(Tiểu luận) bài tập nhó mintroduction and analysis of the capitalstructure of masan company

DUY TAN UNIVERSITY INTERNATIONAL SCHOOL BÀI TẬP NHÓM INTRODUCTION AND ANALYSIS OF THE CAPITAL STRUCTURE OF MASAN COMPANY MÔN HỌC : FINANCIAL MANAGEMENT LỚP : PSU FIN 302 BIS GVHD : LƯU THỊ THU HƯƠNG NHÓM SV : Nguyễn Thị Mai Anh Lương Thị Ngọc Bích Lê Thanh Hiền Nguyễn Thị Diễm Quỳnh Lê Hà Kiều Trang Đà nẵng, ngày 17 tháng 06 năm 2023 ĐẠI HỌC DUY TÂN KHOA QLKT VIỆT MỸ PSU Tên Đề tài/ Dự Án Giảng viên: Họ Tên viên 1: Họ Tên viên 2: Họ Tên viên 3: Họ Tên viên 4: Họ Tên viên 5: PHIẾU CHẤM ĐIỂM ĐỒ ÁN MÔN HỌC (Dành Cho Đồ Án Cá Nhân/ Đồ Án Nhóm) MƠN: FINANCIAL MANAGEMENT NĂM HỌC: 2023 - 2024 MÃ MÔN: PSU FIN 302 HỌC KỲ: Introduction and analysis of the capital structure of Masan company Lưu Thị Thu Hương Sinh Nguyễn Thị Mai Anh Mã SV: 26202123351 Sinh Lương Thị Ngọc Bích Lê Thanh Hiền Mã SV: 26202141774 Sinh Sinh Sinh LỚP: BIS Mã SV: 26203824458 Nguyễn Thị Diễm Quỳnh Lê Hà Kiều Trang Mã SV: 26202134902 Mã SV: 26202141727 Điểm Đánh giá Thành viên % Đánh giá Tiêu chí Đánh giá Hình thức Nội dung Thái độ Tổng TRUNG TÂM KHẢO THÍ Đà Nẵng, Ngày 17 tháng năm 2023 Giảng viên (Ký ghi rõ họ tên) BẢNG TỰ ĐÁNH GIÁ STT Họ tên MSSV % Tham Gia Lương Thị Ngọc Bích 26202141774 20% Nguyễn Thị Mai Anh 26202123351 20% Lê Thanh Hiền 26203824458 20% Nguyễn Thị Diễm Quỳnh 26202134902 20% Lê Hà Kiều Trang 26202141727 20% I- SUMMARY OF MASAN GROUP: Chữ kí The process of birth and development: a) History of Masan group (MSN): Built by Mr Nguyen Dang Quang who is currently the Chairman of the Board of Directors Mr Quang's predecessor was a small instant noodle factory in Russia, established in 1990 It was not until 2001 that the Massan Food brand was brought back to the country In August 2009, the company changed its name to Massan Group Joint Stock Company; On November 5, 2009, Massan was successfully listed on Ho Chi Minh City Stock Exchange In July 2015, the company officially changed its name to Massan Group Joint Stock Company, which is used to this day As of 2021, Massan's charter capital is VND 11,747 billion After undergoing many restructurings, now Massan Group Joint Stock Company directly owns and manages three subsidiaries: MasanConsumerHoldings Co., Ltd., which deals in consumer goods such as fish sauce, instant noodles, and water similar , Masan High-Tech Materials Company deals in natural resources and minerals and Masan Meatlife Joint Stock Company deals in animal feed and meat processing To date, Massan Group is one of the private companies operating in the consumer goods and resource industries of Vietnam and one of the largest companies in the national economic sector In 2020, Massan ranked 10th among 500 Vietnamese enterprises according to VNR500 The group also has famous products that have been on the market for many years such as: Chinsu chili sauce, Chinsu fish sauce, White Su Tu Beer, b) Masan’s fields of activity: Masan Group Joint Stock Company (MSN) is a diversified business company with different industries Such as: livestock, feed, food, consumer goods, banks, retail supermarkets, natural resource exploitation and most recently (September 2021), through The Company Limited Sherpa, Masan has entered the telecommunications field  Currently, Masan MeatLife JSC (MML- Upcom) mainly operates in the field of animal feed production and meat processing As Vietnam's largest player in the branded meat value chain, focusing on improving productivity Masan MeatLife has successfully launched the cool meat brand “MEATDeli” according to processing technology that meets European standards  Techcombank is one of the largest joint stock commercial banks in Vietnam Masan is the largest shareholder of this bank Techcombank's development is growing stronger with total lending assets, mobilized capital, and number of customers distributed across the country  Masan Consumer Holdings is one of the largest domestic FMCG companies in Vietnam The company manufactures and distributes a wide range of food and beverage products, such as soy sauce, chili sauce, fish sauce, instant noodles, instant porridge, instant coffee, instant cereals, bottled beverages and beer The key brands of Masan Consumer Holdings include: Chin-su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Komi, Ponnie, Vinacafé, Wake-up, etc  Masan High – Tech Materials is one of the largest private mineral processing and resource companies in the Vietnamese private sector Currently operating the Nui Phao polymetallic mine in the North Nui Phao owns the world's largest tungsten mine and opens the industry's first new tungsten that has been put into operation in over a decade  WinCommerce is the largest nationwide modern grocery retailing platform in Vietnam