MWG – Financial analysis macro analysis

Document present content: financial analysis; import and export; the development of the economy; consumer price index; retail operations; working capital and net working capital analysis...

MWG – FINANCIAL ANALYSIS MACRO ANALYSIS BUSINESS FINANCIAL ANALYSIS Lecturers: ThS Le Thi Khuyen Team list: Nguyen Dang Khoa – Tran Thi Minh Hoa The development of the economy GDP in 2019 achieved impressive results with an increase of 7.02% (the first quarter increased by 6.82%, the second quarter increased by 6.73%; the third quarter increased by 7.48%; the fourth quarter increased by 6.97%), exceeding the target set by the national assembly from 6.6% to 6.8%, this is the second consecutive year that Vietnam's economic growth has reached over 7% since 2011, confirming the timeliness and effectiveness of solutions issued by the government, drastically directed at all levels, sectors, localities and business community to work together to achieve and exceed growth targets Estimated in 2019, the total social investment capital at current prices will reach vnd 2,046.8 trillion, up 10.2% over the previous year and equal to 33.9% of GDP, the total foreign investment capital in Vietnam in 2019, including newly registered capital, adjusted registered capital and value of capital contribution and share purchase of foreign investors reached us$38 billion, an increase of 7.2% compared to 2018 Import and export By the end of 2019, the total import-export turnover of the country reached us$517.26 billion, up 7.6% (equivalent to an increase of us$36.69 billion) compared to 2018 In which, the value of exported goods exports reached 264.19 billion usd, up 8.4% and imports reached 253.07 billion usd, up 6.8% In 2019, Vietnam's trade in goods with the americas reached us$96.35 billion, up 23% compared to 2018, continuously being the highest growth continent Vietnam's import and export of goods to asia continues to account for the highest proportion (65.4%) of the country's total import-export turnover Import-export value in 2019 with this market reached 338.35 billion usd, up 5.1% compared to 2018, of which export value was 135.45 billion usd, up 2.9% and value import was 202.9 billion usd, up 6.6% I mport-export turnover between Vietnam and other continents is respectively: europe: 65.9 billion usd, up 2.8%; oceania: 9.6 billion usd, up 4% and africa: 7.07 billion usd, up 1.2% compared to 2018 I ndustrial production index (IIP) Growth of industry and construction in 2019 increased by 8.90% over the previous year, of which the industry increased by 8.86% thanks to the processing and manufacturing industry playing a key role in leading the overall growth of the whole Industry and the whole economy (up 11.29%) For the whole year of 2019, the consumption index of the whole processing industry, manufacturing increased by 9.5% over the previous year (in 2018 increased by 12.4%) Inventory index of the whole processing industry was estimated to increase by 13.6% as of december 31, 2019 compared to the same period last year (the same period in 2018 increased by 14.1%) The average inventory rate of the whole processing and manufacturing industry in 2019 reached 68.8% (64.4% in 2018) Consumer price index (CPI) Consumer price index (CPI) in december 2019 increased by 1.4% over the previous month, the average CPI in 2019 increased by 2.79% compared to 2018 and the average CPI in the fourth quarter of 2019 increased by 3.66% compared to the previous month With the same period last year Thus, the CPI in 2019 was successfully controlled, reaching a level lower than the national assembly's target (below 4%) In terms of core inflation, 2019 increased by 2.01% compared to 2018 Retail operations In 2019, the total retail sales of goods and consumer services continued to maintain a good growth, estimated at around 4,940.4 trillion vnd, up 11.86% compared to 2018, reaching the plan proposed in 2019 to increase 11.5 - 12% compared to 2018, thanks to the effective implementation of state management and timely deployment, synchronizing market development solutions, promoting production, business, stimulating consumption of people TREND OF RETAIL INDUSTRY The retail industry is going through an enormous amount of change Customer behavior is changing, and their expectations are higher than ever It is important for retailers to understand some key industry trends in order