(Tiểu luận) financial statement analysis an phat bioplastics joint stock company (aaa) over the period of 2020 2022

Ministry of Education and Training
National Economics University
School of Trade and International Economics
---------------***---------------

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Mid-term Assignment

Financial Statement Analysis
An Phat Bioplastics Joint Stock Company (AAA)
over the period of 2020-2022
Class: LSIC 63 – Business Finance
Student: NGUYỄN THỊ MINH ÁNH
ID: 11219567


Hanoi, March 2023
Table of Contents
LIST OF TABLES AND FIGURES....................................................................................................3
ABSTRACT..........................................................................................................................................4
PART I THEORETICAL BASIS FOR FINANCIAL STATEMENT ANALYSIS............................4

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I- FINANCIAL STATEMENT............................................................................................................4
II- SOURCES AND USES OF CASH..................................................................................................5
III- FINANCIAL RATIOS....................................................................................................................5
1. Short-term solvency, or liquidity, ratios..............................................................................5
2. Long-term solvency, or financial leverage, ratios...............................................................6
3. Asset management, or turnover, ratios................................................................................6
4. Profitability ratios................................................................................................................7

5. Market value ratios..............................................................................................................7
IV- APPLICATION OF DUPONT FINANCIAL MODEL.........................................................................7
PART II................................................................................................................................................9
ABOUT AN PHAT BIOPLASTICS JOINT STOCK COMPANY....................................................9
IIIIIIIV-

COMPANY NAME AND ADRESS................................................................................................9
DEVELOPMENT HISTORY.......................................................................................................10
BOARD OF DIRECTORS...........................................................................................................10
SHAREHOLDERS STRUCTURE..................................................................................................11

PART III.............................................................................................................................................12
MARKET ANALYSIS......................................................................................................................12
IIIIIIIV-

OVERVIEW OF THE PLASTIC INDUSTRY....................................................................................12
BUSINESS SITUATION OF ENTERPRISES...................................................................................13
FOREIGN INVESTMENT IN THE PLASTIC INDUSTRY.................................................................13
IMPORT AND EXPORT TURNOVER OF VIETNAM'S PLASTIC INDUSTRY....................................14

PART IV............................................................................................................................................15
ANALYSIS OF AN PHAT BIOPLASTICS JSC FINANCIAL STATEMENTS 2020-2022..........15
I-

SOURCES AND USES OF CASH................................................................................................15
1. Balance Sheet.....................................................................................................................15
2. Income Statement...............................................................................................................17
III. FINANCIAL RAITOS (BETWEEN YEARS AND OTHER PEER COMPANIES OF THE INDUSTRY,
INDUSTRY AVARAGE)....................................................................................................................19
1. Between 2020-2022...........................................................................................................19

2


2. Industry comparison..........................................................................................................21
IV. DUPONT ANALYSIS.................................................................................................................22
1. DuPont analysis - ROA......................................................................................................22
2. DuPont analysis - ROE......................................................................................................22
PART V..............................................................................................................................................22
INDUSTRY COMPARISION...........................................................................................................22
CONCLUSION.................................................................................................................................25
REFERENCES..................................................................................................................................26

List of tables and figure
Figure 1: DuPont financial model
Figure 2: An Phat Bioplastics JSC Board of Directors
Figure 3: An Phat Bioplastics' shareholder structure

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12
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Table 1: An Phat Bioplastics JSC Shareholders Structure
Table 2: Vietnam's plastic export and import turnover over the years.
Table 3: Standardised financial statements
Table 4: An Phat Bioplastics Balance Sheet 2020-2022
Table 5: An Phat Bioplastics Income Statement 2020-2022
Table 6: An Phat Bioplastics JSC Financial Ratios 2020-2022
Table 7: AAA's current ratio's industry comparison 2020-2022
Table 8: AAA's Quick Ratio's Industry comparison 2020-2022
Table 9: Comparison between AAA and 10 others peer companies

12
16
16
17
19
20
22
23
24

Y

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ABSTRACT
The aim of Financial Statement Analysis is to provide the full scenario of the company to
investors by using the historical data of the company along with current situation as well as
forecast for the data in the future. In this report, I applied all techniques that I have learnt so
far from the subject Financial Statement Analysis to analyse the performance of An Phat
Bioplastics Joint Stock Company in the period of 2020-2022. Data has been mainly collected
through An Phat Bioplastics JSC’s data source. Concerning entire factors, this report is mainly
supported by recommendations, which could be helpful for stakeholders of this company.

