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FINANCIAL INVESTMENT REPORT 2

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DA NANG UNIVERSITY

UNIVERSITY OF ECONOMICS

Lecturer
Vo Thi
Thuy
Anh
Table
of Contents
45K07.1
INTRODUCTION

Group 4

PART 1: THREE-STEP PROCESS

Lam Binh Chi
Le Thi Minh Hieu
Doan Ngoc Yen Nhi
Nguyen Le Anh Quan

6
7
1.1.
General
Economic
Influences: 7


1.1.1. World

Macroeconomic Overview:

7

1.1.2.

8

Vietnam Macroeconomic Overview:

FINANCIAL

1.1.3 Vietnam Stock Market

1.2.

Industry Analysis:

REPORT
1.2.1.
Real Estate Industry:

14
16
17

1.2.2.


Food Industry Analysis:

19

1.2.3.

Conclusion:

20

Corporation Analysis:

20

2021/11
1.3.

1.3.1.

About FLC Group:

1.3.2.

About MASAN:

20
22
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PART 2: INVEST IN A TWO-RISKY-ASSET PORTFOLIO AND RISK-FREE
ASSET
2.1. Two Stocks Analysis:

26
26

2.1.1. FLC Stock:

26

2.1.2. MSN Stock:

27

2.2. The Daily Rate Of Return Of Each Stock And VN-INDEX:

28

2.3. The Expected Rate Of Return Of The Stocks And The VN-INDEX:

29

2.4. The Covariance And Correlation Of The Stocks:

29

2.5. The Minimum Variance Frontier And The Efficient Frontier.

30


2.6. Portfolio Selection:

33

PART 3: BUILDING THE PORTFOLIO FOR OUR CLIENTS

35

3.1. Our Portfolio Is Better Than The Market Portfolio (VN-INDEX):

35

3.2. When Clients Are Lender/Borrower:

36

3.3. The Maximum Fee In Percentage That We Could Charge Our Clients:

37

CONCLUSION

39

REFERENCES

40

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Table of Tables
Table 1. Real GDP in the period 2019-2020 and forecast for 2021

5

Table 2. GDP in VN from 2019 to 2021

6

Table 3. Inflation rate in VN from 2019 to 2021

7

Table 4. Unemployment rate in VN from 2019 to 2021

8

Table 5. Exchange rate

11

Table 6. Data about Industry Groups in November, 2021

13

Table 7. The financial information of FLC at 22/10/2021. (Source: tradingview.com)
18
Table 8. The financial information of MSN at 22/10/2021. (Source: tradingview.com)

20

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Table of Figures
Figure 1. Vietnam Unemployment rate. Source: tradingeconomics.com

8

Figure 2. Date about Vietnam Balance of trade in 2021. Source: tradingeocomics.com
9
Figure 3. The Interbank Rate of Vietnam in 2021.

12

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INTRODUCTION
“Why should we invest in the Stock Market?”
All people really want to get more money and stocks is one of the most popular ways
which is chosen to invest. Investing in stocks has numerous advantages, highlightly
listed the following:
Get profit from idle money without operating the corporations.
Higher potential returns than alternatives such as bank CDs, gold, and government
bonds.
The ability to begin slowly. Investors can start buying stocks with a small amount of
money because many online brokers charge no commissions and allow them to buy
fractional shares.

The ability to diversify one's portfolio across multiple industries.
Therefore, with the majority of advantages given above and the basics of the
Investment Course, our group is going to identify and advise clients which securities
are suitable to invest in.
Financial analysis is used to assess economic trends, set financial policy, create longterm business plans, and identify projects or companies for investment. This is
accomplished by combining financial numbers and data. In this report, we will not
only point out the three-step process including macroeconomic, industry and
corporation analysis but also have a solid understanding of indices and how to invest
in stocks from all market sectors, as well as consider economic figures and stock
growth.

