Hoa phat has been officially listed on the ho chi minh stock exchange (HOSE) under the stock ticker symbol HPG since 2007

TABLE OF CONTENTS I Introduction II Profit/Loss Analysis 2.1 Balance Sheet 2.2 Income Statement III Ratio Analysis 3.1 Liquidity ratios 3.2 Efficiency ratios 3.3 Long-term solvency ratios 3.4 Profitability ratios 3.5 Market value ratios IV Conclusion Appendix References 25 Introduction: Founded in 1992 by Mr Tran Dinh Long, the current chairman of the board of management, Hoa Phat Group Joint Stock Company (JSC), originally a construction machine and equipment trading company, is now one of the leading groups in the industrial manufacturing industry The group locates its headquarter Pho Noi A Industrial Zone, Giai Pham Ward, Yen My District, Hung Yen Province With 11 subsidiary companies, over 25 thousand executives and offices across Vietnam and one office in Singapore, Hoa Phat Group sustains its position as the leader of Vietnamese construction steel, steel pipes and Australian beef industries by holding the most market share of each industry The Group participates in sectors (iron and steel, steel products, agriculture, real estate and home appliances); however, its main focus is steel production, which accounts for over 80% of its revenues and profit Hoa Phat has been officially listed on the Ho Chi Minh Stock Exchange (HOSE) under the stock ticker symbol "HPG'' since 2007 According to the stock charting platform TradingView, Hoa Phat is ranked fourth in the list of largest companies by market capitalization in the Vietnamese stock market Its independent audit firm is KPMG The company official website is hoaphat.com.vn The Board of Directors of Hoa Phat Group includes members - Mr Tran Tuan Duong, the General Director; - Mr Nguyen Viet Thang, the Deputy General Director; - Ms Nguyen T Thao Nguyen, the Deputy General Director; - Ms Pham T Kim Oanh, the CFO and Chief Accountant The majority-owned subsidiaries of Hoa Phat Group Joint Stock Company (as of 2020): - Hoa Phat Hai Duong Steel JSC; - Hoa Phat Dung Quat Steel JSC; - Hoa Phat Hung Yen Steel Co., Ltd.; - Hoa Phat Metal Producing Co., Ltd Analysis of Profit/Loss and Balance Sheet: 2.1 Balance sheet: Hoa Phat Group's Balance Sheet analysis: The table below shows the balance sheet of Hoa Phat Group Joint Stock Company in three consecutive years: 2018, 2019 and 2020 2018 2019 2020 25,308,725,188 30,436,936,910 56,747,258,19 Cash and cash equivalents 2,515,617,135 4,544,900,252 13,696,099,298 Short-term Financial Investment 3,724,562,711 1,374,340,353 8,126,992,675 Short-term Receivable 3,210,278,609 3,561,397,191 6,124,790,460 A Current Assets Inventories 14,115,139,049 19,411,922,748 26,286,822,229 52,914,282,483 71,339,093,190 74,764,176,192 22,301,804 27,717,595 305,165,547 Fixed asset 12,782,560,625 31,249,493,918 65,561,657,180 Other long-term assets 1,755,774,090 2,004,150,482 1,914,757,777 TOTAL ASSETS 78,223,007,671 101,776,030,100 131,511,434,389 37,600,057,830 53,989,393,956 72,291,648,083 Current liabilities 22,636,149,492 26,984,198,188 51,975,217,447 Long-term liabilities 14,963,908,338 27,005,195,768 20,316,430,635 Equity 40,622,949,841 47,786,636,144 59,219,786,306 Owner's equity 40,622,949,841 47,786,636,144 59,219,786,306 TOTAL LIABILITIES AND EQUITY 78,223,007,671 101,776,030,100 131,511,434 B Noncurrent Assets Long-term receivable C D Liabilities (Unit: Million dong) ● From 2018 to 2019: In general, there was an increase in the overall accounts of Hoa Phat Group from 2018 to 2019 The total assets in 2019 increased by 30% of that in the year 2018, namely current assets and noncurrent assets In comparison with 2018, there was a steady rise at around 5.13 billion in the current assets of Hoa Phat in 2019 Throughout the years 2018 to 2020, Hoa Phat Joint Stock Company has been able to change their noncurrent assets with a drastic increase from 59, 914 billion VND to 71, 339 billion VND The liabilities of the company rose significantly by 23,553 billion VND due to the investment in the Dung Quoc oil refinery project with a focus on HRC products This event also resulted in the increase from 22,636 billion VND in 2018 to 51,978 