4

PART I
THEORETICAL BASIS FOR FINANCIAL STATEMENT ANALYSIS

I- Financial Statement
Financial analysis is the process of examining a company’s performance in the context of
its industry and economic environment to arrive at a decision or recommendation. Often, the
decisions and recommendations addressed by financial analysts pertain to providing capital to
companies—specifically, whether to invest in the company’s debt or equity securities and at
what price. An investor in debt securities is concerned about the company’s ability to pay
interest and to repay the principal lent. An investor in equity securities is an owner with a
residual interest in the company and is concerned about the company’s ability to pay dividends
and the likelihood that its share price will increase.
Overall, a central focus of financial analysis is evaluating the company’s ability to earn a
return on its capital that is at least equal to the cost of that capital, to profitably grow its operations,
and to generate enough cash to meet obligations and pursue opportunities.

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II- Sources and uses of cash

Sources: Cash inflows when we “sell” something and we add to the cash account.
- Decrease in asset account.
- Increase in liability or equity account.
Uses: Cash outflows when we “buy” something
- Increase in asset account
- Decrease in liability or equity account.
III- Financial ratios
1. Short-term solvency, or liquidity, ratios.
Short-term solvency analysis is an assessment of the ability to meet debt payment obligations

for a period of less than one year from the date of incurred by the business. Short-term debts
include accounts payable to sellers, payable to employees, short-term loans, ... The short-term
solvency analysis includes the following contents: Short-term debt solvency coefficient, fast
solvency coefficient, and instant solvency coefficient.
5


Current Ratio

This indicator indicates whether the total value of short-term assets currently exists that the
business guarantees short-term solvency. The higher this indicator shows the ability of the business
to pay short-term debt as possible and vice versa. This high indicator shows that a part of the shortterm asset is invested from stable capital sources, indicating autonomy in financial activities. If this
target is low, i.e. short-term assets do not compensate for short-term debt, indicating that the
business is having difficulty repaying debts due to adversely affect business performance.

The Quick (or Acid-Test) Ratio

This indicator measures the liquidity of the number of times that cash, receivables and shortterm financial investments guarantee short-term debt. Here, inventory is excluded when calculating
the quick solvency factor because it is often the least liquid current asset. It’s also the one for
which the book values are least reliable as measures of market value because the quality of the
inventory isn’t considered. Some of the inventory may later turn out to be damaged, obsolete, or
lost.

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More to the point, relatively large inventories are often a sign of short-term trouble. The firm
may have overestimated sales and overbought or overproduced as a result.
This indicator, if too high and prolonged, is not good, can lead to reduced capital efficiency.
But this indicator is too low, lasts as long as possible because there may be financial risks, the risk
of bankruptcy may occur.

2. Long-term solvency, or financial leverage, ratios.
Long-term solvency analysis is an assessment of the ability to meet debt payment obligations
for a period of more than one year. Long-term debts include accounts payable to sellers, workers'
payables, long-term loans,… Long-term solvency analysis includes the following contents: longterm debt solvency coefficient and interest payment ability coefficient.
Total Debt Raito

This indicator indicates the ability to pay long-term debt for the entire net value of fixed
assets and long-term investments, etc... This target is as high as possible to demonstrate the longterm solvency of the business in the future, contributing to the stability of the financial situation. If
this target is low, it is not possible to confirm that the long-term solvency in the future of the
business is bad. However, businesses still need to take early action on this target.
6


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Debt-quity ratio =

Equity multiplier =
Long- term debt ratio =
Times interest earned ratio =
3. Asset management, or turnover, ratios.
Inventory turnover =
Days’ sales in inventory =
Receivables turnover =
Days’ sales in receivables =
NWC turnover =
Fixed asset turnover =
Total asset turnover =

4. Profitability ratios.
Profit margin =
Return on assets (ROA) =

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Return on equity (ROE) =

ROE = x x

5. Market value ratios.

Price-earnings ratio =
Because the PE ratio measures how much investors are willing to pay per dollar of current
earnings, higher PEs are often taken to mean that the firm has significant prospects for future
growth.

