NAM KIM GROUP nam kim steel joint stock company (trademarked tôn nam kim”)

NAM KIM GROUP Table of Contents I INTRODUCTION 1.1 About Nam Kim 1.2 The Company Evolution: 1.3 The company’s external audit firm 5 1.4 Main business field 1.5 The stock: 1.6 The company’s Board of Directors (BOD) 1.7 The majority-owned subsidiaries of Nam Kim group are: II ANALYSIS OF PROFIT/LOSS AND BALANCE SHEET: 2.1 THE MOST RECENT YEAR-END OF BALANCE SHEET: 2.1.1 Total current assets 2.1.2 Total non-current assets 2.1.3 Total current liabilities 2.1.4 Total non-current liabilities 2.1.5 Total stockholders’ equity 2.1.6 Common-size balance sheet 2.2 THE MOST RECENT YEAR-END OF INCOME STATEMENT 2.2.1 Total operating revenues 2.2.2 Cost of Goods Sold 2.2.3 Total expenses (before income tax) 7 11 11 11 11 12 12 13 14 14 15 III RATIO ANALYSIS 3.1.1 Current ratio: 3.2.1 Asset Turnover Ratio 3.3.1 Total Debt Ratio 3.4.1 Profit Margin: 3.5 MARKET VALUE RATIO 16 16 17 19 20 21 IV CONCLUSION 23 V REFERENCES 24 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) I INTRODUCTION 1.1 About Nam Kim Nam Kim Steel Joint Stock Company (trademarked “Tôn Nam Kim”) is not only the leading group that provides companies with solutions based on technology platform 4.0 – shared economic technology network but also, the multidisciplinary economic group with a diverse ecosystem consists of 12 member companies covering 12 different sectors: mining, technology, investment, real estate, logistics, food, and communications As of not long ago, their products are completely cross-country trusted and exported to over 50 nations trillions throughout the world Established on December 23, 2002, in Vietnam according to the provisions of the enterprise, the certificate of registration no 3700477019 issued by the Business Registration Office - Department of Planning and Investment of Binh Duong Province for the first time on December 23, 2002, the registration for the 25th change, July 25, 2019 In 2011, Nam Kim Steel Joint Stock Company was officially listed on the stock exchange on January 14, 2011, with the stock code NKG The headquarter is at Lot A1, Road D2, Dong An Industrial Park - Hoa Phu Ward - Thu Dau Mot City - Binh Duong Province Tel: 0274-3748848 Fax: 0274-3748868 Email: info@namkimgroup.vn Website: http://tonnamkim.com/ 1.2 The Company Evolution: + 2010- 2011: Expanding new factory construction and Recorded on the stock trade Construction of Ton Plating Factory No in Lot B2.2-B2.3, Road D3, Dong An Industrial Park, Hoa Phu Ward, Thu Dau Mot Town, Binh Duong Province, and then in 2011, Nam Kim Steel Joint Stock Company was officially listed on the stock exchange with the stock code NKG + 2012-2014: NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) Nam Kim Factory began operation and increased production capacity up to 350,000 tons per year years later, Commencement of Plating Steel Factory No in Lot A1, D2 Street, Hoa Phu Ward, Thu Dau Mot City, Binh Duong Province + 2015-2016: Groundbreaking ceremony of Long An pie factory at Vĩnh Lộc industrial park, Long An province From that point forward, Galvanized Steel House No authoritatively came into activity, expanding the capacity up to 650,000 tons/year + 2018- Present: There are types of products that accomplish high production capacity each year: Galvanized steel pipe, pickled oiled steel coil, and COATED STEEL COIL accounting for 120,000 tons per year, 800,000 tons/year, and 1,000,000 tons/year respectively 1.3 The company’s external audit firm The company's external audit firm is a restricted risk organization PwC (Vietnam) PwC is perceived as the main M&A (Market and Annex) monetary consultant by number arrangements for the Asia-Pacific district in 2020, positioned by Mergermarket, Bloomberg LP, and Thomson Reuters 1.4 Main business field ● Manufacture of other metal products n.e.c ● Producing iron, steel, cast iron ● Wholesale of metals and metals ● Mechanical; metal treatment and coating ● Other specialized wholesale not elsewhere classified Charter capital: 1.819.998.680.000 VNĐ (One thousand eight hundred nineteen billion nine hundred ninety-eight million six hundred eighty thousand dongs even) In 2020, Nam Kim ranked 113th in the list of 500 largest enterprises in Vietnam, down 26 places compared to 2019 and the company currently manages the operation of factories with a total NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) capacity of million tons of final plating products per