billion VND in the company's current liabilities from 2018 to 2019 The non-current liabilities of Hoa Phat Group rose 80% from 2018 to 2019, for 14,964 billion to 27,005 billion VND The stockholders’ equity of Hoa Phat Group grew 17.63% from 40,622 billion VND to 47,786 billion VND in these years ● From 2019 to 2020: From 2019 to 2020, the rise in all financial accounts was more obvious than in the year 20182019 More specifically, the total assets in 2020 increased nearly 30% in comparison to 2019 Although this rise is equivalent to the 2018-2019 period, the specific growth in its component assets is different The current asset witnessed a significant increase from 30,436 billion VND to 56,747 billion VND, mainly cash and cash equivalents, short-term financial investment and inventories Regarding the noncurrent assets, although the rise in the overall structure was not remarkable, there was a surge of 277,448 billion VND in the long-term receivable This change resulted from the event of Hoa Phat Dung Quat complex coming into operation in the second half of 2019 There was a sudden breakthrough for two consecutive years of the current liabilities from VND 26,984 billion to VND 51,975 billion in 2020 The noncurrent liabilities, on the other hand, dropped approximately 24.8% during this period The stockholders’ equity of Hoa Phat Group maintained a stable growth at 23.93%, from 47,786 billion VND to 59,219 billion VND between 2019-2020 Compare to Pomina Steel JSC: Founded in 1999 in Binh Dinh Province, Vietnam., Pomina Steel JSC is a chain of three construction steel mills with a total annual capacity of 1.1 million tons of construction steel and 1.5 million tons of mine In 2010, Pomina was listed on the Ho Chi Minh Stock Exchange (HOSE) with the trading code known as POM ● Asset structure The two charts below represent the asset structure of Pomina Steel JSC and Hoa Phat Group JSC from 2018 to 2020 Overall, looking at the charts, it can be inferred that both Pomina Steel JSC and Hoa Phat Group are heading towards a balanced asset structure between current assets and non-current assets Despite the outbreak of COVID-19 in 2019 and 2020, both companies gained positive growth during this period In general, Pomina Steel JSC maintained a relatively stable, proportional ratio between current assets and non-current assets It witnessed a slight decrease in the percentage of the current assets, from about 60.63% in 2018 to around 50.82% in 2020 Meanwhile, Hoa Phat JSC saw a more erratic change in its asset structure during the 2018-2020 period In 2018, its current assets are dominated by the non-current ones, with a proportion of only 32.36% In 2019, the percentage decreased slightly to approximately 29.9%; however, in 2020, it rose considerably to 43.15% In the last months of 2020, it is estimated that Hoa Phat had borrowed a total of over 54 thousand billion VND, 48% higher than that amount at the beginning of the year, which explains the noticeable rise in the percentage of its current assets ● Capital structure: The charts below indicate the capital structure of Hoa Phat Group JSC and Pomina Steel JSC in the 2018-2020 period It can be seen that the overall capital structure of Pomina Steel Co., Ltd from 2018 to 2020 remains at the equivalent ratio There was an increase in the liabilities of 15.3% in 2019 but then followed by a decrease of 7.7% in 2020 This reflects the same fluctuation in the total capital The change was mainly due to two newly launched projects in terms of furnace and corrugated iron as well as the shutdown of its operation in one factory at the end of 2019 On the other hand, Hoa Phat has a steady growth in the capital structure during the period 20182020 The liabilities rose from 48% in 2018 to 55% in 2020 This rise reflects in the short-term debt due to Hoa Phat Dung Quat Complex investment However, the liabilities grew along with the profit, resulting in the financial safety for the company 2.2 Income statement: Hoa Phat Group's Income Statement analysis: The table below summarizes the income statements of Hoa Phat Group JSC from 2018 to 2019 HPG 2018 2019 2020 Total operating revenues 55,836,458,380 