PEG ratio =
PEG ratio =
Price-sales ratio =
IV- Application of DuPont financial model.
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The DuPont analysis is a formula used to track a company's financial performance. It was
developed in 1914 by F. Donaldson Brown, who worked for the DuPont Corporation. The DuPont
financial model is often used to analyse the link between factors that affect financial indicators to
be analysed. Thanks to the analysis of the relationship between the factors, it is possible to detect
the factor that has influenced the analytical target in a strict logical sequence and the analyst will
be aware of the causes and improve the possible weakness. The DuPont financial model is often
used to analyse the return on total assets (ROA), return on equity (ROE).

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Figure 1: DuPont financial model
From the above model it can be seen that, in order to improve the profitability of a co-asset
that the enterprise is using, corporate governance must study and consider what measures are
available for the continuous improvement of the profitability of revenue and the movement of

assets.
A simple calculation of a company's ROA and ROE may be simple and can give an idea into
a company's performance, but it still does not provide the full picture. The ROA and ROE ratios
are useful only when compared to the company's competitors or with the market.
8


The DuPont analysis helps make this comparison more detailed and accurate. If a company's
performance is lower than its peers, the DuPont analysis can help identify the specific figures and
areas that are performing poorly, thus helping a company improve.
Thus, financial analysis under the DuPont model has great significance for corporate
governance, not only evaluating business performance in a deep and comprehensive way, but also
fully and objectively evaluating the factors affecting business performance. Thereby, the system of
meticulous and authentic measures to strengthen the improvement of the business management
organization, contributing to constantly improving the business efficiency of the business in the
next business periods.

PART II
ABOUT AN PHAT BIOPLASTICS JOINT STOCK COMPANY

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An Phat Bioplastics Joint Stock Company (An Phat Bioplastics) is Southeast Asia’s No. 1
enterprise in the field of manufacturing and exporting high quality thin monolayer film. An Phat
Bioplastics is currently a public company, and a key member and the pioneer of An Phat Holdings.
With nearly 20 years of experience, An Phat Bioplastics has been attracting a large number of
domestic and international customers, establishing strategic business relationships with customers
in more than 50 countries around the world.
Along with the development of the traditional business of thin monolayer film, in recent
years, An Phat Bioplastics has shifted its strategic goals to diversified its products and focusing on
developing AnBio compostable compound and AnEco compostable products, such as bags, knives,

spoons, forks, straws, gloves…, meeting the green consumption trend in Vietnam and over the
world.
I- Company name and adress
-

Company name:

+ In Vietnamese: Công ty Cổ phần Nhựa An Phát Xanh
+ In English: An Phat Bioplastics Joint Stock Company
- Abbreviated name: An Phat Bioplastics., JSC
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- Stock code: AAA (HOSE)
- Registered head office: Lot CN11+CN12, An Dong Industrial Park, Nam Sach District, Hai
Duong Province, Vietnam
- Tel: (+84) 2203 755 997
(+84) 2203 755 998
-

Fax: (+84) 2203 755 113

-

E-mail:

-

Website: />
-

Charter Capital: VND 3,822,744,960,000. (extracted on 01/12/2022)

II- Development history
After nearly 20 years of establishment and development, An Phat Bioplastics has successfully
built the Southeast Asia’s leading sustainable and environmentally friendly business ecosystem,
making great contributions to the growth and development of Vietnam’s economy.

