(Tiểu luận) bài tập nhó mintroduction and analysis of the capitalstructure of masan company

In August 2009, the company changed its name to Massan Group Joint Stock Company; On November 5, 2009, Massan was successfully listed on Ho Chi Minh City Stock Exchange.. As of 2021, Mas

DUY TAN UNIVERSITY INTERNATIONAL SCHOOL

BÀI TẬP NHÓM INTRODUCTION AND ANALYSIS OF THE CAPITAL

STRUCTURE OF MASAN COMPANY

MÔN HỌC : FINANCIAL MANAGEMENT 2 LỚP : PSU FIN 302 BIS

GVHD : LƯU THỊ THU HƯƠNG

NHÓM SV : Nguyễn Thị Mai Anh

Lương Thị Ngọc Bích

Lê Thanh Hiền

Nguyễn Thị Diễm Quỳnh

Lê Hà Kiều Trang

Đà nẵng, ngày 17 tháng 06 năm 2023

Tên Đề tài/ Dự Án Introduction and

analysis of the capital structure of Masan company

Giảng viên: Lưu Thị Thu Hương

Điểm Đánh giá Thành viên

BẢNG TỰ ĐÁNH GIÁ

4 Nguyễn Thị Diễm Quỳnh 26202134902 20%

I- SUMMARY OF MASAN GROUP:

1 The process of birth and development:

a) History of Masan group (MSN):

Built by Mr Nguyen Dang Quang who is currently the Chairman of the Board of Directors Mr Quang's predecessor was a small instant noodle factory in Russia, established in 1990 It was not until 2001 that the Massan Food brand was brought back to the country

In August 2009, the company changed its name to Massan Group Joint Stock Company; On November 5, 2009, Massan was successfully listed on

Ho Chi Minh City Stock Exchange In July 2015, the company officially changed its name to Massan Group Joint Stock Company, which is used to this day As of 2021, Massan's charter capital is VND 11,747 billion.After undergoing many restructurings, now Massan Group Joint Stock Company directly owns and manages three subsidiaries:

MasanConsumerHoldings Co., Ltd., which deals in consumer goods such

as fish sauce, instant noodles, and water similar , Masan High-Tech Materials Company deals in natural resources and minerals and Masan Meatlife Joint Stock Company deals in animal feed and meat processing

To date, Massan Group is one of the private companies operating in the consumer goods and resource industries of Vietnam and one of the largestcompanies in the national economic sector In 2020, Massan ranked 10th among 500 Vietnamese enterprises according to VNR500 The group also has famous products that have been on the market for many years such as: Chinsu chili sauce, Chinsu fish sauce, White Su Tu Beer,

b) Masan’s fields of activity:

Masan Group Joint Stock Company (MSN) is a diversified business company with different industries Such as: livestock, feed, food, consumer goods, banks, retail supermarkets, natural resource exploitationand most recently (September 2021), through The Company Limited Sherpa, Masan has entered the telecommunications field

 Currently, Masan MeatLife JSC (MML- Upcom) mainly operates in the field of animal feed production and meat processing As Vietnam's largest player in the branded meat value chain, focusing on improving productivity Masan MeatLife has

successfully launched the cool meat brand “MEATDeli” according to processing technology that meets European standards

 Techcombank is one of the largest joint stock commercial banks in Vietnam Masan is the largest shareholder of this bank

Techcombank's development is growing stronger with total lending assets, mobilized capital, and number of customers distributed across the country

 Masan Consumer Holdings is one of the largest domestic FMCG companies in Vietnam The company manufactures and distributes awide range of food and beverage products, such as soy sauce, chili sauce, fish sauce, instant noodles, instant porridge, instant coffee, instant cereals, bottled beverages and beer The key brands of Masan Consumer Holdings include: Chin-su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Komi, Ponnie, Vinacafé, Wake-up, etc

 Masan High – Tech Materials is one of the largest private mineral processing and resource companies in the Vietnamese private sector.Currently operating the Nui Phao polymetallic mine in the North Nui Phao owns the world's largest tungsten mine and opens the industry's first new tungsten that has been put into operation in over

a decade

 WinCommerce is the largest nationwide modern grocery retailing platform in Vietnam with the Winmart supermarket chain and the Winmart+ supermarket chain

Supermarkets mainly serve the

daily consumption needs of

Vietnamese people such as

necessities (Winmart+), financial

services (Techcombank),

pharmaceuticals (Dr.Win), F&B

chains (Phuc Long), services

telecommunications service (Reddi)

2 The organizational structure of

Masan company:

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a) Management board:

 Dr Nguyen Dang Quang

(Chairman of the Board of Directions

of Masan Group)

- Dr Nguyen Dang Quang is one of the founders and plays an important role in leading Masan Group during its formation and development up to now

- As a visionary leader, he has turned Masan Group into one of the leading multi-industry groups in the private sector with more than 50 member companies

 Mr Danny Le

(General Director of Masan Group)

- Joined Masan Group since 2010 He is a key factor in building the

Group's development strategy, as well as directly organizing mergers and acquisitions (M&A) transactions, thereby accelerating the process expansion and development of Masan Group

- Mr Danny Le used to hold the position of financial advisor at Morgan

Stanley (New York)

- He is also a member of the Board of

Directors of 6 subsidiaries of Masan

Group

 Mr Truong Cao Thang

(Chairman & CEO of The CrownX)

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- He is a member of the Board of Directors and holds many important positions of other member companies such as General Director of Masan Consumer Corporation, General Director of VinCommerce.

- He has more than 20 years of experience in the FMCG industry

- He is an important factor in the successful transformation of many FMCG categories from commodity models to building strong Vietnamese brands, not only in the domestic market but also in foreign markets such as CHIN -SU, Nam Ngu, Omachi

 Mr Nguyen Quoc Trung

(General Director of Masan MEATLife

Group)

- He has more than 25 years of experience in agribusiness in multinational companies

- And is an expert in setting up and managing new projects with excellent performance

- He holds responsibility from strategy to execution/operation for the meat segment (pork and chicken), the farm system,

as well

as thebusiness support departments

 Mr Nguyen Thieu Nam

(Deputy General Director of Masan Group)

- He is the Deputy General Director in charge of External Relations and a member of the Board of Directors of Masan Group

- He has held senior executive roles at our subsidiaries and affiliates such

as Masan Consumer and Techcombank

- He is currently a member of the Board of Directors of 4 other companies under Masan Group

 Mr Craig Richar Bradshaw :

(General Director of Masan

High-Tech Materials)

- He joined Masan Group as General Director of Masan High-Tech Materials since 2011

- He has over 25 years of experience in the mining industry, spanning mining and processing, logistics, sales and marketing in Australia, Thailand and Lao PDR

- He also served as the Country GeneralManager of Toll in Thailand, Australia'slargest integrated logistics service provider

 Mr Michael Hung Nguyen

(Deputy General Director of Masan

Group)

- Joined Masan Group since 2009

- He leads the development of initiatives,strategic deals, operations in marketcapitalization and investor relations

- In particular, he focuses on initiatives toserve the initial public offering (IPO)process

- Prior to joining Masan Group, he helpedbuild J.P.'s Vietnam investment bankingenforcement team Morgan and works incapital markets M&A and privatetransactions with financial, real estateand consumer clients

b) Company structure:

3 Products and services of Masan Group:

 Convenience food group: Instant noodles, instant porridge, hot dogs with key products such as: Omachi, Kokomi, Kokomi porridge,…

 Group of condiments: sauces, soy sauce, chili sauce, seasoning with key products such as Chinsu fish sauce, Nam Ngu fish sauce, Chinsu soy sauce, Tam Thai Tu soy sauce, Chinsu chili sauce, etc.

 Beverage group: mineral water, bottled water, salted lemon mineral water with key products such as Vinh Hao mineral water, Quang Hanh mineral water, Quang Hanh mineral water - Faith with salted lemon flavor, Quang mineral water Hanh – Blizka with Salted Apricot, Wake up

247 coffee-flavored energy drink, etc

 Coffee group: instant coffee, energy drinks with key products such as Vinacafe Bien Hoa 3-in-1 instant coffee, Wake up Saigon coffee, Qualitycoffee, De Nam coffee, etc.

4 SWOT analysis of Masan company:

Strengths

 Great financial resources

 Board of Directors has

Weakness:

 Spend a lot of advertisingcosts and product

good capacity, vision and

brand building, quickly

leading the market share

 Wide network of

distribution channels

throughout the country

 The company organizes

many communication

activities, marketing new

products, and widely

promoting campaigns

 Owning the best product

research and development

center in Vietnam

 Modern production process

with high technology,

promoting and diversifying

products

 The company's products

are chosen by many

customers because they

are suitable for the needs

of Vietnamese people

development cost

 Most of the materials are imported from abroad at

a very high cost

 The company has not yethad time to change to adapt to the consumer market, there are still many difficulties in business activities

 Expansion too fast creates obstacles in the management and management in the traditional way

 Product quality is also questioned by a series ofnews

Opportunity:

