Financial analysis report of century synthetic fiber corporation tng investment and trading jsc thanh cong textile garment investment trading jsc song hong garment jsc

Dissertation submitted in partial fulfillment of the Requirement for the MSc in Finance FINANCE DISSERTATION ON FINANCIAL ANALYSIS REPORT OF CENTURY SYNTHETIC FIBER CORPORATION TNG INVESTMENT AND TRADING JSC THANH CONG TEXTILE GARMENT INVESTMENT TRADING JSC SONG HONG GARMENT JSC NGO HUONG THAO ID No: 21071799 Intake Supervisor: Prof Dr To Kim Ngoc September 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014126328501000000 ACKNOWLEDGEMENT I am honored for becoming a student of the Banking Academy and University of the West of England, and it is a pleasure to encounter committed professors Professors teach us not only knowledge, but also about life, attitudes and multidimensional perceptions of issues They show us the overlooked attractiveness of the economy, especially in Finance I earned a lot of support and assistance from professors, family and friends during my Master program Therefore, I would like to convey my deepest gratitude to all professors for their insight and commitment to share their expertise with us Furthermore, I want to thank Ms To Kim Ngoc for having been a great encouragement to me in finance I have learned and interacted with many esteemed professors but perhaps the most inspired instructor with me is Ms Ngoc, my instructor When anyone has problems, she always sends us sincere guidance So, I also expect that I will have more chances to collaborate with Ms Ngoc in the future Ngo Huong Thao EXECUTIVE SUMMARY This dissertation examines four of Vietnam's leading textile and garment companies: Century Synthetic Fiber Corporation, TNG Investment and Trading JSC, Thanh Cong Textile Garment Investment Trading JSC, and Song Hong Garment JSC It evaluates all factors both internal and external influencing the companies' achievement and prospects in order to provide detailed advice and appropriate investment recommendations to investors For these companies, the competition for market share is becoming increasingly important As a result, the industry has become more diverse: scale and scope, as well as category growth, have become defining themes for corporate strategies According to the company analyses, STK and MSH are the industry leaders because they have grown in line with the market in recent years Furthermore, their financial situations are outstanding, with financial ratios that are significantly higher than industry benchmarks However, while STK continues to grow, MSH is declining as all of its financial ratios show weaknesses TCM's financial ratios indicate that the company is in a poor financial state and that its risk of insolvency is high TNG, on the other hand, has a stronger financial state and is regarded as a prospective company for long-term investment So after the valuation model, the intrinsic values of the four top companies in Textile and Garment Industry are calculated TABLE OF CONTENT LIST OF FIGURES 10 LIST OF TABLES 11 LIST OF ABBREVIATIONS 13 CHAPTER 1: INTRODUCTION 14 I.Rationales 14 II.Research questions 14 III.Research purposes 14 IV.Objects and scope 15 V.Methodology 15 VI.Thesis structure 15 CHAPTER 2: MACROECONOMIC 16 I.The world 16 II.Regional - APAC .19 1.Political Factor 19 2.Economic Factors 19 3.Social Factors 20 4.Technological Factors 20 III.Viet Nam 21 1.Political 21 2.Economic 22 3.Sociocultural 23 4.Techonology 23 CHAPTER 3: INDUSTRY ANALYSIS 24 I.History 24 1.The world 24 1.1 Before the 19th century 24 1.2.19th century – Early 20th century 24 1.3.20th century .24 2.Viet Nam 25 2.1 Period before 1986 25 2.2 Period from 1986 to 1997 .25 2.3 The period from 1998 to present 25 II.Value chain 26 1.Global value chain 26 1.1.Fibers 26 1.1.1 Cottons .28 1.1.2 Polyester 29 1.2 Dyed fabrics 30 1.2.1 Weaving 30 1.2.2 Dyeing .31 1.3 