Alternative methods to evaluate DHG stock price

ACKNOWLEDGE This report would never have been possible without the consistent support and assistance of the people whom I approached during the various stages of writing this essay Firstly, I would like to express my heartfelt gratitude to my academic supervisor Mrs Hang Phuong lecturer of Academy of Policy and Development, for her valuable advice, encouragement, direction, and assistance Writing this essay would have been impossible without her guidance Next, I thank the ISEF teachers for their help and teach me valuable knowledge for years That really helps me to complete the essay and use the skills I have leamed to analyze more clearly and in more detail PREFACE Vietnam's economy has been recovering strongly in recent years, creating favorable conditions for the stock market to develop However, the size of the market is still relatively small and there is a lot of potential for future boom In order to create a healthy competitive market, specialized analytical studies are required, especially studies on market volatility, changes in business lines, price íluctuations of the stock, the risks of investors when entering the stock market Recognizing this, I decided to choose the subject: “ALTERNATIVE METHODS TO EVALUATE DHG STOCK PRICE ” DHG shares are one of the stocks that have received a lot of market attention, including individuals and organizations However, there are still not many in-depth reports from financial institutions, besides the information about DHG still asymmetric information phenomenon in the market So, I make this report with the aim of providing the most objective, unbiased information about the DHG stock code combined with the investment advice of the clients of the intemship-company and small investors in the market In addition, the report also shows a part of the process of securities investment analysis and securities dealing at the company, thereby helping the company to períect these processes The content of this report is mainly focus on analyzing performance of DHG PHARMA over years, combine with the íluctuation of macroeconomic and industry, so that can release assumptions to build a pricing model for DHG stock and give results at last The report also consult information and calculation of other pricing report of securities companies to have a objectivity look about DHG stock I have tried to be extremely meticulous in preparing this report despite the various limitations faced as very limited information about pharmaceutical industry INTRODƯCTION Research objective • Research Question: How we identify the fair value of DHG’s stock? • General Objective: Using Literature Review and Data analysis to find out the value of DHG’s stock • Specitic Objective: Analyzing the global economic condition and the developments of global and domestic pharmaceutical industry Basing on the research of the economics changes and extemal/intemal pharmaceutical industry which use for showing the effect to DHG and analyzing the business performance of DHG for forecasting the potentials of DHG in four consecutive years (2019-2022) Using suitable valuation methods to determine the intrinsic value of DHG’s stock and comparing this value with the market price so as to whether DHG has been overvalued or undervalued Relying on the valuation outcome and then recommending investors whether they should invest in this stock or not Research Object • DHG Pharmaticeutical Joint Stock Company (DHG) stock price Research Scope • Time limited: 2015-2018 • Venue limited: Viet Nam Research Methods: • Literature Review • Ratio analysis • FCFF • FCFE • Valuation by comparable Research Structure My dissertation will be separated into chapters: • Chapter 1: Literature Review • Chapter 2: Global, Domestic context and Períồrmance of DHG Chapter 3: DHG stock valuation and Recommendation CHAPTER 1: LITERATƯRE REVIEW 1.1 Deíinition 1.1.1 Stock market According to the Economic Times1, stock market is a place where shares