report about FPT joint stock company – FPT

BML5103 Assignment Managerial Finance

2014 MARCH SEMESTER
BML5103 – MANAGERIAL FINANCE
ASSIGNMENT
SUBJECT
A WRITTEN REPORT

Advisor: PHAN NGUYEN
Student: PHAM HAI DAO
ID No: CGS00017300
Date of birth: 29/05/1990
Class: MBA HUTECH – OUM0314 K13C

PHAM HAI DAO
ID: CGS00017300

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BML5103 Assignment Managerial Finance

Contents
Intro FPT...............................................................................page 2
Evalution proportion..............................................................page 5

I- Company Overview....................................................page 7
1. Introduction..................................................................... page 7
2. Business Administration.................................................. page 7
3. Advantages...................................................................... page 7

II – Operating Results....................................................page 8
1. Statement.......................................................................... page 8
2. Profitability...................................................................... page 8
3. Financial Situation........................................................... page 9

III - Swot Analysis........................................................page 10
1. Strengths....................................................................... page 10
2. Weaknesses.................................................................... page 10
3. Opportunity................................................................... page 10
4. Challenges.................................................................... page 10

IV - Business Opportunities.........................................page 11

PHAM HAI DAO
ID: CGS00017300

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BML5103 Assignment Managerial Finance

FPT Joint stock Company – FPT
Co. Profile
Ticker

FPT

Charter Capital (VND bln)

3,440

Outstanding shares (mln)

343,895

Market Capital (VND bln)

17,883

52W range (VND)

42,600 - 72,500

Ave. trading volume 3M

1,005,272

Beta

1.34

Foreign Ownership

49%

First listing date

13/12/2006

Major shareholders

Truong Gia Binh

7.14%

SCIC

6.05%

Red River Holdings

5.73%

Others

81.08%

PHAM HAI DAO
ID: CGS00017300

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BML5103 Assignment Managerial Finance

EVALUATION PROPORTION
PHAM HAI DAO
ID: CGS00017300

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BML5103 Assignment Managerial Finance

MATRIX DENSITY Evaluation
VALUATION
MODEL

PRIC
E

PROPORTION

Intrinsic value of the
stock (VND)

80,209

70%

56,146

44,001

30%

13,200

100%

69,346

Value stocks under
Benijamin Graham
AVERAGE PRICE

AVERAGE
PRICE

- FPT is the leading enterprise in the field of information technology in
Vietnam, many corporations are holding a large market share in areas such as export
processing software, telecommunications services, online advertising ...
- In 2013, despite strong profit growth but the business results of FPT still very
positive, business plan completed at a high level, telecommunication services and
software exports is the leader in the field of growth.
- The Japanese companies are turning to outsourcing contracts to Vietnam, it
would be a big advantage for FPT, 2014 in addition to promoting corporate
globalization strategies for both the software solution ...
- On 06/18/2014, FPT officially completed M & A first in history to buy the
company RWE IT Slovakia - member companies specialize in providing SAP
solutions and Smart home of the RWE Group.
- On 03.06.2014 Release 1.35 million shares at par value for a limited time
employee assignment is for 3 years
- In 2013, sales reached 27,114 billion, up 10% and profit after tax was 2.065
billion, up 4% compared to the same period in 2013, the first 5 months of 2014, sales
reached 12,320 FPT billion, up 26%, Net profit reached 841 billion, up 3% over the
same period and reached 37% in 2014 profit target.
- In 2013 dividend at 30% in cash and 25% shares
- Plan 2014 dividend at 20% of cash.
=> Considering that, FPT has many potential long-term development, and FPT is
one of the businesses have high dividend, a healthy financial situation combined with

the results of steady business growth ... so recommends investors buy the item FPT
medium and long term objectives with prices expected to reach 70,000 dong / share

EQUITY RESEARCH REPORT FPT
PHAM HAI DAO
ID: CGS00017300

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BML5103 Assignment Managerial Finance

I- COMPANY OVERVIEW
1. INTRODUCTION
FPT was established in 1988, formerly known as Food Technology Company.
So far FPT were present 57 provinces nationwide and 17 countries around the world.
FPT is currently the No. 1 domestic enterprises in the field of information technology.
2. BUSINESS ADMINISTRATION
- Group operates in four core areas including information technology,
telecommunications, trade and education combined with other fields.
- The technology sector: includes activities such as software exports, software
solutions, systems integration and information technology services.
- Telecommunications sector: companies that provide broadband internet
services, interactive TV, cable TV and content services, such as online advertising,
online games, e-commerce ...
- Field of commercial and retail distributors of products and equipment
technology more than 60 famous brands such as IBM, Lenovo, Microsoft, HP ....
- The field of education: FPT is the prestigious universities in the training of
information technology, multimedia art ..
3. ADVANTAGES

- FPT is currently No. 1 in multiple business sectors such as export processing
software, systems integration services.
- Under the top 500 software companies leading.
- Top 3 supplier of fixed-line telecommunications services
- In the field of digital content is FPT units providing online advertising services
and number one provider of top 3 online games in Vietnam.
- The first unit was right to distribute Apple products in Vietnam from May
4/2013.

