TCDN thanh kinh do joint stock company

Kinh Do Joint Stock Company • - Sector: Food and beverage industry • - Major businesses: sweets and non-alcoholic beverages, including cookies, cakes, crackers, candies, moon cakes, beverages and ice cream, merchandise of operating supplies and real estate • - It was established in 1993 • - It was listed on HASTC in 2005 with the ticker KDC • - Initial chartered capital: VND 150 billion • Until now, chartered capital: VND 1,195,178,810,000 SWOT Analysis Strengths -Advantages of a leading food processing company in Vietnam - Efficient management mechanism - Property of many attractive real estate projects   Weaknesses - Potential risks in financial investment activities: the fluctuation of stock market - Tariff cut: the higher quality but lower price imports   Opportunities - Economies of scale - Huge cash inflow from investing attractive real estate projects in the future   Threats - Risks caused by extending the product structure - Retail operation through the system of Kinh Do Bakery and Kinh Do Café The relationship between Vietnamese financial market and TAC’s financial management - In 2008, financial crisis and global economic recession - In 2009, Vietnam government implemented expansionary monetary policy -> The interest rate decreased Effects: + Firms and enterprises to make more bank loans -> Kinh Do increased more than twice higher than in 2008 -> The credit outstanding balance of bank system increased significantly + Savings channel: less attractive -> the cash flows switch into the stock market -> OE of KDC increased more than VND 300,000 million in 2009 => the total assets increase: > 1.5 times -> * Made financial decisions - Monitor the market situation and focus the main business sectors -Reduce unreasonable costs & optimize the use of current assets -Focus on investment activities + Minimize short term investments, focus on real estate projects Investment Structure in 2009 2009 2008 Change (%) Short term investment in securities 23 86 -73% Long term investmentin same sector companies 490 754 -35% Long term investment in stragic partners 212 365 -42% Long term investment in real estate project 295 86 242% -> Results: + Q2 in 2009, profit after tax: 84.8 billion, > 440% same period + attracted more and more investors -> the price of KDC increased dramatically -> impact on the stock market: the excitement of the stock market in 2009 Conclusion: A binding relationship Company’s profitability and risk Balance sheet Unit: VND million Source: website of Tan Viet’s stock exchange Income statement Unit: VND million Source: website of Tan Viet’s stock exchange Liquidity ratios Liquidity ratios 2008 2009 2010 Current ratio (times) 2.22 1.53 2.25   1.58 1.59 1.8 Quick ratio (times) 1.95 1.43 1.83   0.87 0.94 1.06 Source: cophieu68.com & website of Tan Viet’s stock exchange -> Low liquidity risks Leverage ratios Leverage ratios 2008 2009 2010 Total liabilities to Total Assets (%)   Total liabilities to equity (%)   Long term debt to assets (%)   0.28 0.42 0.24 0.47 0.49 0.47 0.40 0.73 0.32 1.16 1.29 1.16 0.06 0.03 0.03       Source: cophieu68.com & website of Tan Viet’s stock exchange -> Face low risk in insolvency but not take the advantages of financial leverage Efficiency ratios Efficiency ratios 2008 2009 2010 Inventories Turnover 8.01 9.41 4.45   8.77 6.02 5.73 Receivable Turnover 2.80 1.80 1.90   19.62 25.31 29.94 Total asset Turnover 0.49 0.36 0.38   1.52 1.57 1.52 Source: cophieu68.com & website of Tan Viet’s stock exchange -> Inventory management: Efficient Receivable and asset management: Not efficient Profitability ratios Profitability ratios 2008 2009 2010 Gross profit margin (%) 25.4 33.05 35.45   Net profit margin (%)   ROA (%)   ROE (%)   23.37 -4.16 8.97 -2.03 11.14 -2.92 20.97 22.77 34.19 9.85 12.31 14.36 21.67 27.71 23.37 29.92 8.97 11.48 11.14 15.48 20.97 Source: cophieu68.com & website of Tan Viet’s stock exchange  Relatively good profitability Market value ratios Market value ratios 2008 2009 2010 P/E -23.43 5.79 6.71   6.29 6.29 6.29 P/B 0.96 1.15 1.12   1.01 1.01 1.01 Source: cophieu68.com & website of Tan Viet’s stock exchange -> Not very good ... caused by extending the product structure - Retail operation through the system of Kinh Do Bakery and Kinh Do Café The relationship between Vietnamese financial market and TAC’s financial management... the stock market: the excitement of the stock market in 2009 Conclusion: A binding relationship Company? ??s profitability and risk Balance sheet Unit: VND million Source: website of Tan Viet’s stock. .. policy -> The interest rate decreased Effects: + Firms and enterprises to make more bank loans -> Kinh Do increased more than twice higher than in 2008 -> The credit outstanding balance of bank system