financial investment group work massan

PXL: Petrolimex Vietnam National Petroleum Group is one of Vietnam''''s leading corporations in the petroleum sector, accounting for 50% of the market share with a retail system of 5,500 st

UEH UNIVERSITY — COLLEGE OF BUSSINESS

Nguyen Thuy To Quyen 31211021270

CHAPTER 1: INTRODUCTION 1.1 Reasons for choosing stocks to build up the team’s portfolio

According to our research, systematic risk (or market risk) is the risk inherent to the entire market or market segment, and it cannot be eliminated through diversification Examples of systematic risks include economic recessions, interest rate changes, and geopolitical events A well-diversified equities portfolio, however, may successfully decrease unsystematic risk to almost zero levels while retaining the same level of expected return as a portfolio with excess risk, according to academic research in the field of contemporary portfolio theory

In the world of investing, higher potential returns come with higher potential risks This is often represented graphically with the Security Market Line (SML), which shows expected return as a function of systematic risk (often measured by Beta) Specifically, a stock or asset that lies above the SML has a higher return for its level of risk than the market average, while one below the line has a lower return for its level of risk Although investors are compensated with higher expected returns for taking on higher systematic risk (1.¢., a riskier overall market position), they are not typically compensated for taking on unsystematic risk This is because unsystematic risk can be diversified away Therefore, holding a stock with a high degree of unsystematic risk (and no diversification) is often seen as unnecessarily risky

Holding a diverse set of 5 or more stocks from different sectors significantly reduces risk compared to a portfolio with just two stocks This is because a broader selection of equities minimizes the exposure to unsystematic risk

In our project, we choose HPG, MSN, PLX, SAB, and CMG to build an optimal portfolio for the following reasons:

- HPG: As a result of the decline in both domestic and global steel demand, raw material costs, particularly coal, are three times higher than normal, credit is scarce, and interest and currency rates are rising quickly, all of which have a negative impact on the price of steel stocks In addition, equities in the real estate sector as well as those in the construction and building materials sector, including CTD and HBC, continued to decline Due to the net purchase of more than 18 million shares by foreign investors, HPG became a shining example of steel when it rose 1.7%

We believe that stock prices of real estate and construction materials will increase again in the near future Therefore, we should buy stocks when the price is falling to wait for the growth of this industry group

1.2

MSN: Masan is in the Top 50 Best Listed Companies in Vietnam in 2022 (voted

by Forbes Vietnam) Along with Vietnam's economic growth, consumers and their needs are constantly evolving In addition to basic daily necessities, consumers also need to be served diverse products and services, and outstanding experiences, suitable to each individual's preferences and modern lifestyle Technology and convenience are increasingly becoming top concems, favored

by many people Welcoming this trend, in addition to manufacturing and trading

of branded products, Masan Group has built an integrated technology and consumer ecosystem from offline to online In addition, Masan is a sizable company with a steady stock price suited for long-term investments

PXL: Petrolimex (Vietnam National Petroleum Group) is one of Vietnam's leading corporations in the petroleum sector, accounting for 50% of the market share with a retail system of 5,500 stores across the country By the end of 2022, due to the continuous decrease in gasoline prices, many private establishments have temporarily suspended operations to wait for gasoline prices to increase before selling them Nevertheless, by ensuring a consistent supply of gasoline irrespective of market fluctuations, Petrolimex establishes itself as a dependable and consumer-centric brand

SAB: Sabeco Company (Saigon Beer - Alcohol - Beverage Joint Stock Corporation) is one of the leading enterprises in the field of beer production and distribution in Vietnam Although there are many competitors such as Habeco, Heineken and other beer companies in Vietnam, Sabeco still holds the leading position in the domestic market and also exports to several other countries Besides, SAB is one of the leading stock codes in the food and beverage industry

in Vietnam

CMG: CMC Corporation is the second largest technology corporation in Vietnam Established in 1993, CMC has affirmed its position in the Vietnamese market and many countries around the world through three key business activities: Technology & Solution Division, and International Business Division Global Business, Telecommunications Services Division (Telecommunications) These factors are causing technology companies to move in "epic" ways on the stock market, giving them the potential to be a class of equities with huge earnings in the future

Step 2: The changed values are the weights of stocks in the portfolio

Step 3: The condition is that the sum of the proportions is 100%

Step 4: In this final step, we separated it into two cases:

+ Tick the box "Make unconstrained Variables Non-Negative" in case short

selling is not allowed

+ Do not tick the box "Make unconstrained Variables Non-Negative" in

case short selling is allowed

1 4 Data description

We collected the historical price of 5 stocks HPG, MSN, PLX, SAB and CMG The

Ho Chi Minh City Stock Exchange (HOSE) lists these five stocks The data was collected between the first of 2019 and the last day of 2021 The information was gathered using a dataset of stock price information from the websites investing.com and cophieu68.com The nominal interest rate on a 10-year government bond serves as the risk-free rate in this study The yield on a government bond is taken into account to be the risk-free rate and is obtained straight from the State Treasury of Vietnam's website

CHAPTER 2: COMPANIES AND STOCKS INTRODUCTION 2.1 Hoa Phat Group (HPG)

2.1.1 Description of the company

Hoa Phat is the leading industrial manufacturing group in Vietnam Starting from a company specializing in trading construction machines, Hoa Phat has now expanded into other fields such as Furniture, Steel Pipe, Construction Steel, Refrigeration, Real Estate and Agriculture Steel production is the core business of Hoa Phat, accounting for 90% of the revenue of the Group

Hoa Phat Group holds Vietnam's No | market share in construction steel and steel pipes; Top 5 in galvanized steel Currently, Hoa Phat is in the Top 5 largest private enterprises in Vietnam, Top 3 enterprises with the largest charter capital in the stock market, Top 10 stocks with the largest capitalization in the Vietnam stock market 2.1.2 History of the company

- In 1992, Hoa Phat Equipment Parts Co., Ltd was established — as a construction machine and equipment trading company

- In 2000, Hoa Phat Steel., JSC was established, now Hoa Phat Hung Yen Steel Co., Ltd

- InJanuary 2007, restructured according to the Corporation model On November

15, 2007, HPG was listed on the Vietnam stock market

- InAugust 2012, Hoa Phat completed 20 years of establishment and development, receiving the Third Class Labor Medal from the President

- On March 9, 2015, Launching Hoa Phat Animal Feed Production and Trading Co., Ltd., - marked a new development step in the Group's history when investing in the agricultural sector

- In April 2016, established Hoa Phat Steel Co., Ltd., started implementing the project of color-coated steel sheets, galvanized steel sheets, and cold galvanized sheets

of all kinds with a capacity of 400,000 tons/year

established, implementing Hoa Phat Dung Quat Iron and Steel Complex in Quang Ngai province, with a scale of 4 million tons/year with a total investment of 52,000 billion VND - marked a new development turning point for Hoa Phat Group

- In November 2019, Hoa Phat Steel hit 300,000 tons for the first time, and its steel market share topped 26%

- In December 2020, Hoa Phat Group updated its operational model, establishing Corporations in charge of each sector of the Group's operations As a result, four organizations were formed as part of the group, including an Iron and Steel Corporation, Steel Products Corporation, Real Estate Corporation, and Agriculture Corporation

- In September 2021, the group planned to form Hoa Phat Household Appliances Corporation

2.1.3 The company's ownership structure

The ownership structure of Hoa Phat as recorded on 28/06/2021 is shown below:

The overall financial performance of Hoa Phat in the three most recent years, from

Total Equity 47,787 59,220 90,781

Total revenue and profit

2.2 Masan Group Corporation (MSN)

2.2.1 Description of the company

(MSN) Masan Group Corporation was established in 2004 and was formerly known

as Masan Maritime Joint Stock Company Masan Consumer owns investments through Masan Group, a holding company Techcombank, Masan Resources, and Masan Nutri- Science Food and Beverage, Mining and Processing, Animal Nutrition, and Financial Services make up MSN's business segments The segment of food and beverages creates consumers Every Vietnamese customer is familiar with a number of Massan goods, including Nam Neu fish sauce, Chinsu pepper sauce, Wake-up 247, and Omachi noodles The company operates between Asia and Europe Masan Group's headquarters were in the Plaza building at 39 Le Duan District 1 in Ho Chi Minh City, Vietnam 2.2.2 History of the company

- In 2004, with a starting capital of 3.200.000.000 VND, the Masan Maritime Joint Stock Company MSC (previously of the Massan group) was first created

- In 2007, Massan's capital increased to 32.000.000.000 VN, thanks to privately issued stock given to the company's surviving owners

- In 2009, Masan Group, formerly known as Masan Maritime Joint Stock Company, changed its name to Masan Group and raised VND4,764 billion

through three charter capital tranches, including private placements with BI Private Equity, New Markets I] K/S, and others

- In 2011, Masan users received a 159 million USD investment from KRR, a world-renowned business that specializes in investing in unlisted companies Following that, J.P Morgan and Standard Chartered decided to lend Masan US$108 million

- In 2012, Massan's permitted capital increased to 6,872 billion VND

- In 2013 KRR increased its permitted capital to 7,349.113 billion VND by carrying out additional investments worth more than $200 million USD in Masan consumers

