i UNIVERSITY OF THE WEST OF ENGLAND BANKING ACADEMY OF VIET NAM MASTER SCIENCE IN FINANCE DISSERTATION COMPANY ANALYSIS AND VALUATION OF THE VINAMILK, TH TRUE MILK, BAVI MILK AND NUTIFOOD Student ID: 21071808. Student Name: Nguyễn Trường Giang. Module Code: UMEDBK-15-M. Programme of Study: Master Science in Finance.
September – 2022 i TABLE OF CONTENTS MASTER SCIENCE IN FINANCE. i COMPANY ANALYSIS AND VALUATION OF THE VINAMILK, TH TRUE MILK, BAVI MILK AND NUTIFOOD. i TABLE OF CONTENTS. iii LIST OF ABBREVIATIONS.
v LIST OF TABLES AND FIGURES. Background of the study. The reason for choosing the topic. The research objective.
The research missions. The scope of research. The research methods. The scientific and practical significance.
The research question. 10 OVERVIEW OF THE WORLD ECONOMY AND THE DAIRY INDUSTRY WITH A MACROPERSPECTIVE. General view of the world economy with a macroperspective. World economic outlook for 2022 – 2025.
Outlook for economic development in Southeast Asia in the 2022 – 2025 period. The Vietnamese economy. PEST Analysis of the Vietnamese economy. Key macroeconomic factors analysis of the Vietnamese economy.
General view of the dairy industry with a macroperspective. The global dairy industry outlook. The dairy industry performance. Competition drives in the global dairy market.
Dairy market trends and prospects. 29 DATA ANALYSIS OF COMPANIES IN FINANCIAL STATEMENTS AND HYPOTHETICAL MODELS. Company Analysis and Valuation of Vinamilk. Ratio Analysis & Forecasted Financial statements.
Valuation of VNM. Company Analysis and Valuation of TH True Milk. Company Analysis and Valuation. Company Analysis and Valuation of Bavi Milk.
Company Analysis and Valuation. Company Analysis and Valuation of Nutifood. Company Analysis and Valuation. 70 CONCLUDING AND GIVING SOLUTIONS AND RECOMMENDATIONS FOR COMPANIES.
Solutions and Recommendations for the companies. Limitations of the study and directions for further research. 73 LIST OF REFERENCES. 74 iii ACKNOWLEDGEMENTS To complete this dissertation, in addition to my own efforts, I received a lot of help and support from the university, the teachers as well as mentors, guiders and from my family.
So, first of all, I would like to express my sincere thanks to: - The management board and teachers of Vietnam Banking Academy and the University of the West of England, have supported students like me to have enough professional knowledge to be able to complete this dissertation. I will cherish my stay in the UK for the rest of my life since it was a priceless experience. I have never had the opportunity to interact with so many different nationalities before. - Mr Pham Duc Cuong enthusiastically guided me to carry out this dissertation, from the consultation stage dissertation, develop research methods, from stage to outline, edit and complete the final dissertation.
He provided me with many insigthtful remarks and excellent ideas. - My parents and brothers and sisters in the family, have supported me all the way in the process of implementing this dissertation, both financially, in terms of study and personal development, as well as financial support. I also want to express my appreciation to Dang Thi Thao, who provided me with a lot of advice and support when I was studying. Finally, I want to express my gratitude to all of the UWE instructors and staff members who helped me during the course.
iv Thank you very much!. Nguyễn Trường Giang 18th September 2022 v LIST OF ABBREVIATIONS 1. ADB: Asian Development Bank. Bavimilk: Ba Vi Milk Joint Stock Company.
GDP: Gross Domestic Product. Nutrifood: Nutifood nutrition food joint stock company. IMF: International Monetary Fund. VNM/Vinamilk: Vietnam Dairy Products Joint Stock Company.
VND: VietNam Dong. SMP: Skimmed Milk Powder. SWOT: Strength – Weakness – Opportunities – Threats. OTC: Over-the-counter.
TH True Milk: TH True Milk company. WB: World Bank. WMP: Whole Milk Powder. vi LIST OF TABLES AND FIGURES No.
Name of tables/figures Page Number 1 Table 2. Coefficient of capital structure of VNM 40 2 Table 2. Coefficient of solvency of VNM 41 3 Table 2. The profitability indicators of capital of VNM 42 4 Table 2.
Valuation of VNM 43 5 Table 2. Suggested Target Price of VNM 44 6 Figure 1. PEST Analysis of the Vietnamese economy 15 7 Figure 1. Milk production and yield in selected countries and 25 regions 8 Figure 1.
Imports of dairy products by regions 26 9 Figure 1. Dairy products market size, 2021 to 2030 (USD 29 Billion) 1 INTRODUCTION 1. Background of the study 1. The reason for choosing the topic Company analysis and valuation is a process that includes an analysis of a company's financial position, products, services, and competitive strategy, or the company's plan to deal with potential threats.
threats and opportunities presented by the external environment. Company analysis and valuation takes place after the analyst understands the external environmental impact on the company, macroeconomics, demographics, government, technology, and society affecting the competitive structure. of the industry. The company analysis and valuation report (1) provides an overview of the company, (2) explains the characteristics related to the industry in which the company operates, (3) analyzes the demand for products and services of the company, (4) analysis of the supply of products and services, including cost analysis, (5) analysis of factors affecting the selling price of products and services of the company, and (6) present and interpret relevant financial ratios, including comparisons over time and comparisons with competitors.