to ensure that their businesses are successful now, and for years to come Here are retail industry trends retailers are embracing in order to keep their companies thriving Invest in omnichannel retail strategies One of the most important retail industry trends is investment in omnichannel retail strategies Research shows that the average digital consumer owns 3.64 connected devices and tends to consult these devices prior to making a purchase Consumers may look at an item on their mobile and complete the purchase on their ipad, or they may search for an item on the web and pick it up in the store later The ubiquity of connected devices means that consumers demand a seamless experience across multiple touchpoints To ultilise this trend, MWG has improved their online shopping site which are thegioididong.com, bachhoaxanh.com and dienmayxanh.com intensively while offered 24/7 customer care online service simultaneously Since 2011, MWG has taken the lead in online retail market with the market share of 10%, which had resulted from overtaking rocket internet, FPT and Vien Thong A Provide a personalized retail experience Another retail industry trend that is becoming increasingly important to consumers is having a personalized shopping experience Personalization in the retail world often involves retailers giving consumers suggestions based on their taste, location, order history, and previous searches Retailers also create personalized experiences through simple services This includes chatbots that increase customer engagement and interaction, text messages that provide updates on orders, online- and tele-based communications, and other services Obviously, MWG’s customer service regardless of online or offline are all highly appreciated They not only let their customers physically inspect and experience the cutting-edge gadgets but also give the customers advice about the gadget that suits their taste and budget most Attend to the growing culture of immediacy The rise of technology has led to a prevalent cultural and retail industry trend: impatient consumers Today’s consumers want immediate results and retailers need to both speed up and expand their services in order to respond to the culture of immediacy Some of these services include: presenting and updating inventory in real-time, restocking stock quickly, offering same-day delivery services, setting-up delivery-lockers, and providing scheduled deliveries However, these services are challenging to incorporate, as retailers must have an efficient supply chain in order to support them Embrace the digital mobile wallet MWG has catched up with the world retail trend by offering not only direct payment, ship cod, but also via bank transferring, visa/master card payment, and recently, zalo pay However, there are various means of payment available nowadays in Vietnam such as Paypal, Momo, Viettelpay and Wepay that haven’t been offered by MWG Expand into emerging markets and create new channels One common retail industry trend is the ability to tap into new markets and channels Technology has made it easier for retailers to tap into international and emerging markets that would otherwise be difficult to reach Retailers are no longer confined to a single location or market and many of them are able to expand their operations overseas by following an effective digital strategy According to one estimate, it is expected that to billion more people will come online by 2020 By following a digital-first strategy, retailers can move beyond existing traditional borders and tap into new and emerging markets in order to increase their customer reach INTRODUCTION Introduction about MWG Mobile World Group corporation (HOSE: MWG) is the No retailer in Vietnam in terms of revenue and profit, with a network of more than 2,200 stores nationwide MWG operates thegioididong.com retail chains, Dien May Xanh, Bach Hoa Xanh In addition, MWG also expanded to foreign markets with the Bigphone mobile device retail chain in Cambodia - - - Thegioididong.com was established in 2004 as the No mobile device retail chain in Vietnam with more than 1,000 supermarkets present in 63 provinces and cities across Vietnam Dien May Xanh, formerly known as dienmay.com, was born in late 2010 and officially renamed in may 2015, is a retail chain of consumer electronics products (electronics, refrigeration and household appliances) with a market share Part