Business operations of hoa phat group

PhD Nguyen Thi Dieu Chi Vu Phuong Thao Class Advanced Finance 57A NATIONAL ECONOMICS UNIVERSITY CENTRE FOR ADVANCED EDUCATIONAL PROGRAMS INTERNSHIP REPORT Major Finance Business operations of Hoa Phat[.]

NATIONAL ECONOMICS UNIVERSITY CENTRE FOR ADVANCED EDUCATIONAL PROGRAMS INTERNSHIP REPORT Major: Finance Business operations of Hoa Phat Group VU PHUONG THAO Hanoi-2018 PhD Nguyen Thi Dieu Chi Vu Phuong Thao- Class: Advanced Finance 57A NATIONAL ECONOMICS UNIVERSITY CENTRE FOR ADVANCED EDUCATIONAL PROGRAMS INTERNSHIP REPORT Business operations of Hoa Phat Group Student Student ID Class Intake Supervisor Internship guide : Vu Phuong Thao : 11154105 : Advanced Finance 57A : 57 : PhD Nguyen Thi Dieu Chi : Mrs Le Thi Thuan Hanoi-2018 PhD Nguyen Thi Dieu Chi Vu Phuong Thao- Class: Advanced Finance 57A LIST OF FIGURES LIST OF TABLES INTRODUCTION ACKNOWLEDGEMENTS PART I INTRODUCTION OF THE RESEARCH 1.1 Rationale of the research 1.2 Research subject 1.3 Research objective 1.4 Scope of the research PART II ANALYSIS OF HOA PHAT GROUP ( HOA PHAT JOINT STOCK COMPANY) CHAPTER HOA PHAT GROUP’S OVERVIEW 1.1 General introduction of Hoa Phat Group 1.1.1 History of formation and development 1.1.2 Basic information 1.1.3 Main business activities 1.1.4 Operation and organization model 1.2 Overall performance in the year 2017 of Hoa Phat Group 1.2.1 Operation of Hoa Phat Group 1.2.1.1 Steel 1.2.1.2 Other industrial areas 1.2.1.3 Agriculture 1.2.1.4 Real estate 1.2.2 Results of Hoa Phat’s Group business activites CHAPTER FINANCIAL PERFORMANCE OF HOA PHAT GROUP IN THE PERIOD FROM 2015 TO 2017 PhD Nguyen Thi Dieu Chi Vu Phuong Thao- Class: Advanced Finance 57A 2.1 Financial ratios 2.2 Financial capacity indicators 2.2.1 Liquidity indicators 2.2.2 Capital structure indicators 2.2.3 Operation capacity indicators 2.2.4 Profitability indicators CHAPTER 3.DEVELOPMENT ORIENTATION OF HOA PHAT GROUP 3.1 Orientations for development from 2018 to 2020 3.2 Some recommendations to implement orientations PART III CONCLUSION REFERENCES APPENDIX ACKNOWLEDGEMENTS PhD Nguyen Thi Dieu Chi Vu Phuong Thao- Class: Advanced Finance 57A The first internship that held by National Economics University was a great opportunity for me to have a profound knowlegde about an detailed enterprise During the time in university, I have gained a lot of information about finance and grown interest with the corporations both in domestic and foreign Therefore, I decided to apply for an intern place in Business operations of Hoa Phat group- one of the largest corporations in Vietnam Initially, the works for me were hard due to lack of experience and skills but I still managed to complete the internship This report is an appropriate result of what I have learned in the last one month I wish to express my sincere gratitude to PhD Nguyen Thi Dieu Chi for her advices and guidelines that helped me complete this report I also want to thank Mr Le Thi Thuan and all the staff in Sales Department in Hoa Phat group’s headoffice for their guidance and encouragement during the internship, in spite of my limited knowledge in financial business Hanoi, September 2018 Vu Phuong Thao LIST OF TABLES PhD Nguyen Thi Dieu Chi Vu Phuong Thao- Class: Advanced Finance 57A Table 2-1 Financial ratios from 2015 to 2017 .22 Table 2-2 Liquidity indicators from 2015 to 2017 .24 Table 2-3 Capital structure indicators from 2015 to 2017 25 Table 2-4 Operation capacity indicators from 2015 to 2017 26 Table 2-5 Profitability indicators from 2015 to 2017 .26 LIST OF FIGURES Figure 1-1 Logo and slogan of Hoa Phat Group PhD Nguyen Thi Dieu Chi Vu Phuong Thao- Class: Advanced Finance 57A Figure 2-1.Revenue from sale of goods & provision of services, total assets, owner’s equity from 2015 to 2017 24 Figure 2-2 Profit after tax/sale ratio from 2015 to 2017 25 Figure 2-3 Debt ratio from 2015 to 2017 26 PART I INTRODUCTION OF THE RESEARCH 1.1 Rationale of the research PhD Nguyen Thi Dieu Chi Vu Phuong Thao- Class: Advanced Finance 57A Industrial production is generally growing and diversifying in terms of technology, design, distribution or service with large corporations or multinational corporations combining production and service One of the strongest businesses with the expansion and diversification of products and services as well as investment promotion in Vietnam is Hoa Phat Group The strength of HPG is based on the seven Hoa Phat member companies, most of which are leaders in the industry or among the leading companies in the manufacturing and trading sector In my personal opinion, learning about the operating apparatus and business activities of a particular business is an indispensable part of a financial student Being in the staff of a large