Financial statement analysis an phat bioplastics joint stock company (aaa) over the period of 2020 2022

Financial Statement Analysis An Phat Bioplastics Joint Stock Company AAA over the period of 2020-2022 Class: LSIC 63 – Business FinanceStudent: NGUYỄN THỊ MINH ÁNHID: 11219567... DuPont

Financial Statement Analysis

An Phat Bioplastics Joint Stock Company (AAA)

over the period of 2020-2022

Class: LSIC 63 – Business FinanceStudent: NGUYỄN THỊ MINH ÁNHID: 11219567

Hanoi, March 2023

Table of Contents

LIST OF TABLES AND FIGURES 3

ABSTRACT 4

PART I THEORETICAL BASIS FOR FINANCIAL STATEMENT ANALYSIS 4

I- FINANCIAL STATEMENT 4

II- SOURCES AND USES OF CASH 5

III- FINANCIAL RATIOS 5

1 Short-term solvency, or liquidity, ratios 5

2 Long-term solvency, or financial leverage, ratios 6

3 Asset management, or turnover, ratios 6

4 Profitability ratios 7

5 Market value ratios 7

IV- APPLICATION OF DUPONT FINANCIAL MODEL 7

PART II 9

ABOUT AN PHAT BIOPLASTICS JOINT STOCK COMPANY 9

I- COMPANY NAME AND ADRESS 9

II- DEVELOPMENT HISTORY 10

III- BOARD OF DIRECTORS 10

IV- SHAREHOLDERS STRUCTURE 11

PART III 12

MARKET ANALYSIS 12

I- O VERVIEW OF THE PLASTIC INDUSTRY 12

II- BUSINESS SITUATION OF ENTERPRISES 13

III- FOREIGN INVESTMENT IN THE PLASTIC INDUSTRY 13

IV- IMPORT AND EXPORT TURNOVER OF VIETNAM'S PLASTIC INDUSTRY 14

PART IV 15

ANALYSIS OF AN PHAT BIOPLASTICS JSC FINANCIAL STATEMENTS 2020-2022 15

I- SOURCES AND USES OF CASH 15

1 Balance Sheet 15

2 Income Statement 17

III FINANCIAL RAITOS BETWEEN YEARS AND OTHER PEER COMPANIES OF THE INDUSTRY ( ,

INDUSTRY AVARAGE) 19

1 Between 2020-2022 19

2 Industry comparison 21

IV DUPONT ANALYSIS 22

1 DuPont analysis - ROA 22

2 DuPont analysis - ROE 22

PART V 22

INDUSTRY COMPARISION 22

CONCLUSION 25

REFERENCES 26

List of tables and figure

Figure 2: An Phat Bioplastics JSC Board of Directors 12 Figure 3: An Phat Bioplastics' shareholder structure 13

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Table 1: An Phat Bioplastics JSC Shareholders Structure 12 Table 2: Vietnam's plastic export and import turnover over the years 16 Table 3: Standardised financial statements 16 Table 4: An Phat Bioplastics Balance Sheet 2020-2022 17 Table 5: An Phat Bioplastics Income Statement 2020-2022 19 Table 6: An Phat Bioplastics JSC Financial Ratios 2020-2022 20 Table 7: AAA's current ratio's industry comparison 2020-2022 22 Table 8: AAA's Quick Ratio's Industry comparison 2020-2022 23 Table 9: Comparison between AAA and 10 others peer companies 24

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The aim of Financial Statement Analysis is to provide the full scenario of the company to investors by using the historical data of the company along with current situation as well as forecast for the data in the future In this report, I applied all techniques that I have learnt so far from the subject Financial Statement Analysis to analyse the performance of An Phat Bioplastics Joint Stock Company in the period of 2020-2022 Data has been mainly collected through An Phat Bioplastics JSC’s data source Concerning entire factors, this report is mainly supported by recommendations, which could be helpful for stakeholders of this company

PART I THEORETICAL BASIS FOR FINANCIAL STATEMENT ANALYSIS

I- Financial Statement

Financial analysis is the process of examining a company’s performance in the context ofits industry and economic environment to arrive at a decision or recommendation Often, thedecisions and recommendations addressed by financial analysts pertain to providing capital tocompanies—specifically, whether to invest in the company’s debt or equity securities and atwhat price An investor in debt securities is concerned about the company’s ability to payinterest and to repay the principal lent An investor in equity securities is an owner with aresidual interest in the company and is concerned about the company’s ability to pay dividendsand the likelihood that its share price will increase

Overall, a central focus of financial analysis is evaluating the company’s ability to earn areturn on its capital that is at least equal to the cost of that capital, to profitably grow its operations,and to generate enough cash to meet obligations and pursue opportunities

