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HANOI UNIVERSITY
FALCULITY OF MANAGEMENT AND TOURISM
————oOo—–——–
FINANCIAL ANALYSIS OF
HOA PHAT GROUP AND HOA SEN GROUP
Students: Hoang Thi Mai Huong – 1804000049
Le Thi Thu Hien – 1804000031
Nguyen Thao Van – 1804000121
Tutor: Pham Thi My Phuong
Lecturer: Nguyen Xuan Truong
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Executive summary
To thoroughly understand the value of a business and their
performance, people need to delve into the financial reports of that business.
As a result, it can be known to us whether the business is the best place to
invest, or whether they have the ability and credibility in paying their debts. In
addition, financial analysis also helps each enterprise see their own strengths
and weaknesses, thereby taking measures to enhance strengths and overcome
weaknesses. Moreover, the information from financial analysis is also given to
the investors the most accurate overview before making investment decisions.
Recognizing the importance of financial analysis in the business, our group
decided to analyze the financial situation of Hoa Phat Group and Hoa Sen
Group in 2019.
In this paper, we will delve into studying the financial situation, the
development trend of two multi-sector and multi-professional companies, but
still their main business is producing and trading steel. Using a comparison
method, analysis and learned knowledge, the assessment and the overall view
of the company in the year 2019 and some recommendations will be made
through the financial statements during this period.
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Table of contents
Executive summary …………………………………………………………………………………………………………………….. 2
I. Introduction to firm and its relationship with the financial market. ……………………………………… 4
II. Performance appraisal ……………………………………………………………………………………………………. 8
1. Business operation situation …………………………………………………………………………………………….. 8
3. Probability ……………………………………………………………………………………………………………………. 11
4. ROE analysis ………………………………………………………………………………………………………………... 12
III. Financial activities ………………………………………………………………………………………………………… 14
1. Typical projects of the firms ………………………………………………………………………………………….. 14
2. IPO of the firm ……………………………………………………………………………………………………………… 15
3. Sources of capital ………………………………………………………………………………………………………….. 16
4. Do you think that the firm is using too much debt or too little debt? ……………………………….. 16
IV. Valuation ………………………………………………………………………………………………………………………. 17
V. Recommendation ………………………………………………………………………………………………………………. 20
1. Recommendation for financial managers ……………………………………………………….………………. 20
2. Recommendation for investors ………………………………………………………………………………………. 22
REFERENCES ………………………………………………………………………………………………………………………… 24
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I. Introduction to firm and its relationship with the financial market.
Hoa Phat Group (HPG)
Hoa Sen Group (HSG)
Date of establish
1992
2001
Main businesses
of the firm:
– 1992: manufacture & trade:
construction machines
– Then: 5 areas
+ Iron and steel field
+ Color coated steel pipe
+ Agriculture
+ Other industrial production
+ Real estate
– Manufacture and trade: corrupted
iron, plastic, coated steel
– Well-known Products: Ton Hoa
Sen, Hoa Sen plastic pipe,
CEO of the firm
Tran Dinh Long – holds 25.35% of
total HPG’s capital (700 million
shares)
Le Phuoc Vu – owns 12.22% of
total HSG’s capital (equivalent to
52 million shares)
Time operation
From 1996 – the present 2020 (24
years)
From 2001 – the present 2020 (19
years)
Compensation of
CEO
Shares: 700 million – 25.35% of total
Shares : 52 million – 12.22% of
total
The boards of
directors
9 members
+ Mr.Tran Dinh Long
+ Mr. Tran Tuan Duong
(2007: 13 years (2.68%)
+ Mr. Nguyen Manh Tuan (2.63%)
+ Mr. Doan Gia Cuong (1.98%)
6 members
+ Mr. Le Phuoc Vu
+ Mr. Tran Ngoc Chu
(2018- 2 years & 0.32%)
+ Mr. Tran Quoc Tri
(2014 – 6 years & 0.17%)
5
+ Mr. Ta Tuan Quang
(2007- 13 years & 0.13%)
+ Mr. Hoang Quang Viet
(0.49%)
+ Mr. Nguyen Viet Thang
(2012- 8 years & 0.32%)
+ Mr. Nguyen Ngoc Quang
(1997 – 13 years & 1.92%)
+ Mr. Hans Christian Jacobsen
(2012 – 8 years)
+ Mr. Ly Van Xuan
(2015- 5 years & 0.11%)
+ Mr. Dinh Viet Quy
(2018- 2 years )
+ Mr. Nguyen Van Luan
(2018- 2 years)
Stock symbol
HPG
HSG
Market price
21,500 (29/04/2020)
7,350 (29/04/2020)
Trading volume
7,447,050
6,343,870
Media coverage
In general, HPG’s stocks on internet
newspapers and websites are
considered to be positive as they cited
that in the first quarter of 2020, HPG’s
revenue is optimistic and product
consumption of the recent month
witnessed an increase and even hit the
record in March.
Similarly, HSG’s stocks are also
considered to be quite promising.
However, it is said to meet some
problems in terms of fluctuation in
the price of raw material.
Market
capitalization
59,363,093,472,500
3,266,187,950,550
Structure of the board
6
HPG
Inside
directors
Chairman of the
BOD
Mr. Tran
Dinh Long
700,000,000
shares
Mr. Le
Phuoc Vu
51,754,820 shares
Executive Vice
Chairman
Mr. Tran
Tuan Duong
73,871,179
shares
Mr. Tran
Ngoc Chu
1,436,131 shares
Mr. Nguyen
Manh Tuan
55,864,165
shares
Mr. Doan Gia
Cuong
54,608,837
shares
Executive
members of
BOD
Mr. Nguyen
Ngoc Quang
53,108,837
shares
Mr. Tran
Quoc Tri
735,665 shares
Mr. Ta Tuan
Quang
3,591,369
shares
Mr. Hoang
Quang Viet
13,432,662
shares
Mr. Nguyen
Viet Thang
8,855,723
shares
Outside
director
Independent
member of
BOD
Mr. Hans Christian
Non- executive
member of
BOD
Mr. Ly Van
Xuan
504,981 shares
Shareholders
HPG
HSG
Block
shareholders
Mr. Tran Dinh Long (25.35%)
Dragon Capital (7.65% )
Mrs. Vu Thi Hien (7.43%)
Hoa Sen Group
Co.,Ltd (23.18% )
Mr. Le Phuoc Vu (11.65%)
Hoa Sen Investment & Tourism
Co., Ltd (9.11%)
Mr. Tran Tuan Duong (2.68%)
Mr. Nguyen Manh Tuan (2.63%)
Mr. Doan Gia Cuong (1.98%)
Mr. Nguyen Ngoc Quang (1,92%)
Mr. Tran Vu Minh (1.45%)
Mrs.Hoang Thi Xuan Huong
(1.46)
Mr.Tran Ngoc Chu (0.32%)
Mr. Tran Quoc Tri (0.17%)
Mr. Le Dinh Hanh (0.12%)