of pubic listed companies are traded The primary market is where companies íloat shares to the general public in an initial public offering (IPO) to raise Capital The Investopedia2 had written the detail definition for the stock market The stock market refers to the collection of markets and exchanges where regular activities of buying, selling and issuance of shares of publicly-held companies take place Such tinancial activities are conducted through institutionalized formal exchanges or over-the-counter (OTC) marketplaces which operate under a defined set of The Economic Times is an English daily newspaper published in India, Tirst in 1961 This is the second most widely read English business newspaper in the world, just behind The Wall Street Joumal of America.(www.economictimes.indiatimes.com) Investopedia is a New York City-based us website that íồcuses on lĩnancial investment and education along with reviews, ratings and comparison of various lĩnancial Products such as brokerage accounts (www.investopedia.com) regulations There can be multiple stock trading venues in a country or a region which allow transactions in stocks and other forms of securities While both terms - stock market and stock exchange - are used interchangeably, the latter term is generally a subset of the former If one says that she trades in the stock market, it means that she buys and sells shares/equities on one (or more) of the stock exchange(s) that are part of the overall stock market Leading stock exchanges in the u.s include the New York Stock Exchange (NYSE), NASDAQ, BATS and Chicago Board Options Exchange (CBOE) These leading national exchanges, along with several other exchanges operating in the country, form the stock market of the u.s Though it is called a stock market or equity market and is primarily known for trading stocks/equities, other Tinancial securities - like exchange traded funds (ETF), corporate bonds and derivatives based on stocks, commodities, currencies and bonds - are also traded in the stock markets 1.1.2 • Stock A stock (also known as "shares" or "equity) is a type of security that signiíies proportionate ownership in the issuing Corporation This entitles the stockholder to that proportion of the corporation's assets and eamings.(Investopedia.com) • Stocks are of two types—common and preferred Common stocks, also known as equity securities or equities, represent ownership shares in a Corporation Each share of common stock entitles its owner to one vote on any matters of corporate governance that are put to a vote at the Corporation’s annual meeting and to a share in the tinancial benetits of ownership The Corporation is controlled by a board of directors elected by the shareholders The board, which meets only a few times each year, selects managers who actually run the Corporation on a day-to-day basis Managers have the authority to make most business decisions without the broad’s specitic approval The broad’s mandate is to oversee the management to ensure that it acts in the best interest of shareholders The members of the broad are elected at the manual meeting Shareholders who not attend the annual meeting can vote by proxy, empowering another party to vote in their name Management usually solicits the proxies of shareholders and normally gets a vast majority of these proxy votes Thus, management usually has considerable discretion to run the tirm as it sees fit - without daily oversight from the equity holders who actually own the tirm A Corporation sometimes issues two classes of common stock, one bearing the right to vote, the other not Because of its restricted rights, the nonvoting stock ntight sell for a lower price Characterỉstỉcs of Common stock, as an investment are its residual claim and limited liability features Residual claim means that stockholder are the last in line of all those who have a claim on the assets income of the Corporation In a liquidation of the firm’s assets the shareholders have a claim to what is left