Download - Financial management in Bien Hoa Suger
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EDFINANCIALMANA
Lecturer: PhD. Truong HongTrinh
Name: Pham Thuy TrangClass: 37k16 CLC
[ien Hoa
!uger"
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ContentsI. Company profile:..............................................................................................2
1. History:...........................................................................................................2
2. The Companys major business & production activities:.................................3
II. Financial statement:......................................................................................4
1. Balance sheet...................................................................................................4
2. Income statement:............................................................................................5
. !tatement o" cash"lo#:.....................................................................................6
III. Valuation model.............................................................................................8
1. Evaluate Value of company:............................................................................8
2. Increase in free cash flow:.............................................................................1
3. Estimate investment !u"#et:..........................................................................1
a. $ssumption:..................................................................................................1
!. Investment !u"#et:........................................................................................ 11
c. $ssess the profita!ility of investment............................................................12
". %ayment for pro&ect initial investment:.........................................................12
4. 'ptimal capital structure:.................................................................................13
a. 'ptimal capital structure...............................................................................13
!. (orporate value for )"* 2+......................................................................13
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BIEN HOA SUA! "OIN# S#OC$ CO%&AN'
I. Company profile:
,ransaction name: -IE /'$ 0$ 'I, 0,'( ('%$7
-usiness re#istration certificate o.: 3645818 #rante" for the first time !y 9on#
ai
9epartment of %lannin# Investment on 16 ay 21; an" the latest amen"ment
on 16 ay 213.
(harter capital: V9 62;4;18;
$""ress: -ien /oa 1 In"ustrial %ar
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In 26; a""itional shares were issue" !y the (ompany for capital
mo!iliation. ,he charter capital of V9 81 !illion was increase" to V9 162
!illion. 'n 2 9ecem!er 26; the initial pu!lic offerin# of the (ompanyFs shares
was ma"e at /(( 0toc< E>chan#e un"er the co"e of -/0.
In 2@; ,ri $n 0u#arcane (ompany was ac?uire" !y the (ompany toesta!lish -ien /oa C ,ri $n 0u#ar %lant. $fter multiCup#ra"in# an" e?uipment
investment; -ien /oa C ,ri $n 0u#ar %lantFs capacity currently reaches 2;5 tonnes
of su#arcane per "ay.
'n 0eptem!er 213; (ertificate on stoc< pu!lic offerin# o. 42G (C
-( was issue" !y the 0tate 0ecurities (ommission to the (ompany. ,here!y;
the (ompanyFs stoc
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II. Financial statement:
1. Balance sheet
Balance s(eet )*+, )*+) )*++ )*+*
SHO!#-#E!% ASSE#S +,/012 +242)3 14)31) 0+3*,*
(ash an" cash e?uivalents 238;22 8;524 1@8;@@8 58;@5
0hortCterm investments 44;24 16;5
0hortCterm $ccounts receiva!le 68;45 285;11@ 234;@44 254;84
Inventories 343;666 82;13 333;68 2;22
'ther current assets @2; 234;12@ 6;282 5;58
5ON-#E!% ASSES#S 1/1*22 04,442 4)3304 ,/1+0)
Aon#Cterm accounts receiva!les @@;2 53;355 58;@65 65;46
=i>e" assets 634;685 522;3 46;51 2@@;48
Investment in properties
Aon#Cterm investments 63;@@ 43;4@3 3;@@6 2;218
'ther lon#Cterm assets @;26 18;8@2 14;82@ 4;341
#O#A5 ASSE#S )+/,1/ )+*13, +)3+1, +*+4+/)
5IABI5I#IES +,23/, +4,4+++ 1,,),3 4+34+3
(urrent lia!ilities 1;251;83 1;42@;6@ 628;125 43;366
Aon#Cterm lia!ilities @;13 1@;435 15;113 115;151
O6NE!S7 E8UI#' 322343 41)1)2 4232// 2/0014
'wners investment capital 62;4 314;@5 2;@6 185;316
0hare capital surplus Bshare premiumD 3;81@ 3;81@ 3;81@ 154;4@@
