Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
[Bien Hoa
Suger]
Lecturer: PhD. Truong Hong
Trinh
Name: Pham Thuy Trang
Class: 37k16 CLC
Contents
I.
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
3. Statement of cashflow:.....................................................................................6
III.
Valuation model.............................................................................................8
Company profile:
Transaction name: BIEN HOA SUGAR JOINT STOCK COMPANY
Business registration certificate No.: 3600495818 granted for the first time by Dong
Nai
Department of Planning & Investment on 16 May 2001, and the latest amendment
on 16 May 2013.
Charter capital: VND 629,949,180,000
Address: Bien Hoa 1 Industrial Park, An Binh Ward, Bien Hoa
City, Dong Nai.
Telephone: 061.3836.199
Fax: 061.3836.213
Website: www.bhs.vn
Stock code: BHS
1. History:
In 1969, Bien Hoa Sugar Plant was founded with the capacity of 400 tones.
The key product then included yellow sugar, liquer and jute bags.
In 1971, the Plant was invested and upgraded to Refined Sugar Plant.
In 1994, Bien Hoa Sugar Plant was renamed to Bien Hoa Sugar Company.
In 1995, the capacity of Bien Hoa Refined Sugar Plant increased from 200
tonnes per day up to 300 tonnes per day. Simultaneously, Tay Ninh Sugar Plant
construction was commenced.
In 1997, Thanh Long Sugarcane Farm was established with the area of 960
hectares.
In 1998, Tay Ninh Sugar Plant (now known as Bien Hoa - Tay Ninh Sugar
Plant) officially stepped into operation with the processing capacity of 2,500 tonnes
of sugar per day.
In 2001, Tay Ninh Sugar Plant capacity increased to 3,500 tonnes of
sugarcane per day. Till present, the capacity has reached to 4,000 tonnes of
sugarcane per day.
In 2001, the company was transformed from state-owned company to joint
stock company. On 16 May 2001, Bien Hoa Sugar Joint Stock Company was
founded with the initial charter capital of VND 81 billion.
II.
Financial statement:
1. Balance sheet
Balance sheet
2013
2012
2011
2010
1,396,74
8
238,292
1,454,28
1
98,524
752,872
618,030
178,778
58,759
44,240
16,500
698,450
285,117
234,744
254,984
Inventories
343,666
820,013
333,068
299,229
72,099
234,127
6,282
5,058
797,044
653,554
528,865
397,162
77,929
53,355
58,765
65,946
634,685
522,039
406,501
277,480
Long-term investments
63,770
43,473
30,776
29,218
7,026
18,872
14,827
4,341
2,107,83
5
1,535,111
1,427,67
6
107,435
628,125
403,366
Long-term liabilities
2,193,79
1
1,348,93
3
1,251,83
0
97,103
105,113
115,151
OWNERS' EQUITY
844,858
572,724
548,499
496,675
629,949
314,975
299,976
185,316
39,817
39,817
39,817
154,477
105,139
87,752
65,414
43,083
31,037
25,241
17,795
10,352
Retained earnings
38,916
104,939
125,497
103,447
2,193,79
1
2,107,83
5
1,281,73 1,015,192
7
SHORT-TERM ASSETS
Cash and cash equivalents
Short-term investments
TOTAL ASSETS
LIABILITIES
Current liabilities
1,281,73 1,015,192
7
733,238
518,518
MINORITY INTEREST
TOTAL RESOURCES
2. Income statement:
Income statement
2013
2012
2011
2010
2,930,013
3,045,798
2,566,008
2,007,501
1,973
1,552
1,386
2,983
2,928,040
3,044,246
2,564,622
2,004,518
2,689,264
2,764,270
2,294,967
1,755,812
238,776
279,976
269,655
248,706
53,903
56,130
35,024
17,785
110,826
50,473
80,355
46,364
105,357
50,778
72,190
42,535
Selling expenses
91,069
72,410
32,744
26,003
Administration expenses
42,629
49,432
42,444
28,620
48,155
163,791
149,136
165,504
844
2,307
10,881
163
165,667
Gross profit
Financial income
Financial expenses
In which: loan interest expenses
Other profit
Profit or loss in associates
-186
48,813
166,098
160,018
11,449
119,210
147,233
37,364
119,210
147,233
145,870
3. Statement of cashflow:
Cash flow (Indirect)
2013
2012
48,813
166,098
2. Adjustments
82,039
52,767
23,622
52,944
7,595
279
186
-451
-338
-430
-2,692
-1,847
-9,648
Interest income
-49,300
-41,248
Interest expense
105,357
50,778
130,853
218,865
Increase/decrease in receivables
-251,380
-273,801
Increase/decrease in inventories
476,347
-242,551
-121,585
-69,023
2,023
-7,218
-105,552
-50,571
-18,077
-15,943
5,134
2,826
-11,561
-15,345
106,202
-452,761
-135,822
-164,184
726
422
-44,240
-16,500
16,500
-23,692
-35,528
Provisions
Net profit from investment in joint venture
Increase/decrease in payables
Increase/decrease in pre-paid expense
Interest paid
Business income tax paid
Other receipts from operating activities
23,795
32,805
21,758
-153,723
-170,237
314,975
3,833,399
2,141,032
4. Repayments of borrowing
-3,898,095
-1,504,153
6. Dividends paid
-62,988
-94,135
187,290
542,743
139,769
-80,255
98,524
178,778
238,292
98,524
III.
Valuation model
VOp
t 1
FCFt
(1 WACC ) t
are discounted by the average cost of capital WACC, this is also the VOP value
activities
We have the average indicators for last 3 years to calculate average FCF o:
mil. VND
Tax
mil. VND
25% Net Invest in fixed asset
EBT
135,096
Interest expense
105,357.00
EBIT
154,170.00
NOPAT
115,627.50
Depreciation
-101,704
23,622
Average FCFo
105,857.50
- Calculate WACC
Debt
Equity
Percentag
e
61%
39%
Cost of funds
8%
20%
D
D+ E
+ Ke x D+ E
= 12.67%
Value of operations of BHS (2013) = Total asset - short term investment + MVA
Vop = 1,646,665.41
Using excel Goal seek, we have g2= 4.347%
From 2014, the income tax rate is 22%
Then, if company grew with g1= 11% in first 3 years and then grew with g2:
g1
11%
g2
4.347%
WACC
12.67%
2013
2014
2015
2016
2017
FCF
105,857.50
117,196.72
129,750.57
143,649.17
149,993.85
PV
105,857.50
104,336.24
102,836.83
101,358.98
1,338,133.37
10
Vop
FCFi
i
=
i=1 (1+WACC )
FCF 3 x (1+ g 2)
(WACC g 2)
(1+WACC )3
= PV= 1,646,665.41
2015
2016
2017
837393
1591801
2271448
2528861
43
48
53
55
25
28
31
32
1,800,395
3,798,834
6,017,101
6,990,216
Revenue
36,007,903
75,976,676
Total cost
20,934,827
44,172,486
120,342,01
3
69,966,287
139,804,31
1
81,281,576
2014
2015
2016
Revenue
36,007,903
75,976,676
COGS
20,934,827
44,172,486
120,342,01
3
69,966,287
139,804,31
1
81,281,576
1,800,395
3,798,834
6,017,101
6,990,216
13,272,681
28,005,356
44,358,626
51,532,519
2,919,990
Depreciation
10,352,690.
84
1,800,395
6,161,178.3
2
21,844,177.
68
3,798,834
9,758,897.6
6
34,599,728.
07
6,017,101
11,337,154.
25
40,195,365.
07
6,990,216
Operation cash
flow
12,153,086.
00
25,643,011.
46
40,616,828.
72
47,185,580.
62
Sale
2014
Price (x 1000
VND)
COGS per unit
Depreciation
Depreciation
EBIT
Tax (22%)
NOPAT
2017
11
straight line depreciation method, and at the end of the project, the fixed assets are
expected to disposal with 18 billion VND.
Assume that the price and COGS will stay stable during the project.
Initial investment
Investment in fixed asset
NWC
Tax
Salvage value of fixed asset
100,000,00
0
80,000,000
20,000,000
22%
18000000
2014
700000
43
25
2015
2000000
43
25
2016
3200000
43
25
2017
1700000
43
25
20,000,00
0
20,000,00
0
20,000,00
0
20,000,00
0
2014
2015
2016
2017
700,000
2,000,000
3,200,000
30,100,0
00
17,500,0
00
25%
20,000,0
00
7,400,00
0
1628000
86,000,00
0
50,000,00
0
25%
20,000,00
0
16,000,00
0
137,600,0
00
80,000,00
0
25%
20,000,00
0
37,600,00
0
1,700,00
0
73,100,0
00
42,500,0
00
25%
20,000,0
00
10,600,0
00
3520000
8272000
2332000
b. Investment budget:
2013
I. Net investment
Invest in new fixed
asset
Change in NWC
Initial investment
Tax
80,000,000
20,000,000
100,000,00
0
12
Net income
5,772,00
0
20,000,0
00
14,228,
000
Depreciation cost
Change in cash
flow during project
III. Cash flow at the
end of project
NWC
Salvage value of
new fixed asset
Cash flow at the
end of project
IV. Net cash flow
100,000,0
00
14,228,
000
12,480,00
0
29,328,00
0
8,268,00
0
20,000,00
0
32,480,0
00
20,000,00
0
49,328,0
00
20,000,0
00
28,268,
000
49,328,0
00
20,000,0
00
14,040,0
00
34,040,0
00
62,308,
000
32,480,0
00
13
a
=0.61
a+b
a( 18 )+ b=100000
1
( 1+11 )4
11
=64130
The remaining
principal
Year
Payment for
principals
Payment for
interests
Total payments
64,129,520
-58,999,158.40
$50,513,132.99
13616387.01
7,054,247
20670634.21
$35,398,943.41
15114189.58
5556444.629
20670634.21
$18,622,192.98
16776750.43
3893883.775
20670634.21
$0.00
18622192.98
2048441.228
20670634.21
D/S
0%
10%
20%
30%
40%
50%
60%
Which:
Rd
0.00%
11.11%
25.00%
42.86%
66.67%
100.00%
150.00%
Rs
8.00%
8.00%
8.20%
8.60%
9.40%
9.80%
10.20%
9.84%
10.17%
10.59%
11.12%
11.84%
12.84%
14.33%
BETA
0.960000
1.043200
1.147200
1.280914
1.459200
1.708800
2.083200
WACC
9.84%
9.78%
9.75%
9.80%
10.03%
10.24%
10.51%
14
11.00%
g2
WACC
9.75%
4.35%
2014
2015
2016
2017
FCF
110,482.60
122,635.69
136,125.61
151,099.43
157,668.18
PV
110,482.60
111,740.70
113,013.13
114,300.04
2,207,485.29
Vop = 2,546,539.15
With optimal structure, the value of company increases nearly 1,000 bil. VND