Garment 32 1.3.1 CMT (Cut – Make – Trim) .33 1.3.2 OEM/FOB (Original Equipment Manufacturing/ Free on Board) 33 1.3.3 ODM (Original Design Manufacturing) 34 1.3.4 OBM (Original Brand Manufacturing) 34 1.4.Exporting and marketing .34 2.Viet Nam value chain .34 2.1 Fibers .34 2.1.1 Materials 34 a Cotton 34 b Polyester .35 2.1.2 Manufacturing system 36 2.1.3 Capacity 37 2.1.4 Consumption market 37 2.2.Dyed fabric .38 2.2.1 Materials 38 2.2.2 Manufacturing system 38 2.2.3 Capacity 39 2.2.4 Consumption market 39 2.3.Garment 39 2.3.1 Materials 39 2.3.2 Manufacturing system 40 2.3.3 Capacity 41 2.3.4 Consumption market 43 2.4 Exporting and marketing 44 3.The position of the textile industry in the economy 44 3.1.Scale 44 3.2.Export .44 3.3.FDI 45 3.4.Performance 46 3.4.1.Revenue and Profit margin .46 3.4.2.Growth 47 4.Consumption trends 47 4.1.Online shopping 47 4.2.Human rights protection 48 4.3.Fast-fashion 48 4.4.Zero Discharge of Hazardous Chemicals (Greening) 49 5.SWOT 49 5.1.Strengths 49 5.2.Weaknesses 49 5.3.Opportunities .50 5.4.Threats 51 6.Porter's Five Forces 52 6.1.Threat of new entrants 52 6.2.Bargaining power of suppliers 54 6.3.Bargaining power of customers 56 6.4.Threat of substitutes 58 CHAPTER 4: CORPORATION ANALYST 62 I.Century Synthetic Fiber Corporation (STK) 62 1.Overview 62 1.1.Background 62 1.2.Corpotation position .62 2.Business model 63 2.1.Main activities 63 2.2 Target 63 2.3 Supplier 63 2.4 Customer 64 2.5 Distribution channel .64 2.6 Revenue 65 3.SWOT analysis .66 3.1.Strengths 66 3.2.Weaknesses 66 3.3.Opportunities 67 3.4.Threats .67 Financial analysis 68 4.1.Financial ratio 68 4.1.1 Profitability ratio .68 4.1.2.Gearing ratio 69 4.1.3.Liquidity ratio 70 4.1.4.Efficiency ratio 71 4.2 Forecast of business performance 71 5.Valuation 73 5.1 DCF Method 73 5.2.EV/EBITDA method .74 5.3.Suggested target price .75 II.TNG Investment and Trading JSC (TNG) .76 Overview 76 1.1.Background 76 1.2.Corpotation position .77 Business model .77 2.1 Main activities 77 2.2 Target 77 2.3 Suppliers 78 2.4 Customer 78 2.5 Distribution channel .79 2.6 Revenue 79 SWOT analysis 80 3.1.Strengths 80 3.2.Weaknesses 81 3.3.Opportunities 81 3.4.Threats .81 Financial analysis 82 4.1.Financial ratio 82 4.1.1 Profitability ratio .82 4.1.2.Gearing ratio 83 4.1.3.Liquidity ratio 83 4.1.4.Efficiency ratio 84 4.2 Forecast of business performance 84 Valuation 86 5.1 DCF Model 86 5.2 EV/EBITDA method 87 5.3.Suggested target price .88 III Thanh Cong Textile Garment Investment Trading JSC (TCM) 89 Overview 89 1.1.Background 89 1.2.Corpotation position .90 Business model .90 2.1 Main activities 90 2.2 Target 90 2.3 Suppliers 91 2.4 Customer 91 2.5 Distribution channel .92 2.6 Revenue 92 SWOT analysis 92 3.1.Strengths 92 3.2.Weaknesses 93 3.3.Opportunities 93 3.4.Threats .93 Financial analysis 94 4.1.Financial ratio 94 4.1.1 Profitability ratio .94 4.1.2.Gearing ratio 95 4.1.3.Liquidity ratio 96 4.1.4.Efficiency ratio 96 4.2.Forecast of business performance 97 Valuation 99 5.1 DCF method 99 5.2 EV/EBITDA method 100 5.3 Suggested target price 101 IV Song Hong Garment JSC (MSH) 102 Overview 102 1.1.Background 102 1.2.Corpotation position .102 Business model .103 2.1 Main activities .103 2.2 Target 103 2.3 Suppliers 104 2.4 Customer .104 2.5 Distribution channel .104 2.6 Revenue 105 SWOT analysis 105 3.1.Strengths 105 3.2.Weaknesses 106 3.3.Opportunities 106 3.4.Threats 106 Financial analysis 107 4.1.Financial ratio 107 4.1.1 Profitability ratio 107 4.1.2 Gearing ratio 108 4.1.3.Liquidity ratio .109 4.1.4 Efficiency ratio 109 4.2 Forecast of business performance .110 Valuation 111 5.1 DCF method 111 5.2 EV/EBITDA method 112 5.3 Suggested target price 113 CHAPTER 5: CONCLUSION 114 I Recommendation 114 1.1.Comparison with other industries .114 1.1.1.Fishery industry (Seafood industry) .114 1.1.2.Steel industry 115 1.2.Reviews 116 II.Limitations .118 REFERENCES 119 APPENDIX 122