Company analysis and valuation of the vinamilk, th true milk, bavi milk and nutifood

i UNIVERSITY OF THE WEST OF ENGLAND BANKING ACADEMY OF VIET NAM MASTER SCIENCE IN FINANCE DISSERTATION COMPANY ANALYSIS AND VALUATION OF THE VINAMILK, TH TRUE MILK, BAVI MILK AND NUTIFOOD Student ID: 21071808 Student Name: Nguyễn Trường Giang Module Code: UMEDBK-15-M Programme of Study: Master Science in Finance September – 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014126014361000000 i TABLE OF CONTENTS MASTER SCIENCE IN FINANCE i DISSERTATION i COMPANY ANALYSIS AND VALUATION OF THE VINAMILK, TH TRUE MILK, BAVI MILK AND NUTIFOOD i TABLE OF CONTENTS i ACKNOWLEDGEMENTS iii LIST OF ABBREVIATIONS v LIST OF TABLES AND FIGURES vi INTRODUCTION 1 Background of the study 1.1 The reason for choosing the topic 1.1.1.2 The research objective 1.1.1.3 The research missions 1.1.1.4 The scope of research 1.1.1.5 The research methods 1.1.1.6 The scientific and practical significance 1.1.1.7 The research question 1.2 Research Motivation 1.3 Research Structure CHAPTER I 10 OVERVIEW OF THE WORLD ECONOMY AND THE DAIRY INDUSTRY WITH A MACROPERSPECTIVE 10 1.1 General view of the world economy with a macroperspective 10 1.1.1 World economic outlook for 2022 – 2025 10 1.1.1.1 Overview 10 1.1.1.2 Outlook for economic development in Southeast Asia in the 2022 – 2025 period 11 1.1.2 The Vietnamese economy 12 1.1.2.1 Overview 12 1.1.2.2 PEST Analysis of the Vietnamese economy 14 ii 1.1.2.3 Key macroeconomic factors analysis of the Vietnamese economy 16 1.2 General view of the dairy industry with a macroperspective 23 1.2.1 The global dairy industry outlook 23 1.2.2 The dairy industry performance 24 1.2.2.1 Supply 24 1.2.2.2 Demand 26 1.2.3 Competition drives in the global dairy market 27 1.2.4 Dairy market trends and prospects 28 CHAPTER II 29 DATA ANALYSIS OF COMPANIES IN FINANCIAL STATEMENTS AND HYPOTHETICAL MODELS 30 2.1 Company Analysis and Valuation of Vinamilk 30 2.1.1 Business Description 30 2.1.2 SWOT Analysis 32 2.1.3 Ratio Analysis & Forecasted Financial statements 40 2.1.4 Valuation of VNM 43 2.2 Company Analysis and Valuation of TH True Milk 44 2.2.1 Business Description 44 2.2.2 SWOT Analysis 46 2.2.3 Company Analysis and Valuation 51 2.3 Company Analysis and Valuation of Bavi Milk 54 2.3.1 Business Description 54 2.3.2 SWOT Analysis 56 2.3.3 Company Analysis and Valuation 59 2.4 Company Analysis and Valuation of Nutifood 61 2.4.1 Business Description 61 2.4.2 SWOT Analysis 64 2.4.3 Company Analysis and Valuation 68 CHAPTER III 70 CONCLUDING AND GIVING SOLUTIONS AND RECOMMENDATIONS FOR COMPANIES 70 iii 3.1 Concluding 70 3.2 Solutions and Recommendations for the companies 71 3.3 Limitations of the study and directions for further research 73 LIST OF REFERENCES 74 iii ACKNOWLEDGEMENTS To complete this dissertation, in addition to my own efforts, I received a lot of help and support from the university, the teachers as well as mentors, guiders and from my family So, first of all, I would like to express my sincere thanks to: - The management board and teachers of Vietnam Banking Academy and the University of the West of England, have supported students like me to have enough professional knowledge to be able to complete this dissertation I will cherish my stay in the UK for the rest of my life since it was a priceless experience I have never had the opportunity to interact with so many different nationalities before - Mr Pham Duc Cuong enthusiastically guided me to carry out this dissertation, from the consultation stage dissertation, develop research methods, from stage to outline, edit and complete the final dissertation He provided me with many insigthtful remarks and excellent ideas - My parents and brothers and sisters in the family, have supported me all the way in the process of implementing this dissertation, both financially, in terms of study and personal development, as well as financial support I also want to express my appreciation to Dang Thi Thao, who provided me with a lot of advice and support when I was studying Finally, I want to express my gratitude to all of the UWE instructors and staff members who helped me during