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September 2002: Anh Hai Duy Company Limited (the precursor of An Phat
Bioplastics) was established.
April 2004: Anh Hai Duy started to expand his business and put the first thin
monolayer film factory into operation, in Nam Sach Industrial Park, Hai Duong Province.
June 2005: The company started to build a second factory with an area of 19,967 m2 in
An Dong Industrial Cluster, Nam Sach District, Hai Duong Province.
March 2007: Anh Hai Duy Company Limited changed its name to AnPhat Plastic and
Packing Joint Stock Company.
September 2009: The company built another factory No. 3, with an area of 20,064 m2.
November 2009: The company changed its name to An Phat Plastic and Green
Environment Joint Stock Company. This event marked a dramatic change in a new stage of
development, pursuing the goal of “Green production, sustainability, environmental protection”.
July 2010: An Phat Plastic and Green Environment Joint Stock Company was officially
listed on Hanoi Stock Exchange with a ticker of AAA.
April 2019: An Phat Plastic and Green Environment Joint Stock Company changed its
name to An Phat Bioplastics Joint Stock Company. The company will further expand its
investment in developing compostable and environmentally friendly products and materials, as
well as owning the leading technology and inventions in this product line.

III- Board of Directors

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PRESIDENT
Mr. Nguyen Le Thang Long
(1984)
Doctor of Materials Science, Ecole
Polytechnique University (Paris, France)

MEMBER
Mrs.Nguyen Thi Tien
(1985)
Bachelor of Laws

MEMBER
Mrs. Tran Thi Thoan
(1985)
Bachelor of foreign language

MEMBER
(1974)
Mr. Phan Tri Nghia
Bachelor of Economics

Figure 2: An Phat Bioplastics JSC Board of Directors

Shareholder

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IV- Shareholders Structure

Share

% Holding (%)

Domestic individuals

152,422,450

46.69

Domestic institutions

166,798,570

51.1

Foreign individuals

2,353,600

0.72

Foreign institutions

4,859,876

1.49

Table 1: An Phat Bioplastics JSC Shareholders Structure

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Holding (%)

1.49%
0.72%
46.69%
51.10%

Domestic individuals
Domestic institutions
Foreign individuals
Foreign institutions

Figure 3: An Phat Bioplastics' shareholder structure

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PART III
MARKET ANALYSIS

I- Overview of the plastic industry
With the development of bioplastics in recent years, the bioplastics market has become active

and recorded with growth numbers.
In the current global market, bioplastics still account for a very small proportion (about 1%)
compared to the 367 million tons of conventional plastic produced annually. However, in contrast
to the slight decline in overall global plastic production, the bioplastics market continues to grow.
This growth is driven by increased demand combined with the emergence of more complex
products and applications.

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In the world as well as in Vietnam, the plastic industry is still young compared to other longstanding industries such as mechanics, electricity, chemicals, textiles, etc., but there has been a
strong development in the industry in recent years. The plastic industry in the period of 2010 2020, is one of the industries recording the highest growth in Vietnam with an annual growth rate
of 16% - 18% (only after telecommunications and textiles). Within the industry the growth rate of
some certain plastic products was nearly 100%/year.
With a fast development speed, the plastic industry is being considered as a dynamic industry
in the Vietnamese economy. There are several reasons to explain why the growth rate of plastics
products is very high. First, the market for plastics product is huge and very potential. Plastic
products are used in all facets of life (e.g. for packaging materials, construction materials,
production of household appliances, etc.). Second, Vietnam's plastic industry is only at the very
beginning of its development journey compared to the world. The demand for biodegradable
plastics in Vietnam is projected to reach 80,000 tonnes annually by 2025, according to Associate
Prof. Dr. Le Hung Anh, Director of the Institute of Environmental Science, Engineering and
Management.
At a recent workshop on biodegradable plastic production and consumption held by the Ministry of
Natural Resources and Environment in Ho Chi Minh City, he said that the growth orientation of
Vietnam’s plastics sector now focuses on effectiveness and sustainability. Companies like An Phat
Bioplastics, Biostarch, and the Phu My Plastic Production JSC have successfully developed
technologies for making biodegradable plastic bags, gloves, knives, forks, and straws, among
others, for consumption domestically and internationally. Shopping chains such as Co.opmart,

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Winmart, Big C, Mega Market, and Lotte have cut their use of single-use plastic bags and replaced
them with other environmentally-friendly packaging.
According to the Ministry of Industry and Trade, after the pandemic, 2022 will have many
prospects for the plastic industry thanks to the signing of a series of new-generation Free Trade
Agreements, which opens up opportunities to attract investment not only in foreign countries. FTA
cooperation, but also other countries come to invest and produce goods in Vietnam to take
advantage of the opportunities of the FTA.
II- Business situation of enterprises
The plastic industry is one of the relatively young industries of Vietnam but has a very fast
development speed. So far, there have been more than 4,000 enterprises operating in this industry,
of which more than 99% are private enterprises, concentrated mainly in the South of Viet Nam
(accounting for more than 80% of the country's plastic enterprises). This is the area where many
industrial parks concentrating in processing industry producing plastic packaging products. Most
of the plastic enterprises are SMEs.