year Moreover, in the past pandemic years, it has damaged the Vietnamese economy, but Nam Kim company has remained stable and earned revenue of up to VND11.613 billion Besides, Nam Kim’s products have been trusted and used in the domestic market and also exported to more than 50 countries around the world to Australia, Europe, America, Southeast Asia, South Asia, the Middle East, and Africa 1.5 The stock: On January 14, 2011, the company's shares were listed and traded on HOSE, and Nam Kim Group's stock code is NKG 1.6 1.7 The company’s Board of Directors (BOD) ● Mr HO MINH QUANG Chairman ● Mr VO HOANG VU Member of BOD ● Mrs TRAN NGOC DIEU Deputy general director ● Mr NGUYEN VINH AN Member of BOD ● Mrs NGUYEN THI NGOC LIEN Deputy general director ● NGUYEN HUU LUAN Member of BOD ● Mr QUANG TRONG LANG Deputy general director ● Mrs NGUYEN NGOC Y NHI Member of BOD ● Mrs VU THI TUYEN Chief Accountant ● Mrs NGUYEN THI BICH NHI Head of the MBS ● Mrs, VO THI VUI Member of MBS ● Mr LE NHAT TAN Member of MBS The majority-owned subsidiaries of Nam Kim group are: + Nam Kim Steel Pipe Co., Ltd (Long An Pipe Factory) + Nam Kim Chu Lai Steel Pipe Co., Ltd (Chu Lai Pipe Factory – not yet operational) II ANALYSIS OF PROFIT/LOSS AND BALANCE SHEET: 2.1 THE MOST RECENT YEAR-END BALANCE SHEET: NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) BALANCE SHEET Year NKG NKG NKG 2018 (VND) 2019 (VND) 2020 (VND) ASSETS Cash and cash equivalents 460,998,285,030 76,042,177,746 219,161,716,845 Short-term financial investments 197,635,323,046 702,161,632,011 369,526,402,595 Account receivables (short-term) 744,745,832,706 876,685,199,236 1,437,540,466,313 Inventories 2,420,511,411,710 2,589,368,506,519 2,371,077,179,239 Other liquid assets 278,115,238,045 191,208,359,117 94,958,771,976 The amount of total current 4,102,006,090,537 4,435,465,874,629 4,492,264,536,968 assets Fixed assets 3,532,029,376,931 3,457,519,368,197 3,126,532,591,606 Account receivables (long-term) 3,435,857,850 3,453,843,850 3,470,966,092 Construction Work-in-Progress 443,787,276,170 49,070,606,991 58,575,728,261 Long-term financial investment 9,190,000,000 48,370,000,000 23,180,000,000 31,569,066,063 70,478,409,601 59,069,502,321 Other non-current assets The amount non-current assets of TOTAL ASSETS total 4,020,011,577,014 3,628,892,228,639 3,270,828,788,280 8,122,017,667,551 8,064,358,103,268 7,763,093,325,248 BALANCE SHEET Year NKG NKG NKG 2018 (VND) 2019 (VND) 2020 (VND) LIABILITIES Total current liabilities 3,924,411,209,320 Total non-current liabilities 1,226,429,486,866 4,342,498,959,228 4,097,976,895,372 705,044,964,522 484,096,267,245 EQUITY Total stockholders' equity 2,971,176,971,365 3,016,814,179,518 3,181,020,162,631 Total liabilities and equity 8,122,017,667,551 8,064,358,103,268 7,763,093,325,248 BALANCE SHEET HSG HSG HSG NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) Year 2018 (VND) 2019 (VND) 2020 (VND) 492,079,830,667 288,707,713,172 574,767,066,704 270,387,032 76,250,000,000 516,043,836 Account receivables (short-term) 2,118,733,369,445 1,339,263,670,053 2,024,273,013,463 Inventories 6,606,994,466,635 4,547,528,637,193 5,523,844,442,201 Other liquid assets 1,581,621,048,212 1,103,902,343,598 898,914,764,198 The amount of total current 10,799,699,101,991 7,355,652,364,016 assets 9,022,315,330,402 Fixed assets 7,594,742,677,985 ASSETS Cash and cash equivalents Short-term financial investments 8,124,639,435,592 8,642,006,807,601 Account receivables (long-term) 202,370,220,436 226,761,293,160 184,949,529,000 Construction Work-in-Progress 1,512,774,341,255 576,452,872,180 575,955,787,725 Long-term financial investment 98,957,678,001 17,000,000,000 26,472,160,000 516,381,284,343 407,565,126,082 351,972,179,819 10,455,122,959,627 9,869,786,099,023 8,734,092,334,529 Other non-current assets The amount non-current assets of TOTAL ASSETS total 21,254,822,061,618 17,225,438,463,039 17,756,407,664,931 Year HSG HSG HSG 2018 (VND) 2019 (VND) 2020 (VND) LIABILITIES Total current liabilities 12,637,507,361,815 8,767,419,669,924 8,991,488,795,259 Total non-current liabilities 3,465,688,980,878 2,989,737,607,465 2,174,180,358,349 EQUITY Total stockholders' equity Total liabilities and equity 5,151,625,718,925 5,468,281,185,650 6,590,738,511,323 21,254,822,061,618 17,225,438,463,039 17,756,407,664,931 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) Year NKG HGS 2018 (VND) 2018 (VND) Difference (in percentage) between two companies Total