PHÂN TÍCH tài CHÍNH DOANH NGHIỆP final 2

Gross profit margin 15 / 1*100% - The total assets turnover also represents the capacity of business management.. The higher the asset turnover ratio, thebetter the company is performi

ĐẠI HỌC ĐÀ NẴNG TRƯỜNG ĐẠI HỌC KINH TẾ

M C L C ỤC LỤC ỤC LỤC

I OVERVIEW 3

1 The urgency of the topic 3

2 Objective of the topic 4

3 Method 4

II INTRODUCTION OF AN PHAT PLASTIC & GREEN ENVIRONMENT 4

1 Establishment Period 5

2 The Stage Of Transition 5

3 Major Growth 5

4 Vision 6

III. ANALYZE IMPACT FACTORS TO THE COMPANY’S OPERATION 6

1 External factors: 6

2 Internal factors: 8

IV FINANCIAL STRUCTURE ANALYSIS 9

1 Asset structure analysis: 9

2 Reroure structure analysis 10

3 Financial balance analysis 11

V OPERATING EFFICIENCY ANALYSIS 11

1 Asset turnover: 12

2 Fixed assets turnover: 13

3 Current asset turover 13

4 Inventory turnover 13

5 Average days of inventory turnover 14

6 Account receivable turnover 15

7 Gross profit margin: 15

8 Net profit margin: 16

9 Return on Earning before interest and tax ( RE ) 16

10 Return on Assets (ROA) 16

11 ROE 17

13 Earning Per Share (EPS) 17

14 Price Earning (P/E) 18

15 Book value (BV) 18

VI Risk analysis: 18

1 Current ratio 18

2 Quick ratio: 19

3 Cash ratio: 19

4 Operating Cash Flow to Current Liabilities: 20

5 Account receivable Turnover: 21

6 Account payables Turnover: 21

7 Debt ratios: 22

8 Interest coverage ratio 23

9 Altman’s Z-score model: 24

10 Degree of operating leverage: 24

11 Degree of financial leverage 25

DUPOND 25

VII BUSINESS VALUATION - DIVIDENDS-BASED VALUATION 28

1 Measuring dividends 28

2 Determining the forecast horizon 28

3 Projecting and valuing continuing dividends 29

FINANCIAL STATEMENT 30

1 Balance Sheet 30

2 Income Statement 37

3 Cash Flow 38

1 The urgency of the topic

- Nowadays, with developing economic and international economic integrate , anybusiness that invests in or produces, also expects the capital which they spend willbring the highest return and maximize the firm value In addition to the availableadvantages, the financial strength of the enterprise is one of the most importantfactor to bring business to success Therefore, financial analysis is the bestestimate of what has been done, what is expected to happen, on that basis, proposemeasures to take full advantage of the strengths and overcome the weakness

- Base on this, it will be provided information support to managers, investors,leaders of current situation in their business and it help them make decision fornext step –what to do- for the operation of their business On the other hand, thefinancial situation is also a concern of many subjects other than business owners,such as administrators, investors, financiers; Each object is interested in corporatefinance on different angles to serve their field of management and investment.Because of this, analyzing corporate financial situation is an indispensable part ofcorporate finance management, it has practical significance and is a long-termstrategy

2 Objective of the topic

Throughout the this report, we focus on clarifying the following objectives such as:

- Revise the basis of the analysis of the financial situation of the business

- Analyzing, clarifying the actual situation of financial situation at An PhatCorporation

- Make predictions about the operational status as well as the company'sprospects for the future

3 Method

In this report, we use mainly balance statement and income statement to analyzethe company's financial statements

II INTRODUCTION OF AN PHAT PLASTIC & GREEN ENVIRONMENT

- AN PHAT PLASTIC & GREEN ENVIRONMENT was originallyestablished from an extremely small enterprise with two members Theauthorized capital at that time was 500 millions VND along with the name

"Anh Hai Duy Limited Company" in September 2002 Just after 16 yearslater, our firm had become a public company listed on stock exchangeHOSE with authorized capital over 1711 billions VND Total revenue in

2018 reached approximately 6000 billions VND (260 million USD)

- Being an enterprise with a wealth of experience in producing thin plasticbag, our firm has gained a strong position in plastic business scale as well

as built close relationship with a lot of well-known corporations andcompanies all over the world such as: EU, Japan, USA, UAE, Australia,etc Our products have all been highly appreciated by both domestic andinternational customers.