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The competitiveness of Vietnamese plastic enterprises in general is rather low due to their
small production scale and limited technological capacity. Currently, Vietnamese plastic enterprises
mainly use Chinese technology. Machinery, equipment, and production lines imported from China
account for more than 40%. However, recently many plastic enterprises have invested in more
advanced technology from Korea and Japan to produce engineering plastic products, or German
technology to produce construction plastic products.
III- Foreign investment in the plastic industry
Compared to many other industries, Viet Nam’s plastic industry is very potential for foreign
investors. In the past years, Viet Nam's plastic industry has witnessed a large wave of investment
shifting from China to Vietnam. There are many reasons for this shift including cheaper labour
costs compared to China, some new Chinese policies prohibiting the import of waste plastics

affecting the plastic recycling activities of China’s enterprises. Chinese plastic products are subject
to anti-dumping duties in some markets, including Europe.
In addition, Vietnam has signed many free trade agreements with many major partners,
creating more opportunities for investment and export, attracting more foreign investors into Viet
Nam's plastic industry. Especially, investors from ASEAN (Thailand, Indonesia), Korea and Japan
have invested and bought shares in Viet Nam’s big plastic companies. Currently, the number of
domestic plastic enterprises accounts for about 85%, the remaining 15% are enterprises with
foreign capital.
The participation of foreign investors in Vietnam's market has significantly changed the face
of this industry. On the one hand, the participation of foreign investors has made the investment
14


market in this field more exciting, attracting capital and technology from abroad to help modernize
the domestic plastic industry. On the other hand, 100% domestic plastic enterprises will have to
compete with very strong foreign plastic enterprises, leading to the situation that many Vietnamese
plastic enterprises have been sold to foreign countries, or exit from the market.
IV- Import and export turnover of Vietnam's plastic industry.
For many years, the plastic industry has always been in a state of trade deficit, with export
turnover much lower than import turnover. The trade deficit has increased from 7.3 billion USD in
2015 to 14.6 billion USD in 2020. There are many reasons for the trade deficit in the plastic
industry.
Firstly, currently, the supply of domestic plastic materials can only meet about 20% of the
market demand, the remaining 80% of material demand in Vietnam must be imported from
abroad.
Secondly, a large part of imported plastic materials is used to produce products that are inputs
from other industries such as electronics, automobiles - motorcycles, construction etc. but when
exported, the value of these plastic components is not included in the export turnover of the plastic
industry.
Thirdly, the main products of the plastic industry are packaging products, household items

and plastic pipes used for construction, which mainly serve the domestic market. The export of
these products is negligible

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Unit: Billion USD
2015

2016

2017

2018

2019

2020

Import

9.9

10.9

13.3

15.3

15.5

19.6

Export

2.6

2.8

3.3

4.2

4.7

5

Deficit

7.3

8.1

10.0

11.1

10.8

14.6

Table 2: Vietnam's plastic export and import turnover over the years.

Source: Compiled from ITC Trademap

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PART IV
ANALYSIS OF AN PHAT BIOPLASTICS JSC FINANCIAL STATEMENTS 2020-2022
I- Sources and uses of cash
Sources and Uses of Cash (December 31,2022)
[VND millions]
SOURCE OF CASH
Current assets
Decrease in cash

258,398

Decrease in A/R

461,712

Decrease in Inventory

469,631

Decrease in other CA

14,329

Decrease in LT Receivables
Decrease in LT assets in progress

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Increase in LT Debt

Increase in Shareholder's Equity
TOTAL SOURCES

98,038
217,425
21,564
663,282
2,204,379

USE OF CASH
Increase in Prepaid Expenses
Increase in Fixed assets
Increase in LT Investments
Increase in other LT assets