=orei#n e>chan#e "ifferencesInvestment an" "evelopment fun"s 15;13 8@;@52 65;414 43;83
=inancial reserve fun"s 31;3@ 25;241 1@;@5 1;352
etaine" earnin#s 38;16 14;3 125;4@ 13;44@
%INO!I#' IN#E!ES#
#O#A5 !ESOU!CES )+/,1/ )+*13, +)3+1, +*+4+/)
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. !tatement o" cash"lo#:
Cas( flo= >Indirect? )*+, )*+)
I. Cas( flo= from operatin acti9ities
1. Net profit before tax 233+, +00*/3
2. Adjustments 3)*,/ 4)101
9epreciation an" amortiation 23;622 52;44
%rovisions @;55 2@
et profit from investment in &oint venture 186 C
nrealie" forei#n e>chan#e profitBlossD C451 C338
%rofitBAossD from "isposals of fi>e" assets C43 C
%rofitBAossD from investin# activities C2;62 C
%rofit from "eposit C1;84@ C;648
Interest income C4;3 C41;248
Interest e>pense 15;35@ 5;@@8
3. Operating profit before working capital changes +,*34, )+3304
IncreaseG"ecrease in receiva!les C251;38 C2@3;81
IncreaseG"ecrease in inventories 4@6;34@ C242;551
IncreaseG"ecrease in paya!les C121;585 C6;23
IncreaseG"ecrease in preCpai" e>pense 2;23 C@;218
Interest pai" C15;552 C5;5@1
-usiness income ta> pai" C18;@@ C15;43
'ther receipts from operatin# activities 5;134 2;826
'ther payments from operatin# activities C11;561 C15;345
Net cas( flo= from operatin acti9ities +*0)*) -24)10+
II. Cas( flo= from in9estin acti9ities
1. %urchases of fi>e" assets C135;822 C164;184
2.%rocee"s from "isposals of fi>e" assets @26 422
3. %urchases of "e!t instruments of other entities C44;24 C16;5
4. %rocee"s from sales of "e!t instruments of other entities 16;5 C
5. Investment in other entities C23;62 C35;528
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6. %rocee"s from "isinvestment in other entities C 23;@5
@. 9ivi"en"s an" interest receive" 32;85 21;@58
Net cas( flo= from in9estin acti9ities -+4,1), -+1*),1
III. Cas( flo= from financin acti9ities
1. %rocee"s from issue of shares 314;@5 C
2. %urchase issue" shares from other entities C C
3. %rocee"s from !orrowin#s 3;833;3 2;141;32
4. epayments of !orrowin# C3;88;5 C1;54;153
5. epayments of financial leases C C
6. 9ivi"en"s pai" C62;88 C4;135
Net cas( flo= from financin acti9ities +31)/* 42)12,
Net cas( flo= of t(e year +,/10/ -3*)44
Cas( and cas( e@ui9alents at t(e ;einnin of year /34)2 +13113
Effect of forein e
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III. Valuation model
1. Evaluate Value of company:
,wo types of assets that companies hol":
J operatin# assets
C 'perational assets inclu"e intan#i!le an" tan#i!le assets; such as !uil"in#s;
machinery; tools an" raw materials; inventory; patents of inventions; computer
software
C 'peratin# assets are e>pecte" to #row in the future
= +=
1 D1Btt
t%p
&'CC
(C()
,he present value of cash flows
are "iscounte" !y the avera#e cost of capital )$((; this is also the V'% value
activities
J onCoperatin# assets Bfinancial assetsD
C ,hese inclu"e financial assets such as transfera!le securities
C ares B'%$9D plus any nonCcash
e>penses Bsuch as "epreciationD; also nee" to invest more assets in the year in which
the costs to value increase" wor
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)e have the avera#e in"icators for last 3 years to calculate avera#e =(=o:
mil. VN mil. VN
#a< 25+ et Invest in fi>e" asset 135;6
EB# 48;813. et chan#e in )( C11;@4
Interest e
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Vop i=1
3
FCFi
(1+WACC)i K
FCF3x (1+g2)(WACCg2)
(1+WACC)3* L %V* 1;646;665.41
2. Increase in free cash flow:$ssume the #rowth rate of 9-/ for the first 3 years is #1 * 11+ an" for the
followin# years is #2 * 4.34@+; )$(( * 12.6@+. %rice of each pro"uct unit is 43
an" ('0 is 25 in 214 an" increase "epen"e" in #rowth rate of this company.
9epreciation cost is 5+ of revenue. $n" Income ta> is 22+.,he e>pecte" free cash flows for the ne>t four years are calculate" as follow:
201
3
2014 2015 2016 2017
Sale &373'3 1%'1&(1 ##71$$& #%#&&61
Price (x 1000
VND
$3 $& %3 %%
C!GS "er #$i% #% #& 31 3#
De"recia%i&$ 1)&(()3'% 3)7'&)&3$ 6)(17)1(1 6)''()#16
'ee$#e 36)((7)'(3 7%)'76)676 1#()3$#)(1
3
13')&($)31
1T&%al c&)% #()'3$) $$)17#)$&6 6')'66)#&7 &1)#&1)%76
!"era%i&$ ca)* +&,
#(1
3
#(1$ #(1% #(16 #(17
'ee$#e 36)((7)'(3 7%)'76)676 1#()3$#)(1
3
13')&($)31
1C!GS #()'3$) $$)17#)$&6 6')'66)#&7 &1)#&1)%76
De"recia%i&$ 1)&(()3'% 3)7'&)&3$ 6)(17)1(1 6)''()#16
E-IT 13)#7#)6&1 #&)((%)3%6 $$)3%&)6#6 %1)%3#)%1'
Tax (22. #)'1')''( 6)161)17&.3
#
')7%&)&'7.6
6
11)337)1%$.