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PART 1: THREE-STEP PROCESS
1.1. General Economic Influences:
1.1.1. World Macroeconomic Overview:
a) Economy:
2019

2020

2021
(Projections)

United State

2.2

-3.5


6.4

Euro

1.29

-6.6

4.4

Japan

0.02

-4.8

3.3

China

5.95

2.3

8.4

India

4.04


-8.0

12.5

ASEAN-5

4.7

-3.4

4.9

Country

Table 1. Real GDP in the period 2019-2020 and forecast for 2021
(Source: IMF, World Economic Outlook Update, July 2021)

From the above data, it can be seen that the outbreak and spread of the COVID-19
pandemic worldwide has made the world economic picture in 2020 very gloomy. Real
GDP dropped sharply in 2020. Experts have predicted that real GDP can increase
sharply again in 2021. In general, the world economic situation improves in 2021
when countries strongly implement the Covid-19 vaccination strategy, which has
helped to rapidly reduce the number of infections and deaths. However, the growth of
the economies is different due to the different speed of vaccine deployment and
support policies in different countries.However, in reality, many outbreaks of the
disease have returned to many parts of the world giving us a signal worrying about
this growth.
Inflation is becoming a top concern of all countries, especially countries in Asia when
the inflation rate is also high. In recent years, Japan and China have been assessed as

the countries with the lowest unemployment rates in the world (under 5%).
Meanwhile, Europe and America remain relatively high. Although these are countries
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with highly developed economies, ranked at the top of the world, unemployment still
occurs due to other strict requirements for the labor force.
b) Society:
Epidemics become the world's outstanding events in 2020 whose impact is evident in
2021, and they may even last through 2022 or beyond. If in 2020, countries in Asia,
with good disease control ability, have gradually risen to be more developed, then in
2021, Western countries will gradually regain their position. However, despite facing
the COVID-19 epidemic, many "steps" in peace and cooperation also appeared, such
as the aid of vaccines, pharmaceuticals and medical supplies between countries to help
the bilateral relationship. and multilateralism is getting better and better. Besides, the
issue of competition for power, interests and strategic position among countries,
especially between the US, China and Russia is taking place increasingly fiercely.
That situation leads to an increasing trend of alliances, gathering forces and
confrontational arms races that tend to give rise to hot spots in many regions of the
world, making the world security situation worse.

1.1.2. Vietnam Macroeconomic Overview:
a) GDP:
GDP measures the health of a country's economy. It represents the total value of all
goods and services produced within a country's borders over a specific time period. It
also can be used by investors when making financial decisions: a bad economy means
lower earnings and lower stock prices. When GDP rises, corporate earnings rise,
which is good for stocks. When GDP falls, businesses and consumers spend less,
leading to the markets to fall.
Year


2019

2020

2021

GDP(%)

7.0

2.9

1.9

Table 2. GDP in Vietnam from 2019 to 2021 (Source: />
Vietnam has an impressive and steady growth momentum of both the renovation
process in general and the improvement of the investment environment and
competitiveness in particular. Based on the data table, we can see that Vietnam's GDP
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in 2019 is quite high (7%). In 2020, GDP will still achieve positive growth despite the
impact of the Covid 19 pandemic. Vietnam's GDP forecast for 2021 is still
controversial. After the third quarter of negative GDP growth of 6.17% and the
complicated effects of the Covid-19 epidemic, GDP growth for the whole year 2021 is
expected to be quite low (1.5-1.9%). The two economic dynamic regions of the South
and the North are still trying to overcome the serious consequences of Covid-19 on the
socio-economic situation. At the same time, the 4th outbreak also revealed many
issues that need attention in management and administration as well as the resilience

of businesses and people during this outbreak. This has a significant impact on GDP
growth for the whole year.
b) Inflation rate:
Year

