VINCOM Joint Stock Company formerly JSC Vietnam General Commercial, whichwas formally established on 03.05.2002 in Hanoi, VINCOM major activities in thefield of investment, construction,
Trang 1PHÂN TÍCH TÍNH HÌNH TÀI CHÍNH CÔNG TY VINCOM THÔNG QUA PHÂN TÍCH BÁO CÁO TÀI CHÍNH TỪ ĐÓ ĐƯA RA QUYẾT ĐỊNH ĐẦU TƯ – BT TÀI
CHÍNH DOANH NGHIỆP
I Opening
Currently, under state policy the socialization of industry in society The attraction ofinvestment capital not only from the budget, capital of the owners that are diversified funds,create conditions has enough capital to businesses operate, has created conditions for all subjectsinvolved in social investment, generate income from the money identify sources of each family,organizations and individuals in social
This is the right policy, full of practical to try to market the business of an effort toVietnamese and Vietnams will become market economies at the end of the second decade of the21st century In this context, the activities of stock market investment and the participation oforganizations and individuals have no equity in the enterprise is an activity of paramountpractical However, to participate in investment performance, avoid the loss of his little capital,the organizations and individuals intending to participate in investing in the stock market shouldassess the situation of the business activities they want to join the investment This can only beuseful when analyzing the financial statements of enterprises scientifically and properly Grouptwo select VINCOM companies for research, analysis in order to make the decision to invest inthis business
II Introduction VINCOM Company
2.1 History and development company
Trang 2VINCOM Joint Stock Company formerly JSC Vietnam General Commercial, whichwas formally established on 03.05.2002 in Hanoi, VINCOM major activities in thefield of investment, construction, business services Real Estate, Retail and theowner of the scale projects throughout the city in the country such as CombinationVINCOM Center Hanoi, VINCOM Center City, Royal City, Times City, VINCOMVillage,
The milestones of VINCOM
05/2002: Establishment of Joint Stock Company Vietnam General Commercial with
initial capital of 196 billion, the first project the company is to build and manage retailpodium - Services - Office for rent at 191 Ba Trieu Street, Hai Ba Trung, Hanoi (HanoiVincom Center);
11/2004: VINCOM Center Hanoi formally put into operation, contributing to building
a modern shopping centre
08/2009: With the events leading VINCOM Trade Center II at in Hanoi, VINCOM
Center confirmed Hanoi is one of the largest commercial centers of Vietnam, the
"paradise of Vietnam's procurement”
Quarterly 4/2009: Complete the construction and handover of apartments in Hanoi
apartments VIMCOM Center; the first Vietnam enterprises successfully issued U.S $
100 million convertible bonds listed on the International Securities ExchangeSingapore Exchange
04/2010: Of office and commercial center of VINCOM Center B TP Ho Chi Minh
City started its activities;
10/2010: Complete VINCOM Financial Tower building in District 1, HCMC Ho Chi
Minh City;
02/2011: penning VINCOM Real Estate Trading Center - Real estate trading floors
new international standards at Level 4, Hanoi VINCOM Center, 191 Ba Trieu, Hanoiofficially opened VINCOM Real Estate Trading Center;
Trang 303/2011: Disclosure form chains and large commercial center in Vietnam-class brand:
VINCOM Center and Mega Mall, built in major cities throughout Vietnam;
6/2011: U.S $ 100 million convertible bonds of international distribution company in
2009 have been converted into shares or settle;
10/2011: Merger announced on Vinpearl JSC JSC Vincom;
11/2011:
- Handover villa Vincom Village (partly completed) for investors;
- Hand over the Long Bien Vincom Center for tenants
12/2011:
- Vincom Center opened in Hanoi, Long Bien - Vincom Village;
- Transfer the whole head office on Vincom Village - Long Bien - Hanoi
Scope of business, characteristics of service providers:
2 Real Estate Business Exploit the business center - offices and apartments for rent
with utility most advanced ideas of modern design, luxury and top quality service inthe heart of the city ; business hotel; recreation services and recreation investmentconsulting, advertising and other services related to advertising organize fairs,exhibitions; keeping service cars, car machines, bicycles, building, business golfcourses and other services related to golf courses, building, business parks and othertourism related services to the tourism, business park trees blue, water parks, farmparks recreation service real estate brokers, real estate valuation, real estatetransactions, real estate consultancy, real estate auctions, real estate advertising, realestate management
3 Characteristics of production and organizational structure:
Because business in various fields should be the organization of production, thecompany's services are open and flexible With its headquarters, the staff and senior
Trang 4executives and staff assisting in Hanoi, Vincom also organized branch, unitmanagement and administration tasks in each project area from.