- 2014 saw the Masan Group sell Masan Agri and transfer 100% of Masan Grewey's capital contribution equivalent to Masan Consumer Holdings

- 23 February 2017 : Increased the charter capital to 11,474,963,740,000 VND

- 31 August 2017: The charter capital was raised to 11,573,739,740,000 VND

- 25 June 2018: Increased the charter capital to 11,631,495,480,000 VND

- 17 July 2018: The charter capital was raised to 11,689,464,470,000 VND

- 7 September 2019: the charter capital was increased to 11,746,832,460,000 VND

- 17 June 2021: the charter's capital was raised to 11,805,346,920,000 VND 2.2.3 The company's ownership structure

The ownership structure of Masan recorded on 31/12/2021 is:

The overall financial performance of Masan in the three most recent years, from 2019

to 2021, is shown below:

2.3.1 Description of the company

Unit: Billion VND

The Petrol and Oil Corporation, which was established on January 12, 1996, has changed its name to Vietnam National Petroleum Corporation and has auctioned its shares for the first time outside of Vietnam The Petroleum Corporation was formerly created by a Ministry of Trade Decree, and it was then re-created by Prime Minister of Vietnam Decision 828/QD-TTG dated May 31, 2011 Petrolimex is a well-known state- owned company with a large nationwide reach that dominates the nation's petroleum market share In 2011, the firm successfully floated on the HNX Besides, the business was formally listed on HOSE in 2017 with the ticker PLX As can be seen, petrolimex's main business areas are import-export and trading in petroleum, refining, and

petrochemicals, investing capital in other businesses to do business in the fields that Petrolimex is doing and other business fields according to regulations provisions of the law

There are currently 41 member companies in the Vietnam National Petroleum Corporation, 34 branches and enterprises directly under member companies with 100% state capital, 23 joint stock companies with a controlling capital contribution from the Corporation, 3 joint venture companies with foreign countries, and | branch in Singapore

2.3.2 History of the company

From 1976 until 1986, Vietnam National Petroleum Corporation oversaw the reconstruction of the north's destroyed petroleum infrastructure, seized control

of those facilities, and managed the southern provinces! petroleum delivery

On April 25, 2016, the Group was issued Securities Registration Certificate No 35/2017/GCNCP-VSD and given the stock symbol "PLX." On May 26, 2016, the Group successfully issued private shares to JX Nippon Oil & Energy Vietnam Consulting and Holdings Co., Ltd., bringing its charter capital up to VND 11,388 billion (rounded) In order to raise its charter capital from VND 11,388 billion to VND 12,938 billion, the Group issued preferred shares to existing shareholders

- 2019: Inked a Memorandum of Understanding (MOU) with JXTG Holdings, Japan's top energy group, regarding LNG and gas research in Vietnam The Group successfully raised about VND 2,000 billion by selling 32 million PLX treasury shares on the stock market

- The Group successfully sold 28 million treasury shares in 2020 over the course

of two waves, generating revenue of VND 1,340 billion

2.3.3 The company's ownership structure

The ownership structure of Petrolimex recorded on 31/12/2021 1s:

The overall financial performance of Petrolimex in the three most recent years, from

2019 to 2021, is shown below:

Total assets and capital structures

øoods and services)

2.4, Saigon Beer, Alcohol and Beverage Joint Stock Corporation (SAB)

2.4.1 Description of the company

Saigon Beer, Alcohol and Beverage Joint Stock Corporation (Sabeco), formerly known as Saigon Brewery, was established in 1977 During its operation, Sabeco has always been evaluated as the industry leader in completing exports Identify political tasks with high productivity, quality and efficiency, contributing to the economic development of the industry, locality and country

Sabeco currently holds 40% of the beer production market share in Vietnam, distributes throughout the country and exports to nearly 20 countries around the world Over the past years, Sabeco has always maintained an outstanding annual growth rate

of over 20% Having gone through many difficulties and challenges, up to now, although there have been many famous beer brands in the world, Saigon Beer and Beer

333 are still the leading Vietnamese brands in the Vietnamese beer market and on the way to conquer difficult markets such as Germany, the US, Japan, the Netherlands 2.4.2 History of the company

- In 1977: Saigon Beer, Alcohol and Beverage Joint Stock Corporation (Sabeco), originally Saigon Brewery, was established

- In early 2008: the company switched to operating under the parent company- subsidiary model and officially equitized, changing its name to Saigon Beer, Alcohol and Beverage Joint Stock Corporation (Sabeco)

- On December 6, 2016: the Corporation's shares were listed on Ho Chi Minh City Stock Exchange