2019

2020

2021

Rate

2.79

3.85

1.82

Table 3. Inflation rate in Vietnam from 2019 to 2021
( Source: Vietnam: Inflation rate from 1986 to 2026*, />
Overall, Vietnam's average inflation rate from 2019-2021 is around 2.8%. Inflation in
2019 was well controlled thanks to the decrease in world commodity prices, the
government's prudent credit policy, stable exchange rates and relatively unchanged
prices of medical services. However, in 2020, due to the impact of the COVID-19
pandemic, domestic demand increased sharply for essential goods and healthcare, and
inflation increased (3.85%). Data from the General Statistics Office shows that the
inflation rate in October 2021 is estimated to decrease by 0.1% - 0.15%, on average 10
months increase by 1.81% - 1.83% over the same period last year. Core inflation in 10
months is estimated to increase by 0.82% - 0.86%. To maintain low inflation, the

government needs to apply micro and macro policies.
c) Unemployment rate:
Year

2019

2020

2021

Rate (%)

2.17

2.26

2.67

Table 4. Unemployment rate in Vietnam from 2019 to 2021 (Source: />
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A glance at the table reveals the date about the unemployment rate of Vietnam from
the year 2019 to 2021. Due to the COVID-19 pandemic, those figures all had a slight
increase throughout the time frame.
In 2019, the unemployment rate in working age (men aged 15-59 years old and
women aged 15-54 years) was 2.17%, of which it was 3.11% in urban areas and 1.96
in rural areas.
In the first year of the pandemic, 2020 witnessed a rise which was 0.09% higher than
the year before, because of proactive and creative countermeasures at all levels,

decisive policies to prevent economic decline, despite the negative effect of COVID19 to the whole world economy.

Figure 1. Vietnam Unemployment rate. (Source: tradingeconomics.com)

The complicated developments of the fourth Covid-19 pandemic in many localities,
particularly in key economic provinces and cities (Ho Chi Minh, Ha Noi, Da Nang,
etc), have made the labor and employment situation difficult in the Q3 of this year
even worse, 3.72%. The number of employed people fell dramatically compared to the
previous quarter and the same period last year, while unemployment and
underemployment rates reached an all-time high, 2.67% for three quarters.

d) Balance of trade:

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According to preliminary data, Vietnam's trade surplus dropped to USD 1.1 billion in
October 2021 from USD 2.94 billion the previous year, owing primarily to increasing
imports. Exports increased 0.3% year on year to USD 27.3 billion, while imports rose
8.1% to USD 26.2 billion. The trade goods sector witnessed a USD 1.45 billion deficit
in the first 10 months of this year, as exports continued to increase 16.6% to USD
267.93 billion while imports rose 28.2% to USD 269.38 billion.

Figure 2. Date about Vietnam Balance of trade in 2021. (Source: tradingeocomics.com)

e) Monetary and Fiscal Policy:
The year 2020 witnessed a success in terms of the coordination and administration of
the Government's, ministries', and branches' macroeconomic policies. In specific, the
co-ordination and management of fiscal policies - monetary policy - remained a
shining light in the sense of the Covid-19 pandemic, African swine fever pandemic,

natural disasters, floods, saline intrusion, and other unexpected figures in all aspects of
socioeconomic life.
Total state budget expenditure in 2020 was at 1,781.4 trillion VND, equivalent to
82.8% of the plan submitted to the National Assembly. A positive light in the
management is the improvement in the public investment disbursement progress
compared to the previous year. Investment and development spending was estimated
at 82.8% of the plan. The state budget deficit was tightly monitored within the limits
set by the National Assembly, amounting to approximately 3.93 percent of GDP.
Despite the Government's efforts to increase public investment to strengthen the
economy in the context of global and domestic economic challenges, caution should
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be exercised in expecting too much public investment in 2021 due to the increasing
budget deficit, which has been a chronic problem in Vietnam for many years.
As of June 30, 2021, The Government has spent about 21,5 trillion VND on the
prevention and control of the COVID-19, 7,65 trillion VND for buying and using
vaccine COVID-19, and supported nearly 13 million people; at the same time, it
proposed to supply 36.6 thousand tons of national rice reserves to provide relief and
hunger relief for the people in Central Vietnam to overcome the consequences of
natural disasters.
In terms of total budget expenditure, the Ministry of Finance reported that the state
budget expenditure in the first six months of the year was estimated at 694.4 trillion
VND, or 41.2 percent of the total estimate. According to the Ministry of Finance,
because the spending schedule is lower than the budget collection schedule, the state
budget balance in the first six months of the year had a surplus (revenue greater than
expenditure), with the central budget balance having a deficit of approximately 63
trillion VND and the local budget balance having a surplus of nearly 150 billion VND.
f) Asset market – Money and Financial Markets:
● Exchange rate:

