PHÂN TÍCH TÌNH HÌNH tài CHÍNH CÔNG TY cổ PHẦN dược PHẨM IMEXPHARM QUA báo cáo tài CHÍNH e

PHÂN TÍCH TÌNH HÌNH TÀI CHÍNH CƠNG TY CỔ PHẦN DƯỢC PHẨM IMEXPHARM QUA BÁO CÁO TÀI CHÍNH TASK Each group selects a company listed on the Stock Exchange in Ho Chi Minh City (STC) to implement the project entitled "Assessing the financial health of the company X through the analysis of the Financial Statement in order to make investment decisions " TASK With the selected firm X in Task 1; your project titled: "Buy, sell or hold shares of Company X through the use of Enterprise-valuation models." TASK 1: TASK PART I: INTRODUCTION TO THE PHARMACEUTICAL INDUSTRY AND THE JOINT STOCK PHARMACEUTICAL CORPORATION-IMEXPHARM World Pharmaceutical Industry had high growth in 2000 – 2007 but has gradually slowed, particularly in the U.S and European regions Revenue from the pharmaceutical industry in 2009 was estimated at 760 billion U.S dollars, down 1.68% compared to 2008 RNCOS predicts the growth of the pharmaceutical industry in developing countries in the period 2009 – 2012 will be 12% - 15%, while the world only 6% - 8% Vietnam’s pharmaceutical industry went through many stages of development from an early production to integration of the world’s pharmaceutical industry - Period 1975 – 1990: Vietnam’s pharmaceutical industry during the subsidy period - Period 1991-2005: pharmaceutical industry entered a period of renewal, transitioning from subsidized to market mechanisms - Period 2006-2007: The pharmacy continued to grow at high speed, about 18 -20% / year Vietnam’s accession to WTO brought advantages as well as difficulties for the pharmaceutical industry Period 2008-2011: Vietnam’s pharmacy preparation and active integration with other countries in the region and the world to ensure adequate supply of quality drugs and safety FACTORS AFFECTING THE PHARMACEUTICAL INDUSTRY IN THE COUNTRY - Pharmacy is one of the few industries not much affected by the economic crisis - The standards of living of the people of Vietnam have been increasingly improved, creating favorable conditions for pharmaceutical development - Pharmaceutical industry is subject to the strict control of the Government CURRENT SITUATION PHARMACEUTICAL INDUSTRY IN VIETNAM Vietnam's pharmaceutical industry developed at low medium stage Health spending accounted for 1.6% of GDP (2009) Raw materials for the pharmaceutical industry were imported mainly from Asian countries Vietnam's pharmaceutical industry met only 50% of domestic market demand Distribution system of Vietnam's pharmaceutical companies overlapped, companies competed with each other for market, did trading around However pharmaceutical spending on medical services, pharmaceuticals increasingly went up Pharmaceuticals are classified into categories of goods under stabilizing prices policy by the Government IMEXPHARM PHARMACEUTICAL JOINT STOCK COMPANY - Abbreviation: Imexpharm - stock symbol: IMP (registered at HCM - HOSE) - Head office: , 30/04 street, ward 1, Cao Lãnh, Đồng Tháp Tel: +84-(0) 67- 3851 620, +84-(0)67 3851 941 Fax: +84-(0) 67- 3853 106 Website: http://www.imexpharm.com Email: imp@imexpharm.com HISTORY: 1975 – 1986 : pharmaceutical Company Level II 1986 – 1992 : Union of pharmaceutical Companies of Đồng Tháp 1992 – 1999 : Đồng Tháp pharmaceutical Company 1999 – 2001 : pharmaceutical CompanyNo From 25/7/2002–present: Joint stock pharmaceutical Corporation IMEXPHARM Volume of current stocks up to 31/12/2011: 15.214.500 Total listed value: 152.145.000.000 đ Management Board: Chairperson: Trần Thị Đào Member of the Board: Nguyễn Quốc Định Member of the Board: Nguyễn Kiêm Phương Member of the Board:Nguyễn Thị Thu Hồng Member of the Board:Phan Hồng Minh Trí Member of the Board:Trần Anh Tuấn Member of the Board:Võ Hữu Tuấn Inspection Chief: Nguyễn Đức Tuấn Inspection member: Đỗ Thị Thanh Thúy Inspection member: Lê Thị Kim Chung Scopes of business: Production, Trading, Import and Export of pharmaceuticals, devices and medical equipment, raw materials, packaging production of medicines, traditional medicines, veterinary medicines and cosmetics Food, functional foods, beverages, alcoholic beverages, carbonated soft drink, antiseptics, disinfectants and to providing service storage for drugs, drug raw materials Growing and processing medicinal herbs and tourism resort, financial investments and real estate business IMEXPHARM POSITION: - Imexpharm was voted a strong brand in Vietnam - - - Imexpharm was the 1st pharmaceutical Company of Vietnam to get standards of good manufacturing practice (GMP ASEAN) in 1997 - - - Imexpharm was the 1st Pharmaceutical Company of Vietnam to have franchise production with European Pharmaceutical Groups - Obtained Good Manufacturing Practice GMP-WHO GMP, GLP, GSP, HACCP ISO 9001: 2008 and 22000 - Products: Manufacturing more than 200 products, variety of species, European quality standards by: Franchise manufacturing for corporations: Sandoz (Biochemie), Robinson Pharma, Pharma DP, OPV, Galien, Imexpharm products: The main products are antibiotics, Analgesic, Antipyretic, Antiinflammatory, Musculoskeletal, vitamins, minerals, special therapy, and other products Joint Venture Products: diverse product line of the brand PMS-Imexpharm (Joint venture between Pharmascience Imexpharm and Canada) Export goods: Besides the franchise product line, Imexpharm has boosted to produce standard products to export to foreign markets such as; Cambodia, France, South Africa, the Middle East, Moldova, - Sales and marketing: good, broad product coverage in the local market - Human resources: employees with high qualifications and have dedication to the Company Develop policies to attract labors to the company DEVELOPMENT STRATEGY AND INVESTMENT: - To be a Pharmaceutical manufacturer of high quality, reasonble price, customer-oriented service, improving added value for customers and partners - To become the leading pharmaceutical company in Vietnam that multinational pharmaceutical partners choose as their strategic partner in franchising production of their products in Vietnam and internationally - Culture and business philosophy: having distinguished characteristics of Imexpharam - Imexpharm always involved, shared responsibility with the society and community on its way to development and success PART II: BASIC ANALYSIS I ANALYSIS OF NON-FINANCIAL FACTORS PRODUCTION CAPACITY: With sufficient investment in the plant, equipment, people, so the current production capacity of IMP can provide many times more than the amount consumed TECHNOLOGY: IMP is the first unit of the pharmaceutical industry to invest effective lines of modern technologies such as: - Line versatile herbal extracts - Production line of capsule - Effervescent production line - Pharmaceutical Ethanol system - Equipped with advanced testing machines used for quality control of products such as: The system high-pressure liquid chromatography, Gas chromatography system, Absorption spectrometer, the machine voltage titration HUMAN RESOURCES: IMP team has nearly 500 employees, of which over 100 officials having university graduate and post graduate and experienced, dedicated to ensuring the credibility and customer satisfaction from research and development, quality control, storage, product delivery to customer care and service II ANALYSIS OF THE FINANCIAL REPORT BALANCE SHEET 2011 2010 2009 2008 Assets Current assets Cash and equivalents Short term financial investments Short term Receivables Reserve others Total Current Assets Long term Receivables Fixed Assets (Accrued armortization) Real estate investment Long term financial investments other long term investments Trade advantage Total long term Assets TOTAL ASSETS Payables Short term debts Long term debts TOTAL SHORT TERM DEBTS Capital Equity Other funds TOTAL CAPITAL Interest of Minority Shareholders TOTAL LIABILITIES AND CAPITAL 140,281 3,035 194,275 222,400 6,769 566,759 111,007 3,601 199,981 172,674 10,425 497,688 135,040 12,808 175,895 195,921 7,527 527,191 110,881 25,707 106,864 148,255 6,478 398,184 213,030 -117,314 205,073 -94,355 152,338 -91,995 131,977 -82,332 33,040 14,861 33,810 14,430 37,648 14,291 39,176 27,074 260.930 827,689 253.312 751,000 204.278 731,469 198.227 596,411 116,644 2,028 118,671 160,035 1,706 161,741 182,931 10,808 193,739 81,905 1,932 83,838 709,018 589,260 537,730 512,573 709,018 589,260 537,730 512,573 827,689 751,000 731,469 596,411 Business Results Net Revenue Cost of Goods sold Gross income Operating expenses Finance expenses In which interests accounted Sales expenses 2011 2010 2009 2008 776,365 763,995 660,076 561,844 388,430 411,098 366,643 319,809 387,935 352,896 293,433 242,036 7,178 8,029 9,685 13,913 723 2,443 1,797 533 234,582 220,270 181,877 145,012 Managemnet expenses Total operating expenses Total financial revenue Business revenue Other profits Total Income before Tax Corporate Income Tax Interest of Minority Shareholders Income after income Tax 48,098 289,85 35,441 263,74 29,965 221,52 24,969 183,89 12,941 111,018 (530) 110,488 32,882 10,140 99,297 (1,177) 98,121 17,655 11,246 83,152 (2,623) 80,528 14,822 16,988 75,128 (4,355) 70,773 12,507 77,606 80,466 65,707 58,266 VERTICAL ANALYSIS BUSINESS RESULTS Year Revenue Cost of Goods sold Sales expenses Management Expenses Income before Tax Income & other expenses Income after Tax 2011 2010 2009 2008 % 100 50 30 14 % 100 54 29 13 0.28 11 % 100 56 28 12 0.24 10 % 100 57 26 13 10 10 ANALYSIS OF RESULTS OF BUSINESS OPERATIONS BY TIME Year 2011 2010 2009 2008 Industry % % % % average 2008 – Revenue Cost of goods sold Sales expenses Management expenses Net income before tax Net income after tax 38.18 21.46 61.77 92.63 56.12 56.12 35.98 28.54 51.90 41.94 38.64 38.64 17.48 14.64 25.42 20.01 13.78 13.78 1 1 1 2011 (%) 23 -36 30 - Evaluation : + Through vertical analysis of the results of business operations it showed that the ratio of cost to revenue from 2008 to 2011 tended to decrease from 57% to 50% proving that the company has demonstrated savings in cost, reducting products cost Selling expenses increased each year also showed the company has had programs of promotion, marketing, customer support policies to promote the consumption of goods - Evaluation2: Through sequence analysis of the results of business operations &the growth chart of sales / profitability showed stable revenue growth: 35.98% in 2010, 38.18% in 2011 compared to industry average of 23% and these were good results to promote However, management cost at 61.77% in 2011, while in 2010 at 41.94% was due to management cost in 2011 increased 60% compared to 2010 (as per annual financial report 2011), this should be considered carefully because it affects the profitability of the Company + In summary, the report of the results of business operations from 2008 -2011 showed constant revenue growth each year and it was higher than the industry average Likewise profit also increased from 13.78% (2009), 38.64% (2010) and 56.12% (2011) higher than the industry average of 30% FINANCIAL INDICATORS Allocation of Assets and Capital 2011 2010 2009 2008 Structures % Assets Structure - Total current assets/Total Assets 68,47 % % % 66,27 72,07 66,76 (%) - Total assets/Total 31,53 33,73 27,93 33,24 Assets(%) Capital structures - Current debts /Total liabilities and 14,09 21,31 25,00 13,74 0,25 0,23 1,48 0,32 and owners' equity (%) - Equity/ Total liabilities and owners' 85,66 78,46 73,52 85,94 long term owners' equity (%) - Long term debts / Total liabilities equity (%) - Evaluation3: Structure of assets: the company planned to develop intensive and long-term investment in machinery and equipment, transport means, to purchase land to expand production scale As per the Balance Sheet, total assets increased annually: 596,411 (2008), 731,469 (2009) 751,000 (2010), 827,689 (2011), while the ratio of total of long term assets to the total assets did not change much: 33,24% (2008) 27,93% (2009) 33,73% (2010) 31,53% (2011) Regarding capital structure: the ratio of short-term debts/total capital: 13.74% (2008), 25% (2009), 21.31% (2010), 14.09% (2011) areall smaller than the ratio of total current assets / total assets: 66.76% (2008) 72.07% (2009) 66.27% (2010) 68.47% (in 2011).These showeda good financial capability of the company, its strong growth of equity, for investing in short-term and long-term projects FINANCIAL INDICATORS Industry average TT 2008 Indicators I Debts ratios Current ratio Quick ration ĐVT Times Times 2011 4,86 2,95 2010 3,11 2,03 2009 2,88 1,81 2008 -2011 4,86 3.05 2,10 1,45 - Evaluation 4: Current ratio and quick ratio ofthe company decreased in 2009 but increased in 2010 and higher than the industry average It showed that the liquidity of the company improved II Operating Ratios Total Assets turnover Total Fixed Assets turnover Inventory turnover Receivables turnover times times times times 1,07 3,64 1,75 3,99 1,02 3,73 2,38 3,82 0,9 4,33 1,87 3,75 0,94 4,26 2,16 5,26 1,56 -5,05 5,39 - Evaluation 5: + Efficiency of total assets in 2011: 1.07 which was higher than in 2010: 1.02; 2009: 0.9 and 2008: 0.94 but still lower than the industry average 1.56 This demonstratedthe use of assets of not much effective The company should take measures to improve this situation + Efficiency of fixed assets of the company tended to decrease: in 2008: 4.26, 2009: 4.33; 2010: 3.73 and 2011: 3.64 This proved the use of