63,658,192,674 90,118,503,427 Cost of Goods Sold 44,165,626,149 52,472,820,452 71,214,453,526 Total Expenses 29,228,854,612 41,527,237,670 73,995,997,681 Non-operating expenses 489,872,849 591,998,447 589,418,352 4,037 2,726 3,846 Earnings per common share (Unit: million VND) ● From 2018 to 2019: In this period, Hoa Phat experienced strong growth in its corporate income statement Regarding total operating revenue, it gained by 1.14% between 2018 and 2019 In addition, the cost of goods sold increased slightly by 8,307,194,303 million VND since the year There was a dramatic increase in total expenses from almost 30 million VND to over 40 million VND The amount of non-operating expenses rocketed better in other categories when the index increased to 591,998,447 million VND in 2019 However, the earnings per common share fell suddenly for two consecutive years with 4,037 million VND and stayed approximately at 2,726 million VND ● From 2019 to 2020: The total operating revenue increased sharply to 90,118,503,427 million VND in 2020 from 2019 Therefore, Hoa Phat Group had the cost of goods sold for two consecutive years growing to 1.36% and total revenue reaching about 1.8%, which proves that the company's income statement always tends to develop well According to the data, there is not much difference in the amount in non-operating expenses when in 2019 it reached 591,998,447 million VND while in 2020 it decreased slightly to 589,418,352 million VND To sum up, the earnings per common share climbed from 2,726 million VND to 3,846 million VND within a year Compare to Pomina Steel JSC: POM 2018 2019 2020 Total operating revenues 13,467,945,588 12,007,041,312 9,885,307,368 Cost of Goods Sold 12,694,326,309 11,785,994,650 9,312,407,023 512,309,343 629,654,486 725.515,108 1,785 1,275 55 Total Expenses Earnings per common share (Unit: million VND) Despite having enormous financial resources, Hoa Phat spread their potential equally all over the market with a lot of segments while Ponima focused their budget on developing their position and their strong selling point which is construction steel With all the financial advantages, Hoa Phat Joint Stock Corporation was able to create a revenue gap compared to Pomina Steel Joint Stock Corporation up to 4, and times throughout the years 2018, 2019 and 2020 In three consecutive years from 2018 to 2020, in addition to the increase in Pomina’ total expenses from 512,309,343 million VND in 2018 to 725 billion VND in 2020, their other accounts such as Operating Revenue increased from 12,367 billion VND to 9, 885 billion VND and Cost of Good Sold suffers from a reduction in income by 2-3% In 2020, the earnings per common share of Pomina Joint Stock Company dipped at 55 million VND per common share while owning 1,785 million VND in 2018 and 1,275 million VND in 2019 per share In contrast, Hoa Phat Joint Stock Company’s accounts rose throughout the years, with 13% from 2018 to 2019 and 24% from 2019 to 2020 in Total Operating Revenue while Pomina Joint Stock Company’s Revenue decreased 8% and 15% throughout the listed years Ratio analysis: 3.1 Liquidity Ratio: The liquidity ratios determine the ability to pay off debt obligations of a company as well as its margin of safety If the liquidity ratio of a company is greater than 1, that company is in decent financial health and is less likely to suffer from financial problems and vice versa 3.1.1 Current Ratio: 2018 2019 2020 HPG 1.12 1.13 1.09 POM 1.05 1.01 0.94 (Times) (Calculations are included in the Appendix) The current ratios indicate the ability to satisfy the current financial obligations of a company If this ratio of a company is higher than 1, that company is able to satisfy all its short-term obligations and is less likely to face financial issues in the near future From the table, both Hoa Phat Group JSC and Pomina Steel JSC were able to maintain good current ratios in 2018 and 2019; however, in 2020, both companies witnessed a decrease in this metric While Hoa Phat Group JSC could manage its current liquidity ratio to stay above (specifically 1.09), the current liquidity ratio of Pomina Steel JSC dropped to under (specifically 0.94), which