23,958
1,159,586
22,450

Decrease in CL

195,169

TOTAL USES

2,204,839

Table 3: Standardised financial statements

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803,676


1. Balance Sheet

1,363,569
1,500
1,264,200
16,985
472,098
21,760
3,140,112

1,105,171
1,500
802,488
820,661
2,467
7,431
2,739,718

112,602
1,272,185
223,748

2,207,094
12,828
3,828,457
6,968,569

14,564
1,295,783
6,323
3,366,580
35,278
4,718,528
7,458,246

Liabilities
Current liabilities:
Accounts Payable
Total current liabilities
Long-term debt
Total Liabilities

2,689,124
2,689,124
295,669
2,984,793

1,848,167
1,848,167
754,744
2,602,911

1,652,998
1,652,998
776,308
2,429,306

3,296,669

4,365,658

5,028,940

6,281,462

6,968,569

7,458,246

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An Phat Bioplastics JSC
Balance Sheet 2020-2022
[VND millions]
2020
Assets
Current assets:
Cash and cash equivalents
616,523
Investment
301,600
Accounts Receivable

1,328,600
Prepaid expenses
20,273
Inventory
417,239
Other current assets
21,483
Total current assets
2,705,718
Non-current assets:
Long-term Receivable
50,987
Fixed assets
1,457,932
Long-term assets in progress
214,308
Long-term Investment
1,839,372
Other long-term assets
13,145
Total non-current assets
3,575,744
Total Assets
6,281,462

Shareholder's Equity
Total Liabilities &
Shareholder's Equity
Check

0.000

2021

0.000

Table 4: An Phat Bioplastics Balance Sheet 2020-2022

17

2022

0.000


1.1 Asset
Total asset value increases steadily from 2020 to 2022, increasing by nearly 20% after 2
years. The value of short-term and long-term assets in general increased, in which long-term assets
tend to increase faster, accounting for a higher proportion of short-term assets. The proportion of
long-term assets will be at 63% in 2022.
In 2021, liquidity ratios improved because the Company successfully auctioned 75 million
shares, earning VND 1068 billion, so cash and cash equivalents increased significantly.
The company's short-term and long-term financial investment activities tend to decrease
markedly through 2022.
1.2 Capital
The value of liabilities has decreased steadily over the years (maintained at about 65%), in
which short-term debt tends to decrease and long-term debt tends to increase.
Owner's equity is increasing, with a growth rate of 32% after 2 years, largely due to the
issuance of additional shares and retained earnings.

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The increasing interest of non-controlling shareholders means that the company's profits will
have to be distributed more to other shareholders.
1.3 Company's capital structure
Debt/Equity= 0.48 (2022), compared to the average of listed plastic enterprises, this is a
relatively safe level of financial leverage. Currently, the growth rate of total debt is still lower than
the growth rate of equity
2. Income Statement

An Phat Bioplastics JSC
Income Statement 2020-2022
[VND millions]
2020
Revenue from sales and services

4,420,545

Revenue deductions
Net revenues from sales and
services rendered
Costs of Goods Sold

(204)

18

4,420,341

2021

2022

5,130,177

5,530,345

(1,073)

(79,672)

5,129,104
(4,568,905)

5,450,673
(4,839,338)


(3,967,632)
Gross revenues from sales and
services rendered

452,709

560,199

611,335

Financial Income

92,152

163,636

99,823

Financial Expense

(153,453)

(140,174)

(321,253)

Selling Expense

(112,060)

(297,643)

(259,977)

Administration Expenses

(65,777)

(58,421)

(67,173)

213,571

227,597

62,755

3,011

3,523

(3,081)

(259)

(70)

3,264
66,019

Net income
Other income

3,420

Other Expenses

(3,827)

Other loss/profit

(407)

Earnings Before Taxes

213,164

227,527

Income Taxes

(25,007)

(39,789)

(34,944)