fixed assets less effective, requiring remedial measures immediately + Inventory turnover in 2011: 1.75 which was lower than in 2010: 2.38; 2009: 1.87 and 2008: 2.16, and lower than the industry average 5.05 This showed the irrationality and inefficiency in the management of reserve goods Besides production and consumption of goods should also be reviewed to provide a solution to handle the issue properly and timely + Receivable turnover in 2009: 3.75; 2010: 3.82; and 2011: 3.99 which was not be improved and lower than the industry average (5.05) This is a significant problem, because the increase in receivables in 2009: 60% , 2010: 87%, 2011: 82% greater than revenue growth in 2009: 17%, in 2010 : 36% and 2011: 38%, showing stagnant capital in the payment process III Profitability Ratio Income before tax/Total assets % (ROA) 13 13 11 12 13,55 11 14 12 11 18,80 % Income after tax /Equity (ROE) Evaluation 6: Profitability ratio, return on assets - ROA increased steadily, but still lower than the industry average The reason is that sales and management expenses increased more than the revenue growth, which affected the profitability of the Company and the inefficient use of assets + Ratio of return on equity - ROE is of the most important for shareholders, this ratio measured profitability on every dollar of shareholders’ capital The financial statements showed the increase of profits over the years: 2009: 13.78%, 2010: 38.64%, 2011: 56.12%, besides equity increasefrom 2009 : 5%, 2010: 15% in 2011; 38% made ROE indicators over the years lower than the industry average of 18.8% IV Debt Ratio Debt Ratio to Total assets Debt Ratio to Equity % % 14,34 16,74 21,53 27,45 26,48 36,03 14,06 16,36 35,00 39,00 - Evaluation7: Debt ratio on total assets: This ratio is used to determine the obligations of business owners for the creditors in the capital contribution For Imexpharm, the debt ratio over the years was lower than the industry average of 35%, demonstrating the Company's operations are relatively stable + Debt to equity was lower than the industry average of 39%, indicating good financial situation, thus the bank will easily support the Company V /Stock index - Evaluation 8: EPS showedthe profit per share each year investors are entitled to This indicator is rated as high as possible because earnings per share then would be higher Through EPS growth chart –its current price is taken from http://www.cophieu68.com, EPS increased continuously in 2008: 3880; 2009: 4371; 2010: 5383; 2011: 5419 while the industry average EPS is: 5220 This index was higher than the industry average, showing that high stock returns of IMP which was one of the factors that help investors study the growth trend in the future to invest in shares of IMP indicators 2011 2010 2009 2008 Industry average P/E 6.7 10.4 15.2 14.8 7.2 5.419 5.383 4.371 3.880 5.220 (times) EPS (VND) P/B -23 42 85 68 90 (%) ` - Evaluation 9: P / E ratio shows how much the current stock prices higher than stocks, or how much an investor has to spend to get a dollar income Through EPS growth chart - current price, we have the following P / E : 2008: 14.8; 2009: 15.2; 2010: 10.4; 2011: 6.7 This ratio tended to decrease and lower than the industry average of 7.2 and it was affected by: * steady increase of EPS each year & current decline in stock price + Through volume growth chart - Book value, indicating ansteady growth of average trading volume of IMP shares, of bookvalueof sharesthat made the P / B ratiodecreased Thus the current share price is lower IMP stock book value, ie IMP stocks are at good price,a factor for investors to buy stocks on PART III: HAVING AN INVESTMENT DECISION Through the analysis of financial indicators above, it showed that IMP shares have good financial strength, growth potential, quite attractive for investors Pharmacy is one of the few industries least affected by the economic crisis The standard of living of the people of Vietnam have been increasingly improved, creating favorable conditions for pharmaceutical development however, the pharmaceutical industry is still under tight control by the Government The rise of the CPI also made pharmaceutical price increased This has contributed to ensuring the profitability of pharmaceutical companies for steady growth IMP is a strong brand in the industry In recent years the input material prices increased, but due to reasonable management, reducing cost of production and management costs, increasing