3.1 The solvency ratio
3.1.1 (Current Ratio)
Meaning: This is the only measure of ability to meet corporate short-term financialobligations In general, the factor is considered at best 23 This index refers to the lowerbusiness will be difficult for the implementation of their obligations but an indicator ofcurrent payments are too high is not always a good sign, because it shows their assets tiedcareer in "liquid assets" so much and so the efficiency of the business assets is not high
3.1.2 Formula: Current ratio = current TSLD / Current liabilities
The quick ratio measures the liquidity higher Only assets with high liquidity wereincluded in the calculations Inventories and other current assets should be removed becausethe money to pay debts, our liquidity is very low.The Quick ratio = (cash + trade + securities to receivables) / current liabilities
3.1.3 (Quick Ratio)
The quick ratio measures the liquidity higher Only assets with high liquidity wereincluded in the calculations Inventories and other current assets should be removed because themoney to pay debts, our liquidity is very low
The Quick ratio = (cash + trade + securities to receivables) / current liabilities
3.1.4 (Instant Payment Index) Index measures how much cash and securities to
trading of the business to meet short-term debt obligations In other words it is said just ashort-term debt contract, how many cash and securities to ensure payment of business?
Cash index = (cash + securities to trade) / current liabilities
Trang 53.2 The ratio of activity
3.2.1 The cash flow from operations of
Only the cash flow from operations: Accounts receivable less and limit cycle inventoryinformation can make the payment of current indicators and fast payment does not reallymean expectation of the use of financial statements So cash flow activity indicator at thistime is a better indication of the company's ability to perform short-term financialobligations with cash from operations
Only the operating cash flow = operating cash flow / current liabilities
The number of spins in receivables
This is an indicator of the effectiveness of credit policies that apply to businesses withcustomers, Only the higher revs will show enterprise customers as quickly repay Butcompared to the peers that this index is too high, there may be businesses will losecustomers because the customers will switch to consuming products of competitors providetime longer credit Our business will reduce sales collapsed When comparing this indexover the years, found that the decline is likely that businesses are struggling with debtcollection from customers and may also be a sign that sales have exceeded
Accounts receivable turnover = net annual sales / average accounts receivable
Among them: the average accounts receivable = (receivables remaining in the report of lastyear and this year's accounts receivable) / 2 The average number of days accounts receivableturnover: Similar to past recording of accounts receivable, there is this indicator tells us theaverage number of days that money is collected from business customers average number ofdays = 365 / receivables turnover
The index cycle inventory
This index represents the ability to inventory management how effective Only revs higherinventory shows rapid sales and business inventory accumulation is not much in thebusiness That means businesses will be less risky than if seen in the financial statements,inventory items are valued down through the years However this index too high is not good
as this means that stocks in the warehouse is not much, if market demand increases verysuddenly lost the ability to enterprise customers and competitors are winning market share
Trang 6In addition, reserves of raw materials inputs for production are not enough lines can causedisruption
Inventory turnover = cost of goods sold / average inventory
= Average inventory (inventory in previous annual reports this year + inventory) / 2.Theaverage number days of inventory turnover
Similar to the inventory cycle have interested indices days
Average number of days of inventory turnover = 365 / inventory turnover
The number of spins in accounts payable
The index for used business credit policies of suppliers like The revs are too low toreceivables may well not affect the credit rating of enterprises
4 Payables Turnover = Annual sales purchase / pay on average which annual sales
purchase = cost of goods sold + ending inventory - beginning inventory = averagepay (paid during previous reporting year to pay this year +) / 2
5 The average number of days accounts payable cycle:
Average number of days accounts payable turnover = 365 / Payables turnover
5.1 Leverage ratio
debt-capital ratio (DER)
(Total debt / equity) = DER
As indicators of financial scale of the company, showing the financial strength of thebusiness
The ratio of profit on total assets (ROA)