after all other claimants such as the tax authorities, employees, suppliers, bondholders, and other creditors have been paid For a tirm not in liquidation, shareholders have claim to the part of the operating income left over after interest and taxes have been paid Management can either pay this residual as cash dividends toshareholders or reinvest it in theữ business to increase the value of the shares Limited liability mean that the most shareholder can lose in the event of failure of the Corporation is their original investment Unlike owners of unincorporated businesses, whose creditors can lay claim to the personal assets of owner (house, car, fumiture), corporate shareholders may at worst have worthless stock They are not personally liable for the firm’s obligations Preferred stock has features similar to both equity and debt Like a bond It promises to pay to its holder a tixed amount of income each year In this sense preferred stock is similar to an infinite-maturity bond, that is, a perpetuity It also resembles a bond in that is does not convey voting power regarding the management of the firm Preferred stock is an equity investment, however The firm retains discretion to make the dividends Instead, preferred dividends are usually cumulatỉve; that is, unpaid cumulate and must be paid in full before any dividends may be paid to holders of common stock In contrast, the firm does have a contractual obligation to make the interest payments on the debt Failure to make these payments sets off corporate bankruptcy proceedings (Investments4) Zvi Bodie, Alex Kane, Alan LMarcus, Ravi Jain (2014) Investments, í*' 1' Ed McGraw Hill p 44 1.1.3 Valuation Valuation is the analytical process of determining the current (or projected) worth of an asset or a company There are many techniques used for doing a valuation An analyst placing a value on a company looks at the business's management, the composition of its Capital structure, the prospect of future eamings, and the market value of its assets, among other metrics (Investopedia.com) 1.1.4 Intrinsic value Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, using fundamental analysis Also called the true value, the intrinsic value may or may not be the same as the current market value Additionally, intrinsic value is used in options pricing to indicate the amount that an option is "in the money."5(Investopedia.com) The goal of value investing is to seek out stocks that are trading for less than their intrinsic value There is no one method of evaluating a stock's intrinsic value, and two investors can form two completely different (and equally valid) opinions on the intrinsic value of the same stock However, the general idea is to buy a stock for less than its worth, and evaluating intrinsic value can help you just that (The Motley Fool, fool.com) 1.1.5 Valuation methods An appropriate valuation method is one which has the ability to incorporate all relevant factors that have a material effect on the fair value of investment To value a business, choosing the correct equity valuation method is extremely important And that is hard step for the investor to choose the suitable methods which will calculate the closest íigures In the investing course of Investopedia shows that when deciding which valuation method to use to value a stock for the fĩrst time, it's easy to become overwhelmed by the number of valuation techniques available to investors There are valuation methods that are fairly straightforward while others are more involved and complicated Unfortunately, there's no one method that's best suited for every situation Each stock is different, and each industry or sector has unique characteristics that may require multiple valuation methods In the money (ITM) is a term connected to an option contract ITM indicates that the option has value in a strike price íavorable in comparison to the prevailing market price of the underlying asset -Healthy ílnancial and handling backlog beíồre valuing businesses: In