The State Bank of Vietnam quoted the central rate of VND versus USD on
23/11/2021:
Central rate of VND

Exchange rate

1 USD

23,133 VND

Document No

368/TB-NHNN

Date of issuing

23/11/2021

Table 5. Exchange rate. (Source: The State Bank of Vietnam.)

According to tradingeconomics.com, the USD/VND increased 3,000 VND or 0.01%
to 23,133 VND on Tuesday November 23 from 22,670 VND in the previous trading
session.
In 2021, the VND had overcome many unfavorable factors, including concerns about
the long-term effects of the COVID-19 epidemic, which caused slow growth, a trade
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deficit, and a monetary policy difference with the Federal Reserve System (Fed).
However, these issues may become more prominent next year.

According to the HSBC research team, the USD/VND exchange rate will reverse to
23,000 VND/USD in 2022, as the current account turns into a deficit and foreign
direct investment (FDI) slows. The VND could be under pressure as the greenback
strengthens in the international currency market and the renminbi weakens (CNY).
● Domestic gold price:
The domestic gold price followed the same trend as the global gold price. The average
global gold price on May 25th, 2021 increased by 4.38 percent over April 2021. As
digital currencies fell in value, money flowed into the gold market; the USD and 10year US government bond yields dropped sharply, creating momentum for gold's price
to go up. Furthermore, investors' concerns about the financial situation of the United
States and Europe make gold more appealing.
Domestically, the gold price index fell 1.68 percent in May 2021 compared to last
month, 0.88 percent compared to December 2020, and 13.02 percent compared to the
same period last year.
g) Capital and Money Market
COVID-19 revitalised Vietnam's capital markets, forced corporations to look beyond
bank loans to other forms of debt, and forced a much-needed upgrade of the
technology underlying the country's stock exchanges.

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Figure 3. The Interbank Rate of Vietnam in 2021.
(Source: tradingeconomics.com | The State Bank of Vietnam)

The given chart illustrates that after hitting a peak approximately at 2.3% in Feb 2021,
the figure for Interbank Rate dropped significantly to 1.3% in April 2021. From that
time to July 2021, the percentage had a steady rise, following a slight decline until
September. In October, the rate increased to 1.58% on Tuesday November 23 from
1.55 percent in the previous day.


1.1.3 Vietnam Stock Market
Vietnam has two major stock exchanges, one in Ho Chi Minh City and one in Hanoi.
Aside from that, there is an Unlisted Public Market. The Ho Chi Minh Stock
Exchange is Vietnam's largest stock exchange (HOSE). In late 2020, the HOSE
market cap surpassed USD 160 billion, with approximately 500 listed securities at the
time. The Hanoi Stock Exchange (HNX) was established later in 2005 and is much
smaller, attracting smaller companies. With around 350 listings, it was still a fraction
under USD 10 billion late last year. Last but not least, the Unlisted Public Market
(UPM) contained a lot of companies, totaling approximately 900 companies with a
market cap of more than USD 70 billion in 2020.
Vietnam Stock Market Overview in recent years.
The year 2021:
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In the first nine months, the average trading value reached 10.94 trillion VND per
session, up 5.3% from the previous year. Specifically, liquidity rebounded strongly in
August as market valuations were enhanced. Total trading activity on the three main
bourses increased 15.3% month on month to 30.2 trillion VND per day, up 363.2 %
year on year.
The benchmark VN-Index in Vietnam is predicted to fluctuate in a range of 1,3801,480 points in November, buoyed by increased vaccination coverage, economic
recovery, and stimulus packages. The Vietnamese stock market closed last month at
1,447.27 points, up 7.6% from the start of October and 22.4% for the year.
According to a VN-Direct Securities Corporation report, cash flows tend to pour into
small-cap stocks in October, while exiting large- and medium-cap stocks. Even so, the
VN-Index reached new historical highs and formed short-term rallies, following
which the securities firm expects cash flows to return to large- and medium-cap stocks
in November.
The prediction in 2022:
VN-Direct anticipates a 21% year-on-year increase in earnings per share on the HOSE

in 2022. The index for 2021 is expected to fall to 26% (from 30% previously) due to
significant disruptions from the pandemic's fourth wave in the second half.
Domestic consumption will rebound strongly in that year because of the reopened
economy with government support policies. As a result, food and beverage, retailers,
and airlines are three of the industries that will benefit the most. Moreover, Oil, Gas,
and Commodity exporters will benefit from the strong customer demands and the
worldwide economic growth recovery.
According to VN-Direct, infrastructure development will be a priority in the coming
years as it is an important key to strengthening the economy. In addition to road,
aviation infrastructure and industrial zones, power infrastructure will garner attention
in the next two years.
Demand and supply stocks in Real Estate and Food Industry:
● Real Estate:

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The field of commercial premises for rent, offices for rent, hotels, and
apartments is most visibly affected in the real estate industry. The pandemic has
stopped people from shopping directly at shopping malls (down about 70-80%
in February and March in 2020, according to CBRE; many store owners have
returned to their premises, or negotiated to Tenants reduced prices, and many
landowners have actively reduced rents by 20-40%). The epidemic delays
investment activities in the office block, and rental growth is expected. Because
the number of workers remotely either rises or slows down the rate of office
use, homeowners on short-term leases will be the most vulnerable.
● Food: Food remains one of the world's most thriving industries, owing to its
essential business nature and strong consumer connection.
As people restricted their movement and governments prohibited dine-out
operations because of the coronavirus outbreak, it benefited at-home food

consumption. According to the International Food Information Council's (IFIC)
2020 Food & Health Survey report, 60% of Americans began cooking at home
more after the coronavirus outbreak, while 32% increased their snacking. In
total, 27% of those polled said they are thinking about food more than usual.

1.2. Industry Analysis:
No
1
2

Industry
Group

+/-

EPS

PE

ROA

ROE

Real Estate

966.6
(+1.6)

3,388


18.6

6%

15%

Food

1,069.8
(+5)

5,094

20.6

14%

23%

Table 6. Data about Industry Groups in November, 2021. (Source: cophieu68.vn)

Both 2 Industries are having surplus in point, at that time. According to the table
above and the data in part 1 about macroeconomic analysis of the whole world and
Vietnam, Real Estate and Food are 2 of 25 Industry groups we chose for our
assignment.

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1.2.1. Real Estate Industry:

Vietnam's real estate market remains fundamentally strong, buoyed by genuine owneroccupier demand that has remained resilient despite the COVID - 19 pandemic.
With a booming economy and new laws making it easier for foreigners to buy
property, Vietnam is widely regarded as the next luxury property market hotspot. In
addition, Vietnam's improving infrastructure is a plus. "Vietnam focuses on
infrastructure investment, including 2,000 kilometers of new highways, subway
systems in Hanoi and Ho Chi Minh City, and numerous airport expansion and
construction projects," according to JLL. Thus, wealthy international investors have
been flocking into the country in recent years.
Despite the ongoing effects of the pandemic, Q1/2021 (the first quarter of the year)
saw the Vietnamese GDP increase to 4.48%, a growth rate of 3.68% compared to the
same period last year. Following CBRE Vietnam, Q1 also saw an 80% absorption rate
among new projects, a positive sign, particularly as the high-end and luxury segments
lead the market. The EPS of this industry is at 3,388. The ROA index in 2021 is about
6%. The return on equity (ROE) of the industry is quite high, about 15%.
According to experts, Vietnam's real estate market remains the most stable investment
channel, particularly for visionary developers responding to buyers' strict and evolving
requirements.
So, why did we choose Real Estate Industry for our investment?
a) Great benefits from urban development policy, infrastructure planning:
Real estate investment enjoys great benefits from the state's policies on urban
development and infrastructure planning, which other types do not have. For example,
the Government or investment companies spend a large amount of money on transport
infrastructure such as roads (highways, tunnels, overpasses, ...), railways, airports... or
investing in the construction and development of utility services to serve the people
such as schools, hospitals, factories, shopping centers, etc. Thanks to these
infrastructure planning and public utilities, Real estate value has more opportunities to
develop.
b) Diversify investment types with high returns:
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Compared with other forms of investment such as gold, bank savings, securities, etc.,
real estate has more diversified types of investment, such as apartments, land plots,
shophouses, houses. commercial streets, resort villas, factories,… With a channel with
many types of investment, investors will easily choose for themselves the type that
best suits their needs and financial capabilities.
c) The price is not listed, both sides can negotiate:
Unlike with gold or stock prices that are often listed on the market, with real estate
investment, investors can negotiate prices to bring in good profits.
d) You Can Use the Equity to Increase Your Real Estate Portfolio
A favorite way to use an investment property’s equity is to grow your real estate
portfolio. For example, let’s say you have $50,000 equity in a home. You can
refinance the mortgage on it, take out the $50,000, and use it as a down payment on
your next property.
Depending on the value of your properties, you may even be able to pay cash for
future properties, increasing your portfolio and the equity in it even faster.
e) Real estate investments can serve as a hedge against inflation:
Real estate ownership is generally considered a hedge against inflation, as home
values and rents typically increase with inflation.
f) You May Be Eligible for Tax Deductions:
When you own investment real estate that you live in, you get very few deductions.
Most homeowners don’t itemize their deductions, so they can’t take advantage of real
estate savings. Even if you itemize, you can only deduct your property taxes and
mortgage interest in most cases.
When you buy and hold real estate, renting it out, you own a business rather than just
an investment. The IRS allows you to take many deductions just like you would if you
owned a brick-and-mortar store.

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Any expenses you incur to maintain the property, handle business, or even conduct
business (buying a laptop, traveling to the property, etc.) can be written off on your
taxes. This reduces your tax liability and increases your profits.

1.2.2. Food Industry Analysis:
Food is one of the industries least affected by the economic crisis. This is one of the
essential goods of society, with high stability in demand.
Living standards of VietNamese people are increasingly improving, creating favorable
conditions for the development of the food industry. Vietnamese consumers have
increasingly improved living standards, are more concerned about food hygiene and
safety, and have a high demand for delicious and quality food. This is also one of the
favorable conditions for the development of Vietnam's pharmaceutical industry.
EPS of the industry is relatively high, equivalent to 5,094 VND/share (2021) ranking
5th out of 20 industries and tending to increase in the future. The ROA index in 2021
is about 14%. The return on equity (ROE) of the industry is the highest ratio
throughout 25 industries, about 23%. The debt-to-equity ratio is at the 19th lowest
level among 20 industries, ahead of the master's industry in 2021. Although the
industry's profit on equity is decreasing, and the debt ratio fluctuates, the profit after
tax of the industry is relatively high and tends to increase, the industry's internals are
quite good.
Moreover, the government has issued many legal documents to manage food hygiene
and safety, including documents related to issues such as State policy in the
pharmaceutical sector, management of food safety and hygiene. State regulations on
drug prices, conditions for drug trading, management of drugs on the list of drugs
subject to special inspection, quality standards, drug testing facilities, etc. These
regulations will help create favorable conditions for pharmaceutical companies.
Vietnamese retailers import or acquire, promote domestic enterprises to improve,
focus on developing in depth to be able to compete with multinational companies
So, why did we choose the Food Industry for our investment?

a) Basic needs:

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The biggest reason to invest in the food industry is that it’s a basic need. Additionally,
in the hierarchy of basic needs, eating is the number one priority as we need food to
survive. Unlike fashion, accessories, or other similar business types based on people’s
“wants”, you can always count on people to “need” food.
b) Less risky:
Food-related businesses are far less likely to go bankrupt or experience financial
trouble than other business types as they respond to a basic human need. As long as
your food is delicious, customers will keep coming back.
c) Convenient:
In addition to people having the basic need for food, they also lack time to prepare it
themselves most of the time. The food industry offers convenient and time-saving
solutions to those with the busiest schedules.

1.2.3. Conclusion:
In summary, the two groups of industries analyzed and selected above have high
development prospects in the future. But when investing in the stock market as a
professional investor, it is not possible to invest all the shares of the related
businesses. Because of that, it is easy to face systematic risk in the investment.
Therefore, in each selected industry, we need to analyze and select the securities codes
of certain corporate entities, in which the selected companies must have outstanding
aspects.

1.3.

Corporation Analysis:


1.3.1. About FLC Group:
a) General Summary:
● Full name: FLC Group Joint Stock Company
● Securities: FLC
● Sector: Finance
● Industry: Real Estate Development
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FLC Group JSC is a large real estate firm headquartered in Hanoi, Vietnam. It was
founded in 2001 and listed on HOSE with 7000 employees.
FLC Group JSC engages in the provision of Real estate Development services,
including the following: real estate investment and construction; real estate consulting,
advertising, and management services; architectural, technical consultancy, project
and construction management; trading of construction materials; and hotel, resorts and
golf source operations.
b) Financial Information:
Valuation

Operating Metrics

Market Capitalization

11.715T

Return on Assets

0.0395


Enterprise Value

13.621T

Return on Equity

0.1590

Total Shares Outstanding

709.998M

Return on Invested Capital

0.1191

Price to Earnings Ratio

8.4231

Income Statement

Price to Revenue Ratio

1.3529

Basic EPS

229.8801


Price to Book

1.2488

EPS Diluted

229.8801

Price to Sales

0.8685

Net Income

163.214B

Price History
1-Year Beta

0.1987

Table 7. The financial information of FLC on 22/10/2021. (Source: tradingview.com)

In this above table, we can recognize FLC has a market capitalization of about 11.715
trillion VND and its shares equal to 709.998 million securities.
The P/S and P/E have shown us how much the market values every dollar of the
company's sale and how to value a company, with about 0.8 and 8.4 respectively. The
investors can use P/S to compare FLC with the same company in the real estate
industry. Therefore, they can consider where they should invest. P/E can be used to
determine the relative value of a company’s shares in an apple-to-apple comparison.

Besides, P/B ratio reflects the value that market participants attach to a company's
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equity relative to the book value of its equity and it’s about 1.3. Generally, P/S of FLC
is excellent because P/S of less than one which is considered excellent. P/E is low
because it is less than 13, which is the lowest point to be a good one. Any value of P/B
under 1.0 is considered a good but value investors often consider stocks with is P/B
value under 3. In this case, P/B of FLC is 1.3 and it must be a good one.
ROE is especially used for comparing the performance of companies in the same
industry. As with return on capital, a ROE is a measure of management's ability to
generate income from the equity available to it. ROEs of 15–20% are generally
considered good and in this case, ROE of FLC is 15.9%. An ROA of 5% or better is
typically considered good, while 20% or better is considered great. In general, the
higher the ROA, the more efficient the company is at generating profits. However, the
ROA of FLC is about 4% so it’s not as good as the other stocks. Determining a good
ROIC is hard, as it depends on several. For stock market investments, anywhere from
7%-10% is usually considered a good ROIC and FLC have ROIC is higher than 10%,
which is considered a greater one.
Income statement of FLC is also good because it brings back more than 200 profit per
share and the net income every year is higher than 163 trillion.
Beta of stock is lower than 1 so it is more stable than other stocks.

1.3.2. About MASAN:
a) General Summary
● Full Name: Masan Group Corporation
● Securities: MSN
● Sector: Consumer Non-Durables
● Industry: Multi - industry (Mainly: Food)
In terms of market capitalization, Masan Group Corporation ranks among the top

three largest private sector companies in Vietnam. The organization was founded in
2004 in Ho Chi Minh City and is headquartered there. Masan Food (54.8%),
Techcombank (19.9%), and Masan Resources are among its subsidiaries.
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Masan Group Corp. is a holding company that invests in consumer goods, financial
services, and natural resources. Food and Beverage, Mining and Processing, Animal
Nutrition, and Financial Services are its business segments. Fish sauce, chili sauce,
soy sauce, and noodles are among the products manufactured by the Food and
Beverage segment. Minerals such as tungsten, fluorspar, bismuth, and copper are
investigated in the Mining and Processing segment. The Animal Nutrition segment
owns and operates feed mills as well as sells animal nutrition products. Personal
financial services, corporate banking, and business process management are all
offered by the Financial Services segment.
b) Financial Information
Valuation

Operating Metrics

Market Capitalization

174.011T

Return on Assets

0.0206

Enterprise Value


227.58T

Return on Equity

0.1137

Total Shares Outstanding

1.181B

Return on Invested Capital

0.0417

Price to Earnings Ratio

72.6011

Income Statement

Price to Revenue Ratio

2.0140

Basic EPS

1053.7234

Price to Book


10.8641

EPS Diluted

1053.7234

Price to Sales

2.2354

Net Income

1.234T

Price History
1-Year Beta

0.7265

Table 8. The financial information of MSN on 22/10/2021. (Source: tradingview.com)

In this above table, we can recognize MSN has a market capitalization of about
174.011 trillion VND and its shares equal to 1.181 billion securities. That is the reason
why MSN’ stock can be put into VN30, which is a top 30 corporation that has the
most value stocks.
The P/S and P/E have shown us how much the market values every dollar of the
company's sale and how to value a company, with about 2.2 and 72.6 respectively. The
Page | 23



investors can use P/S to compare MSN with the same company in the real estate
industry. Therefore, they can consider where they should invest. P/E can be used to
determine the relative value of a company’s shares in an apple-to-apple comparison.
Besides, P/B ratio reflects the value that market participants attach to a company's
equity relative to the book value of its equity and it’s about 10.8. Generally, P/S of
MSN is not very good because P/S ranges from 1 to 2 which is considered good but
MSN is 2.2 (close to 2). P/E is excellent because it is more than 72, meanwhile a stock
has 25 is can be considered excellent. Value investors often consider stocks with is
P/B value under 3. In this case, P/B of MSN is 10.8 and it’s not a good point for this
index.
ROE is especially used for comparing the performance of companies in the same
industry. As with return on capital, a ROE is a measure of management's ability to
generate income from the equity available to it. ROEs of 15–20% are generally
considered good and in this case, ROE of MSN is 11% and is lower than standard of
good. An ROA of 5% or better is typically considered good, while 20% or better is
considered great. In general, the higher the ROA, the more efficient the company is at
generating profits. However, MSN's ROA of MSN is about 2% so it’s not as good as
the other stocks. Determining a good ROIC is hard, as it depends on several. For stock
market investments, anywhere from 7%-10% is usually considered a good ROIC and
MSN have ROIC is about 4.1% and lower than good stocks out there.
Income statement of MSN is more excellent than FLC because it brings back more
than 1000 profit per share and the net income every year is higher than 1.234 trillion
VND. Beta of stock is lower than 1 so it is more stable than other stocks.

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PART 2: INVEST IN A TWO-RISKY-ASSET PORTFOLIO AND
RISK-FREE ASSET
2.1. Two Stocks Analysis:

2.1.1. FLC Stock:

The FLC price change (Source: tradingview.com)
According to the above chart, the line graph shows the rise of the price of FLC Stock
on HOSE Exchange between 2019 and 2021.
Overall, the line graph tends to rise overtime and reach the peak on 11/2021. In this
time, the Vietnam stock market has reached the highest point in history and it is what
happened to FLC Stock. Before that time, FLC Stock also had high values between
3/2021 and 6/2021. The price remains steady at the start of the period to the middle
period and increases dramatically at the end of the period.

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