of Vietnam with more than 780 stores in 63 cities and provinces across Vietnam Bach Hoa Xanh was put into trial at the end of 2015, a chain of stores specializing in retailing fresh food (fish meat, vegetables, fruits ) And necessities with more than 480 supermarkets in Ho Chi Minh city and southern provinces Bigphone retail chain of mobile devices was put into operation in 2017, there are currently 10 stores in Cambodia MWG focuses on building a differentiated customer service with superior quality, consistent with the customer-centric culture in every thought and action of the company SWOT analysis Strengths: - - As a long-standing brand, get the trust of users Occupying the highest market share in mobile phone retail (45%) and electronics (35%) There are chains of supermarkets and stores nationwide Its customer service is always appreciated Good price Professional warranty system for products that it sells The ability to communicate and market more effectively than competitors: Green Electronics' marketing strategy: TCV of Dien May Xanh in 2016 with blue people deeply influenced social networks for a while When this TCV was launched, it helped Dien Bien Xanh spread brand awareness throughout the country, and also helped this late-born brand to become the market leader far ahead of the remaining competitors Owning the famous and potential chain of store chains including: Thegioididong, Bach Hoa Xanh, Dien May Xanh Thegioididong's website has always been a highly appreciated experience Change from expansion to focus on store quality Center customers in the business model Successful application of enterprise resource management system - ERP: MWG is one of the first private companies in Vietnam to introduce enterprise resource management system - ERP applied in retail chain management Weaknesses: department stores have experienced a period of hot growth and seem to be about to enter a period of fierce competition when major competitors have gained a stable market share And the electronics and electronics market was saturated when too many businesses competed for market share Increased competition in this area can lead to high costs and sharply reduced business performance Opportunities: the model of the food division is still potential when the traditional market still accounts for a high proportion Besides, basically, the general situation of the society, especially during the Covid-19, on-app purchases has become a booming trend not only in Vietnam but worldwide Technology adoption is an inevitable trend, while MWG is already a leading enterprise in this field Threats: competitive pressure in retail industry in general is huge from both domestic and foreign enterprises Specific business models require MWG to constantly find new models to maintain high growth FINACIAL ANALYSIS OF MWG MWG's business results in recent years: Analysis of profit structure 2017 2018 2019 ITEMS Value Proportion Value Proportion Value Proportion Main Operating Profits 2,779,220,564,018 91.35% 3,870,772,674,228 91.62% 4,976,733,705,441 88.47% Financial Profits before Interest expenses 249,425,552,344 8.20% 341,927,302,667 8.09% 629,559,726,641 11.19% Other Profits 13,868,256,776 0.46% 12,136,156,582 0.29% 18,763,773,119 0.33% EBIT 3,042,514,373,138 100% 4,224,836,133,477 100% 5,625,057,205,201 100% Currency: VND In 2017, operating profit is the most to the profit of the business and accounted for 91.35%, followed by the profit from financial activities before interest accounted for 8.02% profit structure In 2018, the main operating profit increased by 0.27% and accounted for 91.62% of the profit structure Profits from financial activities before interest expenses and other profits tend to decrease by 0.10% and 0.17% compared to 2017, but still remain stable, accounting for 8.09% and 0.29% In 2019, the main operating profit was the lowest in years of survey, decrease by 3.15% compared to 2018 However, in 2019, financial profits before interest expenses and other profit of the company increased by 3.10% and 0.05% of the total profit structure in 2019 Overall, during the research period, the main business profit still accounted for a large proportion in the profit structure of the business for years, the profit from financial activities before interest and other profit at a positive level, demonstrate the company's profit structure is reasonable and sustainable The company focus more