FPT is the leading enterprise in the field of information technology in Vietnam, many corporations are holding a large market share in areas such as export processing software, telecommunications services, online advertising ... In 2013, despite strong profit growth but the business results of FPT still very positive, business plan completed at a high level, telecommunication services and software exports is the leader in the field of growth. The Japanese companies are turning to outsourcing contracts to Vietnam, it would be a big advantage for FPT, 2014 in addition to promoting corporate globalization strategies for both the software solution ... On 06182014, FPT officially completed M A first in history to buy the company RWE IT Slovakia member companies specialize in providing SAP solutions and Smart home of the RWE Group. On 03.06.2014 Release 1.35 million shares at par value for a limited time employee assignment is for 3 years In 2013, sales reached 27,114 billion, up 10% and profit after tax was 2.065 billion, up 4% compared to the same period in 2013, the first 5 months of 2014, sales reached 12,320 FPT billion, up 26%, Net profit reached 841 billion, up 3% over the same period and reached 37% in 2014 profit target. In 2013 dividend at 30% in cash and 25% shares Plan 2014 dividend at 20% of cash. => Considering that, FPT has many potential longterm development, and FPT is one of the businesses have high dividend, a healthy financial situation combined with the results of steady business growth ... so recommends investors buy the item FPT medium and long term objectives with prices expected to reach 70,000 dong share
BML5103 Assignment Managerial Finance 2014 MARCH SEMESTER BML5103 – MANAGERIAL FINANCE ASSIGNMENT SUBJECT A WRITTEN REPORT Advisor: PHAN NGUYEN Student: PHAM HAI DAO ID No: CGS00017300 Date of birth: 29/05/1990 Class: MBA HUTECH – OUM0314 K13C PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance Contents Intro FPT .page Evalution proportion page I- Company Overview page Introduction page Business Administration page Advantages page II – Operating Results page Statement page Profitability page Financial Situation page III - Swot Analysis page 10 Strengths page 10 Weaknesses page 10 Opportunity page 10 Challenges page 10 IV - Business Opportunities .page 11 PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance FPT Joint stock Company – FPT Co Profile Ticker FPT Charter Capital (VND bln) 3,440 Outstanding shares (mln) 343,895 Market Capital (VND bln) 17,883 52W range (VND) 42,600 - 72,500 Ave trading volume 3M 1,005,272 Beta 1.34 Foreign Ownership 49% First listing date 13/12/2006 Major shareholders Truong Gia Binh 7.14% SCIC 6.05% Red River Holdings 5.73% Others 81.08% PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance EVALUATION PROPORTION PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance MATRIX DENSITY Evaluation VALUATION MODEL PRIC E PROPORTION Intrinsic value of the stock (VND) 80,209 70% 56,146 44,001 30% 13,200 100% 69,346 Value stocks under Benijamin Graham AVERAGE PRICE AVERAGE PRICE - FPT is the leading enterprise in the field of information technology in Vietnam, many corporations are holding a large market share in areas such as export processing software, telecommunications services, online advertising - In 2013, despite strong profit growth but the business results of FPT still very positive, business plan completed at a high level, telecommunication services and software exports is the leader in the field of growth - The Japanese companies are turning to outsourcing contracts to Vietnam, it would be a big advantage for FPT, 2014 in addition to promoting corporate globalization strategies for both the software solution - On 06/18/2014, FPT officially completed M & A first in history to buy the company RWE IT Slovakia - member companies specialize in providing SAP solutions and Smart home of the RWE Group - On 03.06.2014 Release 1.35 million shares at par value for a limited time employee assignment is for years - In 2013, sales reached 27,114 billion, up 10% and profit after tax was 2.065 billion, up 4% compared to the same period in 2013, the first months of 2014, sales reached 12,320 FPT billion, up 26%, Net profit reached 841 billion, up 3% over the same period and reached 37% in 2014 profit target - In 2013 dividend at 30% in cash and 25% shares - Plan 2014 dividend at 20% of cash => Considering that, FPT has many potential long-term development, and FPT is one of the businesses have high dividend, a healthy financial situation combined with the results of steady business growth so recommends investors buy the item FPT medium and long term objectives with prices expected to reach 70,000 dong / share EQUITY RESEARCH REPORT FPT PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance I- COMPANY OVERVIEW INTRODUCTION FPT was established in 1988, formerly known as Food Technology Company So far FPT were present 57 provinces nationwide and 17 countries around the world FPT is currently the No domestic enterprises in the field of information technology BUSINESS ADMINISTRATION - Group operates in four core areas including information technology, telecommunications, trade and education combined with other fields - The technology sector: includes activities such as software exports, software solutions, systems integration and information technology services - Telecommunications sector: companies that provide broadband internet services, interactive TV, cable TV and content services, such as online advertising, online games, e-commerce - Field of commercial and retail distributors of products and equipment technology more than 60 famous brands such as IBM, Lenovo, Microsoft, HP - The field of education: FPT is the prestigious universities in the training of information technology, multimedia art ADVANTAGES - FPT is currently No in multiple business sectors such as export processing software, systems integration services - Under the top 500 software companies leading - Top supplier of fixed-line telecommunications services - In the field of digital content is FPT units providing online advertising services and number one provider of top online games in Vietnam - The first unit was right to distribute Apple products in Vietnam from May 4/2013 II – OPERATING RESULTS PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance STATEMENT - In 2013, FPT revenue of 27,115 billion, up 10%, profit after tax was 2.065 billion, up 4% compared to 2012 - Revenues reached 6,537 cubic technologies billion, up 10% compared to the year 2012 in the array of technology, software export segment has seen the highest sales growth in 2013 revenue from this segment reached 2,157 billion copper, up 24% compared to 2012 - apan