current assets 4,102,006,090,537 10,799,699,101,991 37.983% Total non-current assets 4,020,011,577,014 10,455,122,959,627 38.450% Total current liabilities 3,924,411,209,320 12,637,507,361,815 31.054% Total non-current liabilities 1,226,429,486,866 3,465,688,980,878 35.388% Total stockholders’ equity 2,971,176,971,365 5,151,625,718,925 57.675% Year NKG HGS 2019 (VND) 2019 (VND) Difference (in percentage) between two companies Total current assets 4,435,465,874,629 7,355,652,364,016 60.300% Total non-current assets 3,628,892,228,639 9,869,786,099,023 36.768% Total current liabilities 4,342,498,959,228 8,767,419,669,924 49.530% 705,044,964,522 2,989,737,607,465 23.582% 3,016,814,179,518 5,468,281,185,650 55.169% Total non-current liabilities Total stockholders’ equity Year NKG HGS 2020 (VND) 2020 (VND) Difference (in percentage) between two companies Total current assets 4,492,264,536,968 9,022,315,330,402 49.791% Total non-current assets 3,270,828,788,280 8,734,092,334,529 37.449% 10 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) Total current liabilities Total non-current liabilities Total stockholders’ equity 4,097,976,895,372 8,991,488,795,259 45.576% 484,096,267,245 2,174,180,358,349 22.266% 3,181,020,162,631 6,590,738,511,323 48.265% 2.1.1 Total current assets Statistically speaking, the current assets of Nam Kim (NKG) experienced steady growth throughout 2018-2020, while Hoa Sen (HSG) current assets witnessed a drop of 3,444,046,737,975 VND between 2018-2019 Overall, even though Nam Kim did not own as many assets compared to the said competitor, the company did a fine job staying on track with the slow but steady increases of the liquified assets 2.1.2 Total non-current assets NKG’s non-current assets figures in the period of 2018 to 2020 decreased over time From what can be seen on the table, NKG’s non-current assets are only about a half of HSG; however, the numbers in “Long term financial investment” 2020 of both companies was a fair similar amount, in absolute terms The amount of that category of Nam Kim in 2020 was 23,180,000,000 VND, of Hoa Sen was 26,472,160,000 VND Comparing these amounts to the balance sheet total of two companies, this is a much bigger item for Nam Kim 2.1.3 Total current liabilities The current liabilities of Nam Kim fluctuate between 2018 to 2020 An insignificant increase of 418,087,749,908 VND from 2018 to 2019, then a fall of 244,522,063,856 VND at the end 2020 Hoa Sen’s same category of liabilities went through a decrease of 3,870,087,691,891, a much bigger drop compared to Nam Kim’s in 2018-2019 In 2020, Hoa Sen’s current liabilities stayed moderately the same as in 2019 2.1.4 Total non-current liabilities Nam Kim’s non-current liabilities developed a pattern of significant decrease throughout 2018 to 2020 The amount went down from 1,226,429,486,866 VND in 2018 to 705,044,964,522 VND in 11 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NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) 2019 Then, it continued to drop to 484,096,267,245 VND in 2020 Meanwhile, Hoa Sen’s non-current liabilities data had a rise in 2019 then dropped in 2020 to 2,174,180,358,349 VND 2.1.5 Total stockholders’ equity Equity that is stated in the balance sheet is book-value equity The market value of equity of these companies is higher than the numbers that are written in the report Nam Kim Stockholders’ equity witnessed a rise each year in the three years period, and Hoa Sen followed the same pattern Again, Nam Kim’s total assets were not as big as Hoa Sen throughout the three years of comparison, their percentages of stockholders’ equity ratio were much higher than that of Hoa Sen 2.1.6 Common-size balance sheet COMMON-SIZE BALANCE SHEET NKG NKG NKG HSG HSG HSG Balance sheet 2018 2019 2020 2018 2019 2020 ASSETS Total current assets 50.50% 55.00% 57.87% 50.81% 42.70% 50.81% Total non-current assets 49.50% 45.00% 42.13% 49.19% 57.30% 49.19% Total assets 100% 100% 100% 100% 100% 100% LIABILITIES Total current liabilities 48.32% 53.85% 52.79% 59.46% 50.90% 50.64% Total non-current liabilities 15.10% 8.74% 6.24% 16.31% 17.36% 12.24% EQUITY Total stockholders' equity Total liabilities and stockholders' equity 36.58% 37.41% 40.98% 24.24% 31.75% 37.12% 100% 100% 100% 100% 100% 100% From what can be seen on the common-size balance sheet, in Assets, Nam Kim percentage of current assets have had a steady and strong increase over the years, from 50.50% to 57.87% in only three