1 Establishment Period

- In September 2002, An Phat plastic was founded with the first name "Anh Hai Duy Ltd." and authorized capital was just 500 millions VND

- In April 2004, "Anh Hai Duy" expanded the first step when hiring

10.000m2 land at Nam Sach Industrial Zone to invest in Plastic Bag Factory In June 2005, the next factory was established with area 19,967 m2 at An Dong Industrial Zone

- And till March 2007, company's scale pass over the range of a small private firm, "Anh Hai Duy" was renamed An Phat Plastic and Green Environment JSC with authorized capital 30 billions VND Beginning Period

- In March 2007, "Anh Hai Duy",expanded on larger scale, was renamed AnPhat Plastic & Green Environment with authorized capital 30 billions VND

- In April 2007, our firm raised authorized capital to 60 billions and 66 billions VND in December 2007 because there were more shareholders joining business capital, including Beira Investment Limited Company

2 The Stage Of Transition

- Being supplied new source of capital, in September 2009, we build

Factory 3 with area 20,064 m2, strategic products was bio degradable plastic bags and high-grade roll bags

- In November 2009, our firm renamed "An Phat Plastic and Green

Environment JSC to suit the target and orientation "Produce green, steady,Protect environment"

- In April 2010, our firm continued increasing authorized capital to 99 billions VND because of releasing stocks to current shareholders And in July 2010, the name AAA officially appeared which characterized for Stock Code listed on the Stock Exchange

3 Major Growth

- In 2017, along with pressing Factory 6 into operating with 70% capacity, and Factory 7 started running, An Phat Plastic marked a significant milestone: the export production reached 8000 tons a month for the first time, becoming the leading plastic bag manufacturer

- 2018 An Phat Plastic are honored to receive TQCSI International Client of the Year Award recognizing an excellent commitment to high quality packaging, environmental sustainability, safety of food packaging and continual improvement.

III ANALYZE IMPACT FACTORS TO THE COMPANY’S OPERATION

1 External factors:

A Economic situation:

- In 2015, the economic growth of Vietnam is 6.2% In 2016, the economic growth rate was 6.21% and 6.8% beyond their years in 2017 We can see the growth in 2017 reached the highest in the past three years Economic growth reached positive results, in particular increasing every year The year 2017, Vietnam has priority to curb inflation and the inflation rate only3.53%, can speak in this year our country achieved the dual victory A look back at the year 2015 and 2016, the economy has slowed but the 2017have advanced significantly due to import and export, attract foreign investment, agriculture and established new business, The consumer price index (CPI) in 2017 rose 3.53% compared to the year 2016

B The political situation of the law:

- In nearly 3 years, the situation of the world in General and Vietnam in particular country many complications, conflict and natural disasters happen in many places The world economic recovery slower than forecast Many industrialized countries develop strong adjustment policies

to protect domestic production Fierce competition between the big countries in the region and complications on the sea, the East China Sea Status on adverse effects to the socio-economic development of our country

- In water, the limitations inherent shortcomings of the economy along with the left side of the policy in support of growth has made inflation, serious impacts to the macro-economic stability The competitiveness of the

economy still low in terms of integration deeper international Social security needs, social welfare, the improvement of the living environment and ensure the high security defense while resources remain limited.

