Ba ria vung tau housing development, construction investment development, khang dien housing trading and investment, nam long investment

Dissertation submitted in partial fulfillment of the Requirement for the MSc in Finance FINANCE DISSERTATION ON COMPANY ANALYSIS REPORT OF Ba Ria - Vung Tau Housing Development, Construction Investment Development, Khang Dien Housing Trading and Investment, Nam Long Investment NGUYEN THUY LINH ID No: 21071801 Intake Supervisor: Dr Nguyen Xuan Quang September 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014125847521000000 ACKNOWLEDGEMENTS During my time studying in the Master of Science in Finance program, I was equipped with academic knowledge by Doctors and Professionals Through this 1-year course, I have learned a lot through subjects such as Fundamental of Finance, Financial Instruments and many other subjects Through this, I would also like to thank the teachers especially Dr Nguyen Xuan Quang – my supervisor for promptly giving me a lot of advice and knowledge as well as practical stories of businesses for me to complete this dissertation I would like to give a special thank you to the University of the West of England and Banking Academy for giving me the opportunity to spend weeks in the United Kingdom to better understand the culture and history of this beautiful country Throughout the trip, I have absorbed the knowledge by funny teachers This thank you I would also like to send to my parents, who have always been by my side and supported me not only during my master's studies but also my whole life Perhaps the last thank you I would like to send to my friend Ngo Thi Phuong Anh who is always by my side to share difficulties with me, helps me to have more motivations to complete this dissertation TABLE OF CONTENTS ACKNOWLEDGEMENTS TABLE OF CONTENTS LIST OF TABLES AND FIGURES CHAPTER 1: INTRODUCTION 10 1.1 Overview of real estate industry in the global and Vietnam 10 1.2 Area of study 12 1.3 Study objectives 13 1.4 Methodology 14 CHAPTER 2: MACROECONOMIC ANALYSIS 16 2.1 World economic outlook 16 2.1.1 PEST analysis 17 2.2 Regional economic outlook 18 2.2.1 PEST analysis 19 2.2.2 Key economic factors analysis 22 2.3 Vietnam economy 25 2.3.1 PEST analysis 27 2.3.2 Key economic factors analysis 29 CHAPTER 3: INDUSTRY ANALYSIS 32 3.1 Global industry 32 3.2 Regional industry 33 3.3 Vietnam industry 33 3.3.1 Rivalry among existing firms 35 3.3.2 Threat of New Entrants 35 3.3.3 Power of Suppliers 36 3.3.4 Power of Customers 37 3.3.5 Threat of Substitutes 38 CHAPTER 4: COMPANY ANALYSIS 39 4.1 Ba Ria - Vung Tau Housing Development JSC (HDC) 39 4.1.1 Business description 40 4.1.2 SWOT analysis 43 4.1.3 Financial ratios 47 4.1.4 Valuation model 50 4.2 Construction Investment Development Joint Stock Corporation (DIG) 55 4.2.1 Business description 57 4.2.2 SWOT analysis 58 4.2.3 Financial ratios 61 4.2.4 Valuation model 64 4.3 Khang Dien Housing Trading and Investment Joint Stock Company (KDH) 69 4.3.1 Business description 73 4.3.2 SWOT analysis 74 4.3.3 Financial ratios 77 4.3.4 Valuation model 80 4.4 Nam Long Investment Joint Stock Company (NLG) 85 4.4.1 Business description 87 4.4.2 SWOT analysis 90 4.4.3 Financial ratios 93 4.4.5 Valuation model 96 CHAPTER 5: CONCLUSION 102 REFERENCES 104 APPENDIX 104 LIST OF TABLES AND FIGURES List of tables Table Real GDP growth in ASEAN, China and India, 2020-2023 22 Table Tear sheet 39 Table HDC valuation P/E method 50 Table HDC valuation P/B method 51 Table HDC valuation EV/EBITDA method 52 Table HDC Average valuation method 53 Table HDC compared to industry average 54 Table Tear sheet 55 Table DIG valuation P/E method 64 Table 10 DIG valuation P/B method 65 Table 11 DIG valuation EV/EBITDA method 66 Table 12 DIG Average valuation method 69 Table 13 DIG compared to industry average 69 Table 14 Tear sheet 69 Table 15 KDH valuation P/E method 80 Table 16 KDH valuation P/B method 81 Table 17 KDH valuation EV/EBITDA method 83 Table 18 KDH Average valuation method 84 Table 19 KDH compared to industry average 85 Table 20 Tear sheet 85 Table 21 NLG’s business 2021 88 Table 22 NLG valuation P/E method 96 Table 23 NLG valuation P/B method 97 Table 24 NLG valuation EV/EBITDA method 99 Table 25 NLG Average valuation method 100 Table 26 NLG compared to industry average 101 Table 27 Profitability efficiency HDC 164 Table 28 Profitability efficiency DIG 164 Table 29 Profitability efficiency KDH 165 Table 30 Profitability efficiency NLG 165 List of Figures Figure Inflation Risk 24 Figure Starting Point 25 Figure GDP growth 2019 – 2022 30 Figure The map below shows the location of HDC's major projects 41 Figure Profitability ratio 2017 – 2021 47 Figure Gearing ratio 2017 - 2021 48 Figure Liquidity ratio 2017 - 2021 49 Figure Efficiency ratio 2017 – 2021 49 Figure Profitability ratio 2017 - 2021 61 Figure 10 Gearing ratio 2017 – 2021 62 Figure 11 Liquidity ratio 2017 – 2021 63 Figure 12 Efficiency ratio 2017 – 2021 63 Figure 13 Map of key projects of Khang Dien 74 Figure 14 Profitability ratio 2017 – 2021 77 Figure 15 Gearing ratio 2017 – 2021 78 Figure 16 Liquidity ratio 2017 – 2021 79 Figure 17 Efficiency ratio 2017 – 2021 80 Figure 18 Map of southern key projects of Nam Long 87 Figure 19 Contract value 2021-2024 (million VND) 90 Figure 20 Profitability ratio 2017 – 2021 93 Figure 21 Gearing ratio 2017 – 2021 94 Figure 22 Liquidity ratio 2017 – 2021 95 Figure 23 Efficiency ratio 2017 – 2021 95 Figure 24 Industrial production 2021 – 2022 149 CHAPTER 1: INTRODUCTION 1.1 Overview of the global and Vietnamese real estate industry Real estate is an industry that plays a very important role in the economy, is a contributing factor to promoting investment capital mobilization, promoting production and development, increasing state budget revenue, expanding markets, and contributing to socio-economic stability The real estate industry not only contributes significantly to a country's GDP but also promotes other industries to develop such as construction materials, finance or labour, solving the problem of unemployment Because of its importance, the government always has appropriate mechanisms and policies so that the real estate market can develop stronger and healthier The Vietnam Real Estate Association recently released a study showing that the contribution of the real estate market in GDP in the period 2019-2021 is about 14% The real estate market can spread to over 40 other important sectors of the economy and become a bridge for other markets, contributing to the synchronous development of all types of markets When the final demand for the real estate industry increases by VND 1,000 billion, it will stimulate the production value of the remaining industries to VND 772 billion and spread to an additional value of VND 191 billion The research report of the Real Estate Association: "In case the production value of the real estate industry group changes by 10%, GDP will decrease by 1,247%; the processing and manufacturing industry was the most affected, down 0.861% This was followed by agriculture, forestry and fisheries (down 0.366%); tourism (down 0.352%); other services (down 0.348%)" 10