Trang 7As an indication of correlation between the profitability of a company compared to its assets.ROA will tell us that the company's efficiency in using assets for profitRecipe:
ROA = (Net income / total assets)
5.2 The ratio of market valueEarnings per share (EPS)
Concept: This is the profit that the company allocated per common share is beingcirculated in the market
EPS is used as an indication of the ability of business profits, calculated by the formula:EPS = Net income - preferred stock dividends / average amount of shares in circulation
5.3 Coefficient on price earnings (P / E)
Concept: As one of the important indicators in the analysis of securities investment decisions
of investors Income from shares will have a decisive effect on the price of the stock market.The formula:
EPS = (Market price per share / earnings per share)
Table 1: Balance Sheet summary
Trang 8total debt 27,260,458 16,593,209 10,667,249
Interests of minority shareholders 1,750,939 2,710,989 -960,050
Table 2: Finance ratio
13 Profit before tax / Total assets (ROA) 3% 12% - 9%
Trang 9Table 3: Table growth rate of financial
No The rate of financial growth (over the same period) Year 2011 Year 2010
Evaluation:
The coefficients on profitability:
The ratio of gross profit on assets (ROA): ROA of companies decreased from 12% to 3%.The main reason is profit before tax decreased from 3,143,055 in 2010 down to 1,471,471
in 2011, while total assets, rose high in 2010 to 35,512,635 from 26,146,849 in 2011 Thisshows the performance using assets to generate profits of the company is not good,profitable growth while keeping a modest distance over the rate of company assets
o profitability ratio of equity (ROE): Just like ROA, ROE of the company plummeted 39%,from 55% in 2010 only reached 16% in 2011 This decrease is due to the decline of theprofit after tax of the company from 2,306,899 in 2010 only 821.286 in 2011 This declinepartly due to business performance of enterprises in 2011 is not good, partly because thecost of business increases Therefore, even though equity decreased slightly, the company'sROE declined dramatically
o Conclusion: The above criteria reflect the company during the period 2010 - 2011production is not good business, financial advantage is not effective
Trang 10 The coefficients of the solvency liabilities:
Quick debt ratio decreased from 211% in 2010 to 50% in 2011 This rate is also known
as a "litmus test acid" is designed to measure the relationship between the propertiesknown as flexible (i.e part of the property can be quickly converted into cash) with short-term debt This shows that the financial capacity of enterprises is very limited, and riskdelays in payment of debts in the short term
o Debt ratio is reduced from 254% in 2010 down to 93% in 2011 This rate is designed tomeasure the relationship or "balance" between current assets (primarily cash, securitiessold in the market, receivables and cash reserves) to liabilities (primarily accounts payable,vouchers payable and Current liabilities coming due to pay part of the long-term debt), themost experience that this ratio should be at least 2/1 for most businesses, this coefficientfor the solvency of the company debts This coefficient becomes larger, the solvency of thecompany as possible Ratio is less than the allowable limit for the lack of liquidity, willaffect the company's debt repayment plan The decrease in the current rate paid by theenterprise to see the financial difficulties that businesses are facing
o Conclusion: Thus, the ability to pay existing debt of the company during the period 2010
-2011 difficult: Current liabilities increased faster than current assets, accounts receivableand inventory tends to increase and proportion of current assets while reducing long-termdebt ratio, cash ratio and cash equivalents decreased
o The activity coefficients:
Score asset turnover down 11% from 19% in 2010 to 8% in 2011 The reason salesdropped from 3,872,980 in 2010 down to 2,313,740, while assets rose sharply in 2010from 26,146,849 to 35,512,635 in 2011 This suggests that use of the property company'seffectiveness and scale of fixed assets not commensurate with revenue, the company hasnot generated enough revenue than property
Score revolving inventory turns decreased from 81% to 23% A closer analysis wesee cost of goods sold increased from 927.026 to 1,306,237 in 2011 (equivalent to41%) but the value of inventories increased from 2,264,170 in 2010 to 9,282,403 in
2011 (equivalent to 310%) proved reserves companies are more long-terminventories, commodity structure may lead to reasonable buried investments is
Trang 11ineffective In this case, the company should change its policy to sell, do thepromotion to be able to quickly sell the inventory in order to collect money for thecompany and reduce inventory costs.
