Academy of finance faculty of corporate finance department of financial analysis

ACADEMY OF FINANCE FACULTY OF CORPORATE FINANCE DEPARTMENT OF FINANCIAL ANALYSIS GROUP ASSIGNMENT CLASS: 59/09.01_LT1- GROUP SUBJECT: FINANCIAL ANALYSIS THEORY Year 2023 TABLE OF CONTENTS TABLE OF CONTENTS QUESTION I Overview of Mobile World Investment Corporation (MWG) II Macroeconomic analysis III Industry analysis 3.1 Analysing retail industry and the operating environment of competition of Mobile World Investment Corporation (Porter’s five forces method) 3.2 Analysing value chain of Mobile World Investment Corporation (Porter's value chain method) IV Financial analysis 11 4.1 Assets and sources of capital 11 4.2 Performance business activities 15 4.3 Cash flow 24 V Forcasting methods 25 5.1 Build a model to forecast net revenue 25 5.2 Business valuation .32 VI Conclusion 34 6.1 SWOT analysis 34 6.2 Solution 36 QUESTION 36 QUESTION 39 QUESTION 59 PHỤ LỤC 62 TÀI LIỆU THAM KHẢO 75 PHÂN CÔNG CÔNG VIỆC 77 Question 1: Apply financial analysis methods to analyze Mobile World Investment Corporation in 2019-2020 I Overview of Mobile World Investment Corporation (MWG)  Full name: Mobile World Investment Corporation  Head office: Suite T2-1.2, D1 Street, Saigon Hi-tech Park, Tan Phu Ward, Thu Duc City, HCMC  Stock code: MWG  Listed date: July 14, 2014  The number of outstanding shares: 452.605.894 shares  (on 31/12/2020)  Capitalization:  Business activities: The main field of activity of the company is buying, selling, warranty and repair: computer equipment, telephones, phone components and accessories with the Mobile World brand, Dien May Xanh products and other products food, food, beverage and other goods under the brand name Bach Hoa Xanh Mobile World Investment Joint Stock Company (MWG) currently operates retail chains including: thegioididong.com, Dien May Xanh (dienmayxanh.com), Bach Hoa Xanh (bach hoa Xanh.com), Bluetronics  History and development: 2004 : March 2004, Mobile World Co, Ltd was established October 2004, the company opened its first supermarket at 89A, Nguyen Dinh Chieu, HCMC 2007: Mobile World Co, Ltd received the investment capital of Mekong Capital, converted into a Joint Stock Company to expand development opportunities 2010: At the end of 2010, another system specializing in retailing electrical appliances and household appliances named Dien May Xanh was born 2011: By the end of 2011, the number of 200 supermarkets increased by more than times compared to 2010 2012: March 2012, The Gioi Di Dong completed the "coverage" strategy in 63 provinces and cities across the country Dien May Xanh has been present in provinces and cities with the number of 12 supermarkets 2014: On 14/7/2014, the company successfully listed 62,723,171 shares on HOSE  Market position and competitor: MWG has always maintained its position as the No retailer in Vietnam with a remarkable distance compared to other enterprises in the same industry According to data in 2020, MWG's market share of electronics will reach 50% and Mobile phones will reach 55%, accounting for oversold the market MWG is the only company in the top 100 retailers in Asia-Pacific With the No position, MWG has the advantage in opening more stores, nationwide coverage, thereby increasing revenue for businesses II Macroeconomic analysis FACTORS MAIN IMPACTS Political factors 1.Government policy: maintaining financial market stability, flexibly operating monetary policy with fiscal policy Political stability Vietnam participates in many world economic agreements such as The company has the opportunity to grow and strengthen the distribution of products throughout the provinces and cities across Vietnam Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Vietnam FTA (EVFTA), UKVFTA E-commerce competition - The company has the opportunity to excel in product quality, but it is difficult to compete on product cost with low-priced products from China 5.Barriers to entry “Quality inspection agreement - ENT” - The challenge for the company is to come up with strategies to attract consumers on promotional product prices to gain a position in the market and compete with foreign retailers in Vietnam The company is challenged to comply with regional Policy with the workforce minimum wages and monitor the general salary of the market to apply a competitive and appropriate salary policy for each department Economic factors 1.Economic growth GDP nearly 3% 2.The exchange rate is not stable Challenge the company in increasing the consumption of 3.Low level of disposable income of high-end technology products and growing the company's consumers revenue 4.High inflation The growth of the retail phone and Causing great challenges for the company in maintaining electronic equipment industry is growth and especially diversifying the product portfolio to getting slower and slower market to customers The challenge for the company to recruit more employees Unemployment rate increased by when the company has encountered difficulties in human about 