ALPHANAM JSC

Company

LOGO

ALPHANAM JSC

INDUSTRIAL COMBINATION


Content
1. Company Overview.
2. Relationship between Vietnamese
financial market and Alphanam’s
financial management.
3. Company’s Profitability and Risks.


Company Overview
• Established in 1995 as Alphanam Co., Ltd
• 2002: Alphanam JSC
• Industry: Industrial Combination
• Business Fields:
- Manufacturing Industrial Equipment, Material and Products
- Installation and Contruction of Industrial Infrastructure
- Real Estate Business
- Financial Investment
• ALP was listed on HOSE on December 18, 2007
• Chartered Capital: 438,203,930,000 VND


Company Overview

Company Overview


Financial Relationship
EXAMPLE #1:
- In 2010, Alphanam JSC and GEM signed
a term sheet in which GEM committed to
invest 30 million in Alphanam in shares,
with the purchasing price at 90% of market
price.
- Financial market:
+ Ineffective administrative procedures
+ Stock prices fell


Example #1 (cont.)
- Effects: Alphanam did not want to sell their
shares at 90% market price as agreed 6
months ago.
- Financial Decision: put off the deal
temporarily.


Example #2
EXAMPLE #2
- 10/2010: Alphanam intended to issue 200 bil.
worth in bonds for MB purchase with a 15%
annual interest rate.

- Financial Market:
+ Ineffective administrative procedures.
+ Interest rate increased from 12-13% to 19-20%
after 3 months.
- Effects: High interest rate caused the bond
offering to fail.


Balance Sheet


Income Statement


Liquidity Ratios

• Rather low liquidity risks.
• 2008: maintained a good capability of
paying short-term debts.


Leverage Ratios

• Very low risks in insolvency.
• May have failed to take advantage of
financial leverage


Efficiency Ratios

• Capital Management might have problems.
• Not a generous creditor.


Profitability Ratios

• Quite effective through years
• Relatively low profitability compared to the
industry’s


Market Value Ratios

• Business Performance is getting better
• Attract investors


DuPont Analysis
• ROE = Profit Margin (NI/Sales) * Total
Asset Turnover (Sales/Assets) * Equity
Multiplier (Assets/Equity)


DuPont Analysis

• Profit Margin affects ROE the most