Sercurity market assignment THE FINANCIAL CONDITION AND PROJECT IN THE NEAR FUTURE OF VIN GROUP

BANKING ACADEMY  SERCURITY MARKET ASSIGNMENT THE FINANCIAL CONDITION AND PROJECT IN THE NEAR FUTURE OF VIN GROUP Lecturer: Mrs Trần Xuân Anh Student : Trần Hữu Minh Đỗ Hương Giang Bùi Thị Thùy Dung Nguyễn Thị Quỳnh Ngân Cao Thanh Xuân Class: K18CLC B Contents 1.Introduction of Vin Group The force runner of Vin Group was Technocom - a producing instant noodles company, was held in 1993 in Ukraine At the beginning of 2000, Technocom came back to Vietnam, focused on investing in travel and real estate with trademarks: Vincom and Vinpearl January 2012, Vincom Joint Stock company and Vinpearl Joint Stock company has merged, formally known as Vin Group- Joint Stock Company The charted capital of Vin Group is 26.377.079.540.000 VND and the volume of listed share is 2.637.707.954 shares in 2017 Vin Group are now concentrating in field: Real estate, Traveling- Entertainment, Retail, Medical, Education, Agriculture and Industrial Wishing to bring to the market products and services of international standard and new experience of modern life, in any field, Vin Group also proves the pioneering role change in consuming trend Vin Group has done wonders to honor the Vietnamese brand and deserved to be one of the leading private economic groups in Vietnam Vin Group’s performances analysis  Balance sheet TOTAL ASSETS Current Assets 2017 2016 2015 214,855,098 180,450,850 145,554,358 100,528,907 87,583,802 67,699,620 9,833,332 6,938,465 Cash and 8,610,504 Cash Equivalents Short financial investment  Income term 203,016 494,157 11,142,980 2017 2016 2015 Short term GROSS SALE 90,423,675 57,670,387 34,054,969 Account 28,978,153 18,254,656 13,848,128 REVENUES Receivables Deduction revenues 69,100 56,044 28,027,418 7,003 Inventories 48,615,074 49,782,781 Net Sales 90,354,575 57,614,344 34,047,966 Other Current 14,122,160 9,218,876 7,742,629 Assets Cost of goods sold 62,854,039 40,184,633 22,338,934 Long-term 92,867,048 77,854,738 Gross profit 114,326,191 27,500,536 17,429,711 11,709,033 Assets Financialterm income 1,646,395 5,861,557 1,931,520 Long Account 478,499 4,070,187 465,5075,389,034 254,324 Financial Expenses 3,282,075 Receivable Of which: Interest 3,647,094 4,308,067 2,721,940 Fixed assets 35,646,902 26,878,731 19,837,151 Expenses Real Profit orEstate loss from join 10,801 19,824 16,827,664 39,228 17,372,962 17,362,127 Investment venture companies Long-term Selling Expenses 8,605,680 6,672,816 2,957,826 45,417,393 33,991,567 18,115,293 incomplete assets General term and admin 7,375,304 5,526,090 3,922,773 Long expenses Finacial 6,528,162 3,347,545 9,597,558 Investments Net Profit from 9,106,561 5,723,151 3,517,107 Operating activities Other long 8,882,273 10,821,571 13,222,748 termOther assetsincomes 503,636 688,480 283,039 Goodwill Other Expenses0 694,992 618,872 948,045 (before 2015) Other profits -191,356 69,608 -665,006 TOTAL 214,855,098 180,450,850 145,554,358 EQUITY Profit or lost from join 0 venture companies Liabilities 162,548,919 135,184,455 107,969,433 (before 2015) Short term 124,896,668 97,627,931 64,900,384 Liabilities Long Liabilities Owners term 37,652,251 37,556,524 43,069,048 52,306,179 45,266,395 37,584,925 statement 2017 2016 2015 Total profit before tax 8,915,205 5,792,759 2,852,101 Corporate Income Tax 3,475,385 2,279,691 1,350,626 Expenses Current Corporate 3,784,542 2,534,169 Income Tax Expenses 1,424,643 Deferred Income -309,156 Taxes Expenses -74,017 -254,478 Profit after Corporate 4,247,289 2,439,511 Income Tax 1,215,775 Benefits of Minitory 1,192,530 1,073,557 285,701 shareholders Earnings per share 0  Related ratio DAR DER ROA ROE Current ratio Quick ratio EPS 2017 75.66 310.76 1.98 8.12 80.49 41.57 1.61 2016 74.91 298.64 1.35 5.39 89.71 38.72 1.18 2015 74.18 287.27 0.84 3.23 104.31 61.13 0.68 2.1 Vin Group’s performances and analysis The balance sheet and income statement of Vin Group gave us an overview of VIC’s financial performances from 2015 to 2017 Firstly, DAR ratio of Vin group increased slightly from 74.18 in 2015 to 74.91 in 2016 and then reached 75.66 in 2017 It showed that the main source of this firm’s capital was from debt and it tends to increase slightly throughout three years In addition, the company also had a large DER ratio to show that the company is now operating largely debt-based A high debt / equity ratio generally means that a company has been aggressive financing its growth with debt Normally, a company with a high DER ratio has a high amount of debt