2.26% resource management with an increasing number of employees Social factors Population size with more than 96 million people Opportunity for the company to continue to grow and increase the value of the company's retail market in Vietnam - Opportunity to increase demand for smart phones and Trends of increasing use of the electronic devices, helping to increase revenue Internet, mobile devices, electronic - Opportunity for the company to continue to increase its devices market share in the coming years by replicating the green supermini, bluetronic models People's consumption habits tend to Opportunities for the company to promote online sales as shift from direct shopping to online well as a global shopping development trend with Bach Hoa shopping more due to the Covid Xanh, Dien Hoa Xanh store chain by taking advantage of epidemic the online channel Cultural barriers Challenge the company in strategic planning, requiring leaders to be really flexible in decisions to go to market - Opportunities to improve company image, increase employee engagement index in the company and employee 5.Style of life training activities to develop personal capacity - Opportunity for the company to continue implementing useful programs, contributing to social responsibility 6.Covid epidemic Challenge the company to maintain its growth rate and record no loss in revenue Technological factors Challenges the company with old products that have not yet The level of technological recorded revenue has to replace new products and moreover, innovation is very rapid the company will not be protected by the manufacturer for the price of old products Challenge the company to come up with innovative Research and development activities strategies, improve service processes, and available products to catch up with trends and surpass competitors 3.Competitors' technological advancements and capabilities Competitive challenges from new competitors entering the market Environmental factors Recycled energy Business trends towards sustainable development 3.Business trend towards saving and efficient use of energy resources Opportunities to enhance corporate image, improve operational efficiency and increase distribution of ecofriendly products catching up with new consumption trends such as energy saving initiatives or increasing use of ecofriendly packaging self-destruct learning Climate change: natural disasters, Challenge corporate growth as climate change negatively floods, affects consumer disposable income levels Legal factors 1.Legislation strengthens consumer and investor protection Challenges facing legal restrictions on information security and use of customer data with customer service provision of telephone, electrical equipment, food products The company's challenge is to operate effectively and grow Tax law well in order to pay taxes on time and according to regulations Labor Law The company has the opportunity to offer appropriate salary and bonus policies and increase the distribution of employees of the right age according to their regulations Legal challenges related to accessories that an individual or Legal risk company provides products or services that not live up to their original commitment III Industry analysis III.1 Analysing retail industry and the operating environment of competition of Mobile World Investment Corporation (Porter’s five forces method)  Rivalry among existing competitors: High - Competition between companies in the industry is relative because many retail businesses enter the market Retailers not only compete for customers, but also for sales positions - The demand for electrical products in Vietnam has increased, so many companies want to participate in occupying a corner of the market Therefore, the competition in the market is very large and very fierce Firms compete with each other on prices, promotions and customer care services - Barriers to exit the industry are not high thanks to the form of transfer With the rapid growth of subscribers in developing countries, the number of mobile phone users worldwide will skyrocket In Vietnam alone, there are more than 40 million mobile subscribers belonging to service providers (MobiFone, Vinaphone, Viettel, S-Fone, EVN Telecom and HT Mobile)  Bargaining power of suppliers: Low - Mobile and electronics retailers have the best bargaining power when dealing with suppliers because the suppliers have very good brands and are well known It can be seen that MWG are enterprises that enjoy higher gross profit margin as their scale increases - Depending on the product line, the bargaining power of the 4G phone company is higher than the bargaining power of the other product line companies such as the 1280 type Nokia and the higher generation nokia - When the supplier's bargaining power is greater, the higher the selling price of the product, the lower the market share and the higher the intensity of competition The level of concentration in the industry is high, the product life cycle depends greatly on the development of