years; while current assets of Hoa Sen seem to have fluctuated but stayed fairly the same In percentages of non-current assets, Nam Kim’s figures decrease along with the increase of the current assets 12 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) In the category of Liabilities, NKG’s current liabilities did not have a significant rise and fall Comparatively, the rises and falls between the periods are not big compared to the drop of Hoa Sen in 2018-2019 Non-current liabilities of Nam Kim decreased drastically from 15.20% to 8.74%, and almost half decreased in one year, and later, another 2.5% decrease in 2020 Hoa Sen figures on the same period were inverse, a slight increase of 1.05% and eventually dropping to 12.24% in 2020 In stockholders’ equity, Nam Kim had a stable rise from 36.58% in 2018 to 37.41% in 2019 and ended up with 40.98% in 2020 This is a 4.4% increase in a total of three years Hoa Sen on the other hand had a large rise, starting at 24.24% in 2018, and ending at 37.12% in 2020, a 12.88% increase Substantially, the increased percent of Hoa Sen was about tripled that of Nam Kim Considering the number of total assets each company owned at the time, it was clear that the percentage of Nam Kim equity in total was bigger than Hoa Sen 2.2 THE MOST RECENT YEAR-END OF INCOME STATEMENT CONSOLIDATED BUSINESS PERFORMANCE REPORT TARGET NAM KIM (NKG) 2018 (VNĐ) Total revenues 2019 (VNĐ) 2020 (VNĐ) 14,811,784,363,470 12,176,796,914,657 11,559,674,520,160 Cost of goods sold -14,018,938,867,523 -11,835,048,249,482 -10,690,464,691,531 Total expenses -14,854,594,957,656 -12,391,289,700,011 -11,331,746,008,686 Others Gains 7,332,685,455 197,608,346,357 3,795,441,330 Others Losses -2,381,659,786 -2,272,295,965 -165,774,826 4,951,025,669 195,336,050,392 3,629,666,504 363 260 1,672 Any non-operating (or extraordinary) gains and losses Earnings per Share CONSOLIDATED BUSINESS PERFORMANCE REPORT TARGET HOA SEN (HSG) 2018 (VNĐ) Total revenues 2019 (VNĐ) 2020 (VNĐ) 34,441,429,348,261 28,034,775,118,675 27,530,749,513,834 Cost of goods sold -30,464,290,088,385 -24,836,155,036,672 -22,903,482,165,423 Total expenses -34,149,158,003,161 -27,889,036,320,478 -26,261,708,082,143 13 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) Others Gains 56,900,222,229 253,166,267,295 28,617,237,724 Others Losses -2,512,931,184 -30,663,011,810 -31,902,487,528 Any non-operating (or extraordinary) gains and losses 54,387,291,045 222,503,255,485 -3,285,249,804 1,090 820 2,492 Earnings per Share 2.2.1 Total operating revenues Nam Kim Steel Company has a change in total operating revenue in the period 2018 - 2019 Indeed, the company's revenue from sales and service provision fell by around VND 2,634 trillion in 2019 Alternatively, revenue is 17,8 percent lower this year compared to the same period last year However, this ratio continues to decline, falling from 12,177 trillions in 2019 to 11,560 trillion in 2020 However, when comparing the reduced revenue ratio for the 2019-2020 period to the 2018-2019 period, it is clear that the ratio has decreased Although revenue was still lowered due to the unanticipated scenario with Covid-19, the NKG side discovered a solution to mitigate this drop, reducing it to approximately 617 billion dongs in 2019-2020 Even so, when NKG's revenue reduction is compared to HSG's in the 2018-2019 period, it demonstrates that Nam Kim Group retains a solid ability to manage revenue However, when the figures for 2019-2020 are compared, the picture changes dramatically 2.2.2 Cost of Goods Sold Cost of Commodities Sold (COGS) is a term that refers to the costs associated with the manufacture of goods According to the bar chart, both NKG and HSG had a slight decrease in COGS over time Between 2018 and 2020, NKG's COGS declined by 14 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) approximately VND trillion, from VND 14,019 trillion to VND 10,690 trillion As for NKG's competitor, HSG lowered COGS from 30,464 to 22,903 trillion dongs during the same period, which decreased to 7.5 trillion dongs The data shows that HSG has a more significant cost of goods sold than NKG, around 15 trillion dongs This demonstrates that NKG operates on a far smaller scale than HSG 2.2.3 Total expenses (before income tax) A glance at the chart reveals that the total cost of NKG has remained relatively stable over the last three years Between 2018 and 2019, the overall cost decreased by 14.854 trillion VND to 12,391 trillion