means that the company could be facing financial hardships 3.1.2 Quick Ratio (Acid-test Ratio): 2018 2019 2020 HPG 0.49 0.40 0.59 POM 0.62 0.55 0.57 (Times) (Calculations are included in the Appendix) Quick ratio, or the acid-test ratio, is used to measure the ability of a company to use its near-cash assets to satisfy its short-term liabilities Unlike the current ratio, the quick ratio only considers the assets that can be quickly converted to cash and excludes inventories and prepaid expenses Considering the 2018-2020 period, both Hoa Phat Group JSC and Pomina Steel JSC experienced a similar trend in their quick ratios: they slightly declined from 2018 to 2019, from 0.49 to 0.40 for Hoa Phat Group JSC and from 0.62 to 0.55 for Pomina JSC; nevertheless, from 2019 to 2020, these metrics of both companies increased, to 0.59 for Hoa Phat Group JSC and to 0.57 for Pomina Steel JSC 3.1.3 Cash Ratio: 2018 2019 2020 HPG 0.11 0.17 0.26 POM 0.02 0.02 0.02 (Times) (Calculations are included in the Appendix) Cash ratio is a metric used to measure the proportion between the total cash of a company and its cash equivalents to its short-term liabilities In terms of this metric, while Hoa Phat Group JSC maintained a steady growth from 0.11 to 0.26 in the 2018-2020 period, Pomina Steel JSC leveled its cash ratio at 0.02 throughout the 3-year period The similarity of the two companies is that all their figures were below 1, which means that it is not possible to cover all their current obligations with cash 3.2 Efficiency Ratio: 3.2.1 Inventory Turnover ratio: 2018 2019 2020 HPG 3.42 3.13 3.12 POM 5.42 4.06 4.10 (Times) Being the top private enterprise and top in steel production in Vietnam (Tran, 2021), the steel manufactory outcome is crucial to the company Although Hoa Phat Group had managed to create a difference in Inventory Turnover Ratio in consecutive years from 2018 to 2020, Pomina Group was able to narrow down the gap between them Hoa Phat company’s inventory turnover had always been lower than Pomina’s while Hoa Phat enterprise’s ratio remained around 3.5 to Pomina enterprise’s ratio went from 5.42 to 4.10 in recorded years 3.2.2 Total Asset Turnover ratio: 2018 2019 2020 HPG 0.85 0.71 0.77 POM 1.22 1.02 0.87 (Times) Total Assets Turnover allows readers to look at the picture as a whole when representing how much the company earned in the whole year in a simple unit count There was an increase in the Asset Turnover ratio of Hoa Phat Group from 2019 to 2020 after a drop from 0.85 to 0.71 in 2019 Despite being a rather smaller company, Pomina’s value of sales was larger than Hoa Phat’s with a gap of 0.37, 0.31, and 0.1 throughout recorded years yearly 3.2.3 Receivable turnover ratio: 2018 2019 2020 HPG 26.03 25.56 27.11 POM 5.58 4.94 4.56 (Times) Receivable turnover ratio is a statistic used by enterprises to measure the earning over the receivable In 2018 and 2019, Hoa Phat Group had been able to pick up credit sales within every weeks and they could even reduce the day needed to 13 days averagely in 2020 This resulted in Hoa Phat enterprise had their ratio more than times larger than what Pomina owned (26.01 and 5.58) and the gap between those numbers became bigger by times in 2019 (25.56/4.94) and more than times in 2020 (27.11/4.56) 3.3 Long-term solvency ratios: 3.3.1 Total Debt Ratio: 2018 2019 2020 HPG 48 53 55 POM 65.4 70.4 68.6 (%) Hoa Phat's total debt ratio in 2018 was 48%, much lower than Pomina Steel, about 17% In the following years, the total debt ratio remained at a stable increase when in 2019 it increased by 5% from 2018 to the figure of 55% in 2020 Hoa Phat Group's operations were stable and meanwhile, Pomina Steel's debt figure spiked by 17.4% in 2019 and 1.24 times in 2020 compared to Hoa Phat Group It shows the ratio of long-term debt to total assets is financed by long-term debt, demonstrating that Pomina's debt exceeds assets In general, the higher the ratio, the higher the financial risk the company has to bear The total debt-to-total assets ratio is calculated by entering all long-term and short-term liabilities, as well as all tangible and intangible assets on a company's balance sheet 3.3.2 