science and technology - Switching costs between suppliers are not high  Bargaining power of customers: Moderate - For retailers, customers are the group that creates pressure Customers today have many choices to buy products at famous electronics supermarkets, which puts pressure on competition between brands - Since this is a technology product, the bargaining power of customers is quite low, with a very large number of buyers and feature requirements for some product lines that not have too much difference, thereby showing the intensity of competition low picture  Threat of substitute products: Low - Currently, Chinese electronic and electrical products are flooding the Vietnamese market with cheap prices that are suitable for people's spending budgets Although the quality of genuine products is always superior, it is difficult to compete on price, especially in rural areas  Threat of new entrants: Moderate Domestic firms all have a certain position in terms of facilities, professional staff, and customer service However, the Vietnamese government has created a barrier to entry into the industry "Quality Inspection Agreement - ENT" - a term foreign investment wants to expand supermarket chains in Vietnam This is a favorable condition for retail companies like TGDD to gain development advantages and higher competitiveness Another alternative product of the modern retail chain is the online sales channel, which is more convenient and appropriate and suitable for young people Selling online is the biggest risk for retail companies at the moment III.2 Analysing value chain of Mobile World Investment Corporation (Porter's value chain method)  Main activities: - Production activities: The company entered retail on the laptop market in December 2006 and then expanded its activities into products such as phones, tablets, laptops, accessories, Website system: www thegioididong.com is the largest e-commerce website in Vietnam with more than 500,000 visits/day, ranked 25 in the top 25 websites in Vietnam (according to Alexa) providing detailed information on prices, technical features, .more than 500 phone models and 100 laptop models of all official brands in Vietnam - Product research and development activities: 10 64 65 66 67 68 69 70 71 72 II Báo cáo tài 2019 73 74 TÀI LIỆU THAM KHẢO https://www.vndirect.com.vn/mwg-ong-lon-nganh-ban-le-viet-nam/ http://static2.vietstock.vn/data/HOSE/2019/BCTN/VN/MWG_Baocaothuongnien_2019.pdf http://www.fpts.com.vn/FileStore2/File/2021/03/26/20210326_20210326_-_MWG Bao_Cao_Thuong_Nien_Nam_2020.pdf https://konvoi.vn/bao-cao-thi-truong-ban-le-viet-nam-nam-2020/ https://s.cafef.vn/bao-cao-tai-chinh/MWG/BSheet/2021/0/0/0/luu-chuyen-tien-te-gian-tiep-congty-co-phan-dau-tu-the-gioi-di-dong.chn http://vbpl.vn/botaichinh/Pages/vbpq-van-ban-goc.aspx?ItemID=66801 http://vbpl.vn/botaichinh/Pages/vbpq-van-ban-goc.aspx?ItemID=113560 https://thuvienphapluat.vn/van-ban/Doanh-nghiep/Thong-tu-132-2018-TT-BTC-huong-danChe-do-ke-toan-cho-doanh-nghiep-sieu-nho-401322.aspx https://drive.google.com/file/d/11Tc8XOB52S5hDv_Jpqzf0fo_g_qAlUUp/view 10 https://mwg.vn/uploads/2021/1/bc-thang-_-t122020_vn-_-29.01.2021.pdf 11 https://www.google.com/search?q=+Hi%E1%BB%87p+%C4%91%E1%BB%8Bnh+ki %E1%BB%83m+tra+ch%E1%BA%A5t+l%C6%B0%E1%BB%A3ng++ENT&sxsrf=AOaemvI96QC0UYyDJn41E2k13yPXKIwuFA %3A1637930824240&ei=SNegYcyRDpP6wQOO_p2oCA&ved=0ahUKEwjM1cfnh7b0AhUTf XAKHQ5_B4UQ4dUDCA4&uact=5&oq=+Hi%E1%BB%87p+%C4%91%E1%BB%8Bnh+ki %E1%BB%83m+tra+ch%E1%BA%A5t+l%C6%B0%E1%BB%A3ng++ENT&gs_lcp=Cgdnd3Mtd2l6EAMyBQghEKABMgUIIRCgATIFCCEQoAE6BwgAEEcQsA M6BQgAEM0CSgQIQRgAUN0bWPwxYO40aAJwAngAgAGwAYgBA6SAQQyLjE1mAEAoAEByAEIwAEB&sclient=gws-wiz 12 http://evfta.moit.gov.vn/GenericErrorPage.htm?aspxerrorpath=/default.aspx 13 https://www.tapchicongsan.org.vn/web/guest/kinh-te/-/2018/821753/hiep-dinh-thuong-mai-tudo-the-he-moi-thuc-day-muc-tieu-phat-trien-ben-vung-cua-viet-nam.aspx 14 http://cptpp.moit.gov.vn/?page=overview&category_id=9040e56c-c3f5-4592-9fe7baa47f75a7c0 15 https://trungtamwto.vn/thong-ke/12065-tong-hop-cac-fta-cua-viet-nam-tinh-den-thang-112018 75 16 https://www-vietnam briefing-com.translate.goog/news/vietnam-free-trade-agreementsopportunities-for-your-business.html/?_x_tr_sl=en&_x_tr_tl=vi&_x_tr_hl=vi&_x_tr_pto=nui,sc 17 https://mwg.vn/tai-lieu-thanh-lap-niem-yet-cong-ty 76 PHÂN CÔNG CÔNG VIỆC STT LỚP TÍN CHỈ CQ59/09.01CL_L T1 HỌ VÀ TÊN NHIỆM VỤ Nguyễn Việt Hùng 77 Thu thập thông tin liệu ... increases its competitiveness and financial viability IV.1.2 Sources of capital and structure of sources of capital Table 4.1.2: Sources of capital and structure of sources of capital Unit: Million VND... x (1 - Corporate Income Tax rate) In which: KE: Cost of equity capital (13.4%) KD: Cost of debt use (10%) E: Market Value of Equity D: Market Value of Debt V: Total long-term capital of the enterprise... profit 12 Other income 13 Other expenses 14 Results of other activities 15 Profit before tax 16 Income tax expense – current 17 Income tax expense – deferred 18 Net profit after tax 19 Net profit