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Net Earnings

188,157

187,738

31,075

Table 5: An Phat Bioplastics Income Statement 2020-2022

2.1 Revenue analysis
In 2021, the company's revenue reached VND 5130 billion, an increase of 16% compared to

2020. The sharp increase in the price of plastic resins made this segment's revenue also increase.
In particular, in 2021, the new Industrial Park - An Phat Industrial Park 1 (formerly Quoc Tuan
Industrial Park - An Binh) with a total area of 180ha and a commercial area of 130ha has received
the Investment Certificate.
Conclusion: Producing, selling, and trading in plastic products and packaging is the main
business activity, accounting for the largest proportion in the total revenue of the Company.
AAA's plastic products can be divided into main categories: Biodegradable products and
materials; Packaging; Raw materials and chemicals for plastic industry.
2.2 Expenses analysis
In 2020-2021, the company reduces financial costs due to unfavourable financial activities.
The cause is the negative impact of the Covid-19 epidemic on the world economy.

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Cost of goods sold is quite high, about 89% of total revenue. The increase in cost of goods
sold is equivalent to the increase in revenue in the period of 2020-2022. This is detrimental to the
company. Compared to its competitors, AAA still needs to improve its cost efficiency. If costs
continue to increase, the selling price should be increased with the increase in costs.

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III. Financial ratios (between years and other peer companies of the industry, industry avarage)
1. Between 2020-2022
An Phat Bioplastics JSC
Financial Ratios (2020-2022)
[VND millions]

2020

2021

2022

Solvency
Current Ratio

1.01

1.70

1.66

The Quick Ratio

0.85

1.44

1,2

Financial leverage
Debt to total equity ratio

0.48

0.37

0.33

D/E ratio

0.91

0.60

0.48

0.72

0.77

0.80

Asset management ratios
Total asset turnover

7.43

8.00

8.07

Inventory turnovers

8.92

10.72

12.54

4.26

3.67

5.2

Profitability ratios (%)
Profit Margin

n

Receivables turnover

ROAE

6.29

4,9.

5.3

ROAA

3.07

2.84

2.54

ROS

3.81

2.47

0.74

ROA

3.17

3.12

1.5

ROE

7.21

6.12

2.68

EPS

1367

1042

441

BVPS

18146

16709

16134

P/E

10.53

19.39

15.49

Table 6: An Phat Bioplastics JSC Financial Ratios 2020-2022

1.1 Solvency analysis

Liquidity ratios reflect the level of financial safety, ability to pay short-term debts and
ensure that the Company does not fall into a state of insolvency. The short-term solvency ratio of
the Company has been maintained stable and greater than 1 over the years, showing that the
company can completely pay the arising debt obligations. In 2021, liquidity ratios improved
because the Company successfully auctioned 75 million shares, earning VND 1068 billion, so
cash and cash equivalents increased.

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
Overall solvency ratio: From 2020 to 2022, the coefficient is >1 Reflecting basically,
with the total current assets, the enterprise can fully meet its debts. In 2021, the coefficient is 2.2,
reflecting the solvency of the business very well. This means that for every 1 debt, there is still
2.2 dong secured, which means that the company's debt still has collateral for AAA's liquidity.

Quick ratio: We see that in all 3 years, quick ratio is > 1, reflecting the business has
good solvency and high liquidity. that proves the security and ability to pay short-term debts with
the available money. This shows that the financial position of the group is quite stable, it can
positively affect the operation of the group in the future.

Instant Ratio: Cash and cash equivalents herein include cash, bank deposits, cash in
transit, short-term securities investments and other short-term investments that can be easily
converted to cash within 3 months without major risk. This coefficient < 1: With the current
amount of cash and cash equivalents, the enterprise cannot guarantee instant payment of payable
debts within 3 months. However, here we still see a growth coefficient, businesses are also trying
to improve.
1.2 Capital structure analysis

n

The debt/total assets ratio of the parent and consolidated companies continued to improve, to
0.31 and 0.60 in 2021, respectively, as the company actively paid debt during the year, while the
equity increased due to capital increase of the company.
Debt/Equity structure=0.48 (2022), compared to the average of listed plastic enterprises, this
is a relatively safe level of financial leverage. Currently, the growth rate of total debt is still lower
than the growth rate of equity.