order to carry out business valuation to achieve high results, beíồre valuing enterprises, enterprises need to deal with outstanding ílnancial problems, especially debts thatcannot be collected and stagnant supplies, assets and goods lose the quality of enterprises - Complete the selection of business valuation organizations: In order to enhance the professionalism of enterprise of enterprise because in valuation based a valuation under market economy valuation to professional organizations on valuation, the State uniform have principles, the council standards is and has abolished the mechanism a This profession competence, methods absolutely Professionalism ethics, At is mechanism the practice same true requires must time, be the organization of valuation of enterprises must have a team of people with certain qualiíications CONCLƯSION Business valuation is an indispensable part for investors when buying stocks And the evaluation and analysis from the market to the detailed understanding of the meaning of the numbers to see an overview of a company's stock valuation is difficult for all investors In addition, each investor will have a way of analyzing and making different results but the market trend of the company is only one, so it is easy to give a trend but to catch the opportunity to buy and selling it is another matter depending on agility and market experience This topic includes industry analysis, details of DHG and valuation of the company's stock in appropriate ways Giving ideas about DHG in the period 20152018 and predicting the sudden development of the pharmaceutical industry as well as DHG in the Corning time Finally, use valuation methods to show the future trends and values of DHG In addition, make recommendations buy and recommend to the State to have a better way to value investors for investors to APPENDIX Appendỉx 1: Income Statement 2014-2018 (Thousand VND) 2014 GROSS SALE REVENUES Deduction revenues Net Sales Costoí goodssold Gross proíit Financial income Financial Expenses Ofwhich: Interest Expenses 2015 3,958,709,9 10 87 46,191,7 66 543,967,6 3,912,518,14 370,814,2 3,607,759,8 1,781,997,12 3,783,044,7 2,194,892,1 2,130,521,0 37 89 37,139,8 78 1,712,986,2 34,338,6 67,340,6 74 57,818,2 89,481,8 4,838,8 1,783,115,5 48 64 90 77 2,279,637,9 16 39 48 4,062,753,4 64 2,070,058,5 1,412,867,6 18 506,260,5 46 76 34 4,569,014,0 10 14 23 2017 4,153,858,9 91 64 Proíitor lossírom join 2016 4,151,727,4 84,755,5 79 2018 4,427,208,856 539,431,685 3,887,777,171 2,167,601,733 1,720,175,438 88,779,692 107,785,027 97,684,684 96,053,992 8,730,565 12,492,352 24,541,141 28,523,707 -910,388 -187,904 -1,206,433 -86,928 venture companies Selling Expenses 1,098,587,3 General and admin expenses 312,775,8 36 other incomes 03 262,310,1 81 32,980,1 22 297,318,5 636,890,3 36,844,5 94 20,438,6 64,418,7 318,385,5 24 756,902,9 87 84,857,4 48 732,085,2 84 03 51 3,864,3 631,639,5 30 73 688,957,0 activities other proíits 35 08 Net Profitfrom Operating other Expenses 457,613,5 78 722,533,3 15 15,121,0 96 287,126,165 718,336,766 6,756,814 18,209,846 10,041,010 4,272,518 -245,972 -3,284,196 13,937,329 0 15,367,0 68 55 726,356,614 Proíit or lost from join venture companies (beíore 0 2015) Total proíit beíore tax 721,937,1 58 Corporate Income Tax Expenses 188,165,0 79 Current Corporate Income Tax Expenses and taxes (EBIT) Earningspershare -20,986,730 592,685,2 15 499,298 688,641,3 02 3,984,212 533,272,7 81 89,002,4 43 -66,577 533,772,0 shareholders 68,015,7 108,690,4 67 79 719,249,1 19 13 -5,760,984 Beneíits of Minitory EBIT of Heading Company 108,623,8 193,926,0 Expenses 756,657,0 15 90 63 Deíerred Income Taxes Earnings beíore interest 701,309,1 05 2,996,068 588,701,0 03 685,645,2 34 76,859,808 80,680,544 77,572,214 55,319,797 -712,406 25,360,746 642,389,312 651,593,551 -18,665 -1,940,415 642,407,9 77 732,274,095 653,533,967 Appendỉx 2: Income Statement Forecast 2019F - 2022F ị thousand VND) GROSS SALE REVENUES Deduction revenues 20 19 3,476 53.26 4,737,11 440,551,5 4,296,56 1,894,845, Cost of goods sold 1,923 390.372,401,71 Gross proíit 6,532 94,742 Financial income Financial ,270108,953,610 Expenses Ofwhich: 32,686 Interest ,083 Expenses Proíitor lossírom 47,371 join venture ,135 companies 781,623,7 Selling Expenses General and admin 23.53 293,701,036 expenses NetProfitfrom 1,170,06 Operating 7,029 activities 47,371 other incomes ,135 4,737,113 other Expenses 28,422 other proíits Proíitor lostírom ,681 NetSales 2020 2021 5,423,52 50,687 54,235 2022 5,803,16 1,419 1,219 7,704 471,39 504,38 539,694 0,162 7,473 ,596 4,597,32 4,919,13 5,263,47 1,257 2,027,48 3,745 2,169,40 3,1072,321,26 4,568 2,569,83 8,487 2,749,72 7,0822,942,20 6,690 101,37 5,258 108,47 6,026 116,063 4,228 116,58 0,424 124,74 ,354 133,472 0,363 34,974 0,988 37,422 ,857 40,041 ,109 ,296 ,857 ,114 5,068,71 ,212 836,33 7,384 314,26 0,108 1,251,97 1,721 50,687 ,114 5,068,711 30,412 ,269 894,88 1,001 336,25 8,316 1,339,60 9,741 54,235 ,212 5,423, 521 32,541 ,127 1,328,00 1,420,96 ,677 58,031 957,522 ,671 359,796 ,398 1,433,38 2,423 58,031 ,6775,803,168 34,819 ,006 join venture companies (beíore 2015) Total proíit beíore tax Corporate Income Tax Expenses 1,520,42 3,731 2,392 2,559 9,938 248,224,7 265,600,4 284,192,511.8 304,085,987 46.14 78.37 68 Earnings beíore interestand taxes (EBIT) Benefitsof Minitory shareholders EBIT of Heading Company 1,273,809, 1,362,976, 1,458,384, 1,560,471, 813.67 500.63 855.68 795.57 47,371 50,687 54,235 58,031 ,135 ,114 ,212 ,677 1,226,438, 1,312,289, 1,404,149, 1,502,440, 678.92 386.44 643.49 118.53 1,241,12 2014 2015 2016 201’ 2018 TOTALASSETS 3,482,718,3 00 □n Current Cash Eqiihaleiưs and 76 Cash 764 Shcrt temi íinancial õive stnient Shcrt Receivables tenn 507,605, Account 297 930,615,143 1,459,722000 644,064, 692,280,925 799,556,215 674,994436 639,320, 732,860,671 633,807,877 887,240,821 122 780,703, Inventories 4,087,479,9 4,206,938,3 91 2939184 96 3,148 800603,188,961 939 549,777 217 610,360 75 835597 703,731,000 100 844,549, 611 3,945,341, 976 2746,072 12 258,816,667 s a 3,363,198,6 60 2,386,250,3 2221 373,030 498,291, 420,7128 556 3,889,037 other CiuTent Assets Long-temi Assets a 1,096,467,9 24 Laigtenn Account Receivabie 9,670,440 808 1,141,825,6 30 Real Estate Lcng-tenn inccnipiete 25,428,488 50,817,505 1,199,269, 1,148,295,0 1,058,328,0 176 5,099,472 52 3,509,998 36 1,560,000 356 913,680, Hxedass ets 14,011,243 912 1,067,774,1 41 1,103,433, 387 1,026,999,5 976,866,250 04 0 0 50,132,540 15,722,551 17,160,871 36,307,710 14,087,992 16,842,444 15,932,056 15,744,151 14,537,719 25,219,929 115,003,673 42,396,883 57,831,294 66,940,122 40,593,865 0 0 Investnient assets a Laig tenn Hnacial Investnieiđs otlier leng tenn assets Goodwill (betore 2015) 3,482,718,3 TOTALEQUIĨY 00 Liabiiti es Shcrt Liabiíties 3,363,198,6 60 1,189,0928 29 tenn eqũty 69,403, Capital andresearves 2,521,236,0 27 2,293,625,471 27 1,075,559, 068 1,017,958, 653 62,330,345 2,293,625,4 71 779,632, 288 temi 334 Long Liabiítie s Ovvners 976 841,962, 633 1,119,689,495 3,945,341, 2521,236,0 4,087,479,9 91 206,938,396 1,328,385,5 1,062,171,7 77 67 001 957 1,264,936,8 127 29 57,600,415 869,782,908 869,782,908 14 14 63,448,748 60,214640 2759,094,4 3,144,766,6 2759,094,4 29 29 3,144,766,6 Appendỉx :Baỉance sheet Forecast 2019F-2022F ị thousand VND) Bnlntice Sỉteeỉ TỮTAL ASSETS Current Assets Cash and Cash Equivalents Short temi fin.an.cial investme Short temi Account Recávab InventorieE Other Current Assets 2019 4,459,354,70 3776554743 535'122,56 2020 4,726,915,98 3261572727 567'229,918 2021 5,010,530,941 3'457266349 501,053,09477 2022 5,311,162,797 64702330 584,227,907 898,114,037 992552'356 952,000,879 1,052,211598 1,009,120,931 1'115344'187 661,768,237.44 47,269,16 1,4187 74 795 1'89076 1,181,728'995 701,474331.69 50,105309 33,088,41 847,277,39 Long-temi Assets Long temi Account Recavab Eixed assets Real Estate Investment Long-temi inconiplete ass ets Long temi Einacial Investmer Other long term assets 2024 5,967,622,519 4'11.7759538 716314702 1,069,668,18 2023 5,629,832,56 84584 770 675579508 1'182264 39 1,133,848,279 1753700729 743562792 53311728 788376559 56.298326 835767353 59776'225 1,503'159282 2704212 1232,632735 1,593348 39 2'124'465 1,327790799 1,688549769 2231533 1,407,458341 1,790786756 23 87749 1791505730 2X634580 85.084'488 35,073,717 25,052,655 90'189'557 37,178,140 26555714 95700'930 39,408,828 28349363 101336586 41,773,358 29,838313 107717205 1.248,619,31 1204'025769 1,323,536,47 1'276257'315 1,402,948,663 1352743354 1,487,125,583 1'434713'955 1,576,353,118 1'520754793 1,670,934,305 1711258 80 75,809,030 3,233732'157 3,210735,384 80357,572 3,427714,087 3,403379507 85,179726 3,632734,932 3707,582277 90289768 3,850593 728 3724737214 95707354 4,081728710 4753779'447 101749 583 4326,526326 4296788214 936,464'48 624,309,65 44'593547 1,337'800'410 1783742 1,114338775 31,215,483 222967'3 80268385 Goodwill (beíore 2015; TỮTAL EQLITY Liabilities Short tenn Lỉabilities Long temi Liabilities 0'Miert equity Capital and researves Appendỉx : Cash Fỉow Statement of DHG ị thousand VND) 2018 2017 2016 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES INDIRECT METHOD Total proíit betore tax 719,249,11 732,274,095 756,657,015 701,309,10 721,937,15 Adjustments 886074 Depreciation ũf Fixed Assets 60 Expenses Amortisation ũf goodttill Provisicn fár shart term investmenl loss Unrealised foreìgn exchange gain/(loss) Protiư(lũss) frũffl hquidatmg fíxed assets Prũfit/(loss) investing activities Interest Expenses Interest mcome and dividend ữt her ad]ustment s Operating profìư(los$) beíore changes in VVorking Capital lncrease/(decrease) in receivables lncrease/(decrease) in inventorĩes (Increaseydecrease in pavables lncrease/(decrease) in prepaid expenses lncrease/(decrease) in trading secunties Interest paid Income Tax paid Other Incomes from Operatmg Other Incomes from Operating CASH FLOWS FROM OPERATING ACTIVITIES DIRECT METHOD Cash provided by Sales Services, and other revenues Cash payments to goods and Service Suppliers 92010389 93720931 89670282 0 0 3,326,85 16,053,75 6,788,343 - 464,08 256,710 ■111,551,81 28,523,70 97,376,45 98,293,05 46,446,886 11,597,357 -28,505,437 -76,742,928 24,677,426 95,788,363 -86,232,427 -106,470,431 134,124 ■95,680 49,383,173 91,499,661 9,533,006 910,38 808,457,820 ■126,642,628 -113,769,914 187,90 12,492,352 251,791,115 -2,618,121 773,638,14 740,923,588 -6,892,268 -81,590,212 54,963,916 8,705,231 0 ■770,41 2,081,320 ■2,785,87 24,541,14 0 3,353,85 467,46 797094 27 8,730,565 4,838,877 -30,674,060 -35,180,994 770,682,01 ' 770,572,49 198,827,31 144,415,71 ■169,149,297 -23,716,257 148,508,814 -373,682,424 22,752,784 -1,466,900 1,032,636 -27,875,658 0 -12,355,359 -9,256,861 -3,957,415 -64,844,698 -191,641,457 0 -92,225,803 -65,181,969 -149,100,797 -118,221,105 0 0 0 0 0 Cash payments to employees 0 0 Cash payments to Interest 0 0 Cash payments to Corporate Income Tax Proceeds írom operating actrvities 0 0 0 0 0 0 0 645,191,041 475,194,971 301,304,754 (136172501) (163832313) (255151975) 20.184,455 10,271,648 16,233,595 -2,795,800,810 -1,523,238,572 1,439,479,585 ^28.615.931 2,280,521,910 1,315,098,077 1,241,729,071 577,394,465 340,157,775 0 0 4,018,560 46,066,915 29,488,743 32,974,690 (277584452) (369331441) (334387361) Other Cash payments to operating activities Net cashflow from operating activities 290,791,23 460,308,108 — CASH FLOWS FROM INVE STING ACTIVITIES Purchases of tixed assets and other longírom termdepleting assets Proceeds 4) acquisitmg tixed assets and other lonq term assets (4084525 9,906,52 Loans granted purchases of debt Instruments Collection of loans proceeds from sales of debts Instruments Investments in other entities -160,000 Proceeds from drvestment ĩn other entities Proceeds from Interest Drvidends and shared pf ofit Net Cashflow from Investing activities (6348431 1) 19,440,000 9.000,00 85,825,11 69,676,354 (460552514) (19220399 7) 2,092,97 -458,479,382 CASH FLOWS FROM FINANCING ACĨIVIĨIES Proceeds from issue of shares, Capital contribution Cash payments to Capital contribution and Buy back ỉssued shares Short received long term loan 0 36,104,098 0 0 -15,665,180 2,851,557,133 2,516,213,007 1,561,815,330 1,222,254,694 1,376,817,787 Payment of Princial Loans Net Cashflow írom Financing activities -2,763,455,806 304,136,886 -2,401,178,436 321,521,654 -1,477,761,108 -1,128,250,896 1,327,141,457 -185,363,505 -183,442,482 -81,912,470 Net Cash and Cash equivalents during the period Cash and cash equivalents at beglnning of year Éíỉect of íoreign exchange differences 473,898,168 53,417,544 182,243,084 -77,578,952 -114,995,077 603,188,961 420,712,812 498,291,764 613,286,841 5,799 233,066 0 549,777,217 603,188,961 420,712,812 498291764 549,777,217 43,451 Cash and Cash equivalents at end of year 75,835,597 Re tu ru form VN Index Y& ar VN Index at begiuuiug 200 200 201 '0' 201 201 201 201 201 201 201 201 VN Index at the end oíyeat Re tu ru 315.62 315.6 494.8 484.7 351.5 413.7 504.6 545.6 579.0 664.8 984.2 494.8 56.8% 484.7 2.0% 351.55 -27.5% 413.73 17.7% 504.63 22.0% 545.63 8.1% 579.03 6.1% 664.87 14.8% 984.24 48.0% 900.82 -8.5% 13.4 % Average Re tu Re tu ro íroni dÌdend Market portíolio at 26/10/2018 St oc ST BV RSS IH P Nutuber sbares out staodĨDg 11359362 10.95639 10355331 9461.503 Price per sbare 12.3 037.4 527.5 38.9 Market c apitaliiatiũD 139726.303 410 3242 96 293721*60 368752467 Date ũf payment divide 10/4.2018 6/12/2018 Casb divideDd lotal casb divideũd 04 10355331 - S vB mi N V V CT CR O V CVI CD P N T2 B V M S K D 20.5 63.1 0724 018.6 020.1 536.9 053.8 0954 018.0 120.4 8.880745 7*985*67 7'973376 7.918797 8770720 7424741 7296302 5733312 5498220 5718476 3765709 735236 821780 271730 Total 23.8 092.0 076.3 252 182755273 503*895*9 03 577308322 147276304 162325308 273571943 392'567'94 545'957'96 98'967360 604488390 89323374 343341712 444201.814 6347*596 5,585,256,280 Returu írotu divideũd 21 2018 ‘ 2018 ‘ 2018 10/5/2018 6/28/2018 6/14/2018 9/5/2018 6/5/2018 9.20.2018 2018 8/92018 3467239 074 0785 860412 078 02 045 0.15 735236 046 5337442 5498220 10736352 7327264 5348364 434768 59,400,526.9 1.1% Appendix 7: Fỉnancỉal Ratỉo Einancial Ratics Liquidity Ratiũ Quick Ratío 201 2.6 1.264636805 Cash Ratio 0.499681097 0.560814351 0.413868704 0.194389078 Operating Ratio 0.200012704 0.177034892 Current Ratio Operating Caĩh flow Margin 2016 2017 2018 Industry 2.55 2.21 2.96 2.66 1.20446187 1.015769409 0.706881934 Ũ.Ũ7139673 0.188352898 2016 2017 2018 Day'5 Sales in Recãvalble 201 65.16049185 66.79343032 71.83256899 63.37116514 Account Recãvable lumover 5.577979392 6.216746192 6.125352275 6.004824389 Account Recãvable in Day? 75.30211608 64.46737629 67.01373353 69.21834302 Daỵs Sale in Inventory 106.315932 129.2205704 101.4809736 149.4014766 Inventữíy lumover (times) 3.09134476 3.017179504 3.336050894 2.850141137 120.9739094 109.4108008 128.0638335 193.373709 185.4412857 176.4245344 197.2821765 1,379,410,397 Leverage Ratio 1,670,513,732 1,610,799,362 2,086,438,593 201 Ũ.25Ũ345792 33 % 0.024722138 1.333948359 2016 2017 2018 0.272614915 0.324988888 0.252480941 ũiventory Tumover in days Operating cycles Working Capital rund Debt to Asset ratiũ lotal Debt to Equity ratio Límg-term Debt to EquiT’ raũ( Asset to Equity ratio 118.0715929 1.8 Industry 5.56 3.3 Industry 37% 48% 34% 10.06% 0.020071349 1.374787607 0.022996222 1.48145^093 0.01914757 1.337758534 0.08 2016 2017 16 2018 Industrv Ũ 15 0.16 0.21 0.18 ProfitabtEtỵ Ratio ROA ROE ROS(%) PE PB Gross Profit Margin Time Interest Eamed Net Profit margin Total asset tưmover Operatmg Income Margin 2015 18 24 16 43 18 17 0.24 16.76 15 23,12 25.98 50T7 23.51 5, 50 50.11 67 89 14 55.13 26.18 22.84 28 05 16.58 14.06 14.72 13 1.04 1.01 0.94 1.26 0.20 0.18 0.19 0.14 84 4, 03 47'13 19 18.20 23 15.81 16.77 3,55 The price -to- earnings ratỉo (P/E ratio) - The price -to- earnings... (eaming per share) Price of stock Enable investors to know how much they have to pay for each dollar in retum for the stock They can rely on this information to determine undervalued stocks Determine