related to their available equity will not likely to instill much confidence from the creditors that the company can repay the loan On the other hand, a company which has a low DER ratio poses less risk to the creditors and appear to have a reasonable ability to repay the loans On the contrary, aggressive leveraging practices are often associated with high levels of risk and the company with a lot of debt is used to finance increased operations could potentially generate more earnings than it would have without this outside financing If this were to increase earnings by a greater amount than the debt cost (interest), then the shareholders benefit as more earnings are being spread among the same number of shareholders Hence, this is quite normal since Vin Group is not a commodity trading company, but it mainly takes place in the investment field On the other hand, look at the increase in total assets (increase 19% from 2016 to 2017), it can be seen that Vin Group has successfully asserted its position as well as its value The ability of returning on your investment should also be concerned before making final decision ROA provides investors with information about the returns generated by the amount of investment (or amount of assets) Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets and gives a manager, investor, or analyst an idea as to how efficient a company's management is at using its assets to generate earnings In basic terms, ROA tells you what earnings were generated from invested capital (assets) This is why when using ROA as a comparative measure, it is best to compare it against a company's previous ROA numbers or against a similar company's ROA It can be seen that the index has continuously grew from 2015 to 2017 In the latest figures, dollar of your investment can be bring back 1.98 dollar, while in 2016, investors could only receive 1.35 dollar from dollar invested Another ratio should be concerned is ROE ( Return on equity) This is the most important ratio for shareholders, which measures the profitability of each shareholder The higher the ROE get, the more effective it is for the company to use equity capital, which means that the company can balance its equity with its borrowings to exploit its competitive advantage, capital mobilization process and scale expansion efficiently The higher the ROE is, the more attractive the stock This index is an accurate measure of how much a return is made and how much accrued interest it generates Specifically, in 2017, with share of capital invested by Vin Group shareholders, it will be able to generate 8.12 dollar , about 1.5 times compared to 2016 and 2.5 times higher than that of 2015 With these figures, this company are using the investment effectively from the shareholders In term of the firm’s main source to repay its loans as well as its liquidity, this can be showed through current ratio and quick ratio The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations To gauge this ability, the current ratio considers the current total assets of a company (both liquid and illiquid) related to company’s current total liabilities The current ratio is mainly used to give an idea of a company's ability to pay back its liabilities (debt and accounts payable) with its assets (cash, marketable securities, inventory, accounts receivable) As such, current ratio can be used to make a rough estimate of a company’s financial health The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash In balance sheet, with dollar invested in Vin Group, it will be able to be paid at 0.849 dong, which means that the return rate with current asset is 80.49% In addition, with dollar from investor, the company will be able to pay back 0.41 dollar cash or cash equivalents instantly This is not a good result for Vin Group because if the ratio is less than 100%, the company will not be able to fulfill its debt repayment obligations on time, so in spite of the fact that Vin Group is a big company, the activities of Vin Group are now not fulfilled or excellent However, this figure is not much lower than in the previous years as well as quite high index compared to other companies, so this does not prove that the company is in financial trouble or about to be bankrupt Finally, in the field of investing, we can see that the real estate sector with a total investment of 17,372,962 in 2017 is playing the most important part and thus, had an increase from 2016 and 2015 The company also has a high Long-term incomplete figures and points out that Vin group has