Times Interest Earned Ratio: 10 2018 2019 2020 HPG 21.62 11.94 8.63 POM 3.61 0.59 1.30 (%) In 2018, Hoa Phat Group's ratio increased the most when reaching an index of 21.62, which was times higher than Pomina Steel However, in the next two years, the ratio dropped suddenly right at 11.94 and continued to fall to 8.63 in 2020 This is considered a positive change which illustrates Hoa Phat Group had managed the loan ratio quite well and was in control Therefore, on the opponent's side, the ratio difference was very large when it only reached 0.59 in 2019 and the following year rose to 0.45% Comparing the ratio between gross profit and interest expense, these corporations can gain insight into management performance and above all assess the risk situation when lending assets 3.4 Profitability Ratios: 3.4.1 Net profit margin: 2018 2019 2020 HPG 15.40 11.90 14.99 POM 3.22 -2.58 0.16 (%) Net profit margin measures the amount of profit the company obtains as a proportion of revenue gained Looking at the table, Hoa Phat Group was increasingly more profitable than Pomina Steel JSC through the years from 2018 to 2020 In 2018, Hoa Phat was five times higher than Pomina, at 15.40% compared to 3.22% profitability ratio However, moving on to 2019, both companies dropped in profitability and expanded the gap, which is at 11.90% in terms of Hoa Phat Group and -2.58% of Pomina In 2020, Hoa Phat rose again to 14.99% and Pomina’s profit rose to 0.16% 3.4.2 EBITDA margin: 2018 2019 2020 HPG 23.10 19.84 24.77 POM 6.56 2.26 6.84 (%) 11 EBITDA margin measures a firm’s operating profit, shown as a percentage of revenue before interest, taxes, depreciation, and amortization During the 2018-2020 period, Pomina illustrated a relatively low figure for EBITDA margin, which went from 6.56% in 2018 down to 2.26% in 2019 and increased back to 6.84% in 2020 This trend indicated the firm’s profitability and cash flow-related problems On the other hand, Hoa Phat had a positive EBITDA margin pattern, which fluctuated at 23.10% in 2018, followed by a decrease to 19.84% in 2019 and an increase to 24.77% in 2020 3.4.3 Return on assets: 2018 2019 2020 HPG 13.06 8.36 11.53 POM 4.63 -2.71 0.13 (%) Return on assets (ROA) measures a company's profit per dollar of assets We can see that the figure for ROA of Hoa Phat Group JSC is much higher than Pomina Steel JSC’s, which demonstrates a higher return with less investment of Hoa Phat Group compared to its competitor While Hoa Phat fluctuated from 13.06% in 2018 down to 8.36% in 2019 and escalated up to 11.53% in 2020, Pomina started with a smaller number at 4.63% in 2018, decreased to -2.71% in 2019 and then rose slightly to 0.13% in 2020 3.4.4 Return on equity: 2018 2019 2020 HPG 23.48 17.03 25.14 POM 12.05 -8.46 0.44 (%) Return on equity (ROE) is determined by dividing net income by the value of its shareholders’ equity with the aim to measure a firm’s financial performance It can be seen that Hoa Phat made much more positive progress on profitability than Pomina The figure for Hoa Phat's ROE dropped from 23.48% in 2018 to 17.03% in 2019, but then followed by an 8.11% increase in 2020 Pomina witnessed a similar fluctuation with smaller but notable statistics In 2019, Pomina’s ROE decreased sharply to -8.46% from 12.05% in 2018 In the later year, the number rose to 0.44% 3.5 Market value ratios: 3.5.1 Earnings per share: 2018 2019 12 2020 HPG 4,037 2,726 3,846 POM 1,785 1,275 55 (VND) Earnings Per Share (EPS) is the earnings per share ratio and the EPS represents the percentage of earnings per share Moreover, it also aggregates and reflects the results of businesses, calculates important financial indicators to help investors easily understand and compare stocks (Xuan Dieu, 2021) Looking at the three-year general table of two corporations, Hoa Phat Group has a higher ratio than Pomina Steel between 2018 and 2019 The amount of Hoa Phat EPS's ratio was 4,037 VND while Pomina was lower with 1,785 VND In the next following year, Hoa Phat declined 1,311 VND and Pomina remained stable as it decreased slightly to 1,275 VND By 2020, Pomina fell dramatically to 1,220 VND while Hoa Phat gained 3,846 VND in its EP 3.5.2 Price/earning ratio: 2018 2019 2020 HPG 6.65 7.77 9.20 POM 3.79 -4.71 231.79 (Times) The price-to-earnings ratio (P/E ratio) is the ratio between the current share price of a company and its earnings per share (EPS) If this ratio of a company is high, it is possible that the value of the stock of that company is overvalued or that stock is likely to have a high growth rate in the future Overall, Hoa Phat Group JSC witnessed a steady rise in its P/E ratio, from 6.65 in 2018 to 9.20 in 2020; however, Pomina Steel JSC experienced a considerably wilder change in its P/E ratio during the 2018-2019 period From 3.79 in 2018, the P/E ratio of Pomina Steel JSC decreased noticeably to -4.71 in 2019; nevertheless, in 2020, this figure rose exponentially to 231.79 3.5.3 Market-to-book ratio: 2018 2019 2020 HPG 1.40 1.22 1.98 POM 0.53 -0.45 1.03 (Times) The ratio determines the market value of a company relative to its actual worth through dividing the book value by the market capitalization Overall, there was an upward trend of the market-tobook ratio for both firms Hoa Phat Group reflected a higher ratio, indicating that there was a slight decrease of 0.18% from 2018 to 2019, but then followed by a 0.76% increase in 2020 Pomina’s market-to-book ratio was smaller, starting at 0.53% in 2018, followed by a decrease to -0.45% in 2019 and an increase again to 1.03% in 2020 13 3.5.4 Enterprise Value Multiple: 2018 2019 2020 HPG 6.8 7.7 7.97 POM 9.02 31.62 15.48 (Times) The company’s worth is considered to be presented by the Enterprise Value Multiple (EV Multiple) Lower EV Multiple are anticipated with low-growth sectors while higher EV Multiple are predicted with high-growth industries Hoa Phat Group’s EV multiple rose from 6.8 to 7.7 and 7.97 through consecutive years (2018, 2019 and 2020) Unlike Hoa Phat Group’s steady trend, Pomina Group’s EV Multiple increased from 9.02 in 2018 to 31.62 in 2019 but reduced by half down to 15.48 in 2020 Conclusion: To sum up, Hoa Phat Group is one of the leading enterprises in Vietnam For three consecutive years from 2018 to 2020, Hoa Phat has a stable growth rate compared to Pomina Steel In terms of profits, the company showed its ability to recover and quickly respond to difficulties when `Hoa Phat's liquidity index decreased slightly That has shown that their financial metrics are well defined and their ability to repay debt is good without the need to raise outside capital Efficiency ratios have fallen to around 0.10, indicating an expansion in the handling of goods and the use of inventory The company's long-term solvency is still limited when the indexes increase to 5% in 2019 and 2% in 2020 By contrast, the times interest earned ratio plummeted to only 8.63% last year Overall, in the context of the current pandemic, Hoa Phat Group will experience more volatility at a faster rate But with recovery and stable problem-solving solutions, the group always maintains its foothold and reaches cooperation agreements both domestically and internationally They have built a stable, long-term, and trustful partnership with the Group from the very beginning 14 Appendix Liquidity Ratios: Calculation of the Current Ratio: Current ratio = Current assets / current liabilities Hoa Phat Group JSC 2018 2019 2020 Current Assets 25,308,725 30,436,936 56,747,258 Current Liabilities 22,636,149 26,984,198 51,975,217 Current Ratio 1.12 1.13 1.09 2018 2019 2020 Current Assets 6,674,496 6,781,656 5,679,237 Current Liabilities 6,362,523 6,730,005 6,059,788 Current Ratio 1.05 1.01 0,94 Pomina Steel JSC Calculations of the quick ratio: Quick ratio = (Current Assets - Inventories - Short-term Prepaid Expenses) / Current Liabilities Hoa Phat Group JSC 2018 2019 2020 Current Assets 25,308,725 30,436,936 56,747,258 Current Liabilities 22,636,149 26,984,198 51,975,217 Inventory 14,115,139 19,411,922 26,286,822 Short-term prepaid expenses 122,420 118,551 141,398 Quick Ratio 0.49 0.40 0.59 Pomina Steel JSC 15 2018 2019 2020 Current Assets 6,674,496 6,781,656 5,679,237 Current Liabilities 6,362,523 6,730,005 6,059,788 Inventory 2,735,778 3,066,036 2,253,213 Short-term prepaid expenses 24,979 45,413 23,641 Quick Ratio 0.62 0.55 0.57 Calculations of the cash ratio: Cash ratio = (Cash + Cash equivalents) / Current liabilities Hoa Phat Group JSC 2018 2019 2020 Cash + Cash equivalents 2,515,617 4,544,900 13,696,099 Current Liabilities 22,636,149 26,984,198 51,975,217 Cash Ratio 0.11 0.17 0.26 2018 2019 2020 Cash + Cash equivalents 143,297 115,083 93,217 Current Liabilities 6,362,523 6,730,005 6,059,788 Cash Ratio 0.02 0.02 0.02 Pomina Steel JSC Efficiency ratios: Total Asset Turnover Ratio: Total Asset Turnover Ratio= Sales/ Total Asset HPG 2018 2019 Sales 111,558,413,581,799 16 127,799,316,817,285 2020 101,263,804,479,404 Total Asset Total Asset Turnover Ratio 131,245,192,449,176 179,999,037,770,825 131,511,434,388,847 0.85 0.71 0.77 2019 2020 Inventory Turnover ratio: Inventory Turnover ratio= Cost of Good Sold/ Inventory HPG 2018 Cost of Good Sold 44,165,626,148,685 Inventory 12,913,925,774,469 16,764,479,377,525 22,825,145,359,795 3.42 3.13 3.12 2019 2020 Inventory Turnover Ratio 52,472,820,451,654 71,214,453,522,563 Receivable turnover ratio: Receivable turnover ratio= Sales/ Account Receivable POM 2018 Sales 54,925,454,767,158 Account Receivable 9,843,271,463,648 12,656,620,852,454 19,737,629,114,035 Receivable turnover ratio 5.58 4.94 4.56 HPG 2018 2019 2020 87,707,902 97,249,344 177,909,153 Enterprise Value 17 62,523,707,011,126 90,003,588,760,001 EBITDA Enterprise Value Multiple POM Enterprise Value EBITDA Enterprise Value Multiple 12,898,221 12,629,785 22,322,353 6.8 7.7 7.97 2018 2019 2020 7,968,773 8,571,770 10,397,358 883,456 271,087 671,664 9.02 31.62 15.48 Long-term solvency ratios: Calculation of Total debt ratio & times interest earned ratio of Hoa Phat Group & Pomina Steel Total debt = (Total assets - Owner’s equity) / Total assets HPG 2018 2019 2020 Total Assets 78,223,007,670,925 101,776,030,099,900 131,511,434,388,837 Owner’s Equity 40,622,949,840,810 47,786,636,143,695 59,219,786,306,111 0.480677731 0.530472587 0.549698575 2018 2019 2020 Total Assets 11,007,522,083,920 11,798,754,966,356 11,174,478,901,173 Owner’s Equity 3,805,413,652,334 3,494,546,842,125 3,510,391,927,176 0.65428971 0.703820712 0.68585632 Total Debt POM Total Debt 18 Time interest = Gross profit (EBIT) / Interest expense HPG 2018 2019 2020 EBIT 11,007,522,083,920 11,185,372,222,137 18,904,049,904,154 539,861,243,640 936,710,218,359 2,191,680,923,417 3,805,413,652,334 11.94112331 8.625365902 Interest expense Time interest POM 2018 2019 2020 EBIT 773,010,483,863 209,024,579,067 507,244,519,035 Interest expense 214,152,220,670 356,188,241,568 391,582,111,689 Time interest 3.609630951 0.586837393 1.29537204 Profitability Ratios: Calculation of Profit Margin: Net Profit Margin = Net income / Sales HPG 2018 2019 2020 1,717,999,569 1,520,811,870 1,517,944,429 Sales (Million VND) 111,558,414 127,799,317 101,263,804 Net profit margin (%) 15.4 11.9 14.99 POM 2018 2019 2020 80,415,222 30,213,083 93,695,462 Sales (Million VND) 134,673 119,950 98,196 Net profit margin (%) 3.22 -2.58 0.16 Net income (Million VND) Net income (Million VND) Calculation of EBITDA Margin: EBITDA Margin = EBITDA / Total sales 19 HPG 2018 2019 2020 12,898,221 12,629,785 22,322,353 Total sales (Million VND) 558,364 636,581 901,185 EBITDA Margin (Times) 23.10 19.84 24.77 POM 2018 2019 2020 EBITDA (Million VND) 883,456 271,087 671,664 Total sales (Million VND) 134,673 119,950 98,196 EBITDA Margin (Times) 6.56 2.26 6.84 2018 2019 2020 Net income (Million VND) 1,717,999,569 1,520,811,870 1,517,944,429 Total assets (Million VND) 78,223,008 101,776,030 131,511,434 Return on Assets (%) 23.10 19.84 24.77 POM 2018 2019 2020 Net income (Million VND) 80,415,222 30,213,083 93,695,462 Total assets (Million VND) 12,258,418 13,368,621 13,698,167 6.56 2.26 6.84 2019 2020 EBITDA (Million VND) Calculation of Return on Assets: Return on Assets = Net income/Total assets HPG Return on Assets (%) Calculation of Return on Equity: Return on Equity = Net income/Total equity HPG 2018 20 Net income (Million VND) 1,717,999,569 Total equity (Million VND) 40,622,950 1,520,811,870 1,517,944,429 47,786,636 59,219,786 Return on equity (%) 23.48 17.03 25.14 POM 2018 2019 2020 Net income (Million VND) 80,415,222 30,213,083 