C Social-cultural situation:

- Customs, lifestyle:

 The concept of living today have really changed a lot, along with increasingly improved lifestyle is increasingly living higher than demand People are more concerned to food safety standards, the level of hygiene, quality of products, particularly food Vietnam consumer will be more interested to health, to the ingredients and the labels such as "low fat" or "low cholestrol levels

 Travel preferences of residents is also a significant omen for candy makers The prolonged increase in tourism which is increasing the demand for processed foods

in General and in particular confectionary

- The population of labour:

 Vietnam is the 13th most populous country in the world with 90 million people and young population structure, in which the population aged under 30 accounted for 51.8%, this is the age that demands the highest candy In addition to the

income per capita of Vietnam are improving is also an element of positive support for the food industry

D Science and Technology:

- In Vietnam, the State technology but still backward but still on the

momentum of innovation The equipment also imported foreign product prices high and uneven product quality should reduce the competitive product page

E Natural Environment:

- Vietnam is a country located at the southeast peninsula of Indochina

Vietnam border bordered by many countries such as Laos, Cambodia, Thailand, China and South China Sea Thanks to the favorable position of Vietnam, Kinh Do Company easily trade with partners as well as all over the country in the region and around the world by both waterway and airway

- Besides, due to the influence of monsoon, more complex topography,

climate Vietnam has a big difference between the time of year and between regions, making it difficult for the research and industrial products to make the product

- Confectionery product is high in sugar powder, vegetable oil, cause dry

foods hot when in use So naturally the weather conditions also influence the consumption of products Product demand increased use in the cold season, especially during the cold season, there are many holidays, specificstart from Autumn to Tet

 Mountain market area where there are very low income, moderate quality

requirements, the code samples do not need pretty heavy on volume, low price

- With the customer as the intermediary companies, wholesale and retail

dealers are important clients of the company, the majority of consumption

of products of the company In addition, this delivery system also includes the supermarket channel as co-op Mart, Big C, Metro, along with the Capital chain store Bakery The distribution network is one of the most important factors in the food industry Thanks to its extensive network, customers can have access to the products of the capital the most convenient way

B The competition

- Between the companies producing fertilizers on increasing fertilizer

market, the discount wholesale paintings soup easy to consume the product Many foreign fertilizers massively importing about making business reduced internal competitiveness, domestic tax policy will not keep up, have affected the production of fertilizer business in General

- In Vietnam market, nowadays, it’s around 2000 firms in this industry But

An Phat company still can stand on this market because their objective is produce products which friendly with environment and protect human’s health with high quanlity And going to official in Europe market, Japan, Korea,…

IV FINANCIAL STRUCTURE ANALYSIS

1 Asset structure analysis:

ASSET STRUCTURE

Proportion Cash & Cash Equivalents 13.21 11.14 8.57

Proportion Short-term Financial

Proportion Unfinished long-term

Proportion Long-term Financial

Proportion Other Non-current Assets 0.73 0.78 0.84

- Analysis: In general, fixed assets accounted for the highest proportion

in total assets over the years, but there was a sharp decrease from

2017 to 2018 due to adjustment:

 Increased Short-term Financial Investment from 1.09% to 9.57% ( from 2017 to2018)

 Increased Account Receivable Short-term 6.78% from 2016 to 2018

 Increased Unfinished long-term assets 13.9% from 2017 to 2018

2 Reroure structure analysis

RESOURCE STRUCTURE

10 Short - term recource ratio ( (1)/(5)*100) 37.05 43.50 42.58

11 Long- term recource ratio ( (9)/(5)*100%) 62.95 56.50 57.42

12 Equity/long-term resource ratio (4)/(9)*100% 49.28 62.85 68.94

- Analysis:

 Businesses with low autonomy (equty ratio < liabilities ratio)

 Autonomy tends to increase year by year beause businesses increase Owner'sequity

 Businesses use long-term resources more than short-term resousces (Long- termrecource ratio > Short - term recource ratio) Stability decreases becausebusinesses increase short-term liabilities more than long-term liabilities

 Yearly, businesses mobilize more short-term liabilities, long-term liabilitiesand Owner's equity

3 Financial balance analysis

Item 31/12/2016 31/12/2018 31/12/2018

3 Net working capital =(1)-(2) 221361 151913 783266

 Net working capital has positive and reduced over the years from 2016 to 2017 but

increased over the years from 2017 to 2018 showed that long-term financial balance of company war better and safer The business operation of the business isnot interrupted and the ability to pay high

 From 2016 to 2018, the value of Net fund < 0 => The net working capital

requirement of company bigger than net working capital So, company has toborrow money in the short-term to meet the needs of fundin The financialinblance in the short-term in this case