on financial trading activities are still no strong reduction of operating profit of main business structure so that the company's profit improve year by year Working capital and net working capital analysis Currency: billion VND In 2018, the short-term assets of the enterprise were VND 23,371,994,756,394 but the working capital was VND 11,378,626,734,395 due to the fact that the enterprises occupiedcapital at the payable amounts of VND 11,993,368,021,999 Accounts payable have lodged 48,68% for short-term assets Working capital is 47,83% of short-term assets Net working capital of 5,442,561,752,768 sponsors 47,83% of short-term assets; the rest of 29% is financed by short-term debt 25,000 20,000 15,000 10,000 5,000 Working Capital Net Working Capital In 2019, short-term assets of the company increased by 35,011,896,908,246 2018 2019 but the working capital onlyincreased by 19,753,794,199,432 VND because the payables increased by 15,258,102,708,814 VND The proportion of shortterm assets that are financed by liabilities is 56,42%, down 2% compared to the beginning of the period Working capital is equal to 33,26% of short-term assets Net working capital increased by 6,569,530,224,373, making the ratio ofshort-term assets funded by long-term capital increased by 6% compared to the beginning of the period In 2019, underwent a significant increase in net working capital, while the working capital continued increasing Indeed, the proportion of net working capital to short-term assets went up by 7.74% and that of net working capital to working capital decreased 14.57% respectively Comparing to the figures for 2018, financial structure of 2019 was much more risk Analysis of capital changes Value Proportion Increase assets 14,405,632,876,057 99.39% Decrease capital 87,926,485,231 0.61% TOTAL CAPITAL USE 14,493,559,361,288 100% Decrease assets 820,068,818,030 5.66% Increase Capital 13,673,490,543,258 94.34% TOTAL CAPITAL 14,493,559,361,288 100% Currency: VND In 2019, MWG mostly use their capital for increasing inventories and short-term financial investments, which accounted for 8,299,423,137,599 (57.26%) and 21.29% of total capital use respectively To finance the purposes of using capital sources as follows: increasing investment capital of owner 3,160,556,863,011 (28%), appropriating undistributed profits 1,531,031,161,596 (26%), recovering short-term revenues 1,223,318,052,481 (21,81%) So in 2019, the General Director focused on expanding the business scale (strengthening facilities and increasing inventories) In order to finance expanded investment, MWG mobilized capital from outside It can be seen from the calculated figures that in 2019, MWG mainly used long-term capital to finance short-term asset, which was fairly reasonable As analyzed above, this means a positive net working capital could create a stable and safe financial structure However, the company used more external capital than internal capital, external capital was not as stable as internal capital Otherwise, suppliers, customers and employees could become skeptical about the company's ability to pay for debts, which could cause disadvantages Horizontal analysis Curency: billion VND Net sales increased continuously from the year 2017 to 2019 Net sales in 2017 was 66339 billion, 2018 was 86516 billion, an increase of 20176 billion, respectively, up 30.41% compared to 2017 Net sales in 2018 was 86516 billion, 2019 was 102174 billion, an increase of 15657 billion, respectively, up 18,10% compared with 2018 The increasing income is due: 6,000.0000 5,000.0000 4,000.0000 3,000.0000 2,000.0000 1,000.0000 0.0000 2017 EBIT increased from 2017 to 2019 EBIT in 2017 is 3042 billion, the year 2018 is 4225 billion, increased 1182 billion respectively, the corresponding increase of 38.87% compared to the year 2017 EBIT increased by 38.87% in 2018 due to: - EBIT 2018 EBT 2019 EAT Key business operating profit increased 1092 billion 2018 year, respectively increasing 39.28% compared to the year 2017 Financial operating profit not excluding interest in increased 93 billion 2018 in comparison, the corresponding increase 37.09% compared to the year 2017 Other profit the year 2018 reduce 1.7 billion, respectively lose 12.49% compared to the year 2017 EBIT in 2018 was 4225 billion, 2019 is 5625 billion, an increase of 1396 billion, respectively, up 33.06% EBIT increased by 33.06% in 2019 due to: - Main business operating