Financial management in Bien Hoa Suger

8/10/2019 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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1

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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6

. !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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7

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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1(

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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1$

-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

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Financial management in Bien Hoa Suger

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