HOA PHAT GROUP JOINT STOCK COMPANY

Transcription

1 MB SECURITIES CORPORATION RESEARCH CENTER EQUITY RESEARCH HOA PHAT GROUP JOINT STOCK COMPANY Ha Noi, june 03, 2014

2 CONTENTS SUMMARY REPORT... 3 INCOME STATEMENT... 5 BALANCE SHEET... 6 FINANCIAL RATIOS... 7 CASH FLOW STATEMENT... 8 STOCK VALUATION INDEX METHODOLOGY DISCOUNTED FREE CASH FLOW OF EQUITY DISCOUNTED FREE CASH FLOW OF FIRM TECHNICAL ANALYSIS... 12

3 SUMMARY REPORT Key metrics: Do Bao Ngoc Senior Analyst Name: Hoa Phat Group joint stock company Chartered Capital: VND 4,190,525,330,000 Market cap: VND 21,371,679,183,000 Sector: Steel and steel products Listed on: HOSE Ticker: HPG Outstanding shares 419,052,533 shares Foreign ownership 45.5% Price fluctuation of stock: Price on 03/06/2014: week highest VND: week lowest VND: % change in 1 month: 5,6% % change in 3 months: 5,2% % change in 6 months 26,6% % change in 1 year: 63,5% Short term trend: Decreasing Middle term trend: Increasing Long term trend: Increasing Ratios: EPS (vnd) Dividen (vnd) Dividen yields 0 9,9% 3,6% ROA (%) 7,1% 5,2% 8,5% ROE (%) 16,7% 12,3% 20,6% The position of enterprises in the sector: Hoa Phat Group is one of the leading private industry production Group in Vietnam. Starting from a trading company specializing in installing machines in 1992, Hoa Phat extended to the field of Interior Funiture (1995), Steel Pipes (1996), Steel (2000), Refrigeration (2001), Real Estate (2001). In 2007, Hoa Phat restructured to a Group model, in which the Company Hoa Phat Group Joint Stock is the mother company with other members and associated companies. In March, 2014, Hoa Phat Group has 13 member companies with the main field of activity is manufacturing steel - mineral mining producing coke coal involving in Real Estate - manufacturing furniture - manufacturing machinery and equipment for many factories in Hanoi, Hung Yen, Hai Duong, Lao Cai, Yen Bai, Ha Giang, Ho Chi Minh City, Binh Duong. Producing steel and coal such as coke and iron lead to 80% of sales Revenue and this is HPG s key area, with a capacity of 1,150,000 tons/year and the share of consumption construction steel No. 2. Hoa Phat Furniture is a reputable brand which is the largest market for office furniture in Vietnam. In addition, the real estate, industrial complex and urban areas are Hoa Phat Groups strong areas. HPG s biggest advantage is using closed process system for coals, coke, steels. The system is also a good supporter for other related industries such as manufacturing Furniture, constructing and investing in Real Estate. This is always HPG s advantage of competing with other domestic and international businesses. Business results in the period : - Revenue increased from 8,502 billion VND in 2008 to 19,200 billion VND in 2013, achieving an average annual growth rate of 25.4% / year. - Income after tax increased from 859 billion VND in 2008 to 2,010 billion VND in 2013, achieving an average annual growth rate of 26.4% / year. - Gross profit margin increased from 7% in 2008 to 17.1% in 2013; Profit Margin from Operations Activities increased from 5.5% in 2008 to 12.3% in 1013, Profit Margins after Tax increased from 4.7% in 2008 to 10.5% in Income from the Operation Activities is around 97.4% to 100% of income before tax recorded a new development of the HPG in sector production and trading steel, In October 2013, HPG completed Hoa Phat Steel Complex, which produces tons/ years, and is expected to produce 1,150,000 tons/year in In 2013 HPG has used more than 699,000 tons of construction steel, which is 15.2% of market (increasing by 13.7% from 2012), and is now the second biggest consumer (behind Pomina Steel Complex that made 15.9% of maket). Evaluating HPG s business results in 2013 and ability to complete financial plan in 2014: Valuation based on financial analysis: P/E Method: P/B Method: FCFE Method: FCFF Method: Target price in 2014: Recommendation technical analysis Recommendation:: BUY Price on 03/06/2014: First resistance level: Second resistance level: First support level: Second support level: Buying price: Target price: > Cut loss price: <40,000 Note: Recommendations will be updated to catch up with market performance, which helps investors to maximize profits. Figures Units 2013 %Completed Plan 2014 Growth Revenue Bil. vnd 19, % 23, % Profit after tax Bil. vnd 2, % 2, % In general, in 2013, HPG achieved its target: Revenue reached more than billion VND, increasing by 12.1%, and achieved 103.8% Revenue. Income after tax was more than billion VND, increasing by 95.1%, and achieved 167.5% of Income after tax. HPG s Sale Structure in 2013: Sectors Consolidated revenue Structure Net income Structure Bil. vnd Net profit margin Producing steel 14, % 2, % 12.0% Construction machinery % % 11.2% Furniture and refrigeration 1, % % 12.6% Real estate 1, % % 16.2% Energy and Mining % % 16.5% eliminate internal profit (1,587) Total 18, % 2, % 10.6% - Producing steel: the largest contribution to the HPG's sales in It reached 20,973 billion

4 VND. After eliminating intercompany revenue, Revenue: 14,645 billion VND (77.3% of total Revenue). Internal revenue is 6,328 billion VND because HPG has many subsidiaries which operate in supply chain activities in steel manufacturing and trading. Income after tax is increased more than 108% (69.9% of total income after tax in 2013), since revenue growth rate increases faster than equity growth rates. - Manufacturing furniture and refrigeration: the second largest contribution: 1900 billion VND (10% of total Revenue). Income after tax grew 37.9% (6.9% of total income after tax in 2013) which is a major factor to HPG s profit growth in Real Estate: the third largest contribution: 1,425 billion VND (7.5%). Income after tax is increased to 98.3% (6.4% of total profit after tax in 2013). - Energy and mining: 3,396 billion VND, however, after eliminating intercompany Revenue, Income was only 703 billion VND (3.7%). Net Profit from this increase more than 218% compared to it was in Trading construction Machinery: 261 billion (1.4%). Income after tax rises to 25.5% (1.1% of income after tax in 2013). To sum, main activities are manufacturing and trading steel, manufacturing furniture and refrigeration and real estate business. HPG s income after tax growth rate is at high levels in Profit Margin fluctuated around 11.2% to 12.6%. Besides, energy, mining and construction machinery areas are new activities, but they start to make good Margins which fluctuated around 16.2% to 16.5% Its target in 2014 In 2014, the board of directors gave HPG s targets revenue of billion VND (increasing by 19.8 % from 2013). Net Profit is billion VND (increases by 9.5 % from 2013). In Q1/2014, HPG has achieved total Revenue of 6,576 billion VND (increases by 64.6 % compared to Q1/2013). Income after tax: 1,071 billion VND (increase by 87.1 % from Q1/2013) because Revenue from the sale of the Mandarin Garden apartment complex is 1,583 billion VND, and Gross Profit over 358 billion VND. HPG s Revenue from Operation Activities Q1/2014 increases 30%, and Gross Profit increases 24.4%. In 2014, the main business activities are expected to grow since capacity of steel production keeps increasing. Revenue from Mandarin Garden project will be recognized. These are highlights that will help HPG achieve its Income Target. According to the analysis, HPG will achieve its target business in HPG will be able to reach its target revenue of 23,040 billion VND. Income after tax could reach 2,353 billion VND, and EPS can be 5,616 VND/share.

5 INCOME STATEMENT Bil. Vnd INCOME STATEMENT Structure Q1/2014 Gross sales 8,502 8,244 14,493 18,093 17,122 19, % 100.0% 100.0% Less Deductions % 1.4% 0.9% Net Revenues 8,365 8,123 14,267 17,852 16,827 18, % 98.6% 99.1% Cost of Goods Sold 7,106 6,147 11,808 14,979 14,342 15, % 81.6% 77.9% Gross Profit 1,258 1,976 2,459 2,873 2,485 3, % 17.1% 21.1% Financial Revenues % 1.4% 0.6% Financial Expenses , % 2.7% 2.1% Interest expenses % 1.9% 1.8% Selling Expenses % 1.3% 1.2% General and Administrative Expenses % 2.2% 2.1% Operating net income 992 1,506 1,516 1,513 1,204 2, % 12.3% 16.2% Other income % 1.0% 0.9% Other expense % 0.9% 0.9% Other profit (13) % 0.2% 0.0% Net income from JVC 10 (10) 46 (11) (1) (0) 0.0% 0.0% 0.0% Earnings Before Taxes 1,019 1,510 1,564 1,489 1,218 2, % 12.5% 16.3% Payable Income taxe expenses % 2.0% 2.4% Deffered income taxe expenses (5) (12) (20) (17) 19 (6) 0.1% 0.0% 0.0% Net income 859 1,271 1,376 1,297 1,031 2, % 10.5% 13.8% Minority interests 5 (1) % 0.3% 0.6% Net Income for common Shareholders 854 1,272 1,349 1, , % 10.2% 13.2% ANNUAL GROWTH Gross sales 331.2% 48.3% -3.0% 75.8% 24.8% -5.4% 12.1% Less Deductions 735.6% 51.2% -12.0% 86.7% 6.8% 22.5% -9.9% Net Revenues 327.9% 48.2% -2.9% 75.6% 25.1% -5.7% 12.5% Cost of Goods Sold 292.2% 52.0% -13.5% 92.1% 26.9% -4.3% 9.2% Gross Profit 663.9% 30.2% 57.0% 24.4% 16.8% -13.5% 31.8% Financial Revenues % 478.7% -12.1% 55.4% 60.9% -50.0% 66.9% Financial Expenses 8.4% 277.4% 64.5% 146.8% 54.2% -45.3% -11.1% Interest expenses % #DIV/0! 2.3% 442.3% 85.3% -31.2% -31.1% Selling Expenses % 19.6% 17.0% 44.0% 21.2% 26.0% -7.4% General and Administrative Expenses % 29.7% 41.9% 39.7% 46.4% 46.1% -29.4% Operating net income 909.5% 32.1% 51.7% 0.7% -0.2% -20.4% 96.2% Other income % -13.6% 14.6% 752.1% -55.5% 84.0% -5.3% Other expense % -59.4% 61.0% % -49.9% 53.3% -14.9% Other profit % 151.1% -12.3% -83.5% % % 119.9% Net income from JVC #DIV/0! 593.0% % % % -95.0% -58.1% Earnings Before Taxes 919.3% 34.1% 48.2% 3.6% -4.8% -18.2% 96.6% Payable Income taxe expenses % 34.3% 53.0% -17.1% 0.4% -19.5% 131.9% Deffered income taxe expenses % -27.6% 142.6% 71.2% -17.5% % % Net income 795.3% 33.5% 47.9% 8.3% -5.8% -20.5% 95.1% Minority interests #DIV/0! 177.6% % % 123.7% -39.6% 54.2% Net Income for common Shareholders 792.7% 33.0% 48.9% 6.1% -8.4% -19.6% 96.6%

6 BALANCE SHEET BALANCE SHEET Bil. Vnđ Structure Q1/2014 SHORT-TERM ASSETS 3,849 5,408 7,866 9,486 10,221 12, % 53.7% 51.3% Cash and cash equipvalents 510 1,480 1,047 1,064 1,294 2, % 9.2% 10.1% Short-term financial investments % 1.7% 1.9% Accounts receivable ,833 1,897 1,646 1, % 7.1% 7.0% Inventories 1,820 2,557 4,541 6,347 6,822 8, % 34.8% 31.2% Other current assets % 1.0% 1.0% LONG-TERM ASSETS 1,790 4,835 7,038 8,039 8,795 10, % 46.3% 48.7% Long- term accounts receivable % 1.9% 2.1% Fixed assets 1,265 3,065 4,604 5,920 7,007 9, % 39.8% 42.2% Real Estate Investments % 0.3% 0.3% Long-term financial investments 381 1, % 0.1% 0.1% Goodwill % 2.5% 2.3% Other long-term assets % 1.7% 1.7% TOTAL ASSETS 5,639 10,243 14,904 17,525 19,016 23, % 100.0% 100.0% LIABILITIES 1,294 5,105 8,166 9,561 10,438 13, % 58.5% 51.9% Short-term liabilities 1,256 4,565 6,136 6,647 7,362 11, % 48.3% 42.3% Short-term borrowing 588 3,648 4,022 4,555 4,850 5, % 24.9% 26.2% Long-term liabilities ,029 2,914 3,076 2, % 10.2% 9.7% OWNERS' EQUITY 4,111 4,899 6,398 7,414 8,085 9, % 41.2% 47.6% Paid - in capital 1,964 1,964 3,178 3,178 4,191 4, % 18.2% 19.3% Surplus share capital 1,621 1,621 2,258 2,258 2,207 2, % 9.6% 10.2% Retained earnings 416 1, ,540 1,393 2, % 11.5% 15.9% Others reserve fund % 2.0% 2.1% Minority interests % 0.4% 0.5% TOTAL RESOURCES 5,639 10,243 14,904 17,525 19,016 23, % 100.0% 100.0% ANNUAL GROWTH Q1/2014 SHORT-TERM ASSETS 136.9% 22.8% 40.5% 45.5% 20.6% 7.8% 21.3% -10.4% Cash and cash equipvalents 409.0% 27.8% 190.2% -29.3% 1.6% 21.6% 64.2% 3.3% Short-term financial investments #DIV/0! 176.1% -80.1% 98.6% % #DIV/0! 76.3% 4.3% Accounts receivable 112.0% -8.2% 22.6% 107.5% 3.5% -13.2% -1.0% -7.1% Inventories 87.2% 15.2% 40.5% 77.6% 39.8% 7.5% 17.7% -15.7% Other current assets 239.9% -39.5% 433.7% -54.6% 13.9% 34.6% -3.2% -2.3% LONG-TERM ASSETS 61.6% 10.4% 170.1% 45.5% 14.2% 9.4% 21.4% -1.1% Long- term accounts receivable % % 0.0% % 0.0% 0.0% 0.2% 0.0% Fixed assets 4.4% 33.2% 142.2% 50.2% 28.6% 18.4% 31.1% -0.4% Real Estate Investments -88.7% 154.3% 6.7% -22.3% -26.9% 498.9% -6.8% -1.8% Long-term financial investments % -3.0% 189.5% -35.7% -61.5% -90.4% -18.9% 0.0% Goodwill #DIV/0! #DIV/0! #DIV/0! 95.2% -1.1% -10.6% -32.8% -12.6% Other long-term assets 9.9% 289.5% 22.8% 92.0% 45.8% -9.0% -3.4% -2.0% TOTAL ASSETS 104.4% 18.6% 81.6% 45.5% 17.6% 8.5% 21.4% -6.1% LIABILITIES 14.9% -15.6% 294.5% 60.0% 17.1% 9.2% 29.2% -16.6% Short-term liabilities 5.5% -1.0% 263.4% 34.4% 8.3% 10.8% 51.4% -17.8% Short-term borrowing -26.9% -9.9% 520.1% 10.2% 13.3% 6.5% 18.4% -1.0% Long-term liabilities 100.4% -85.7% % 276.1% 43.6% 5.5% -23.7% -10.8% OWNERS' EQUITY 217.8% 30.8% 19.2% 30.6% 15.9% 9.1% 17.5% 8.5% Paid - in capital 56.1% 48.8% 0.0% 61.9% 0.0% 31.8% 0.0% 0.0% Surplus share capital #DIV/0! 23.3% 0.0% 39.3% 0.0% -2.2% 0.0% 0.0% Retained earnings 217.6% -7.6% 177.7% -34.5% 103.5% -9.6% 89.8% 30.6% Others reserve fund % 123.5% 88.6% 42.1% 184.5% -50.2% 58.2% 0.0% Minority interests % 189.6% 2.4% 41.7% 61.8% -10.4% -82.4% 19.5% TOTAL RESOURCES 104.4% 18.6% 81.6% 45.5% 17.6% 8.5% 21.4% -6.1%

7 FINANCIAL RATIOS FINANCIAL RATIOS Liquidity ratios Current ratio Quick ratio Cash ratio Activity ratios Receivables turnover Average number of days debt recovery Inventory turnover Average number of days inventory Asset turnover Fixed assets turnover Equity turnover Debt ratios Short-term asset/total asset 56.9% 65.9% 68.3% 52.8% 52.8% 54.1% 53.7% 53.7% Long-term asset/total asset 43.1% 34.1% 31.7% 47.2% 47.2% 45.9% 46.3% 46.3% Debt ratios 57.3% 32.2% 22.9% 49.8% 54.8% 54.6% 54.9% 58.5% Debt/ Equity 134.9% 48.8% 31.5% 104.2% 127.6% 129.0% 129.1% 142.0% Short-term liabilities/ Asset 51.7% 26.7% 22.3% 44.6% 41.2% 37.9% 38.7% 48.3% Short-term liabilities/ Short-term asset 90.8% 40.5% 32.6% 84.4% 78.0% 70.1% 72.0% 89.8% Short-term liabilities/ Equity 121.5% 40.4% 30.6% 93.2% 95.9% 89.7% 91.1% 117.3% Long-term liabilities/ Asset 5.7% 5.6% 0.7% 5.3% 13.6% 16.6% 16.2% 10.2% Long-term liabilities/ Long-term asset 13.2% 16.3% 2.1% 11.2% 28.8% 36.3% 35.0% 22.0% Long-term liabilities/ Equity 13.4% 8.4% 0.9% 11.0% 31.7% 39.3% 38.0% 24.7% Profitability ratios Gross profit margin 9.6% 17.1% 15.0% 24.3% 17.2% 16.1% 14.8% 17.3% Operating net income ratios 5.6% 13.3% 11.9% 18.5% 10.6% 8.5% 7.2% 12.5% Other profit ratios 0.0% 0.1% 0.2% 0.2% 0.0% -0.1% 0.1% 0.2% Earnings Before Taxes ratios 5.6% 13.5% 12.2% 18.6% 11.0% 8.3% 7.2% 12.6% Net income ratios 5.5% 11.4% 10.2% 15.7% 9.5% 6.9% 5.9% 10.3% Return on asset (ROA) 3.1% 13.5% 15.1% 12.4% 9.1% 7.1% 5.2% 8.5% Return on equity (ROE) 7.3% 20.4% 20.8% 26.0% 21.1% 16.7% 12.3% 20.6% Other profit/ Earnings Before Taxes 0.1% 0.9% 1.6% 1.0% 0.2% -0.9% 1.2% 1.4% Operating net income/ Earnings Before Taxes 99.9% 98.9% 97.4% 99.7% 96.9% 101.6% 98.8% 98.6% Share value Earning per share (EPS) 239,763 5,279 4,439 6,477 4,550 3,573 2,386 4,663 Dividend 0 1,000 3,000 1,000 2, ,000 1,500 Dividend raios 0.0% 18.9% 67.6% 15.4% 44.0% 0.0% 83.8% 32.2% Dividend yields #DIV/0! 3.3% 21.4% 3.8% 7.4% 0.0% 9.9% 3.6% Dividend growth #DIV/0! #DIV/0! 0.0% -66.7% 100.0% % #DIV/0! -25.0% Book value per share (BV) 11,697 23,807 20,936 24,947 20,129 23,325 19,294 22,671 P/E P/B

8 CASH FLOW STATEMENT CASH FLOW STATEMENT Bil. Vnđ CASH FLOW FROM OPERATING ACTIVITIES Net profit/(loss) before tax 1,019 1,510 1,564 1,489 1,218 2,394 Adjusted Depreciation and Amortisation Provisions 181 (184) (1) (148) Unrealised foreign exchange (gain)/loss (Profit)/loss from disposal of fixed assets (Profit)/loss from investing activities (125) (105) (108) (168) (128) (240) Net income from JVC Interest expense Interest income and dividends Operating profit/(loss) before changes in WC 1,328 1,520 2,306 2,906 2,431 3,383 (Increase)/decrease in receivables (59) 632 (271) 67 (58) 185 (increase)/decrease in inventories (426) (1,062) (676) (1,874) (445) (1,217) Increase/(decrease) in payables 158 (668) (257) 332 1,257 1,674 (Increase)/decrease in prepaid expenses (84) (11) (58) (72) Interest paid (104) (108) (393) (732) (621) (559) Business Income Tax paid (212) (52) (266) (224) (230) (201) Other receipts from operating activities Other payments on operating activities (41) (351) (121) (100) (114) (95) Net cash inflows(outflows) from operating activities 622 (82) ,269 3,234 CASH FLOW FROM INVESTING ACTIVITIES Purchases of fixed assets and other long term assets (464) (1,458) (980) (1,724) (1,828) (2,921) Proceeds from disposal of fixed assets Loans granted, purchases of debt instruments (2,917) (119) (440) 0 (222) (163) Collection of loans, proceeds from sales of debts instruments 2, Investments in other entities (184) (1,177) (640) (61) (85) (396) Proceeds from divestment in other entities Dividends and interest received Net cash inflows/(outflows) from investing activities (659) (1,961) (1,421) (937) (1,660) (3,252) CASH FLOW FROM FINANCING ACTIVITIES Proceeds from shares issue Payments for share repurchases (151) Proceeds from borrowings 4,044 8,164 10,863 17,042 18,070 18,942 Repayment of borrowings (4,133) (4,752) (9,647) (16,328) (18,188) (17,672) Finance lease principal payments (2) (2) (0) Dividends paid (440) (394) (638) (3) (362) (420) Net cash inflows/(outflows) from financing activities 148 3, (380) 850 Net increase in cash and cash equivalents (437) Cash and cash equivalents at the beginning o period ,480 1,047 1,064 1,294 Cash and cash equivalents at the beginning o period 0 (4) 4 1 (0) (0) Cash and cash equivalents at the end of period 510 1,480 1,047 1,064 1,294 2,125

9 STOCK VALUATION 1. INDEX METHODOLOGY P/E INDEX TTM Q1/ F EPS 0 239,763 5,279 4,439 6,477 4,550 3,573 2,386 4,663 5,616 P 30,100 14,000 26,000 27,200 12,300 20,300 41,100 53,000 P/E P/E Industry 8.00 P/E HOSE P/E HNX P/Ef Pf 59,764 P/B INDEX Q1/ F BV #DIV/0! 11,697 23,807 20,936 24,947 20,129 23,325 19,294 22,671 26,602 P 0 30,100 14,000 26,000 27,200 12,300 20,300 41,100 53,000 P/B P/B Industry 2.60 P/B HOSE 3.00 P/B HNX 1.60 P/Bf 2.08 Pf 55,316

10 2. DISCOUNTED FREE CASH FLOW OF EQUITY Assumptions Long-term bond yields Rf 9.0% Market interest rates Rm 14.0% Beta β 1.32 Discount rate (CAPM) k 15.6% FCFE Figures EBIT Bil. Vnd , , , , ,745.2 Investments Bil. Vnd , , , , ,912.8 Depreciation Bil. Vnd Working capital change Bil. Vnd , (2,720.2) 1, ,092.2 (210.4) Net borrowing Bil. Vnd (255.7) (89.0) 3, , (118.3) Reinvestment rate % #DIV/0! 39.1% 352.7% 107.4% % 69.1% 71.9% 70.2% ROE % #DIV/0! 7.3% 20.4% 20.8% 26.0% 21.1% 16.7% 12.3% Income growth % #DIV/0! 2.8% 72.1% 22.3% -60.4% 14.6% 12.0% 8.6% FCFE Bil. Vnd (1,919.1) (80.9) 5, EBIT Bil. Vnd 2, , , , , , , ,434.1 Investment Bil. Vnd 3, , , , , , , ,299.6 Depreciation Bil. Vnd , , , ,423.2 Working capital change Bil. Vnd (2,429.6) (99.9) (96.5) (106.2) (116.8) (128.5) (141.3) (155.5) Net borrowing Bil. Vnd 1,269.4 (151.9) (167.1) (183.8) (202.2) (222.4) (244.7) (269.2) Reinvestment rate % -40.0% 22.0% 17.7% 18.5% 19.4% 20.3% 21.3% 22.3% ROE % 20.6% 22.2% 21.2% 20.2% 19.3% 18.4% 17.6% 16.8% Income growth % -8.2% 4.9% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% Bil. Vnd 3, , , , , , , , PV FCFE Bil. Vnd 3, , , , , , , ,622.2 Total FCFE Bil. Vnd 23,804.4 Number of shares Mil. Shares Price forecast Vnd 56,805

11 3. DISCOUNTED FREE CASH FLOW OF FIRM Assumptions Long-term bond yields Rf 9.0% Market interest rates Rm 14.0% Beta β 1.32 Discount rate (CAPM) k 15.6% FCFF Figures EBIT Bil. Vnd , , , , ,745.2 Investment Bil. Vnd , , , , ,912.8 Depreciation Bil. Vnd Working capital change Bil. Vnd , (2,412.3) 1, Reinvestment rate % #DIV/0! 39.1% 346.2% 103.9% 1.8% 148.1% 99.2% 81.2% ROE % #DIV/0! 7.3% 20.4% 20.8% 26.0% 21.1% 16.7% 12.3% Income growth % #DIV/0! 2.8% 70.7% 21.6% 0.5% 31.2% 16.6% 10.0% FCFF Bil. Vnd (0.0) 67.2 (1,869.4) (42.7) 1,557.2 (950.1) EBIT Bil. Vnd 2, , , , , , , ,434.1 Investment Bil. Vnd 3, , , , , , , ,299.6 Depreciation Bil. Vnd , , , ,423.2 (2,429.6 Working capital change Bil. Vnd ) (99.9) (96.5) (106.2) (116.8) (128.5) (141.3) (155.5) Reinvestment rate % 6.1% 17.4% 12.9% 13.5% 14.1% 14.8% 15.5% 16.3% ROE % 20.6% 22.2% 21.2% 20.2% 19.3% 18.4% 17.6% 16.8% Income growth % 1.2% 3.9% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% FCFF Bil. Vnd 2, , , , , , , , PV FCFF Bil. Vnd 2, , , , , , , ,530.2 Total PV FCFF Bil. Vnd 24,425.5 Number of shares Mil. Shares Price forecast Vnd 58,287

12 TECHNICAL ANALYSIS Price fluctuation of stock: Recommendation technical analysis Price on 03/06/2014: week highest VND: week lowest VND: % change in 1 month: 5,6% % change in 3 months: 5,2% % change in 6 months 26,6% % change in 1 year: 63,5% Short term trend: Decreasing Middle term trend: Increasing Long term trend: Increasing Recommendation:: BUY Price on 03/06/2014: First resistance level: Second resistance level: First support level: Second support level: Buying price: Target price: > Cut loss price: <40,000

13 PRODUCT This product covers the latest information about Vietnam businessses. Reports focus on important issues such as income statement, balance sheet, financial ratios, valuation, technical analysis MBS RESEARCH CENTER We offer economic, equity and stock market research. The Economic Research Team offers periodic reports on macroeconomics, monetary policies and fixed income markets. The Equity Research Team offers reports on listed firms, private equities, sector reviews and the stock market. MBS Research Center also offers regular market commentaries - The Investor Daily. MB SECURITIES (MBS) Established since May 2000, MBS was one of the first 5 securities firms operating in Vietnam. After years of continuous development, MBS has become one of the leading securities company in Vietnam, providing a full range of services including: brokerage, research and investment advisory, investment banking and capital markets underwriting. MBS s network of branches and transaction offices has been expanded and operated effectively in many major cities such as Hanoi, Ho Chi Minh City, Hai Phong and other strategic areas. MBS s clients include individual investors and institutions, financial institutions and enterprises. As a member of the MB Group, including MB Bank, MB Land, MB Asset Management, MB Capital and Viet R.E.M.A.X (Viet REM), MBS is able to leverage substantial human, financial and technological resources to provide its clients with tailored products and services that few securities firms in Vietnam can match. MBS is proud to be recognized as: A leading brokerage firm ranked No.1 in terms of brokerage market share since 2009; A renowned research firm with a team of experienced analysts that provides market-leading research products and commentaries on equity markets and the economy; and A trusted provider of investment banking services for corporate clients. MBS HEAD OFFICE MB Building, 3 Lieu Giai, Ba Dinh, Ha Noi Tel: Fax: Website: DISCLAIMER Copyrights. MBS 2012, ALL RIGHTS RESERVED. Authors have based this document on information from sources they believe to be reliable but which they have not independently verified. The views expressed in this report are those of the authors and not necessarily related, by any sense, to those of MBS. Neither any information nor comments were written for advertising purposes or recommendation to buy / sell any securities. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying recording, or otherwise, without the prior written permission of MBS