V OPERATING EFFICIENCY ANALYSIS

8 Total asset turnover ( (1)/(2) ) 0,85199034 1,06342532 1,323644539

9 Fixed asset turnover( (1)/(3) ) 2,07046518 2,179895092 3,562049524

10 Current asset turnover (1)/(4) 1,762094224 2,322595005 2,613000861

11 Inventory turnover ( (5)/(6) ) 5,804623498 7,419725243 10,30478201

12 Average days of inventory turnover

13 Account receiable turnover ( (1)*1,1/(7)

14 Average days of account receiable

19 Gross profit margin ((15) / (1)*100% )

- The total assets turnover also represents the capacity of business

management How many dong of net sales and revenue can be generatedusing one dong of invested assets The higher the asset turnover ratio, thebetter the company is performing

- For An Phat company, we can be seen the average asset turnover is 1.0786

loops, which means that for every dong in asset, An Phat generated 1.0786

in sales for average in these 3 years And this number is increased througheach year by 0.473 from 2016 to 2018 So it means that the companycontinue to use assets, limit purchases of inventory and increasing salewithout purchasing new assets

2 Fixed assets turnover:

- The fixed asset turnover ratio is an efficiency ratio that measures a

companies return on their investment in property, plant, and equipment by comparing net sales with fixed assets In other words, it calculates how efficiently a company is a producing sales with its machines and

equipment

- For An Phat company, from the result above The fixed assets turnover

slightly increase through each year Throughout this, we know that if the

company invest $1 then they will get back $2.603 on return The fixed assets turnover is increasing each year from 2016 to 2018, so it indicative

of greater efficiency in managing fixed-asset investments, but there is not

an exact number or range that dictates whether a company has been efficient at generating revenue from such investments

3 Current asset turover

- Indicators of short-term asset turnover represent the speed of short-term

asset turnover of enterprises, the magnitude of this indicator is high, reflecting the rapid capital turnover of enterprises

- For An Phat company, we can see that the current assets turnover is

increased through each year by 0.815 from 2016 to 2018 This indicates a slight sharply in An Phat ability of generating sales through its current assets such as cash, inventory, accounts receivable,…One of the causes that influenced this increase was the account receivable

4 Inventory turnover

- Inventory turnover shows how well the company sells its goods If sales or

down or the economy is under-performing, it may show up as a lower inventory turnover ratio Usually, a higher inventory turnover ratio is preferred, as it indicates that more sales are being generated given a certainamount of inventory

- Sometimes a very high inventory ratio could result in lost sales, as there is

not enough inventory to meet demand

- This ratio is important because total turnover depends on two maincomponents of performance

are purchased during the year, the company will have to sell greateramounts of inventory to improve its turnover If the company can’t sellthese greater amounts of inventory, it will incur storage costs and otherholding costs

 The second component is sales Sales have to match inventorypurchases otherwise the inventory will not turn effectively

- As the data above, we can see that the inventory turnover of An Phatcompany are increasing through each year and that is a good sign From

2016 to 2018, it’s nearly increase double from 5.8 to 10.3 times So in

2018, An Phat company has sold out and replaced inventory for over 10times So it meant that inventory management of An Phat company isdoing good and having good policy for this

5 Average days of inventory turnover

- Inventory Turnover (Days) (Days Inventory Outstanding) – an activity

ratio measuring the efficiency of the company's inventories management

It indicates how many days the firm averagely needs to turn its inventory into sales The ratio can be computed by multiplying the company's average inventories by the number of days in the year, and dividing the result by the cost of goods sold

- This calculation also shows the liquidity of inventory Shorter days

inventory outstanding means the company can convert its inventory into cash sooner In the other words, the inventory is extremely liquid

- Look at the table above, we can see that the inventories turnover are

decreased each year from 2016 to 2018 It’s strongly decreased from 2016

to 2017 by 27,46 So it means that the days of inventory turnover is decreased and this is the reason why inventory turnover is increased So it’s a good sign And from both of this (days of inventory turnover and inventory turnover), it proves that the inventory management of company

is doing good job Management always wants to make sure its inventory moves as fast as possible to minimize these costs and to increase cash flows Because the longer the inventory sits on the shelves, the longer the company’s cash can’t bke used for other operations

6 Account receivable turnover

- Since the receivables turnover ratio measures a business’ ability to

efficiently collect its receivables, it only makes sense that a higher ratio would be more favorable Higher ratios mean that companies are

collecting their receivables more frequently throughout the year Higher efficiency is favorable from a cash flow standpoint as well If a company

can collect cash from customers sooner, it will be able to use that cash to pay bills and other obligations sooner.

