Fundamental of Financial Management - Hoa Phat Corporation

VIETNAM NATIONAL UNIVERSITY - HCMC

INTERNATIONAL UNIVERSITY

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FUNDAMENTAL OF FINANCIAL MANAGEMENT

HOA PHAT CORPORATION

Lecturer: Le Dang Thuy Trang

• Group members: _                                             

Đặng Việt Quốc                                BABAIU15013

Phạm Nguyễn Như Quỳnh                 BABAIU15188

Nguyễn Minh Ngọc Trân                BABAIU15129

Nguyễn Hoàng Mỹ                                BABAIU16090

Contents

I.        Introduction of Hoa Phat Corporation        3

II) FINANCIAL STATEMENT        5

III) HORIZONTAL ANALYSIS        6

a)Business Result        6

b)Cash and Cash Equivalents        8

c)Liabilities        9

IV) RATIO ANALYSIS        10

1)Liquidity Ratio        10

a) Working Capital        10

a)        Current ratio:        11

b)        Quick ratio:        12

2) SOLVENCY RATIOS:        13

a)Total Debt Ratio:        13

b)Liabilities/ Equity ratio:        13

c)Long-term Debt Ratio        14

c)Interest Coverage Ratio        15

3) ASSET MANAGEMENT RATIO        15

a)Inventory turnover        15

b)Number of days’ sales in inventory        16

c) Account Receivable Turnover        17

d)Number of Days’ Sales in Receivables        18

e) Fix Asset Turnover        19

f) Total Asset Turnover        20

4)PROFITABILITY RATIOS        22

5) MARKET VALUE RATIOS        23

a)Price Earning ratio( P/E ratio)        23

IV) FINANCIAL RATIO COMPARISON        24

1)Comparison between Hoa Phat and Hoa Sen        24

a) Introduction of Hoa Sen        24

2) BENCHMARK ANALYSIS        25

3) COMPARISON BETWEEN HOA PHAT AND AVERAGE INDUSTRY        34

V) SUMMARY AND RECOMMENDATION        36

VI) REFERENCE        36

1. Introduction of Hoa Phat Corporation

The Hoa Phat group is one of the leading private business manufacturing corporations in Vietnam.Originating as a mall production system and equipment trading business enterprise in August 1992, Hoa Phat has steadily accelerated its business to trading and production of furniture (1995), metallic Pipe (1996), metallic (2000), Refrigeration (2001), and assets development (2001). In 2007, Hoa Phat was reorganized into a set structure, with Hoa Phat institution Joint stock organization being the parent agency of its subsidiaries. due to the fact that fifteenth November, 2007, Hoa Phat has been officially listed on the stock trade underneath the stock ticker symbol ‘HPG’.

The Hoa Phat group operates with a focus on metal, refrigeration, furnishings, machinery and belongings improvement inclusive of industrial zone and housing; its agricultural phase comprises husbandry and feed production with dozens of plants in numerous provinces nationwide. At present, production of construction metallic is the core enterprise activity of the organization and accounts for 80% of overall sales and total profit.

Through its production metal segment, the Hoa Phat group is the owner of the Hoa Phat integrated steel complex in Hai Duong Province. With a complete capability of up to 1.7 million tonnes in keeping with 12 months, the venture positioned all three levels into operation concurrently in region I of 2016, raising the construction metallic capability total of Hoa Phat to 2 million lots in line with yr. presently, the Hoa Phat organization is recognized as the most important production metal and metal pipes in Vietnam with a market percentage of twenty-two% and 26%, respectively. The Hoa Phat furniture leads the market proportion for office fixtures.

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II) FINANCIAL STATEMENT