many investment projects, possibly large real estate This figure is really trustworthy because Vin Group has been holding a lot of investment projects so far, as well as owning many buildings, commercial centers, real estate, etc which have been completed or incomplete nationwide 2.2 Vin Group’s stock market statistic and analysis • • • • • • • • • 23/03/2018 109.5 Tăng 1.5 (1.4%) Khối lượng Giá tham chiếu Giá trần Giá sàn Giá mở cửa Giá cao Giá thấp GD ròng NĐTNN Room NN lại Đơn vị giá: 1000 VNĐ 3,455,080 108 115.5 100.5 105.6 111.2 105.5 1,207,100 18.32 (%) (*) EPS (nghìn đồng): 1.61 Trading history Date 23/03/2018 Ope Change (+ -/ n %) Pric e +1.5 (+1.39%) 22/03/20180 (0%) 21/03/2018 +3.8 (+3.65%) 20/03/2018-0.2 (-0.19%) 19/03/2018 16/03/2018 +4.7 (+4.71%) +0.2 (+0.20%) 15/03/2018-3.0 (-2.93%) Clos Highes Lowes e Averag Adjuste Trading t price t price Pric e Price d Price Volume e 105.6 111.2 105.5 109.5 108.25 109.5 3,455,080 109 108 108 109.30 108 2,262,170 104.9 108.6 104.5 108 107.17 108 3,520,200 103 103 104.2 104.38 104.2 1,045,660 100.2 105 100.2 104.4 103.62 104.4 1,201,010 99.4 99.4 99.7 99.90 99.7 3,090,070 99.5 99.5 100.62 110.7 105.5 101 102.9 102.9 In 2017, VIC stock is one of the most outstanding stocks for creating the effect of recovery on the common stock market in Vietnam VIC has been surprised by the sharp rise in prices since the beginning of 2017 In 2018, VIC stock is expected to continue to make a strong move in its direction as well as business performance Under the partial valuation method, ACBS valuates VIC at VND86,000/share by the end of 2018 This table above shows the changes of stock selling on the market of VIC for the last days from March 15th to March 23th In spite of the fact that there was no changes on March, 22nd , the index seemed to grow on March, 23 rd with 1.5 percentages Specifically, the opening price on 22rd which was the highest opening price for the last days went down from 109 to 105.6 on 23th, while the closing price increased from 108 to 109.5 to be the best closing price that Vin Group’s stock could reach during the past week In addition the highest price that this company’s stock gained on 22nd was 110.7 and then increased to 111.2 on 23 rd Meanwhile, the lowest price on 22 nd was 108 that decreased 2.5 on the next day In general, the average price in last days fell from 109.30 on 22nd to 108.25 on 23rd However, the adjusted price tends to increase constantly during the past week when it only reached 99.7 initially on 16 th and rose to 109.5 on 23rd In the same week, the trading volume on the stock market of VIC showed the constantly fluctuations At the beginning, it kept falling for days to 1,045,660 on 20 th and it grew dramatically to reach a peak on 21st of 3,520,200, then dropped gradually to 2,262,170 on 22nd before jumping sharply to 3,455,080 on the last day of the week To sum up, the market statistic of VIC are showing positive signs of recovery despite of the gloom of Viet Nam’s stock market 3.Project 3.1.Urban railway The first project that Vingroup tend to in the future to mobilize and utilize capital is that investing in URBAN RAILWAY They plan to invest $4.4 billion on this project in Hanoi On June 25th, 2017, Vingroup has signed a Memorandum of Understanding (MoU) with Hanoi authorities to perform this project Accordingly, the project that Vingroup plans to deploy is the first urban railway in Vietnam is built entirely by private capital; in specifically, they will develop parts of five railway route in the capital, including segments connecting Noi Bai International Airport to the Nam Thang Long and Phu Dien areas This project will bring a lot of opportunity to mobilize capital because urban railway is expected to be the popular vehicle that the resident will volunteer to choose using this kind of transport The first reason is the status of traffic in Hanoi Most of Hanoi citizens feel uncomfortable when in traffic cause they are tired of standing for an hour in the street everyday to wait for traffic jam There are so many vehicles in the city on the rush hour that it takes a lot of time to move on the street Therefore, if they have another choice for urban railway, they can get rid of worrying about being stuck in the traffic, instead they can buy a ticket to go by metro of the railway, and there will have no traffic jam anymore The next reason why people will choose is that the public transport in Hanoi is very awful We have to admit that, the amount of people on a bus in the rush hour is as much as about five times