VND However, this figure increased marginally to 11,331 trillions in 2020 This stability is partly due to a minor increase in COGS, which accounts for a significant portion of NKG's total costs However, NKG's ratio is comparatively low compared to HSG, indicating that the company is effectively managing its operating expenses According to the obtained results, HSG likewise exhibited a considerable drop in comparison to NKG Between 2018 and 2019, Hoa Sen Group lowered its overall cost from 34,149 trillion to 27,889 trillion, or around trillion dong, roughly three times that of Nam Kim Group Moreover, by 2020, they intend to reduce that figure to 26,262 trillion, a decrease of almost 1.6 trillion dongs As a result, to increase profitability, HSG should improve its operating expense management by reducing this expense Non-operating expenses are defined as those that are not directly tied to the business's core activity This table shows that NKG generated a total non-operating income of 4,951, 195,336, and 3,629 trillion in 2018, 2019, and 2020, respectively While 2020's revenue declines significantly, they not allow their non-operating revenue to be negative, equating to a loss Meanwhile, HSG's non-operating revenue increased significantly in 2018 and 2019 to 56,900 and 253,166 trillion dong, respectively According to 2018 estimates, HSG is ten times more profitable than NKG, a significant difference However, in 2019, NKG nearly caught up to its opponent, reducing the distance from ten to 1.1 times Furthermore, as noted previously, NKG collected a total of 3,629 trillion despite a significant decline in revenue Meanwhile, as a solid rival to NKG, HSG incurred a loss of approximately VND 3,285 trillion 2.2.4 Earnings per share 15 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) The Nam Kim Group's earnings per share (EPS) fluctuates somewhat from 2018 to 2020, beginning at VND 363, then reducing by 28.37 percent compared to the same time in 2019, before ultimately reaching VND 1,675 in 2020, a rise of more than 500 percent According to HSG, EPS tends to increase during particular periods For example, the value began at VND1,090 and then significantly decreased to VND820 a year later By 2020, however, EPS had recovered to a height of VND2,492, a 200 percent increase over the prior year III RATIO ANALYSIS 3.1 LIQUIDITY RATIOS 3.1.1 Current ratio: Given are the bar charts illustrating the current ratio and, quick ratio, and the cash ratio which are considered as liquidity ratio from 2018 to the next two years In terms of the current ratio, it began at the number of 1.2 in the year 2018 and slightly went down to 1.021 before increasing by around 7.3% to 1.096 in the year 2020 The current ratio assesses a company's ability to pay short-term or one-year obligations It also instructs investors and analysts on how a company can maximize its current assets on its balance sheet to satisfy its current debt and other payables As seen in the preceding figure, the threes of NKG are always greater than one, indicating that not only are current assets greater than current liabilities but they are also expected to be capable of covering short-term debt with a minimal chance of bankruptcy 3.1.2 Quick ratio: Overall, the quick ratio of NKG shows no change over the first two years by ranging from 0.425 to 0.428 before rising to the number of 0.518 in 2020 The quick ratio demonstrates the company's ability to pay quickly in the event of a bad situation So when the company is unable to sell their inventory promptly, whether they can pay off short-term debt or not A high number of quick ratios indicates that the company does not know how to use its 16 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) assets On the other hand, if this number is too low, it indicates a lack of ability to pay quickly in the worst-case scenario In that case, the figure of NKG is still quite good in general compared to other components which means that despite being suffered from the COVID19 pandemic, NKG was still firmly standing 3.1.3 Cash ratio: The cash ratio of NKG witnessed a significant downward trend throughout the first two years Beginning with the number of 0.117, this figure of NKG suddenly declined by around 0.1 to 0.018 in 2019 before continuing to rise to 0.053 in 2020 The cash ratio is a measure of a company's solvency that demonstrates how well cash and cash equivalents are used to cover short-term debt obligations