productivity and capacity of the plant;thesekept IMP at stable profit IMP shares are inconsistent to short-term surfinginvestors becauseits liquidity is not stable, lower than the average of many other key sectors During the fluctuated periods of the stock market, the stock prices of the pharmaceutical industry were not much declined so that there would be less chance for a bigleap up IMP stocks are more suitable for medium and long term investors by a relatively stable cash flow and high dividend Task 2: Make a project : "Buying, selling or holding shares of the IMP through the use of valuation models Valuation Model by book: * EPS (Earnings per share) = (Net income - Preference Dividends) / Average number of common shares of recent quarters = 77,606 bilion VND / 14,321 milion shares = 5.419 VND * P / E (price earnings ratio) = Current Price / EPS = 36,500 / 5419 = 6.74 (times) * Current shares = listed shares - Fund shares = 15,021,568 - = 15,021,568 shares * Book value = Equity / Total volume of shares = 709,018,000,000 / 15,021,568 = 47,200 VND / share * P / B (market price ratio compared to book value) = Current Price / Book value = 36,500 / 47,200 = 0.77 (times), ie the current stock market is lower rated than book value of about 22% * ROE (Return on equity) = Total Net income of the recent quarters / Equity = 77.606 billion VND / 709.018 billion VND = 11% Dividend discount model: This model applies to shares in the period of stable growth with a constant dividend and stable Rather than calculating the current value of each line of dividends and combined, (GS) Myrin Gordon has developed formulas for the intrinsic value simply as: Intrinsic value of the dividend = Expected Dividend of next year / (the expected return rate - growth rate of dividends) P = D1 / (kC - g) = [D0 ( 1+ g)] / (kC - g) Of which: P: stock price D0: Current Dividend: 22% D1: Dividend expected next year (2012) kC : Net profit expectations of shareholders = 13.66% Dividend rate in 2011 = 22% g: growth rate of annual dividend = (1 - dividend ratio) * ROE = Ratio * ROE retained earnings g = (1-22%) * 11% = 0.78 * 11% = 8.6% With the profits achieved in 2011, The shareholders’ Conference passed the share dividend in 2011 was 22% (2.200 VND / sahre), IMP is in stable growth period and the expected dividends in the coming years will increase at constant growth rate of 8.6% per year If the expected rate of return of shareholders of 13.8% / year, the current stock price of the IMP is defined as follows: " PIMP = [D0 ( 1+ g)] / (kC - g) = [2.200 (1+ 8,6 %)] / (13,66% - 8,6 %) = 2.390 / 5,06 % = 47.200 VND/ share Buying, selling or holding shares of IMP: In recent years, macro-economic crisis has not come an end, most enterprises are still in difficult situation Owing to reasonable and cautious policies, IMP still ensures stable profits With book value at 47,200 VND / share, or PIMP is 47,200 VND / share Its share in market is evaluated lower than the book value of about 22% books, P / E = 6.74 is pretty good, so the price 36,500 / share is quite reasonable to invest However, Beta coefficient of IMP (0.01), ie IMP stock price fluctuations are small compared to the volatility of the market Because liquidity is not stable, lower than the industry average, and many other industries, and more importantly the lack of mutation information During the strongly adjusted periods of market, IMP stock prices in particular and the whole pharmaceutical industry in general did not decline much so there would also less chances to greatly increase So IMP stocks are inconsistent to investors for surfing , but it is suitable for value investors of medium and long term holding, due to cash flow and high dividend References: IMP Balance sheet 2011 & Business Report 2011 http://www.cophieu68.com http://cafef.vn/ http://bsc.com.vn/ http://www.imexpharm.com ... Managemnet expenses Total operating expenses Total financial revenue Business revenue Other profits Total Income before Tax Corporate Income Tax Interest of Minority Shareholders Income after income... increased steadily, but still lower than the industry average The reason is that sales and management expenses increased more than the revenue growth, which affected the profitability of the Company... 80,466 65,707 58,266 VERTICAL ANALYSIS BUSINESS RESULTS Year Revenue Cost of Goods sold Sales expenses Management Expenses Income before Tax Income & other expenses Income after Tax 2011 2010 2009