II- Sources and uses of cash

Sources: Cash inflows when we “sell” something and we add to the cash account

- Decrease in asset account

- Increase in liability or equity account

Uses: Cash outflows when we “buy” something

- Increase in asset account

- Decrease in liability or equity account

III- Financial ratios

1 Short-term solvency, or liquidity, ratios

Short-term solvency analysis is an assessment of the ability to meet debt payment obligationsfor a period of less than one year from the date of incurred by the business Short-term debtsinclude accounts payable to sellers, payable to employees, short-term loans, The short-termsolvency analysis includes the following contents: Short-term debt solvency coefficient, fastsolvency coefficient, and instant solvency coefficient

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short-The Quick (or Acid-Test) Ratio

This indicator measures the liquidity of the number of times that cash, receivables and term financial investments guarantee short-term debt Here, inventory is excluded when calculatingthe quick solvency factor because it is often the least liquid current asset It’s also the one forwhich the book values are least reliable as measures of market value because the quality of theinventory isn’t considered Some of the inventory may later turn out to be damaged, obsolete, orlost

short-More to the point, relatively large inventories are often a sign of short-term trouble The firmmay have overestimated sales and overbought or overproduced as a result

This indicator, if too high and prolonged, is not good, can lead to reduced capital efficiency.But this indicator is too low, lasts as long as possible because there may be financial risks, the risk

of bankruptcy may occur

2 Long-term solvency, or financial leverage, ratios

Long-term solvency analysis is an assessment of the ability to meet debt payment obligationsfor a period of more than one year Long-term debts include accounts payable to sellers, workers'payables, long-term loans,… Long-term solvency analysis includes the following contents: long-term debt solvency coefficient and interest payment ability coefficient

Total Debt Raito

This indicator indicates the ability to pay long-term debt for the entire net value of fixedassets and long-term investments, etc This target is as high as possible to demonstrate the long-term solvency of the business in the future, contributing to the stability of the financial situation Ifthis target is low, it is not possible to confirm that the long-term solvency in the future of thebusiness is bad However, businesses still need to take early action on this target

Discover more from:

Test Bank for Fundamentals of Corporate Finance 10th Edition by Ross

Debt-quity ratio =

Equity multiplier =

Long- term debt ratio =

Times interest earned ratio =

3 Asset management, or turnover, ratios

Fixed asset turnover =

Total asset turnover =

4 Profitability ratios

Profit margin = Return on assets (ROA) =

Return on equity (ROE) =

PEG ratio =

PEG ratio =

Price-sales ratio =

IV- Application of DuPont financial model

Ebook Tài chính doanh nghiệp căn bản (Lý thuyết & thực hành quản lý ứng dụng cho các doanh nghiệp Việt Nam)…

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The DuPont analysis is a formula used to track a company's financial performance It wasdeveloped in 1914 by F Donaldson Brown, who worked for the DuPont Corporation The DuPontfinancial model is often used to analyse the link between factors that affect financial indicators to

be analysed Thanks to the analysis of the relationship between the factors, it is possible to detectthe factor that has influenced the analytical target in a strict logical sequence and the analyst will

be aware of the causes and improve the possible weakness The DuPont financial model is oftenused to analyse the return on total assets (ROA), return on equity (ROE)

Figure 1: DuPont financial model

From the above model it can be seen that, in order to improve the profitability of a co-assetthat the enterprise is using, corporate governance must study and consider what measures areavailable for the continuous improvement of the profitability of revenue and the movement ofassets

A simple calculation of a company's ROA and ROE may be simple and can give an idea into

a company's performance, but it still does not provide the full picture The ROA and ROE ratiosare useful only when compared to the company's competitors or with the market

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The DuPont analysis helps make this comparison more detailed and accurate If a company'sperformance is lower than its peers, the DuPont analysis can help identify the specific figures andareas that are performing poorly, thus helping a company improve.

Thus, financial analysis under the DuPont model has great significance for corporategovernance, not only evaluating business performance in a deep and comprehensive way, but alsofully and objectively evaluating the factors affecting business performance Thereby, the system ofmeticulous and authentic measures to strengthen the improvement of the business managementorganization, contributing to constantly improving the business efficiency of the business in thenext business periods

PART II

ABOUT AN PHAT BIOPLASTICS JOINT STOCK COMPANY

An Phat Bioplastics Joint Stock Company (An Phat Bioplastics) is Southeast Asia’s No 1enterprise in the field of manufacturing and exporting high quality thin monolayer film An PhatBioplastics is currently a public company, and a key member and the pioneer of An Phat Holdings.With nearly 20 years of experience, An Phat Bioplastics has been attracting a large number ofdomestic and international customers, establishing strategic business relationships with customers

in more than 50 countries around the world

Along with the development of the traditional business of thin monolayer film, in recentyears, An Phat Bioplastics has shifted its strategic goals to diversified its products and focusing ondeveloping AnBio compostable compound and AnEco compostable products, such as bags, knives,spoons, forks, straws, gloves…, meeting the green consumption trend in Vietnam and over theworld