Because it only considers a company's most liquid resources, it is more conservative than other liquidity ratios As can be seen in the chart, no figure is above so it is indicated that the company's short-term liabilities were currently greater than its cash and cash equivalents In other words, the company did not have enough cash at the time to pay its short-term debt 3.1.4 Comparison with HSG In comparing the liquidity ratio between the two companies NKG and HSG, generally, the current ratio and the quick ratio of NKG were quite higher than that of HSG throughout three years In a way of being more specific, the current ratio of HSG was below except for the figure in 2020 while the data of NKG show higher-than-1 data in three years This is true for the cash ratio in the two first years But in 2020, the figure of HSG slightly increased by around 93.33% to 0.064, 0.011 higher than that of NKG at the same time 3.2 EFFICIENCY RATIO 17 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) 3.2.1 Asset Turnover Ratio The asset compares turnover the value ratio of a company's sales or revenues to its assets The asset turnover ratio can be used to determine how efficiently a company uses its assets to generate revenue As can be seen in the chart above, the asset turnover ratio of NKG reached a peak at 1.824 in 2018, much higher than that of HSG at the same time However, the figure of NKG significantly decreased by 0.3 to 1.510 and stood at the unit of 1.489 in 2020 Meanwhile, the asset turnover ratio of HSG was initially 1.62 in 2018 and it witnessed a trivial growth before going down to 1.55 in 2020 3.2.2 Inventory Turnover Ratio The inventory turnover ratio demonstrates inventory management ability The higher ratio, the better the business is at selling quickly and keeping inventory from becoming stagnant However, if this coefficient is too high, it means that the amount of inventory in the warehouse is small, and if market demand increases suddenly, the business is likely to lose customers and be defeated by competitors compete for market share In general, the two companies reveal a decrease throughout three years With the NKG’s data, it stood at 5.792 in the first year and began to drop to 4.571 and 4.509 respectively Compared to the figure of HSG, 18 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) starting with the number of 4.611 and then it climbed up to 5.461 before experiencing a dramatic fall to 4.146 in the third year 3.3 LONG-TERM SOLVENCY RATIO 3.3.1 Total Debt Ratio The total debt ratio is used to assess company's a financial leverage A high ratio indicates company riskier that or the stock is for its shareholders In 2018, the total debt of Nam Kim joint-stock company was 0.634 Throughout three years, this figure slightly reduced by around 7% to 0.59 in 2020 It is interesting to notice that this ratio was always below for three years which meant that the company assets were primarily operated by their assets as well 3.3.2 Times Interest Earned Ratio As can be seen in the chart, the times’ interest earned ratio was up to in a three years period which indicated that the profit before taxes and interest exceeded interest expense so that the company was profitable and in good financial status Moreover, this number shows a steep increase despite the COVID19 pandemic from 1.128 in 2018 to 2.444 in the year 2020 3.3.3 Cash Coverage Ratio The same thing happened to the Cash Coverage Ratio, which increased dramatically from around 1.997 to 3.244 in 2019 before peaking at 4.138 the following year As a result, NKG has demonstrated its ability to generate positive cash flow while also ensuring that its financial obligations are met 3.3.4 Comparison with HSG 19 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) Over three years, both charts showed a significant trend The long-term ratio of HSG, on the other hand, was significantly higher than that of NKG Furthermore, HSG's cash coverage ratio has seen a massive upward trend, rising to the top with 5.652 in 2020, roughly 1.5 higher than NKG's in the same year 3.4 PROFITABILITY RATIOS 3.4.1 Profit Margin: The profit margin is the difference between the selling price of a product and the cost of production plus the cost of consumption It also reflects a company's pricing strategy and cost-control level As shown in the graph, the profit margin of Hoa Sen Company is significantly higher than that of Nam Kim Company, with a figure of 1.19 percent compared