profit in 2019 rose 1106 billion, increased 28.57% respectively compared to the year 2018 Financial operating profit not excluding interest in 2019 rose 288 billion, respectively rising 84.12% compared to 2018 Other profit in 2019 rose 6.6 billion, respectively rose 54.61% compared to 2018 EBT constantly rising from the year 2017 to 2019 EBT in 2017 is 2809 billion, the year 2018 is 3786 billion, an increase of 977 billion, respectively increasing 34.78% compared to the year 2017 EBT in 2018 is 3786 billion, in 2019 is 5053 billion, an increase of 1267 billion, respectively rose 33.47 % compared to the year 2018 EAT constantly from 2017 to 2019 EAT in 2017 is 2206 billion, the year 2018 is 2880 billion, an increase of 673 billion, respectively rose 30.51% compared to the year 2017 EAT in 2018 rose 30.51% is due to: - Cost of tax expenses arrest in 2018 decreased 9.5 billion, respectively decreasing 25.45% compared to the year 2017, contribute to EAT went up 9.5 billion compared to the year 2017 Main operating profit increased 1092 billion 2018 year, respectively increasing 39.28% compared to the year 2017, contributing to increased EAT 1092 billion compared to the year 2017 Financial operating profit not excluding interest in increased 93 billion 2018 in comparison, the corresponding increase 37.09% compared to the year 2017, contributing to increased EAT 1.33% compared to the year 2017 Other profit the year 2018 reduce 1.7 billion, respectively lose 12.50% compared to the year 2017, contributing to reduced EAT 0.32% compared to the year 2017 EAT in 2018 is 2880 billion, in 2019 is 3836 billion, an increase of 956 billion, respectively rising 33.19% compared to the year 2018 EAT 2019 increased 33.19% due to: - Main business operating profit in 2019 rose 1105 billion, increased 28.57% respectively compared to the year 2018, contribute to increased EAT 116% compared to the year 2018 Financial operating profit not excluding interest in 2019 rose 288 billion, respectively rising 84.12% compared to the year 2018, contribute to increased EAT 30.09 % compared to the year 2018 Other profit in 2019 rose 6.6 billion, respectively rose 54.61% compared to the year 2018 Vertical analysis EBIT in 2017 was 3042 billion, EBIT in 2018 was 4225 billion and EBIT in 2019 was 5621 billion EBIT increased from 2017 to 2019 EBIT on revenue in 2017 was 4.59% It is the result from operating profit in the main business revenue of 4.19%, other profit on revenue of 0.02% In 2018, rose at 4.88% revenue on EBIT, increased 0.30% compared to the year 2017 That results from major business operating profit on turnover of 4,47%, 0.28 % increase compared to the year 2017, financial profit (excluding interest) on revenue (0,40%), increase 0,02% in comparison with the year 2017 and other profit on revenue of 0.01%, decrease 0.01% compared to the year 2017 In 2019, EBIT on revenue of 5.5%, rose 0.62% compared to 2018 It was result from the cost of sale decrease to 12.17%, down 1.01 % compared with 2018, operating profit in the main business revenue of 4.87%%, up 0,40% compared to 2018 EBT on revenue in 2017 was 4.23%, 4.38% in 2018, up 0.14% over the previous year Due to the impact from the operating profit in the main business sales increase 0.28% in 2018 compared to 2017 as EBT increased 0.14% in terms of revenue, profit on financial operations increased revenue in 2018 0.02% compared to 2017 as EBT sale rose 0.02%, other profit on sales in 2018 decreased 0.01% compared to 2017 as EBT sales decreased 0.01% and interest expense on revenue in 2018 decreased by 0.15% compared to 2017 as EBT sales increased 0.15% EBT on revenue in 2019 was 4.95%, up 0.57% compared to 2018 Due to the impact from the operating profit of main business revenue in 2019 increased by 0.40% compared to 2018 for EBT revenue rose 0.40%, the financial operating profit on sales in 2019 increased by 0.22% compared to 2018 for sales EBT fallen 0.22%, other profit on sales in 2019 increased by 0.01% compared to 2018 for sales EBT rose 0.01% and interest expenses on revenues in 2019 increased 0.06 % compared to 2018 for sales EBT went down 0.06% ROS 2017 were 3.33%, 3.34% in 2018, an increase of 0.01% compared to 2017 Due to improve the efficiency of cost savings due to cost of goods sold decreased 0,88% and gross profit increased 0.88%, cost management business revenue fell 0.59% on operating profit as the main business revenue