more than normal, this will lead to huddling condition in this bus In this condition, social evils can happen like hook on the bus Besides, hustling in this public transport also cause unexpected accidents So that, if urban railway can be put into use, the number of people traveling by bus can be reduced, and as a result, social evils or accidents can be minimized In conclusion, Vingroup’s urban railway project is the ideal project that can bring a lot of capital to the company, therefore, investing in Vingroup is a good idea to the investors earn profit in the future 3.2.Vinfast The second project that Vingroup tend to in the future to mobilize and utilize capital is that investing to car manufacturing in Viet Nam The country’s largest real-estate company Vingroup plans to invest up to $3.5 billion to set up a manufacturing and research and development complex, aiming to roll out the first car in 24 months The Hanoi-based developer will break ground on the $1 billion to $1.5 billion first phase of the plant, with a plan to make sedans, sport utility vehicles and electric cars in the future Vingroup want to create an affordable and high-quality car for Vietnamese Vingroup has signed a memorandum of understanding with a major investment bank regarding a potential loan for as much as $800 million, though it plans to fund most of the project itself, she said Vietnam’s ambitions are similar to efforts by companies in China and Malaysia, which have also tried to create cheaper, local brands to woo consumers in a region where foreign brands including Toyota Motor Corp and Volkswagen AG have had years of dominance Vingroup will face the same challenges as Chinese automakers, which have struggled to win over buyers in the world’s biggest vehicle market Chinese companies such as Geely, BYD, Beijing Auto and Chery have been trying for years to create a domestic car brand Sales of cars bearing Chinese nameplates accounted for 43.5 percent of the total sales during January to July, according to the China Association of Automobile Manufacturers Toyota is Vietnam’s biggest car seller with a 23 percent market share in July, according to the Vietnam Automobile Manufacturers’ Association Ford Motor Co had 12 percent VINFAST’s automobile complex, to be located in the northern port city of Haiphong, will initially produce sedans and SUVs Vingroup plans to eventually expand to mini and electric cars and targets production of up to 500.000 vehicles per year by 2025 The facility will include an e-scooter plant, which is expected to produce its first model in 12 months This project will brings a lot of opportunity to mobilize capital because electric cars will be blossom in future cars market in the world A wide range of Developed countries such as Japan, USA, Canada, UK, France, Germany, etc are converting from automobiles using natural materials such as gasoline and diesel to electric motors in order to protect the environment and also make use of renewable fuel The European Union (EU) has also set a targeting to "kill" gasoline-fueled cars by 2030 – 2050 Moreover, Vietnam is emerging as the world's leading potential consumer market with a low car ownership ratio of just 23 vehicles per 1.000 people, compared with Thailand's 204 / 1.000 and around 400 / 1.000 in developed countries However, compared with the average Vietnamese income, cars are always a luxury item beyond reach The car dream of Vietnamese people has been formed many years ago but no one really reaped the results Vingroup Group willing to make a brand of Vietnamese cars, high quality, cheap price closer to consumers in Vietnam Vietnam's automobile industry is expected to be able to compete with South East Asian countries with a leading brand In short, although Vin Group does not have an outstanding success in 2017 but this company financial condition still show the positive believe in the future with many projects that have a good ability to generate investment  ... on the last day of the week To sum up, the market statistic of VIC are showing positive signs of recovery despite of the gloom of Viet Nam’s stock market 3.Project 3.1.Urban railway The first... company''s ability to pay back its liabilities (debt and accounts payable) with its assets (cash, marketable securities, inventory, accounts receivable) As such, current ratio can be used to make... centers, real estate, etc which have been completed or incomplete nationwide 2.2 Vin Group’s stock market statistic and analysis • • • • • • • • • 23/03/2018 109.5 Tăng 1.5 (1.4%) Khối lượng Giá