to 0.39 percent in 2018 The HSG’s figure increased slightly to 1.29 percent before peaking at 4.19 percent in 2020 Meanwhile, Nam Kim's data remained unchanged for the first two years before increasing to 2.55 percent, about 1.5 percent less than HSG's In that case, it appears that Hoa Sen was more profitable and effectively controlled costs than competitors and this disparity between the two companies was growing year after year 3.4.2 Return on Assets and Return on Equity 20 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) Based on the two-line graphs, HSG outperforms NKG in terms of both ROA and ROE over three years In general, both companies' data remained above the level of 0, indicating that they were doing well in terms of gaining more interest and profit; however, NKG has demonstrated to be more strongly developed in manufacturing than HSG due to their faster growth rate To be more specific, the NKG company's growth rate in terms of return on assets was approximately 5.44 from 2019 to 2020, whereas it was only 2.09 using HSG data Furthermore, the comparable comparison with the return on equity for NKG and HSG was 4.91 and 1.65, respectively 3.5 MARKET VALUE RATIO At first glance at the bar chart, it witnesses volatility from 2018 to 2020 but each type of ratio has different changes and data 3.5.1 Price-Earnings Ratio 21 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) The NKG's P/E ratio increased significantly in the first two years, rising from 4.64 to 26.53 before plummeting to 8.99 in 2020 The Price to Earnings ratio is an index that calculates the relationship between a stock's market price (Price) and earnings per share (Earnings per Share) (EPS) A P/E of 5-12 is considered normal, and a high P/E in Vietnam's current economic conditions is P/E > 15 As a result, while this downward trend could be attributed to the company's financial difficulties, it does not imply that the NKG stock price suffered as a result of the failure because when the price per share rises, the company is willing to pay a higher dividend 3.5.2 Market-to-book ratio In general, the P/E ratio and the market-to-book ratio are two coefficients that complement each other when analyzing stock prices They also demonstrate how much investors are willing to pay for a unit of profit generated during a given period As shown in the graph, the market-to-book ratio in three years was less than one, averaging around 0.57 This is also due to the reason mentioned in the previous section 3.5.3 Comparison with HSG In comparing the two companies, it is observed that there is an erratic difference in the P/E ratio with NKG in the first two years with 21.89 and 26.53, which are significantly higher than that of HSG with only 5.89 and 8.91, respectively Meanwhile, HSG's market-to-book ratio has risen steadily over the years, reaching a record high of 1.49 in 2020 Furthermore, despite their downward trend over the years, NKG has a higher EV multiple than their competitor, with 10.15 in 2020 compared to 5.52 for HSG 22 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) IV CONCLUSION In summary, Hoa Sen and Nam Kim, in particular, are two major competitors in the iron and steel manufacturing industry, with more than half of the market share when compared to their competitors Hoa Sen, on the other hand, continues to demonstrate its power by having a larger market share than Nam Kim because Hoa Sen is the only sole unit with a direct-to-consumer retail network in Vietnam In addition, Hoa Sen is also attempting to minimize speculative activity to lower short-term debt and interest costs Concerning Nam Kim, the group's consistent growth in domestic sales is due in part to Hoa Sen's reduction in volume growth to maintain profitability through cost and debt reduction, as well as retail system restructuring Another reason is that the rate of revenue growth outpaces the rate of cost of goods sold growth, allowing Nam Kim Steel to increase gross profit as well Furthermore, as the price of raw materials in the world rises, the price of steel in the country rises as well, creating an opportunity as well as a challenge for Nam Kim to become a brand name in the following material manufacturing industry the year-earlier decline caused by the COVID19 epidemic 23 NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―)NAM.KIM.GROUP.nam.kim.steel.joint.stock.company.(trademarked.ton.nam.kim―) 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