with the Winmart supermarket chain and the Winmart+ supermarket chain Supermarkets mainly serve the daily consumption needs of Vietnamese people such as necessities (Winmart+), financial services (Techcombank), pharmaceuticals (Dr.Win), F&B chains (Phuc Long), services telecommunications service (Reddi) The organizational structure of Masan company: Document continues below Discover more from: Corporate Financial Analysis PSUFIN373 Trường Đại Học… 91 documents Go to course KHẢO SÁT NHU CẦU 96 SỬ DỤNG THẺ ATM… Corporate Financial… 100% (11) Trắc nghiệm mơn FIN 15 - quản trị tài Corporate Financial… 100% (10) ƠN TẬP QUẢN TRỊ TÀI 22 58 Chính FIN 301 T Corporate Financial… 100% (6) BPH250 - Can Ban Ly Sinh - 2020F -… Corporate Financial… 100% (3) PSU FIN 301 MIX 22 a) Management board: (quan tri tai chinh 1)… Corporate Financial… 100% (2)  Dr Nguyen Dang Quang object-oriented (Chairman of the Board of Directions analysis and design… of Masan Group) 181 - - Corporate Dr Nguyen Dang Quang is one of the 100% (2) Financial… founders and plays an important role in leading Masan Group during its formation and development up to now As a visionary leader, he has turned Masan Group into one of the leading multi-industry groups in the private sector with more than 50 member companies  Mr Danny Le (General Director of Masan Group) - Joined Masan Group since 2010 He is a key factor in building the Group's development strategy, as well as directly organizing mergers and acquisitions (M&A) transactions, thereby accelerating the process expansion and development of Masan Group - Mr Danny Le used to hold the position of financial advisor at Morgan Stanley (New York) - He is also a member of the Board of Directors of subsidiaries of Masan Group  Mr Truong Cao Thang (Chairman & CEO of The CrownX) - - He is a member of the Board of Directors and holds many important positions of other member companies such as General Director of Masan Consumer Corporation, General Director of VinCommerce He has more than 20 years of experience in the FMCG industry He is an important factor in the successful transformation of many FMCG categories from commodity models to building strong Vietnamese brands, not only in the domestic market but also in foreign markets such as CHIN -SU, Nam Ngu, Omachi  Mr Nguyen Quoc Trung (General Director of Masan MEATLife Group) - He has more than 25 years of experience in agribusiness in multinational companies - And is an expert in setting up and managing new projects with excellent performance - He holds responsibility from strategy to execution/operation for the meat segment (pork and chicken), the farm system, as well as the business support departments  Mr Nguyen Thieu Nam (Deputy General Director of Masan Group) - He is the Deputy General Director in charge of External Relations and a member of the Board of Directors of Masan Group He has held senior executive roles at our subsidiaries and affiliates such as Masan Consumer and Techcombank He is currently a member of the Board of Directors of other companies under Masan Group  Mr Craig Richar Bradshaw : (General Director of Masan HighTech Materials) - He joined Masan Group as General Director of Masan High-Tech Materials since 2011 - He has over 25 years of experience in the mining industry, spanning mining and processing, logistics, sales and marketing in Australia, Thailand and Lao PDR - He also served as the Country General Manager of Toll in Thailand, Australia's largest integrated logistics service provider  Mr Michael Hung Nguyen (Deputy General Director of Masan Group) - - - Joined Masan Group since 2009 He leads the development of initiatives, strategic deals, operations in market capitalization and investor relations In particular, he focuses on initiatives to serve the initial public offering (IPO) process Prior to joining Masan Group, he helped build J.P.'s Vietnam investment banking enforcement team Morgan and works in capital markets M&A and private transactions with financial, real estate and consumer clients b) Company structure: Products and services of Masan Group:  Convenience food group: Instant noodles, instant porridge, hot dogs with key products such as: Omachi, Kokomi, Kokomi porridge,…  Group of condiments: sauces, soy sauce, chili sauce, seasoning with key products such as Chinsu fish sauce, Nam Ngu fish sauce, Chinsu soy sauce, Tam Thai Tu soy sauce, Chinsu chili sauce, etc  Beverage group: mineral water, bottled water, salted lemon mineral water with key products such as Vinh Hao mineral water, Quang Hanh mineral water, Quang Hanh mineral water - Faith with salted lemon flavor, Quang mineral water Hanh – Blizka with Salted Apricot, Wake up 247 coffee-flavored energy drink, etc  Coffee group: instant