#%N!PAT 1()3%#)6'(.
&$
#1)&$$)177.
6&
3$)%'')7#&.
(7
$()1'%)36%.
(7De"recia%i&$ 1)&(()3'% 3)7'&)&3$ 6)(17)1(1 6)''()#16
!"era%i&$ ca)*
+&,
1#)1%3)(&6.
((
#%)6$3)(11.
$6
$()616)&.
7#
$7)1&%)%&(.
6#
3. Estimate investment !u"#et:a. $ssumption:-/0 wants to invest to new pro&ect to improve their capacity. ,he Initial investment
is 1 !illion V9. In which; 8 !illion is use" to !uy new machines an"
e?uipment for new factory an" 2 !illion is use" to invest in )(. (ompany uses
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strai#ht line "epreciation metho"; an" at the en" of the pro&ect; the fi>e" assets are
e>pecte" to "isposal with 18 !illion V9.$ssume that the price an" ('0 will stay sta!le "urin# the pro&ect.
Initial in9estment +********
In9estment in fi
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1#
Ne% i$c&e *
%)77#)((
(
1#)$&()((
(
#')3#&)((
(
&)#6&)((
(
De"recia%i&$ c&)% #()((()(
((
#()((()((
(
#()((()((
(
#()((()(
((
C*a$e i$ ca)*+&, /#ri$ "r&ec%
1422000
3240000
4832000
226000
III Ca)* +&, a% %*e
e$/ &9 "r&ec%
NC #()((()(
((Salae al#e &9
$e, xe/ a))e%
1$)($()(
((Ca)* +&, a% %*e
e$/ &9 "r&ec%
3$)($()(
((IV Ne% ca)* +&, :
100000000
1422
000
32400
00
48320
00
6230
000
c. $ssess the profita!ility of investment
sin# I function in e>cel; we calculate:
C I * 16.@4+: )hile )$(( of this company is 12.6@; I M )$(( then thepro&ectFs rate of return is #reater than its cost N some return is left over to !oost
stoc
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{ a
a+b=0.61
a(18)+b=100000
0olve it; we have:
9e!t "eman": 6413 mil. V9'wner e?uity: 411 mil. V9".3. 9esi#n payments process:
PMT1 1
(1+11)4
11=64130
%, * 2;6@1 mil. V9
'ear#(e remainin
principal
&ayment for
principals
&ayment for
interests#otal payments
* 64;12;52 C58;;158.4
+ O5;513;132. [email protected] @;54;24@ [email protected]
) O35;38;43.41 1511418.58 5556444.62 [email protected]
, O18;622;12.8 16@@[email protected] 383883.@@5 [email protected]
2 O. 1862212.8 248441.228 [email protected]
4. 'ptimal capital structure:
a. 'ptimal capital structure
$ssume that r=*6+; %*4+. sin# e>cel to calculate; we have:
/ D;S '/ ') -ETA ACC
0. (.((+ &.((+ '.&$+ (.'6(((( '.&$+10. 11.11+ &.((+ 1(.17+ 1.($3#(( '.7&+
20. #%.((+ &.#(+ 1(.%'+ 1.1$7#(( '.7%+
30. $#.&6+ &.6(+ 11.1#+ 1.#&('1$ '.&(+
40. 66.67+ '.$(+ 11.&$+ 1.$%'#(( 1(.(3+
50. 1((.((+ '.&(+ 1#.&$+ 1.7(&&(( 1(.#$+
60. 1%(.((+ 1(.#(+ 1$.33+ #.(&3#(( 1(.%1+
)hich: 9G0 * )"GB1 C )"D
": ,he (ost of 9e!t for -/0 with "ifferent capital structures
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-eta * !P1 K B1 C ,DB9G0DQ
s * r=K B%D!
)$(( * B1C)"DsK )"."B1 C ,D;
inwacc* .@5+; when )"* 2+. It means that when company uses 2+ of "e!tan" 8+ of e?uity; it reaches the optimal structure.
!. (orporate value for )"* 2+
g1 11.00%
g2 4.35%
WACC '.7%+
sin# e>cel; we have:
)*+, )*+2 )*+4 )*+0 )*+1
FCF 11;482.6 122;635.6 136;125.61 151;.43 15@;668.18
&V 11;482.6 111;@4.@ 113;13.13 114;3.4 2;2@;485.2
Vop * 2;546;53.15
)ith optimal structure; the value of company increases nearly 1; !il. V9