 Ability to raise capital in

the financial market

 Demand for export

consumer goods is

increasing, the State's

policies encourage exports

to foreign markets

 Benefiting from export

preferential policies, the

ability to develop to other

countries in the world is

Challenge:

 As incomes increase, the standards of customers are getting higher and higher, which poses a great challenge for manufacturers to diversify product categories but still ensure quality, good health and competitive prices

more favorable than

before

 The State strengthens the

campaign "Vietnamese

people give priority to

using Vietnamese goods"

in the new situation

 Economic recovery and

rising incomes lead to a

great demand for

packaged food products

that still ensure nutrition

and food safety

 Price competition in both import and export markets

 Competitive pressure to attract labor resources when there are many potential competitors and big foreign brands in the market

 The exchange rate between Vietnam dong and other foreign currencies is on an upward trend along with inflation leading to higher import prices of production materials

II- FINANCIAL STATEMENT ANALYSIS

OF MASAN COMPANY:

1. Masan’s balance sheet:

MASAN (MSN) Balance Sheet for the Years Ended December 31, 2021 and 2022

A CURRENT ASSETS

43,630,176 47,674,624

I Cash and cash equivalents 22,304,822 13,853,100

II Short-term financial investments 332,753

3,659,175 III Short-term receivables

6,634,409 13,929,560

IV Inventories

12,813,391 14,445,345

V Other short-term assets 1,544,801

1,787,444

B NON-CURRENT ASSETS

I Long-term Receivable 1,878,478 2,113,762

II Fixed assets

42,653,939 43,535,355III Investment properties 810,057

729,763

IV Long-term assets in progress

2,021,827

3,324,848

V Long-term financial investments

24,538,803 31,333,885

VI Goodwill

10,560,191 12,630,578

TOTAL ASSETS (270=100+200) 126,093,471

141,342,815

LIABILITIES

83,756,819

104,706,076

C Short term

83,756,819

104,706,076

I Current liabilities

34,547,836 65,320,877

II Long-term liabilities

49,208,983 39,385,199

D OWNER'S EQUITY

42,336,652 36,636,739

I Owner's equity

42,336,652 36,636,739

II Other resources and funds

TOTAL RESOURCES (440=300+400) 126,093,471

141,342,815

2. Masan’s income statement:

MASAN (MSN) Income Statement for the Years Ended December 31, 2021 and

16 Current corporate income

17 Deferred income tax

The main goal of financial management is to maximize shareholder wealth over the long term, not to maximize accounting measures Financial statement analysis shows how

managers use reports to improve performance

The vertical and horizontal analysis of balance sheet of Masan Joint Stock Company are presented in part 2 and 3

Identify whether the company is doing well, has potential or not, Revenue in 2022 is lower than in 2022, Cost of goods sold in 2022 is lower than in 2021 Operating profit in 2022 is higher The income statement is one of the important reports of an enterprise, capable of generating revenue and profitability that the business model of the enterprise is developing Thereby, it also helps investors have a view of the business performance of the business

3. Financial statement analysis of Masan:

3.1 Vertical and horizontal analysis:

3.1.1 Balance sheet:

a Asset section:

 Vertical analysis:

In terms of assets, in general, long-term assets account for a higher proportion with the years

2021, 2022 at 65.40%, 66.27% respectively while short-term assets are 34.60%, 33.73 % From the above data, it shows that long-term assets have an increasing proportion over the years, but short-term assets, on the contrary, decrease gradually over the years Looking from left to right, the balance sheet can see that from 2021, 2022 short-term assets decrease Long-term assets also have a similar pattern, but with a difference of 1 inch, in 2022, they will increase more than in 2021 Those are the reasons for the increase in total assets The above figures show that investing more in long-term assets for production and business

 Horizontal analysis:

- Current assets:

Cash and cash equivalents have a percentage fluctuating from 35% to 34% within the two year, in which the year of 2021 and 2022 In 2022 there was a percentage change of 9% and avalue change of 4,044,448 of cash, equivalent to 47,674,624 million VND in comparison with 2021 is an amount of 43,630,176 million VND

For accounts receivable, there is a sudden increase from 2022 to 2021 from 5% to 10% Currently, accounts receivable still tend to increase strongly

Inventories did not change significantly In 2021 and 2022, the rate will remain at 10% Inventories in 2021 are 12,813,391 and increase to 14,445,345 in 2022

- Non – current assets:

In non-current assets section, long-term investments always seize a remarkable proportion with around 19% in 2021 and 22% in 2022 Fixed

assets plummeted from 34% to 31% in the last two years In 2021 fixed assets from 42,653,939 to 43,535,355 in 2022 ( 2% ).

3.1.2 Income statement: