(TIỂU LUẬN) INDIVIDUAL ASSIGNMENT

INDIVIDUAL ASSIGNMENT _ACC305_FIN1403_ Lecturer: Nguyễn Phú Hà Student: Lê Thị Thu Hương_ HS140298 TABLE OF CONTENTS I Introduction 1.Vietnam GAS Comporation - JSC Assets of PV GAS 3.Business activities II.SWOT III.Analysis 1.Growth 2.Liquid ratio 3.Eficiency turnover Leverage ratio IV.Conclusion V.References I Introduction Vietnam Gas Corporation - JSC (GAS) The predecessor of the company was Gas Company with the task of collecting, transporting, processing, storing and trading gas and gas products was established in 1990 In July 2007, became Gas Corporation Operating under the model of Parent company - Subsidiary company In 2011, the company converted to operate under the model of a joint stock company with the name of Vietnam Gas Corporation - a joint stock company with an initial charter capital of VND 18,950 billion In May 2012, the company's shares were listed and traded on the Ho Chi Minh City Stock Exchange Ho Chi Minh City with stock code GAS After nearly 30 years of operation, Vietnam Gas Corporation (PV Gas) has continuously developed, expanded and is considered as the leading enterprise in the gas industry in Vietnam PV GAS brand has become familiar, becoming a strategic energy supplier for almost every household in electricity, fertilizer, steel and many industries, transporttion, food, commercial and civil with reputation and quality guaranteed ● Vietnam Gas Corporation - JSC is a member unit of the Vietnam National Oil and Gas Group, operating in the fields of collection, transportation, processing, storage, distribution and trading of gas products nationwide and expand to international markets Organizing the distribution and trading of dry gas, LNG, CNG, LPG ● Condesate products Architectural activities and related technical consultancy, details: Investment consultancy, design and construction of mechanical engineering industrial works Supervising the construction and improvement of industrial and civil works Other specialized trading, details: Trading in materials, equipment, chemicals in the field of gas processing and use, importing materials, equipment and means to serve the gas industry Invest in the infrastructure of the distribution system of dry gas and liquid gas products from the source from supply to wholesale and retail distribution Research and develop practical natural science and engineering Providing services in the field of gas, renovating, maintaining and repairing engines, installing conversion equipment for means of transport and agriculture, forestry and fishery using gas fuel ❖ Product ● Liquefied Petroleum Gas (LPG) ● Condensate (Condensate) ● Compressed natural gas (CNG) ● Liquefied natural gas (LNG) ● Petroleum steel pipes ❖ Service ● Transportation of gas and gas products ● Design, construction, installation, operation, maintenance and repair of gas works ● Warehousing services for gas import and export services ● Supply of materials and equipment for the gas industry ● Oil and gas pipe wrapping (anti-corrosion coating, insulation, reinforced concrete) ❖ Holding by management and stakeholders Name Mr Nguyen Sinh Khang Mr Duong Manh Son Mr Nguyen Cong Luan Ms Tran Thi Hoang Anh Assets of PV GAS ● Bach Ho-Phi gas pipeline system: PV Gas owns 100% of this pipeline to transport associated gas from Rang Dong and Bach Ho fields in Cuu Long sedimentary basin to shore to supply gas to the treatment plant Dinh Co gas plant, Ba Ria, Phi Phi power plants, Phi Phi fertilizer plant the pipeline system was completed in the first phase in 1995, the second phase in 2002, with a capacity of billion m3/year, with a length 220 km, 16'' diameter Bach Ho pipeline system has been fully depreciated ● Nam Con Son pipeline system: PV Gas owns 51% of the gas pipeline from Lan Tay, Rong Doi, Rong Doi Tay fields in Nam Con Son basin, supplying gas to Phi Complete power plants phase one on 01/01 2002, phase two on October 16, 2008, capacity billion years, length 400 km, pipe diameter 26'' ● P 3-CAA pipeline system: PV Gas is 100% owned by PV Gas Gas pipeline from fields in P 3-CAA area to supply gas to Ca au Power - Fertilizer Complex The pipeline is completed in May 2007 with a capacity of billion m3/year, with a length of 330 km • Pipeline system from Block B to O Mon: expected capacity of billion m3/year, supplying gas for O power plants Subject The longest pipeline project in Vietnam has a total investment of 1.3 billion USD, in which, PVGAS holds 51% shares, while Chevron of the US, MOECO of Japan and PTTEP of Thailand own 49% etc Business activities ● AI PV Gas' business activities are very specific and specialized The main activities of the company include natural gas production; collecting, transporting and storing gas and gas products; distribution of gaseous fuel through the pipeline system; import and trade dry gas, liquefied petroleum gas (LPG), condensate, liquefied natural gas (LNG), compressed natural gas (CNG) and gas engine conversion SWOT Strength The dominant position in the Vietnamese market and no direct competitors ● All pipeline systems in Vietnam are under the control of PV Gas, so cash flow is more stable and dependence on world prices is slightly reduced ● High barriers for businesses wishing to operate in the upstream sector further strengthen PV Gas' position Weakness ● Business activities are based on natural resources, and resources will be exhausted after a certain time of exploitation ● Large investment capital ● Profit margin of import activities is lower than domestic production ● Opportunity Demand for dry gas is increasing thanks to improved capacity of power plants and fertilizers ● Increased demand for clean fuels due to climate change concerns ● The introduction of shale gas in the US has improved the outlook for LNG imports as LNG is likely to become cheaper ● New gas field discoveries in Central Vietnam with commercial potential ● Threat Territorial and political disputes in the East Sea may have a material impact on gas exploration and storage activities Competitive market penetration by private companies in the downstream segment ● Dangerous illegal gas extraction is still happening, has indirect but negative impacts on member companies in the retail market and incurs additional production costs for gas cylinders ● BI Analysis Analyze the company's financial indicators and compare them with the index of the consumer goods industry Growth Revenue Revenue (%) Profits after tax Profits after tax (%) Total assets Total assets (%) Total equity Total equity (%) Overall, the growth rate of revenue, profit after lease and total equity tends to decrease from 2018 to 2020 GAS has a revenue in 2018 of 75,976,346 million and a decrease of 11,841,381 million in 2020 compared to 2018 negative growth from 17.19% in 2018 to -14.84% in 2020 In 2020 due to the covid19 epidemic, businesses are affected a lot ● From 2018 to 2020, the data show that profit after tax tends to decrease sharply from ● 17.82% to -34.04% Total asset growth rate is not stable From 2018 to 2019, the business tends to decrease by about -0.70% in 2019, but according to data, it will grow back to about 1.66% in 2020 Total equity has plummeted in 2020, with about 8.31% in 2018 plummeting to -0.23% in 2020 Liquid Ratio a Current ratio Current asset Current liabilities Current ratio Looking at the chart, we can see that the current ratio in 2018 has increased by 21% compared to 2019 GAS had it current ratio covered from 3.46 in 2018, increase slightly about 4.20 times in 2019, down about 4.05 times over 2020 These ratios lie between to – an unhealthy range for the firm’s liquidity ● The data shows that the current liabilities of the business are quite high From 2018 to 2020, current liabilities tend to decrease slightly from 11,846,614 million in 2018 to 9,748.781 million in 2020 ● b Quick Ratio Current asset Inventories Current liabilities Quick ratio 3.29 4.04 3.88 The quick ratio indicates the company's ability to immediately use near-cash assets (assets that can be quickly converted into cash) to pay off the company's current liabilities ● In general, the company's quick ratio increased slightly to about 4.04 in 2019, but then decreased slightly to about 3.88 in 2020 Short-term debt of enterprises has also decreased over the years from 11,846.614 million in 2018 to 9,748.781 million in 2020 According to the data, the quick ratio of years is quite high, reaching over 3, showing high ability to pay short-term debts ● Efficiency Ratio a Inventory Turnover Average Inventories Cost of goods sold Inventory turnover The inventory turnover shows how well the company manages inventories, if the number is high, the company quickly and the inventories are not selling much ● Overall, GAS's inventory turnover is relatively high, the highest number of inventory turnover in 2019 In 2018 it was 32.35 turn over, in 2019 a slight increase was 32.98 turn over and a negligible decrease in 2020 was 32.58 turnover According to the data, the company is effective in inventory management ● b Account receivable turnover Total revenue Account receivable Account receivable turnover ● This indicator shows the company collects low receivables from customers GAS index compared to the market is quite low, only about rounds The number has decreased over years, in 2018 about 3.50 turn over, in 2020 only 2.97 turn over It showed the company had a poor collection process, a bad credit policy, or the inability of its customers to pay c DSI and DSO Inventory turnover Account receivable turnover DSI DSO DSI indicates the length of time a company's cash is stuck in liquidity because of unsold inventory According to the data sheet, the enterprise's DSI index is quite clickable for only 11 days The business regularly sells out of inventory and has maintained the figure for years ● DSO of the enterprise has been in the year for years From 103 days 2018 to 121 days 2020 ● Leverage Ratio a Total debt to Total assets Total Assets Total Debt TD/TA ● The total debt-to-assets ratio is a type of leverage ratio that determines the total amount of debt relative to assets, allowing comparisons of leverage used across different companies GAS's TD/TA ratio has decreased over the years About 25.15% in 2018 then fell sharply, accounting for about 20.21% in 2019 and slightly increased in 2020 at 21.69% According to the chart, the total assets of the enterprise are quite high and stable over the years From 2018 to 2020, total assets are 62,614,420 million, 62,178,787 million, 63,208,410 million respectively b Coverage Ratio Interest Expenses Total profit before taxes EBIT Interest Coverage Ratio This indicator of a company's solvency and the fulfillment of financial obligations such as interest payments Being counted "EBITDA / interest expense" GAS index is quite high, easy to pay interest expenses ● The interest coverage ratio has increased throughout the period, in 2018 with around 34.04 This number has increased sharply in 2019 to about 77.25, in 2020 Interest coverage ratio continues to increase sharply to about 99.58 ● c Rerturn on assets Profits after tax Net revenue ROS ● In general, from 2018 to 2020, the profitability ratio ROS has not grown steadily Return on net sales (ROS) is an important factor for managers because it indicates the ability to control operating costs as well as reflects the efficiency of business processes It shows the profit generated from the sale of the product In 2018 ROS accounted for 19.23% and increased slightly by 20.09% in 2019 Howover in 2020, this number has decreased slightly by 15.56% This number decreased insignificantly, the company's ROS was quite high d ROA Profits after tax Total Assets ROA Return on assets (ROA) measures how effectively a company is managing its assets With dollar of initial investment assets, how much profit can the company generate ● Like Profit Margin, GAS's ROA from 2018 to 2019 grew quite from 23.22% to 24.23%, but then dramatically deteriorated by 15.79% from 2019 to 2020 This plummeting results from the growth in total assets For the year 2020, This finger shows its global revenue -14.84% from the year before ● e ROE Profits after tax Owner's equity ROE ● Return on Equity is a measure of how much the shareholders earned for their investment inthe company This ratio shows how profitable a company is by comparing net income total equity ROE of Ford has decreased every year from 2018 to 2020 ROE in 2018 was 31.02%, this figure decreased slightly in 2019 to 30.37% From 2019 to 2020, the profit after tax had deteriorated slightly to about 9,978,064 million As a result, ROE has also plummeted to 20.16% in 2020 IV Conclusion In general, this is only a standard assessment basis for a stock to invest in (GAS reaches 29 standards / 31 standards The COVID-19 pandemic has clearly defined the capabilities of both individual customers and customers Therefore, the numbers themselves are only evaluated as valid for the company's main position and position over the years ● Financially, PVGAS is a fairly stable enterprise over the years Fast growth, asset structure, capital balance, good liquidity, fast asset turnover and stable and improving profitability indicators ● V References BSC company (2021) Prospective financial report of the oil and gas industry https://www.bsc.com.vn/Report/ReportFile/2738400 Bao nhan dan (2010) Promoting the strength of the gas industry https://nhandan.vn/tin-tucxa-hoi/Ph%C3%A1t-huy th%E1%BA%BF-m%E1%BA%A1nh-ng %C3%A0nh-c %C3%B4ng-nghi%E1%BB%87p-kh%C3%AD-%C4%91%E1%BB%91t-498143 ... 29 standards / 31 standards The COVID-19 pandemic has clearly defined the capabilities of both individual customers and customers Therefore, the numbers themselves are only evaluated as valid