- Accounts receivable turnover also is and indication of the quality of credit

sales and receivables A company with a higher ratio shows that credit sales are more likely to be collected than a company with a lower ratio

- For An Phat, the account receivable is increased by 1,032 from 2016 to

2018 And we can see the average account receivable turnover of the company is over 6 in these years It meant that the company collected its average receivables sixth during the year In other words, this company is collecting money from customers every 2 months Or the company can collect cash from customers sooner, it will be able to use cash to pay pills and other obligations sooner

7 Gross profit margin:

- Gross profit, the first level of profitability, tells analysts how good a

company is at creating a product or providing a service compared to its competitors Gross profit margin, calculated as gross profit divided by revenues, allows analysts to compare business models with a quantifiable metric

- Without an adequate gross margin, a company cannot pay for its operating

expenses In general, a company's gross profit margin should be stable

unless there have been changes to the company's business model.

- For An Phat company, the gross profit margin is the same throughout 3

years and equal 10% Compare to other company, this ratio is not high at all It meant the company will create $0.1 income per $1 goods sale To improve this point, the company need to manage the cost better

8 Net profit margin:

- Net Profit Margin (also known as “Profit Margin” or “Net Profit Margin

Ratio”) is a financial ratio used to calculate the percentage of profit a company produces from its total revenue It measures the amount of net profit a company obtains per dong of revenue gained

- We can see that the net profit margin of this company is increased from

7,77 to 8,06 in 2017 This showed the company controlled the cost was good But unfortunately, it’s strongly decreased in 2018 by 4,89 This showed us that the company has some problem with net profit margin and

the reason maybe the profit after tax lower than revenue growth Or the revenue growth is lower than cost Or it’s also related to tax policy

9 Return on Earning before interest and tax ( RE )

- The ratio is considered to be an indicator of how effectively a company is

using its assets to generate earnings before contractual obligations must bepaid The greater a company's earnings in proportion to its assets (and thegreater the coefficient from this calculation), the more effectively that company

is said to be using its assets

- For An Phat, we clearly see that from 2016 to 2017 the percentage is not

increase sinificantly, only 3% But in 2018, RE decrease to 5% becauseAverage total asset also increase almost 3,000,000 million than 2017, but EBIT

in 2018 was decrease 23,231 Million

10 Return on Assets (ROA)

Return on assets (ROA) is an indicator of how profitable a company is relative toits total assets ROA gives a manager, investor, or analyst an idea as to how efficient acompany's management is at using its assets to generate earnings The data of tablegives the information about return on assets of An Phat

- For An Phat company, ROA increased from 2016 to 2017 by 1.951% It

strongly decreased in 2018 by 4.376% More than the rate it increased in

2017

- Base on this data, we can see the company invests money into capital

assets and the return is measured in profit And it decreased in 2018compare to 2017 So it showed the profit which An Phat can return base onthe money which they invested on assets was not effect Therefore, theyneed to notice on their policy and management in this factor

11 ROE

Return on equity measures a corporation's profitability by revealing how muchprofit a company generates with the money shareholders have invested In otherwords, the return on equity ratio shows how much profit 1 dong of commonstockholders’ equity generates

- ROE ratio of An Phat increase from 2016 to 2017, about 4,306%, but

sinificant decreased from 2017 to 2018 about 11,205%

12 Return on Sale (ROS)

- Return on sales (ROS) is a ratio used to evaluate a company's operational efficiency.This measure provides insight into how much profit is being produced per dollar of sales An increasing ROS indicates that a company

is growing more efficiently, while a decreasing ROS could signal impending financial troubles

increase from 9% to 10% but it decrease in 2018 (4,7%) The ROS show that even the change was small but if this still continue in the future, the profit may lost more