corporation is my aspiration since I was a freshman so I chose Hoa Phat Group as the research target in the first internship There are many other reasons why I choose Hoa Phat Group as a research target, but the main reason is that Hoa Phat is one of the leading private industry corporations in Vietnam This research aims at making enquiries about Hoa Phat group, the business areas as well as the business activities of the company recently so that I can personally have a thorough grasp of the basic knowledge of finance to improve through understanding the business and financial activities of the business Through this we can also grasp the advantages and achievements of the business and then see the outstanding issues from that offering suggestions to propose solutions I personally hope that this research will give people an insight into the business areas that are familiar in our lives for one of the largest multinational corporations in Viet Nam 1.2 Research subject The goal of this report is to assess the business operations of Hoa Phat group in the field of different business segments The data in the period from 2015 to 2017 are used 1.3 Research objective This report goes towards the following purposes:  Analyzing the organization of Hoa Phat group and its operation in each business segments, as well as the corporation’s financial performance over a period of three last years  Identifying the shortcomings and suggesting some solutions for those  Finding out the orientations and recommendations in the near future 1.4 Scope of the research This report uses data about the corporation’s business operation derived from articles, website and annual reports in a 2-year period from 2015 to 2017 It PhD Nguyen Thi Dieu Chi Vu Phuong Thao- Class: Advanced Finance 57A includes three parts: Introduction of the research, Analysis of business operation at Hoa Phat group and Conclusion In part II, there are three chapters:  Chapter introduces the overview of Hoa Phat group with the history of formation and development, the main business activities, operation and organizational model and overall performance in different segments  Chapter presents the analysis of business operation of BIDV through its financial ratios and financial indicators  Chapter offers some suggestions and orientations for the development of the corporation in the next years PART II ANALYSIS OF HOA PHAT GROUP ( HOA PHAT JOINT STOCK COMPANY) PhD Nguyen Thi Dieu Chi Vu Phuong Thao- Class: Advanced Finance 57A CHAPTER HOA PHAT GROUP’S OVERVIEW 1.1 General introduction of Hoa Phat Group 1.1.1 History of formation and development - Historic milestones of Hoa Phat: + 8/1992: Setting up Hoa Phat Equipment & Accessories Company Limited The first company was owned by Hoa Phat + November 1995: Establishin Hoa Phat Furniture JSC + August 1996: Establishing Hoa Phat Steel Pipe Co., Ltd +2001: Hoa Phat Hung Yen Steel Co., Ltd Hoa Phat Refrigeration Co., Ltd, Hoa Phat Urban Development and Construction + 1/2007: Restructuring the group with Hoa Phat Group Joint Stock Company and member companies + August 2007: Establishing Hoa Phat Hai Duong Steel Joint Stock Company, implementing Iron and Steel Complex in Kinh Mon District, Hai Duong Province + November 15, 2007: Listing of HPG shares on Vietnam stock market + June 2009: An Thong Mineral Investment JSC became one of Hoa Phat member companies + December 2009: Hoa Phat Group of Hoa Phat Steel JSC completes investment phase + 1/2011: Structure of parent company operation with separation of steel production and trading + 8/2012: Hoa Phat's 20 years of establishment and development, received the third Labor Medal of the President + 10/2013: Hoa Phat Steel Complex completed its investment in phase 2, bringing the total capacity of Hoa Phat Steel to 1.15 million tons per year + 3/2015: Launching Hoa Phat Feed Mfrs Limited Company, marking a new development in the Group's history when investing in agriculture + 2/2016: Establishing Hoa Phat Agricultural Development Joint Stock Company, managing and governing the activities of all companies in the agricultural sector (including animal feed, livestock) + 4/2016: Establishing Hoa Phat Steel Co., Ltd, started the project of color coated, galvanized, galvanized steel with the capacity of 400,000 tons / year + 2/2016: Completion of investment phase - Hoa Phat steel complex in Hai Duong, raising Hoa Phat steel construction capacity to million tons per year + 2/2017: Establishment of Hoa Phat Dung Quat Steel Joint Stock Company, Hoa Phat Dung Quat Iron and Steel Complex in Quang Ngai province, with a capacity of million tons per year with total investment capital of VND 52,000 billion that mark the development of Hoa Phat Group 1.1.2 Basic information