93,695,462 Total equity (Million VND) 3,805,414 3,494,547 3,510,392 12.05 -8.46 0.44 Return on equity (%) Market value ratios: Calculation of Market-to-book Ratio: Market value per share = Price-Earnings Ratio * Earnings per share HPG 2018 2019 2020 Price-Earnings Ratio 6.65 7.77 9.20 Earning per share (VND) 4,037 2,726 3,846 26,846.05 21,181.02 35,383.2 POM 2018 2019 2020 Price-Earnings Ratio 3.79 -4.71 231.79 Earning per share (VND) 1,785 1,275 55 6,765.15 -6,005.25 12,748.45 Market value per share (VND) Market value per share (VND) (The statistics of Price-Earnings Ratio and Earning per share are taken from Vietstock sites of Hoa Phat Group JSC and Pomina Steel JSC) Market-to-book Ratio = Market value per share / Book value per share (Times) 21 HPG 2018 2019 2020 26,846.05 21,181.02 35,383.2 19,127 17,307 17,873 Market-to-book ratio 1.40 1.22 1.98 POM 2018 2019 2020 Market value per share (VND) 6,765.15 -6,005.25 12,748.45 Book value per share (VND) 12,877 13,342 12,342 0.53 -0.45 1.03 Market value per share (VND) Book value per share (VND) Market-to-book ratio (The statistics of Book value per share are taken from Vietstock sites of Hoa Phat Group JSC and Pomina Steel JSC) 22 References A.N (2020, January 23) Gánh nặng lãi vay, Thép Pomina báo lỗ 310 tỷ đồng năm 2019 Vietnam Daily | Tin Tức Việt Nam Daily, Cập Nhật Mới Nóng 24/7 https://vietnamdaily.trithuccuocsong.vn/tai-chinh-ngan-hang/ganh-nang-lai-vay-thep-pominabao-lo-310-ty-dong-nam-2019-81587.html Hoa Phat Group (2018) Annual Report 2018 Hoa Phat Group (2019) Annual Report 2019 Hoa Phat Group (2020) Annual Report 2020 HPG: CTCP Tập đồn Hịa Phát - Hoa Phat Group - Tài (n.d.) VietstockFinance Le, T (2019) Tỉ số tổng nợ tổng tài sản (Total-Debt-to-Total-Assets Ratio - TD/TA) gì? Cơng thức tính Vietnambiz Retrieved from https://vietnambiz.vn/ti-so-tong-no-tren-tong-taisan-total-debt-to-total-assets-ratio-td-ta-la-gi-cong-thuc-tinh-20191126171259715.htm Nguyên T T (2021) Giải mã chiến lược địn bẩy giúp cỗ xe lu Hịa Phát xơ đổ kỷ lục doanh thu, lợi nhuận vài năm gần https://cafef.vn/giai-ma-chien-luoc-2-don-bay-giupco-xe-lu-hoa-phat-xo-do-moi-ky-luc-ve-doanh-thu-loi-nhuan-trong-vai-nam-gan-day20211006092344603.chn POM: CTCP Thép Pomina - Cơng Ty Thép Pomina - Tài (n.d.) VietstockFinance https://finance.vietstock.vn/POM/financials.htm?tab=BCTT Pomina Steel Corporation (2021) Annual report 2020 Retrieved from https://static2.vietstock.vn/data/HOSE/2020/BCTN/VN/POM_Baocaothuongnien_2020.pdf Pomina Steel Corporation (2019) Financial report 2018 Retrieved from http://www.pominasteel.com/pdf/bao-cao-tai-chinh-hop-nhat-kiem-toan-nam-2018_vi_1553569384.pdf Pomina Steel Corporation (2020) Annual report 2019 Retrieved from https://static2.vietstock.vn/data/HOSE/2019/BCTN/VN/POM_Baocaothuongnien_2019.pdf Pomina Steel Corporation (2020) Financial report 2019 Retrieved from http://www.pominasteel.com/pdf/pominabctc-hop-nhat-kiem-toan-2019_vi_1592194075.pdf Pomina Steel Corporation (2021) Financial report 2020 Retrieved from http://www.pominasteel.com/pdf/bao-cao-tai-chinh-hop-nhat_vi_1617251170.pdf Tin, C (2020) Hòa Phát: Nợ tăng lợi nhuận Đầu tư chứng khoán Retrieved December 1, 2021 from https://tinnhanhchungkhoan.vn/hoa-phat-no-tang-cung-loi-nhuan-post255467.html Tồ, T (2021, April 8) Hòa Phát vay nợ 54.000 tỷ đồng từ đâu? Báo điện tử Thương Trường https://thuongtruong.com.vn/news/hoa-phat-vay-no-hon-54-000-ty-dong-tu-dau-50697.html 23 TradingView (n.d.) Large Cap (Big Cap) Stocks — https://www.tradingview.com/markets/stocks-vietnam/market-movers-large-cap/ 24 Vietnam  ... production, which accounts for over 80% of its revenues and profit Hoa Phat has been officially listed on the Ho Chi Minh Stock Exchange (HOSE) under the stock ticker symbol "HPG' ' since 2007 According... three construction steel mills with a total annual capacity of 1.1 million tons of construction steel and 1.5 million tons of mine In 2010, Pomina was listed on the Ho Chi Minh Stock Exchange (HOSE). .. corrugated iron as well as the shutdown of its operation in one factory at the end of 2019 On the other hand, Hoa Phat has a steady growth in the capital structure during the period 20182020 The liabilities