13 Earning Per Share (EPS)

- Earning per share, also called net income per share, this is the amount of

money each share of stock would receive if all of the profits were distributed tothe outstanding shares at the end of the year Earnings per share is also a

calculation that shows how profitable a company is on a shareholder basis So

a larger company’s profits per share can be compared to smaller company’s profits per share.Obviously, this calculation is heavily influenced on how manyshares are outstanding Thus, a larger company will have to split its earning amongst many more shares of stock compared to a smaller company

- In general, we can see that there had been an increase form 2,611 to 3,426 in

2016-2017, it means company is more profitable and the company

has more profits to distribute to its shareholders But in 2018, it strongly

decrease to 1,115

14 Price Earning (P/E)

- The price earnings ratio , is a market prospect ratio that calculates the

market value of a stock relative to its earnings by comparing the market price per share by the earnings per share In other words, the price earnings ratio shows what the market is willing to pay for a stock based on its currentearnings

- Companies with higher future earnings are usually expected to issue higher

dividends or have appreciating stock in the future

- The price to earnings ratio indicates the expected price of a share based on

its earnings As a company’s earnings per share being to rise, so does their

market value per share We can see An Phat’s P/E had grown, it grew form 8,38 to 10,94 P/E ratio which means the company is indicated positive future performance and investors are willing to pay more for this company’s shares But in 2018, even though the Earning per share is low and Market value is also drop but the decrease in P/E is more significant so

it still very high with 10,94

15 Book value (BV)

- An asset's book value is equal to its carrying value on the balance sheet, and

companies calculate it netting the asset against its accumulated depreciation When compared to the company's market value, book value can indicate whether a stock is under- or overpriced

- For An Phat, in 2016 and 2018 the book value (18.396 and 17.408) is higher than the market value (15,621 and 14,700), it means the company has overprice the stock But in 2017, the market value was 24,633, it means

we have underprice our stock in 2018

VI Risk analysis:

1 Current ratio

Current ratio = Current liabilities Current assets

- The current ratio is a liquidity and efficiency ratio that measures a firm’s

ability to pay off its short-term liabilities with its current assets Thecurrent ratio is an important measure of liquidity because short-termliabilities are due within the next year

- Base on the data of company, we can see that current ratio of 1.17 mean

that An Phat has 1.17 times more current assets than current liabilities So

it meant the company still has enough ability to pay off for currentliabilities

- For An Phat company, the quick ratio is less than 1 in each year So they

may not be able to pay off their current debts using only quick assets sincethey have a quick ratio below 1 Normally, for covering current liabilitiesand liquid assets, the quick ratio at least equal 1 In this case, the quickratio of the company is still

- Cash ratio is a measure of the adequacy of available cash at the company

to pay short - term debt or not It indicates the cash reserve compared tocurrent liabilities

- Based on the data from the table above, we see that the cash ratio of An

Phat fluctuates over the years Overall this rate has reduced from 2016 to

2018 In 2016, this ratio was 0,36 times, which means that 1 dong of short

- term debt of company is guaranteed by 0,36 dong cash and cash

equivalents, same for 2017,2018 This shows that enterprises have policies

to reduce cash reserves

4 Operating Cash Flow to Current Liabilities:

Operating Cash Flow to Current Liabilities =

Cash Flow¿Operation ¿

Average Current liabilities

Operating cash flow to total liabilities ratio

2 Average total liabilities 1629071.5 2737025.5 3750052

- Operating cash flow ratio measures the adequacy of a company’s cash

generated from operating activities to pay its current liabilities It’sdetermine the number of times the current liabilities can be paid off out ofnet operating cash flow

- As the data above, we can see that 2016 is the highest ratio in these 3 years.

And 2017 is the worst This number shows us that the operating cash flowcompare to current liabilities is very low It felt down from 2016 to 2017and increased in 2018 From this, we can see that company found out theproblem and trying to fix that Even it’s still very low, the company sawthis and improving this

5 Account receivable Turnover:

Account receivable Turnover = Average account receivable Sales

2.Average account receivable 409539 708474.5 1297775