increased 0.28 % and business expenses on corporate income tax revenue increased 0.14% Profit from financial activities (excluding interest) on revenues rose 0.02%, other profit on sales decreased 0.01% and interest expenses on revenue down 0.15% ROS 2019 was 3.76%, rose 0.46% compared to 2018 Due to improve the efficiency of cost savings due to cost of goods sold decreased 1.40% on revenues, expenses on business management revenues decreased 0.01% as operating profit in the main business revenue increased 0,40%, profit from financial activities (excluding interest) on revenues increased 0,22%, other profit on sales increased 0,01% and interest expense down 0.05% However, the cost of corporate income tax on 1.19% sales increased ROS fell 0.14% Finacial ratio analysis Current ratio 2017: 2019: 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 = = 18,862,861,306,281 = 1.200 15,713,814,885,175 35,011,896,908,246 2018: 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 = 23,371,994,756,394 17,929,433,003,626 = 𝟏.303 = 1.230 28,442,366,683,873 The ratio of current solvency of enterprises over the years is greater than and stable from 1.200 to 1.230 Working capital < This shows that the company is balanced in the financial structure and low payment risk Compared to the industry (1.19), the current ratio of the company is higher Demonstrate that the company have enough short-term assets to secure payment for short-term debt Acid-test ratio 2017: = 2018: = 2019: = 3,410,983,351,393+2,765,847,815,554 15,713,814,885,175 = 0.393 3,749,550,258,212 + 50,922,451,739 + 1,542,529,736,073 17,929,433,003,626 = 0.298 3,115,236,816,468 + 3,137,000,000,000 + 1,815,085,561,979 28,442,366,683,873 = 0.284 Quick ratio less than 1, average 0.325 This shows short-term assets with low liquidity In 2017 and 2018, quick ratio was only 0.39, 0.30 that the financial position of the company was not good The company's solvency ratio is low Average storage time (days) 2018: 2019: (12050162650982+17446005298981)/2 71224159239435/360 (17446005298981+25745428436580)/2 82686444673012/360 = 74.54 = 94.02 From 2017 - 2018, the changes of MWG‘s capital structure ratios was just a little bit Through the coefficient table, we see that the ratio of the company's debt had decreased from 74% to 68 % in 2017 and 2018 This ratio shows the debt fairly high proportion in the total capital of the company The debt to equity ratio decreased not too much with proportion from 2.86 in 2017 to 2,13 in 2018.This showed that he company was highly financially independent and self governing The financial leverage ratio was 3.86 in 2017 and slightly decreased to 3.13, 3.43 in 2018, 2019, so affected to return on the equity Comparing to FPT, the financial leverage ratio of MWG was higher than that of FPT through the years Typically,in 2017 the the ratio of financial leverage of MWG was 3,86 and FPT only was 2,01 in owner's equity The ratio of short-term liabilities on total assets of MWG at the end of 2018 decreased 5% compared to 2017, this ratio rose 4% at the end of 2019 This ratio was not stable but acceptable Compared to the year 2017, Interest Coverage Ratio of the company in 2018 and 2019 increased 9.68 in 2018 and 9.90 in 2019 Ability to ensure interest fluctuates through the year but overall there was a significant increase showed profit before tax and interest of the loan interest rate larger companies many times so the ability to guarantee the payment of the interest payments from profit more and more assured Return on invesment (ROI) 2017 2018 2019 3,042,514,373,138 4,224,735,146,592 5,621,583,921,830 18,838,463,724,106 25,472,597,851,038 34,915,313,515,870 4.6% 4,9% 5.5% ROI 16.2% 16.6% 16.1% Revenue/ Total average capital 3.52 3.40 2.92 EBIT Total average capital EBIT/Revenue Table 7: Analyze Return on Invesment (ROI) By 2018 there has been a slight increase compared to 2017, showing that businesses there has been a change to stabilize and increase the rate of return for enterprises In 2017, for every 100 dong of revenue, the company had 4.6 dong of profit, this rate increased in 2018 when it was only 4.9 dong of profit and increased to 5.5 dong of profit in 2019 In terms of capital saving, in 2017, for every dong of capital, enterprises generated 3.5 VND of revenue This ratio decreased in 2018 to 3.4 VND in revenue and continued to decrease in 2019 when this ratio was only 2.9 In terms of capital