II – OPERATING RESULTS
PHAM HAI DAO
ID: CGS00017300

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BML5103 Assignment Managerial Finance

1. STATEMENT
- In 2013, FPT revenue of 27,115 billion, up 10%, profit after tax was 2.065
billion, up 4% compared to 2012.
- Revenues reached 6,537 cubic technologies billion, up 10% compared to the
year 2012 in the array of technology, software export segment has seen the highest
sales growth in 2013 revenue from this segment reached 2,157 billion copper, up 24%
compared to 2012.
- apan is the major export market of FPT, 2013 although spending on
information technology in Japan fell 15% but export sales to Japan reached 1,121
billion, an increase of 12%, if kind of JPY devaluation in 2013, the export sales to this
market increased to 32% compared to 2012.
- In the field of software solutions and systems integration, revenue was little

changed compared with 2012.
- Considering the telecommunications sector: sales 4,137 billion, down 9%,
including telecommunications services reached 3,254 billion, an increase of 18%
- Array of content to reach 883 billion, down 10% compared to 2012.
- In 2013, the revenue of digital content decreased due to the impact of the
economic downturn, demand for online advertising cuts, besides Game Online policy
management is tight, so the end of the year 2013 field of digital content pretax profit
of 140 billion dong, down 31% compared to 2012.
- In the commercial sector, despite the expansion of operating scale, particularly
in retail banking revenue reached 3.932 billion, up 186%, the number of stores
increased by 100% compared to 2012 and reached level 100 shop. However, this
activity has holes 32 billion.
- First 5 months of 2014, revenue FPT 12,320 billion, up 26%, profit before tax
was 999 billion, up 3% over the same period and completed 37% target in 2014.
2. Profitability
- The profitability ratios in 2013 were little changed compared to 2012 gross
profit margin and net profit margin reached 20 % , respectively , and 6 % , equivalent
to 2012.
- elecommunications services segment has always yielding the highest profit
margin before tax of 26%, which is next array software exports reached 21%.
Meanwhile, although the commercial sector contributed the highest revenue but pretax profit margin of only 2%, especially in the retail segment in 2013 continued to
suffer losses 32 billion, while in 2012 this area a loss of 35 billion dong.
- The profitability on assets ROA and profitability on equity ROE in 2013 is
somewhat mitigated. Specifically, the 2012 ROA of 14%, a slight decrease to 12% in
PHAM HAI DAO
ID: CGS00017300

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BML5103 Assignment Managerial Finance

2013, the same year 201 ROE reached 28%, decrease slightly to 25% compared to
2013
3. FINANCIAL SITUATION
- In 2013, accounting for 129% debt over equity, a slight increase compared to
115% in 2012.Trong 2013, FPT enhance short-term debt at 4.167 billion, up 46%
compared to 2012 , Short-term debt accounted for 45% of total liabilities. In terms of
total debt to total assets in 2013 53% debt to total assets ratio is equivalent to 2012,
the proportion of FPT we borrow at reasonable, secure the payment of debts class.
- Considering that the debt ratio at a reasonable level, so the solvency of FPT
quite stable and safe. 2013, the ratio reached 1:42 payments current time, equal to
2012, similar to 2013 ratio Quick ratio reaches 1. 06 times, this rate will not fluctuate
more than in 2012 thus showing the financial position of FPT very strong.

III - SWOT ANALYSIS
PHAM HAI DAO
ID: CGS00017300

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BML5103 Assignment Managerial Finance

1. STRENGTHS
- FPT is the leading enterprises in Vietnam in the field of information
technology, the group signed a contract easily integrated systems for government
agencies, healthcare, banks, supermarkets ....
- Accounting for 25% market share of software exports abroad.
- As one of three internet service providers in Vietnam.

2. WEAKNESSES
- In the field of software exports, FPT stop at the processing level.
- In the field of internet services, marketing FPT concentrated in big cities.
- Commercial activities of the information technology has yet to overcome the
loss.
3. OPPORTUNITY
- Route running north - south artery B, and first arterial roads connecting to
Laos FPT complete help improve local capacity and reserve capacity bandwidth.
- Outsourcing industry in Japan are shifting from Japan to Vietnam due to labor
cost in Vietnam is only at 60 % compared to India and China.
4. CHALLENGES
- Commercial activities are subject to fierce competition from retail distributors
and other technological devices , and this activity is subject to the adverse effects of
economic crisis.
- Despite owning FPT FPT University , however, in the field of human resource
outsourcing is one of the challenges that not only FPT for information technology in
Vietnam .

IV - BUSINESS OPPORTUNITIES

PHAM HAI DAO
ID: CGS00017300

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BML5103 Assignment Managerial Finance

- FPT planned 2014 sales reached 31.892 billion, up 18 % , profit before tax was
2.672 billion, an increase of 6 % compared with that in 2013.

- In 2014 , software export sector is expected to have higher growth than other
areas due to the strategy of corporate globalization as promoting software exports in
the United States , Japan and Europe . Japan is particularly likely to move orders
outsourcing from China to Vietnam , so this is a great opportunity for Vietnam ,
especially those giants such as FPT.
- In addition, FPT and implement a strategy of globalization in the field of
software solutions and promotion of software solutions in the areas such as banking ,
telecommunications , healthcare ... abroad as Laos , Cambodia , Myanmar ,
Bangladesh , Bhutan ... .Currently FPT have 5 branches in major cities of Cambodia.
- In the telecommunications sector , FPT plans to continue to invest in cable
channels , and route North - South axis B circuit and the first arterial roads connecting
to Laos FPT complete help improve local capacity capacity and bandwidth
redundancy.
- According FPT in 2014 , FPT will invest heavily for infrastructure
photochemistry and choose the form of accelerated depreciation for investments , so
the expected pre-tax profit from the telecom division will decrease compared to 2013 ,
which also led to the growth of profits will be lower than the revenue growth in 2014 .
- According to projected results , 2014 FPT can be achieved revenue of 31.681
billion, up 17 % compared with 2013 and completed 99 % of the plan in 2014 , profit
after tax was 2.327 billion, up 13 % compared to 2014 , exceeds 5 % compared with
2014 plan , applicants with projected results , EPS in 2014 reached 5,266 / share ,
down 10 % compared to 2013 ( due to dilution after the stock dividend ).
---THE END---

PHAM HAI DAO
ID: CGS00017300

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