Company analysis and valuation often includes forecasting a company's financial statements, especially when the purpose of the analysis is to use the discounted cash flow method to value the company. The role and purpose of company valuation is especially important. Enterprise valuation usually serves the following main purposes: (1) Purchase, sale, merger, joint 2 venture, business liquidation, (2) Investment, capital contribution, purchase - sale of securities of enterprises, (3) Equitization, listing of securities on the stock market, (4) Borrowing capital for business investment, (5) Collection, (6) Dispute settlement and settlement. Regarding the research scope of this study, this master dissertation analyzes and evaluates some typical companies in the dairy industry in Vietnam, including: Vinamilk, Th True Milk, Bavi Milk and Nutifood.
Currently, there are quite a few studies that have addressed the analysis and valuation of these companies. However, most of the research topics are being implemented at a rudimentary level, not yet concretized, as well as not highly academic, not exploiting many contents of the research problem. Accordingly, there are not many reputable valuation reports specifically for these companies. Most are reports of securities companies in Vietnam.
Overseas, the reports are often general in nature, not fully exploiting the research content on analysis and valuation of Vinamilk, Th True Milk, Bavi Milk and Nutifood. Accordingly, the analysis and valuation of Vinamilk, Th True Milk, Bavi Milk and Nutifood is very necessary and important in the current period. The dissertation “Company analysis and valuation of the Vinamilk, Th True Milk, Bavi Milk and Nutifood” was built on the basis of clearly recognizing the role and importance of analysis and valuation of companies. Thus, this dissertation will analyze and evaluate of the Vinamilk, Th True Milk, Bavi Milk and Nutifood, also, evaluate the 3 performance level of the companies and make some recommendations for the companies in the future.
Then, this dissertation can be used as a reference for different purposes as mentioned in the company valuation section. The research objective The general research objective of this dissertation is to study general theories about analysis and valuation of companies, then, analyze and evaluate the current status of operations of companies: Vietnam Dairy Products Joint Stock Company (Vinamilk) , TH True Milk company, Nutifood nutrition food joint stock company and Ba Vi Milk Joint Stock Company based on data from financial statements, and finally, evaluate the performance level of the companies and make some recommendations for those companies in the future, and provides investment recommendations for investors regarding these firms. This dissertation has three specific research objectives: Firstly, the dissertation synthesizes and systematizes the theoretical basis issues related to analysis and valuation of companies. Secondly, the dissertation analyzes and evaluates the current status of operations of companies: Vietnam Dairy Products Joint Stock Company (Vinamilk) , TH True Milk company, Nutifood nutrition food joint stock company and Ba Vi Milk Joint Stock Company based on data from financial statements.
4 Third, the dissertation evaluates the performance level of the companies and make some recommendations for those companies in the future, and provides investment recommendations for investors regarding these firms. The research missions This dissertation has six main research missions: - Providing insights on the current dairy industry. - Analysis of key macroeconomic factors of the world economies and Vietnamese economies. - Analysis of the dairy industry of the world and Vietnam.
- Analysis of financial ratios of four companies selected (Vinamilk, TH True Milk, Nutifood and Ba Vi Milk) according to their financial statements, with an emphasis placed on three main ratio categories, namely profitability ratios, gearing ratios, and investment ratios. - Calculating an intrinsic value for each of the four firms with the help of valuation models: Vinamilk, TH True Milk, Nutifood and Ba Vi Milk. - Making final investment recommendations following the analyses an devaluation of intrinsic value. The scope of research In terms of content, this dissertation studies on theoretical basis issues related to business performance of companies in the dairy industry, and the current status of 5 operations of companies: Vietnam Dairy Products Joint Stock Company (Vinamilk) , TH True Milk company, Nutifood nutrition food joint stock company and Ba Vi Milk Joint Stock Company that based on data from financial statements.
In terms of space, the dissertation researches within 04 companies: Vietnam Dairy Products Joint Stock Company (Vinamilk) , TH True Milk company, Nutifood nutrition food joint stock company and Ba Vi Milk Joint Stock Company. In terms of time, financial data that used in this dissertation is collected from 2019 to 2021. This dissertation analyzes the macroeconomic situation as well as the dairy industry in the last five years (2016 - 2021), and performs business valuation with data for the last three years (2019 - 2021). The research methods This dissertation uses a synthesis of many different research methods, which are commonly used in theses, projects, and scientific research reports: Methods of analysis - synthesis, absolute comparison - relatively, the method of consulting experts are instructors, teachers, refer to reputable references on related topics,.
Regarding the main method, the study uses a top-down analysis method of a firm’s prospects with regards to macroeconomic and industrial situation, which are crucial determinants of a company’s profit potential. Thus, the study starts with assessing the national economic environment of the dairy market, followed by the dairy industry itself. Then, the study looks at the performance of companies (Vinamilk, TH True Milk, Nutifood and Ba Vi Milk) and suggests a price on the basis of the employed valuation models. 6 About the macroeconomic analysis, this study employs PEST analysis and at tempts to present main issues with a focus on analysing key macroeconomic indicators, for example CPI, real GDP, nominal GDP, inflation, exchange rate.
About the dairy industry analysis, the study presents an overview of the global dairy industry and focuses on analysing factors which impact on the competition in the Vietnamese market. Also, the study highlights current market trends of dairy industry Vietnam that affecting the growth of the companies in this sector, in which Vinamilk, TH True Milk, Nutifood and Ba Vi Milk are 04 typical companies. About the company analysis and valuation, based on 04 companies’ financial statements (Vinamilk, TH True Milk, Nutifood and Ba Vi Milk), key financial databases and a number of various financial websites such as cophieu68., the study summarises key ratios with the purpose of appreciating the fin ancial situation and profitability prospects of 04 companies above.