is the major export market of FPT, 2013 although spending on information technology in Japan fell 15% but export sales to Japan reached 1,121 billion, an increase of 12%, if kind of JPY devaluation in 2013, the export sales to this market increased to 32% compared to 2012 - In the field of software solutions and systems integration, revenue was little changed compared with 2012 - Considering the telecommunications sector: sales 4,137 billion, down 9%, including telecommunications services reached 3,254 billion, an increase of 18% - Array of content to reach 883 billion, down 10% compared to 2012 - In 2013, the revenue of digital content decreased due to the impact of the economic downturn, demand for online advertising cuts, besides Game Online policy management is tight, so the end of the year 2013 field of digital content pretax profit of 140 billion dong, down 31% compared to 2012 - In the commercial sector, despite the expansion of operating scale, particularly in retail banking revenue reached 3.932 billion, up 186%, the number of stores increased by 100% compared to 2012 and reached level 100 shop However, this activity has holes 32 billion - First months of 2014, revenue FPT 12,320 billion, up 26%, profit before tax was 999 billion, up 3% over the same period and completed 37% target in 2014 Profitability - The profitability ratios in 2013 were little changed compared to 2012 gross profit margin and net profit margin reached 20 % , respectively , and % , equivalent to 2012 - elecommunications services segment has always yielding the highest profit margin before tax of 26%, which is next array software exports reached 21% Meanwhile, although the commercial sector contributed the highest revenue but pretax profit margin of only 2%, especially in the retail segment in 2013 continued to suffer losses 32 billion, while in 2012 this area a loss of 35 billion dong - The profitability on assets ROA and profitability on equity ROE in 2013 is somewhat mitigated Specifically, the 2012 ROA of 14%, a slight decrease to 12% in PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance 2013, the same year 201 ROE reached 28%, decrease slightly to 25% compared to 2013 FINANCIAL SITUATION - In 2013, accounting for 129% debt over equity, a slight increase compared to 115% in 2012.Trong 2013, FPT enhance short-term debt at 4.167 billion, up 46% compared to 2012 , Short-term debt accounted for 45% of total liabilities In terms of total debt to total assets in 2013 53% debt to total assets ratio is equivalent to 2012, the proportion of FPT we borrow at reasonable, secure the payment of debts class - Considering that the debt ratio at a reasonable level, so the solvency of FPT quite stable and safe 2013, the ratio reached 1:42 payments current time, equal to 2012, similar to 2013 ratio Quick ratio reaches 06 times, this rate will not fluctuate more than in 2012 thus showing the financial position of FPT very strong III - SWOT ANALYSIS PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance STRENGTHS - FPT is the leading enterprises in Vietnam in the field of information technology, the group signed a contract easily integrated systems for government agencies, healthcare, banks, supermarkets - Accounting for 25% market share of software exports abroad - As one of three internet service providers in Vietnam WEAKNESSES - In the field of software exports, FPT stop at the processing level - In the field of internet services, marketing FPT concentrated in big cities - Commercial activities of the information technology has yet to overcome the loss OPPORTUNITY - Route running north - south artery B, and first arterial roads connecting to Laos FPT complete help improve local capacity and reserve capacity bandwidth - Outsourcing industry in Japan are shifting from Japan to Vietnam due to labor cost in Vietnam is only at 60 % compared to India and China CHALLENGES - Commercial activities are subject to fierce competition from retail distributors and other technological devices , and this activity is subject to the adverse effects of economic crisis - Despite owning FPT FPT University , however, in the field of human resource outsourcing is one of the challenges that not only FPT for information technology in Vietnam IV - BUSINESS OPPORTUNITIES PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance - FPT planned 2014 sales reached 31.892 billion, up 18 % , profit before tax was 2.672 billion, an increase of % compared with that in 2013 - In 2014 , software export sector is expected to have higher growth than other areas due to the strategy of corporate globalization as promoting software exports in the United States , Japan and Europe Japan is particularly likely to move orders outsourcing from China to Vietnam , so this is a great opportunity for Vietnam , especially those giants such as FPT - In addition, FPT and implement a strategy of globalization in the field of software solutions and promotion of software solutions in the areas such as banking , telecommunications , healthcare abroad as Laos , Cambodia , Myanmar , Bangladesh , Bhutan Currently FPT have branches in major cities of Cambodia - In the telecommunications sector , FPT plans to continue to invest in cable channels , and route North - South axis B circuit and the first arterial roads connecting to Laos FPT complete help improve local capacity capacity and bandwidth redundancy - According FPT in 2014 , FPT will invest heavily for infrastructure photochemistry and choose the form of accelerated depreciation for investments , so the expected pre-tax profit from the telecom division will decrease compared to 2013 , which also led to the growth of profits will be lower than the revenue growth in 2014 - According to projected results , 2014 FPT can be achieved revenue of 31.681 billion, up 17 % compared with 2013 and completed 99 % of the plan in 2014 , profit after tax was 2.327 billion, up 13 % compared to 2014 , exceeds % compared with 2014 plan , applicants with projected results , EPS in 2014 reached 5,266 / share , down 10 % compared to 2013 ( due to dilution after the stock dividend ) -THE END - PHAM HAI DAO ID: CGS00017300 10 ... .page 11 PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance FPT Joint stock Company – FPT Co Profile Ticker FPT Charter Capital (VND bln) 3,440 Outstanding shares (mln) 343,895 Market... item FPT medium and long term objectives with prices expected to reach 70,000 dong / share EQUITY RESEARCH REPORT FPT PHAM HAI DAO ID: CGS00017300 BML5103 Assignment Managerial Finance I- COMPANY. .. OVERVIEW INTRODUCTION FPT was established in 1988, formerly known as Food Technology Company So far FPT were present 57 provinces nationwide and 17 countries around the world FPT is currently the