I- Company name and adress

- Company name:

+ In Vietnamese: Công ty Cổ phần Nhựa An Phát Xanh

+ In English: An Phat Bioplastics Joint Stock Company

- Abbreviated name: An Phat Bioplastics., JSC

- Stock code: AAA (HOSE)

- Registered head office: Lot CN11+CN12, An Dong Industrial Park, Nam Sach District, Hai Duong Province, Vietnam

- Charter Capital: VND 3,822,744,960,000 (extracted on 01/12/2022)

II- Development history

After nearly 20 years of establishment and development, An Phat Bioplastics has successfullybuilt the Southeast Asia’s leading sustainable and environmentally friendly business ecosystem,making great contributions to the growth and development of Vietnam’s economy

- September 2002: Anh Hai Duy Company Limited (the precursor of An Phat

Bioplastics) was established

- April 2004: Anh Hai Duy started to expand his business and put the first thin

monolayer film factory into operation, in Nam Sach Industrial Park, Hai Duong Province

- June 2005: The company started to build a second factory with an area of 19,967 m2 in

An Dong Industrial Cluster, Nam Sach District, Hai Duong Province

- March 2007: Anh Hai Duy Company Limited changed its name to AnPhat Plastic and

Packing Joint Stock Company

- September 2009: The company built another factory No 3, with an area of 20,064 m2.

- November 2009: The company changed its name to An Phat Plastic and Green

Environment Joint Stock Company This event marked a dramatic change in a new stage ofdevelopment, pursuing the goal of “Green production, sustainability, environmental protection”

- July 2010: An Phat Plastic and Green Environment Joint Stock Company was officially

listed on Hanoi Stock Exchange with a ticker of AAA

- April 2019: An Phat Plastic and Green Environment Joint Stock Company changed its

name to An Phat Bioplastics Joint Stock Company The company will further expand its

investment in developing compostable and environmentally friendly products and materials, as well as owning the leading technology and inventions in this product line

III- Board of Directors

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Figure 2: An Phat Bioplastics JSC Board of Directors

IV- Shareholders Structure

Domestic individuals 152,422,450 46.69Domestic institutions 166,798,570 51.1

Bachelor of foreign language

MEMBER

(1974)

Mr Phan Tri Nghia

Bachelor of Economics

Figure 3: An Phat Bioplastics' shareholder structure

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PART III

MARKET ANALYSIS

I- Overview of the plastic industry

With the development of bioplastics in recent years, the bioplastics market has become activeand recorded with growth numbers

In the current global market, bioplastics still account for a very small proportion (about 1%)compared to the 367 million tons of conventional plastic produced annually However, in contrast

to the slight decline in overall global plastic production, the bioplastics market continues to grow.This growth is driven by increased demand combined with the emergence of more complexproducts and applications

In the world as well as in Vietnam, the plastic industry is still young compared to other standing industries such as mechanics, electricity, chemicals, textiles, etc., but there has been astrong development in the industry in recent years The plastic industry in the period of 2010 -

long-2020, is one of the industries recording the highest growth in Vietnam with an annual growth rate

of 16% - 18% (only after telecommunications and textiles) Within the industry the growth rate ofsome certain plastic products was nearly 100%/year

With a fast development speed, the plastic industry is being considered as a dynamic industry

in the Vietnamese economy There are several reasons to explain why the growth rate of plasticsproducts is very high First, the market for plastics product is huge and very potential Plasticproducts are used in all facets of life (e.g for packaging materials, construction materials,production of household appliances, etc.) Second, Vietnam's plastic industry is only at the verybeginning of its development journey compared to the world The demand for biodegradableplastics in Vietnam is projected to reach 80,000 tonnes annually by 2025, according to AssociateProf Dr Le Hung Anh, Director of the Institute of Environmental Science, Engineering andManagement

At a recent workshop on biodegradable plastic production and consumption held by the Ministry ofNatural Resources and Environment in Ho Chi Minh City, he said that the growth orientation ofVietnam’s plastics sector now focuses on effectiveness and sustainability Companies like An PhatBioplastics, Biostarch, and the Phu My Plastic Production JSC have successfully developedtechnologies for making biodegradable plastic bags, gloves, knives, forks, and straws, amongothers, for consumption domestically and internationally Shopping chains such as Co.opmart,