the course iv Thank you very much! Nguyễn Trường Giang 18th September 2022 v LIST OF ABBREVIATIONS ADB: Asian Development Bank Bavimilk: Ba Vi Milk Joint Stock Company EMR: Expertmarketresearch EU: European GDP: Gross Domestic Product Nutrifood: Nutifood nutrition food joint stock company IMF: International Monetary Fund VNM/Vinamilk: Vietnam Dairy Products Joint Stock Company VND: VietNam Dong 10 SMP: Skimmed Milk Powder 11 SWOT: Strength – Weakness – Opportunities – Threats 12 OTC: Over-the-counter 13 TH True Milk: TH True Milk company 14 WB: World Bank 15 WMP: Whole Milk Powder vi LIST OF TABLES AND FIGURES No Name of tables/figures Page Number Table 2.1 Coefficient of capital structure of VNM 40 Table 2.2 Coefficient of solvency of VNM 41 Table 2.3 The profitability indicators of capital of VNM 42 Table 2.4 Valuation of VNM 43 Table 2.5 Suggested Target Price of VNM 44 Figure 1.1 PEST Analysis of the Vietnamese economy 15 Figure 1.2 Milk production and yield in selected countries and regions 25 Figure 1.3 Imports of dairy products by regions 26 Figure 1.4 Dairy products market size, 2021 to 2030 (USD Billion) 29 INTRODUCTION Background of the study 1.1 The reason for choosing the topic Company analysis and valuation is a process that includes an analysis of a company's financial position, products, services, and competitive strategy, or the company's plan to deal with potential threats threats and opportunities presented by the external environment Company analysis and valuation takes place after the analyst understands the external environmental impact on the company, macroeconomics, demographics, government, technology, and society affecting the competitive structure of the industry The company analysis and valuation report (1) provides an overview of the company, (2) explains the characteristics related to the industry in which the company operates, (3) analyzes the demand for products and services of the company, (4) analysis of the supply of products and services, including cost analysis, (5) analysis of factors affecting the selling price of products and services of the company, and (6) present and interpret relevant financial ratios, including comparisons over time and comparisons with competitors Company analysis and valuation often includes forecasting a company's financial statements, especially when the purpose of the analysis is to use the discounted cash flow method to value the company The role and purpose of company valuation is especially important Enterprise valuation usually serves the following main purposes: (1) Purchase, sale, merger, joint venture, business liquidation, (2) Investment, capital contribution, purchase - sale of securities of enterprises, (3) Equitization, listing of securities on the stock market, (4) Borrowing capital for business investment, (5) Collection, (6) Dispute settlement and settlement Regarding the research scope of this study, this master dissertation analyzes and evaluates some typical companies in the dairy industry in Vietnam, including: Vinamilk, Th True Milk, Bavi Milk and Nutifood Currently, there are quite a few studies that have addressed the analysis and valuation of these companies However, most of the research topics are being implemented at a rudimentary level, not yet concretized, as well as not highly academic, not exploiting many contents of the research problem Accordingly, there are not many reputable valuation reports specifically for these companies Most are reports of securities companies in Vietnam Overseas, the reports are often general in nature, not fully exploiting the research content on analysis and valuation of Vinamilk, Th True Milk, Bavi Milk and Nutifood Accordingly, the analysis and valuation of Vinamilk, Th True Milk, Bavi Milk and Nutifood is very necessary and important in the current period The dissertation “Company analysis and valuation of the Vinamilk, Th True Milk, Bavi Milk and Nutifood” was built on the basis of clearly recognizing the role and importance of analysis and valuation of companies Thus, this dissertation will analyze and evaluate of the Vinamilk, Th True Milk, Bavi Milk and Nutifood, also, evaluate the