saving, it can be seen that enterprises have not yet achieved capital saving efficiency, making ROI in 2019 down 0.5% compared to 2018 Return on asset (ROA) 2017 2018 2019 2,206,897,119,349 2,880,309,060,133 3,836,240,087,027 I 233,202,340,492 436,416,577,674 568,136,717,134 I*(1-t) 186,561,872,394 349,133,262,139 454,509,373,707 Total average assets 18,838,463,724,106 25,472,597,851,038 34,915,313,515,870 ROA(%) 12.71% 12.68% 12.29% NOI= EAT + I*(1 – T) 2,393,458,991,743 3,229,442,322,272 4,290,749,460,734 NOI/ Revenue 3.61% 3.73% 4.20% Revenue/ Total average capital 3.52 3.40 2.92 EAT Table 8: Analyze Return on Asset (ROA) ROA of enterprise decreased over the years, because enterprises increased their assets but profit after tax only increased at a lower level In 2018, compared to 2017, profitability ratio on total assets decreased by 0.03%, and 2019 decreased by 0.39% compared to 2018 The impact of cost-saving efficiency helped ROA of 2019 increased by 0.47% compared to 2018, but the implementation of saving capital was effective so it made ROA down 0.48% Return on equity (ROE) According to table 9: The company's ROE decreased year by year In 2018 ROE decreased by 6.59% compared to 2017 In 2018, the equity of the investor in the company brought the owner profit 0.3866 after tax deduction business income In 2019, ROE is down by 0.36% compared to 2018 2017 2018 2019 2,206,897,119,349 2,880,309,060,133 3,836,240,087,027 Average Equity 4,875,137,030,789 7,445,975,833,279 10,563,313,762,848 ROE 45.27% 38.68% 38.32% EAT Table 9: Return on Equity (ROE) Earnings per share – (EPS) 2017 2018 2019 2,206,897,119,349 2,880,309,060,133 3,836,240,087,027 Number of outstanding Share 316,988,437 443,496,178 452,861,986 EPS 6,962 6,495 8,471 EAT Table 10: Earnings per share – (EPS) Through statistical table 10, we see that in 2018, EPS decreased by 6.7% compared to 2017 In 2019, EPS increased significantly by 30% compared to 2018 As the number of outstanding shares in the market increased, the after-tax profit did not increase significantly, leading to a decrease in income from each share significant 2017 2018 2019 MWG 6,962 6,495 8,471 FPT 5,130 3,900 4,220 Table 11: Compare MWG with FPT According to table 11: Over the years, the company 's EPS decreased, but compared with a company in the same industry as FPT, the CEO' s EPS still maintained at a high level, on average times higher than FPT Market index 2017 2018 2019 Number of outstanding Share 316,988,437 443,496,178 452,861,986 EAT 2,206,897,119,349 2,880,309,060,133 3,836,240,087,027 EPS 6,962 6,495 8,471 Book value of a stock 18,655 20,871 27,431 Market value of a stock 98234.87143 65140.35815 111479.7027 P/E 14.11 10.03 13.16 P/B 5.27 3.12 Table 12: MWG’s market index 4.06 P/E decreases in to 2018, in 2017, the company's P/E is 14.11, which means that in order to have the company's profit, the market has to invest 14.11 dong By 2018, the company's P/E is 10.03 which means that for the company's profit, the market must invest VND10.03 In 2019, the company's P/E is 13.16 which means that in order to have the company's profit, the market must invest 13.16 billion dong Market price index versus book price reflects MWG success in increasing owners' assets and maximum market value of the company However, from the owner's perspective, a high P/B ratio may be a sign that the company is overvalued DISCLOSURES This report is prepared, based on the data collected from various resources, which, by the authors’knowledge, is reliable All references used in this report are cited fully This report is not intended to serve as an advice for any economic decisions and the authors of this report not hold any financial interest in the company The sole purpose of this report is to serve for the purpose of learning and researching 10 ... enterprises Specific business models require MWG to constantly find new models to maintain high growth FINACIAL ANALYSIS OF MWG MWG's business results in recent years: Analysis of profit structure 2017... equity Comparing to FPT, the financial leverage ratio of MWG was higher than that of FPT through the years Typically,in 2017 the the ratio of financial leverage of MWG was 3,86 and FPT only was... Introduction about MWG Mobile World Group corporation (HOSE: MWG) is the No retailer in Vietnam in terms of revenue and profit, with a network of more than 2,200 stores nationwide MWG operates thegioididong.com