coffee, energy drinks with key products such as Vinacafe Bien Hoa 3-in-1 instant coffee, Wake up Saigon coffee, Quality coffee, De Nam coffee, etc SWOT analysis of Masan company: Strengths   Great financial resources Board of Directors has Weakness:  Spend a lot of advertising costs and product        good capacity, vision and development strategy Staff have knowledge, skills, experience in domestic and international market research Focus on investing in brand building, quickly leading the market share Wide network of distribution channels throughout the country The company organizes many communication activities, marketing new products, and widely promoting campaigns Owning the best product research and development center in Vietnam Modern production process with high technology, promoting and diversifying products The company's products are chosen by many customers because they are suitable for the needs of Vietnamese people     Opportunity:  Ability to raise capital in the financial market  Demand for export consumer goods is increasing, the State's policies encourage exports to foreign markets Benefiting from export preferential policies, the ability to develop to other countries in the world is  development cost Most of the materials are imported from abroad at a very high cost The company has not yet had time to change to adapt to the consumer market, there are still many difficulties in business activities Expansion too fast creates obstacles in the management and management in the traditional way Product quality is also questioned by a series of news Challenge:  As incomes increase, the standards of customers are getting higher and higher, which poses a great challenge for manufacturers to diversify product categories but still ensure quality, good health and competitive prices   more favorable than before The State strengthens the campaign "Vietnamese people give priority to using Vietnamese goods" in the new situation Economic recovery and rising incomes lead to a great demand for packaged food products that still ensure nutrition and food safety    Price competition in both import and export markets Competitive pressure to attract labor resources when there are many potential competitors and big foreign brands in the market The exchange rate between Vietnam dong and other foreign currencies is on an upward trend along with inflation leading to higher import prices of production materials II- FINANCIAL STATEMENT ANALYSIS OF MASAN COMPANY: Masan’s balance sheet: MASAN (MSN) Balance Sheet for the Years Ended December 31, 2021 and 2022 ASSET 2021 2022 A CURRENT ASSETS 43,630,176 47,674,624 I Cash and cash equivalents 22,304,822 13,853,100 II Short-term financial investments 332,753 3,659,175 III Short-term receivables 6,634,409 13,929,560 IV Inventories 12,813,391 14,445,345 V Other short-term assets 1,544,801 B NON-CURRENT ASSETS 82,463,295 1,787,444 93,668,191 I Long-term Receivable 1,878,478 II Fixed assets 42,653,939 III Investment properties 2,113,762 43,535,355 810,057 729,763 IV Long-term assets in progress 2,021,827 V Long-term financial investments 24,538,803 31,333,885 VI Goodwill 10,560,191 12,630,578 TOTAL ASSETS (270=100+200) LIABILITIES 3,324,848 126,093,471 141,342,815 83,756,819 104,706,076 C Short term 83,756,819 104,706,076 I Current liabilities 34,547,836 65,320,877 II Long-term liabilities 49,208,983 39,385,199 D OWNER'S EQUITY 42,336,652 36,636,739 I Owner's equity II Other resources and funds 42,336,652 36,636,739 TOTAL RESOURCES (440=300+400) 126,093,471 141,342,815 Masan’s income statement: MASAN (MSN) Income Statement for the Years Ended December 31, 2021 and 2022 Revenues Deduction from Revenues Net Revenues Cost of Gold Sold Gross profit Financial Income Financial Expenses Of which: Interest Expenses Share in profits of associates Selling Expenses 2021 89,791,619 191,525 88,628,767 66,493,966 22,134,801 6,799,578 5,706,531 4,669,426 2022 76,380,750 76,189,225 55,154,201 21,035,024 2,575,563 6,361,642 4,847,702 3,896,641 11,786,338 4,339,650 12,511,539 10 General and Administrative Expenses 11 Operating Profit 12 Other Income 13 Other Expenses 14 Other Profit 15 Profit before tax 16 Current corporate income tax expense 17 Deferred income tax benefit 18 Net profit after tax 4,064,969 11,273,182 501,150 285,548 215,602 3,854,314 5,222,742 279,707 355,299 -75,592 11,488,784 5,147,150 1,499,249 626,750 -111,846 -233,984 10,101,381 4,754,384 The main goal of financial management is to maximize shareholder wealth over the long term, not to maximize accounting measures Financial statement analysis shows how managers use reports to improve performance The vertical and horizontal analysis of balance sheet of Masan Joint Stock Company are presented in part and