Score asset turnover fell 11% from 19% in 2010 to 8% in 2011 Root cause is due toincrease in total assets but the plans are not used properly
o Conclusion: Thus, the asset management company in the period 2010 - 2011 is noteffective So companies need to change sales policies to reduce the debts, conductingcollection manager, quickly clearing inventory long shot and no longer valid term, increaseasset utilization
o The debt ratio:
With a debt ratio of the company's capital accounts increased 14% from 63% to77% in 2010 to 2011, the year the company's activities in the period 2010-2011were difficult
o Company is implementing restructuring assets and debt structure by reducing theproportion of fixed assets and long-term investments and increasing the proportion ofliquid assets in total assets, while increasing the proportion of debt banks, reducing theproportion of long-term debt in total debt, but in general the absolute value of total assets,total liabilities and capital over the years did not change much
(Attached - The financial analytical skills)
IV The investment decision
4.1 Earnings per share (EPS)
This is the profit that the company allocated per common share is being circulated in themarket
EPS is used as an indication of the ability of business profits, calculated by the formula:EPS = Net income - preferred stock dividends / average amount of shares in circulation.Year 2011 Year 2010 Different
2.238 6.837 - 4.599 (-205%)
Trang 124.2 Analysis of basic indicators affecting Vote
4.2.1 Cash flow at maturity
Final cash flow concepts used to express the business performance of enterprises.Positive cash flow at maturity -> business effectively
Negative cash flow at maturity ->inefficient business
1.231.728.589.840 1.515.008.976.492 - 283.280.386.652 (-23%)
Business in 2011 is less effective than in 2010
4.2.2 Profitability on each shareholder's capital (ROE)
Likely reflect a profit on every dollar of capital to shareholders in the company.Profitability on each of the higher capital enterprise to be effective, the loyalty of afirm's shareholders
The formula:
ROE= (Net Profit / Equity)*100%
Year 2011 Year 2010 Different
12.1% 25,5% -13,4%
ROE(2011)=1073560198764/3911498930000*100=27,1
OE(2010)=2432014997377/3726252370000*100=65,3
Different: -38,2 (-141%)
Profitability of Vote down
4.2.3 The stability of profits
EBIT:
1.471.471.446.573 3.143.054.802.940 - 1.671.583.356.367 (-114%)
Net profit in 2011 decreased compared to 2010
Profit from operations before working capital changes
Trang 13Year 2011 Year 2010 Different656.866.978.519 2.901.404.401.170 -2.244.537.422.651 (-342%)
Reduction
4.2.4 The degree of simplification of the business model
Some Local company:
1 Investment Corporation and Trade maiPFV
2 Investment Corporation and Sai Dong Urban Development
3 Property Corporation Xavinco
4 Investment Corporation Real Estate Development and the Royal City
5 Real Estate Co., Ltd Viettronics
6 Investment Corporation Real Estate Development and West Lake
7 Corporation for Urban Development Nam Ha Noi
8 Corporation for Investment of Hai Phong trienBat estate
9 Vincom Securities Corporation
10 Tourism Corporation of Vietnam in Ho Chi Minh City
11 Vinpearl Hoi Corporation
12 Development Corporation Green City
13 Investment Corporation for Development and Ecology
14 Concrete Corporation for Foreign Trade
15 Investment Corporation Real Estate Business Thang Long
4.2.5 The management board of the company.
Group company
Regional company Regional company
Trang 14• Investment strategy wise and healthy Vincom that the Company can compete effectively with foreign giants in large commercial projects
• Vincom provide the real estate market much more diverse products by expanding into
residential intermediate segment
• Develop and balanced portfolio in apartment and commercial center, find and buy new
- The capital of big business
- The VIC project's current projects are a prime location
Trang 15- The global financial crisis caused demand for property in the immediatefuture is more mutant
- The huge financial investments in the financial markets remain difficult
- In this year may be the real estate segment has average value and cheap tothe throne, but this is not the advantage of VIC
- Revenues and profits of VIC in 2010 and 2011 came from leasing commercial, officetowers at the VCT along with revenue from the sale of the apartment building next project
is HH1 stability
- With flat field, the investor has the right to sell apartments before completion, andaccording to past experience, capable of VIC will sell between 30% to 35% from theapartment project
• In the 2 years 2010 and 2011, besides the income from VCT and HH1, Hai PhongVINCOM projects and current projects VINCOM Ho Chi Minh City also provide revenueand profit for the VIC
In terms of cost
Trang 16- The cost of leasing commercial arrays, offices, parking lots are allocatedeach year accounting and planning, cost accounting apartments are plannedwith revenue planning estimates from this array
- We assume the cost of sales and business management costs continue to rise
in 2012 and 2013 due to the advertising, marketing to boost sales with thestage of commissioning and managing buildings in the current project, butthe following year these costs will be reduced
- Assume the cost of using loans VIC in the coming years continues to be12.68%
Dividend discount model
- When investors buy a stock, they expect to get two types of cash flow: cashdividends during the time they hold shares and cash flow equal to the pricewhen they decide to sell stocks But the price of shares was also predictedbased on stock dividends in the future brings Therefore, the intrinsic value
of stock is the present value of all stock dividends to bring in unlimited time
Or in other words, we can assume that we hold stocks and dividendsindefinitely The present value of all dividends this is the intrinsic value ofthe stock
- Dividend growth model one stage - Gordon growth model
This model applies to shares in the period of stable growth with a constantdividend and stable Rather than the current value of each line and dividendscombined, Myrin Professor Gordon has developed formulas for the intrinsicvalue of simplicity as follows:
- Intrinsic value of the dividend = Dividend expected next year / (the expectedreturn rate - growth rate of dividends)
- When the predicted growth rate, we must note that, not only alone dividendgrowth rate, the financial indicators that other important, most importantly,