From the table above, we can see that the number of inventory turnovers fluctuates gradually
higher and higher, indicating that the enterprise has ensured solvency, and at the same time, the
inventory turnover has also decreased specifically... showing the business The business of
enterprises is more effective
The number of receivables turnover has increased significantly, specifically increasing to 3
rounds, proving that the debt collection work of the enterprise is very good.
Regarding the average collection period, it also clearly shows the efforts in debt collection,
specifically, it has been reduced by nearly 1 month.
1.3 Operational efficiency analysis

22


Consolidated inventory turnover increased to 12.54 times compared to 10.72 times in 2021
and 8.92 times in 2020. Total asset turnover increased from 0.9 times in 2020 to 1.41 times in
2021.
Receivables turnover increased from 7.43 times in 2020 and 8 times in 2021 to 8.07 times in 2022.
According to statistics, in 3 years 2020-2022, the company's ROS is always positive, proving
that the company is profitable. However, this number is decreasing. Enterprises need to take
measures to optimize and improve ROS such as cost control, product life cycle, increase in
revenue., Analysing and evaluating factors such as: product demand, buyer's income, competitor's
product price, etc… and then, making reasonable business strategies, easily controlling ROS.
1.4 Profitability analysis
Net profit margin decreased compared to 2020 due to the sudden increase in transportation
costs, which increased selling expenses. ROE, ROA decreased because in the year the Company
increased equity, the newly collected capital did not create business efficiency in the year.
2. Industry comparison
Industry comparison

n

Short-term solvency - Current ratio 2020-2022
Company

2020

2021

2022

An Phat Bioplastics JSC (HOSE: AAA)

1.01

1.70

1.66

Binh Minh Plastics JSC (HOSE: BMP)
Dong A Plastic JSC (HOSE: DAG)

4.00
1.37

5.03
1.21

4.20
1.54

Tan Binh Culture JSC (HNX: ALT)

5.43

6.07

4.83

Tien Phong Plastic JSC (HNX: NTP)

1.35

1.16

1.65

Average

2.63

3.03

2.78

Table 7: AAA's current ratio's industry comparison 2020-2022
Industry comparison
Short-term solvency - The Quick Ratio 2020-2022

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Company
An Phat Bioplastics JSC (HOSE: AAA)

2020
0.85

2021
1.44

2022
1.20

Binh Minh Plastics JSC (HOSE: BMP)

2.57

3.08

2.95


Dong A Plastic JSC (HOSE: DAG)

0.69

0.43

0.51

Tan Binh Culture JSC (HNX: ALT)

5.43

6.07

4.83

Tien Phong Plastic JSC (HNX: NTP)

0.87

0.73

0.61

Average

2.08

2.35

2.02

Table 8: AAA's Quick Ratio's Industry comparison 2020-2022
Compared to some other companies in the industry, AAA's short-term ratio and quick ratio
are average, but lower than some companies like BMP or ALT. We see that Binh Minh Plastics
Joint Stock Company is focusing on the company's autonomous financial foundation. However, the
downside is that the company uses very low financial leverage, so the ability to grow and expand
business activities is more limited.
In general, in 2022, AAA's solvency indicators are improved compared to 2021, solvency is

always maintained at a safe level. AAA Company has balanced its finances to ensure that its
solvency by maintaining its short-term solvency ratio is always greater than 1. This ratio is at a safe
and moderate level in line with its strategic use. use the company's financial leverage.
IV. DuPont analysis.
1. DuPont analysis - ROA

n

The company's ROA is mainly influenced by the company's return on sales. In 2020, the
return on sales fell sharply while the asset utilization efficiency increased, but the ROA results
still decreased at the same rate as the rate of return on sales. However, in 2022, the opposite
happened, ROA was affected by the understanding of asset use because in 2022, the company
invested heavily in fixed assets, leading to a sharp increase in the company's total assets.
2. DuPont analysis - ROE
ROE represents a company's financial leverage. With the same amount of assets, a properly
leveraged firm in its asset structure can generate a higher ROE than an unlevered firm. However,
financial leverage will increase risk. Corporate debt is more sensitive to the economic cycle,
especially during difficult times, when revenue declines. Decreasing financial leverage indicates
diminishing liquidity risk.
After using the DuPont model, in the case of AAA, we can clearly see that: AAA's ROE from
2020 to 2022 increased over the years thanks to a marked improvement in all factors, showing
positive signs.

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