VNS’s has effectively formed a risk management team and aneffective risk management team to minimize risks for investors as well as corporation Therisk has been coming from the changes in the market, and the structural changes beingundertaking by VNS The Stock Performance of VNS’s has been reasonably decent despitethe large scale changes in operation being undertaken
Figure 3.1: VINASUN’S Stock Performance within 3 latest months (Source: Vietstock)
Table 3.1: Change in taxi fee and fuel price from 2009 to 2012
Average taxi fee (VND/km) 10,674 12,416 14,549 16,472
[Source: Company data]
To overcome these risks VNS’s has effectively formed a risk management team and aneffective risk management team to minimize risks for investors as well as corporation Therisk has been coming from the changes in the market, and the structural changes beingundertaking by VNS The Stock Performance of VNS’s has been reasonably decent despitethe large scale changes in operation being undertaken
Figure 3.1: VINASUN’S Stock Performance within 3 latest months (Source: Vietstock)
Table 3.1: Change in taxi fee and fuel price from 2009 to 2012
Average taxi fee (VND/km) 10,674 12,416 14,549 16,472
[Source: Company data]
To overcome these risks VNS’s has effectively formed a risk management team and aneffective risk management team to minimize risks for investors as well as corporation Therisk has been coming from the changes in the market, and the structural changes beingundertaking by VNS The Stock Performance of VNS’s has been reasonably decent despitethe large scale changes in operation being undertaken
Figure 3.1: VINASUN’S Stock Performance within 3 latest months (Source: Vietstock)
Trang 12Part 4: Cash Flow and Investment Analysis
Long-term financial investments 2,400 1,660 1,140 540 Total other long-term assets 6,268 7,133 9,117 5,819
Table 4.1: Balance Sheet of VINASUN from 2009 – 2012
Part 4: Cash Flow and Investment Analysis
Long-term financial investments 2,400 1,660 1,140 540 Total other long-term assets 6,268 7,133 9,117 5,819
Table 4.1: Balance Sheet of VINASUN from 2009 – 2012
Part 4: Cash Flow and Investment Analysis
Long-term financial investments 2,400 1,660 1,140 540 Total other long-term assets 6,268 7,133 9,117 5,819
Table 4.1: Balance Sheet of VINASUN from 2009 – 2012