Identify whether the company is doing well, has potential or not, Revenue in 2022 is lower than in 2022, Cost of goods sold in 2022 is lower than in 2021 Operating profit in 2022 is higher The income statement is one of the important reports of an enterprise, capable of generating revenue and profitability that the business model of the enterprise is developing Thereby, it also helps investors have a view of the business performance of the business  Financial statement analysis of 3.1 Vertical and horizontal analysis: 3.1.1 Balance sheet: a Asset section: Vertical analysis: Masan: In terms of assets, in general, long-term assets account for a higher proportion with the years 2021, 2022 at 65.40%, 66.27% respectively while short-term assets are 34.60%, 33.73 % From the above data, it shows that long-term assets have an increasing proportion over the years, but short-term assets, on the contrary, decrease gradually over the years Looking from left to right, the balance sheet can see that from 2021, 2022 short-term assets decrease Longterm assets also have a similar pattern, but with a difference of inch, in 2022, they will increase more than in 2021 Those are the reasons for the increase in total assets The above figures show that investing more in long-term assets for production and business  - Horizontal analysis: Current assets: Cash and cash equivalents have a percentage fluctuating from 35% to 34% within the two year, in which the year of 2021 and 2022 In 2022 there was a percentage change of 9% and a value change of 4,044,448 of cash, equivalent to 47,674,624 million VND in comparison with 2021 is an amount of 43,630,176 million VND For accounts receivable, there is a sudden increase from 2022 to 2021 from 5% to 10% Currently, accounts receivable still tend to increase strongly Inventories did not change significantly In 2021 and 2022, the rate will remain at 10% Inventories in 2021 are 12,813,391 and increase to 14,445,345 in 2022 - Non – current assets: In non-current assets section, long-term investments always seize a remarkable proportion with around 19% in 2021 and 22% in 2022 Fixed assets plummeted from 34% to 31% in the last two years In 2021 fixed assets from 42,653,939 to 43,535,355 in 2022 ( 2% ) 3.1.2 Income statement: III- FINANCIAL ANALYSIS OF MASAN COMPANY: Liquidity: LIQUIDITY 2021 2022 Current Ratio 1.26 0.73 Quick Ratio 0.89 0.51 It can be seen from the table that 2021 experienced a highest current ratio of 1.26 which means VND of current liabilities can ensure by 1.26 VND of current assets This ration, however, drops drastically to only 0.73 in 2022 As can be seen from the figure 2.1 that compared to this ratio of BBC and industry average, current ratio of KDC was well above both ones in 2010 but well below in 2011 and showed a poor sign with the competitor in 2012 The Company in year of 2010 appeared to have greater ability to cover current liabilities when they became mature than the rest A high proportion of current liabilities (66%) compared with 35% of current assets brings about a low current ratio in 2021 Turning to quick ratio, the picture changes when this ratio, though, is highest in 2021 but is closely to 2022 with 0.51 These figures demonstrate the fact that inventories make a great contribution to the high ratio of current one in 2021 Debt management: 2021 2022 Debt to capital Ratio 0.66 0.74 TIE 3.46 2.06 Debt-to-capital ratio from 2021 (0.66%) gradually increased to 2022 (0.74%) This means that the business has a higher repayment obligation and a higher risk of foreclosure if it fails to repay the loan on time The TIE fell from 3.46% to 2.06%, both greater than 1, indicating that profit before interest and tax is higher than interest expense Positive financial situation Asset management: 2021 2022 Inventory turnover ratio 7.01 5.29 DSO 26.97 66.57 Fixed asset turnover ratio 2.11 1.75 Total asset turnover ratio 1.04 0.84 Profitability: PROFITABILITY MEASURES 2021 Gross Profit Margin 25% 28% Operating Profit Margin 13% 7% 8% 3% 24% 13% Return on Total Assets Return on Equity (ROE) - 2022 ROA in 2021 is larger than 2022, so in 2022 the company's resources have not been exploited effectively ROE in 2021 is greater than in 2022 The lower the ROE ratio, the lower the company's capital means that the company has not used shareholders' capital effectively, which means that the company has not balanced the balance between shareholders' capital and working capital Thus, the lower the ROE, the less attractive the stock in 2022 Market value: 2021 2022 Earnings per Share Price/Earnings Ratio (P/E) Market-to-Book Value - 7.27 2.63 23.53 35.39 4275 3100 P/E in 2021 is lower than 2022 Market – to – book value in 2021 is higher than 2022 IV- OPTIMAL STRUCTURE: