DANANG UNIVERSITY OF ECONOMIC – DANANG UNIVERSITY

FINANCE DEPARTMENT
--------------------------

REPORT THE PORTFOLIO OF

SABECO AND VINGROUP
Class : 42K15.3_CLC
Member’s : Duong Trong Duoc
Pham Van Vu
Dinh Thi Thu Quynh
Nguyen Thi Thanh Hien

Year 2019 - 2020

 CATEGORY

CATEGORY........................................................................................................................... 1
CATEGORY OF TABLES......................................................................................................2
I. GENERAL ECONOMIC INFLUENCES:......................................................................3
1. Macro factors:............................................................................................................3
1.1 Economic growth:..................................................................................................3
1.2 Political risk:..........................................................................................................4
2. Economic situation in Viet Nam:...............................................................................4
2.1 The growth of rate:.................................................................................................5
2.2 Inflation:................................................................................................................. 5
2.3 Comsumer price index:...........................................................................................6
3. Industry analysis :......................................................................................................6
3.1 Consumer goods industry ( Drinks ):......................................................................6
3.2 Real estate :............................................................................................................7
II. COMPANY ANALYSIS :...............................................................................................8
1. 1, Vingroup - Joint Stock Company...........................................................................8
1.1 Overview:............................................................................................................... 8
1.2 Development history:.............................................................................................9
1.3 Area of opeations:................................................................................................10
1.4 Shareholder Structure:..........................................................................................10
1.5 Business activities:...............................................................................................10
1.6 Competitors:.........................................................................................................11
1.7 Analyzing financial status:...................................................................................11
2. SAB Coperation:......................................................................................................13
2.1 Overview:.............................................................................................................13
2.2 Development history:...........................................................................................13

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 2.3 Area of opeations:................................................................................................14
2.4 Framework of organization:.................................................................................14
2.5 Business activities:...............................................................................................14
2.6 The competitor:....................................................................................................14
2.7 Company’s postion:..............................................................................................15
2.8 Analyzing financial status:...................................................................................15
III. RESOLVE THE SITUATION:....................................................................................17
1. Collecting the datas of two stocks from 1/1/2018 to 31/08/2019.............................17
2. Calculate daily rate of return:...................................................................................18
3. Calculate the expected rate of return:.......................................................................18
4. Calculate the covariance and correlation:................................................................18
5. Draw the minimum variance frontier and point out the efficient frontier:...............20
5.1 Draw the minimum variance frontier:..................................................................20
5.2 Point out the efficient frontier:.............................................................................20
6. If you had 100 million dong, how would you invest?..............................................20
REFERENCE MATERIAL...................................................................................................22

CATEGORY OF TABLES

Table 1: Some majors index in the first 10 month in 2019......................................................5

Table 2: Industry statistics of consumer goods of industry ( Drinks)......................................6
Table 3 Industry statistics of real estate...................................................................................8
Table 4 Operation efficency analysis of VIC’s between 2017 and 2018...............................11
Table 5 Analysis the profitabilty ratios of VIC’s...................................................................12
Table 6 Analysis the turnover ratios of VIC’s........................................................................13
Table 7 Operation efficency analysis of SAB’s between 2017 and 2018..............................15
Table 8 Analysis the profitabily of SAB’s.............................................................................16
Table 9 Analysis the turnover ratios of SAB’s.......................................................................17
Table 10 Analysis the turnover ratios of SAB’s.....................................................................17

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I. GENERAL ECONOMIC INFLUENCES:

1. Macro factors:

1.1 Economic growth:

Economic growth in early 2019 was stronger than expected. Real (inflation-adjusted) gross
domestic product (GDP) grew by 3.2 percent in the first quarter of 2019, according to last
week’s announcement by the Bureau of Economic Analysis. This growth number is
preliminary, and will be revised in May.

The stronger growth recorded from January to March was an unexpected development after
an increase of 2.2 percent in the last quarter of 2018. However, the numbers underlying this
topline growth tell a more nuanced story. Growth was fueled largely by higher state and
local government spending, private inventory investment, and exports. Consumer spending
and business investment — large components of GDP growth — were weak.

1.2 Political risk:

In 2018-2019, the biggest risk to the world economy remains the U.S.-China trade war. If
there’s one thing Democrats and Republicans agree on, it’s that China’s rise is a
challenge for the U.S. The risks from China include threats to the technology supply
chain, Beijing’s military expansion, and the country’s efforts to undermine sanctions on
North Korea, according to the U.S.-China Economic and Security Review Commission,

3
 an annual report by a bipartisan congressional panel. This has a great influence on the
world economic situation because these are the two most powerful powers. However, it
also creates benefit conditions for developing countries to attract foreign investment and
develop other business areas such as real estate, services, manufacturing consumer
goods…

2. Economic situation in Viet Nam:

- The difference of economic indicators in early 2019 compared to 2018 is shown in
the table below:

Source: The General Statistics Office of Vietnam

Table 1: Some majors index in the first 10 month in 2019

2.1 The growth of rate:
- Vietnam's gross domestic product expanded by 7.31 percent year-on-year in the third
quarter of 2019, following a marginally revised 6.73 percent growth in the previous
quarter. This was the strongest GDP growth rate since the fourth quarter last year, as

Some major index in the first 10 month in 2019 ( increase/decrease ) in

comparison with the same period in 2018 ( % )
Industrial production index +9,5
Goods retails and consumption service revenue +11,8
GDP +0.4
total exports +7,4
total imports +7,8
Foreigners to Viet Nam +13,0
Investment capital from state budget +5,3
Consumer price index +2,48
Basic inflation +1,92
output expanded faster for industry and construction (10.05% vs 9.14%,respectively)
and services (7.1% vs 6.85% respectively). Meanwhile, agriculture, forestry and
fisheries advanced softer (1.53% vs 2.04% respectively). For the first three quarters
of 2019, the economy grew 6.98%. Vietnam targets an economic growth of between
6.6-6.8% this year. GDP Annual Growth Rate in Vietnam averaged 6.53% from 2000
until 2019, reaching an all time high of 8.48% in the fourth quarter of 2007 and a
record low of 3.12% in the first quarter of 2009.

- In 2019 is the first year the main growth motivation has come from the processing
and manufacturing sector. The share of exports and investment of the domestic
private sector has also increased ... Vietnam maintains the highest growth rate in
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 ASEAN and is among the best growing economies in Asia. Those are very important
and not easy results. Regarding the vision for 2020 and the years to come, the goal of
maintaining a 6.8% growth rate is very difficult in the context that the world economy
and trade are slowing down and it is predicted that it is likely to reach the threshold of
decline. global regression

2.2 Inflation:
- Inflation in the first quarterly 2019 increased by 1.92% with 2018.
- The implementation of strict, flexible and effective monetary policy, coordinated
synchronously with fiscal policy, trade, investment, prices, markets has contributed
significantly to control inflation under the title. out. Stable exchange rates, interest
rates tended to decrease in line with inflation, creating favorable conditions for
production and business.

2.3 Comsumer price index:

- Average CPI in 2019 increased by 2.48% compared to 2018 average, below the target
set by the National Assembly. Industry analysis.

3. Industry analysis :
3.1 Consumer goods industry ( Drinks ):
- The index about value, price, profitability, strong finance, manage efficient of drinks
industry are summarized in the table below:

Industry statistics

Valuation

P/E 18,67
P/B 3,65
P/S 1,79
Profitability
Coupon rate 16,43%
EBIT ratio 1343,96%
Profit from operating activities -3187,7%
Net profit ratio -2033,68%
Financial strength
Quick payment ratio 1,42
Current payment ratio 2,09
Long-term liability/equity 0,1
Total debt/Equity 0,84
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 Manage efficient
ROA 7,81%
ROE 13,97%
ROIC 9,99%
Table 2: Industry statistics of consumer goods of industry ( Drinks)
- P/E represents the price at which investors are willing to pay for a share of earnings
from stocks. P/E equal 18,67 means high P / E ratio reflects investors expectation that
the income growth from that stock will be higher in the future.
- Quick payment ratio is 1,42>1, This demonstrate ability to pay off debt well in the
short term.
- Current payment ratio= 2,09. A high ratio indicates a good solvency for the company
and is also true in long term(long term liability/ equity=0,1 that is quite low). This
small ratio proves that enterprises are less dependent on capital mobilization by debt;
may imply that the business is subject to low risk.
- Return on asset and return on equity are also high , 7.81% and 13.97% respectively.
- As the result, investor can consider to invest in short term and long term.

3.2 Real estate :

 Global and domestic

- Today, the real estate industry is one of the most lucrative sectors of the U.S economy
in particular, of global economy in general. It continues to provide opportunities for
interested and motivated individuals. Since many professions within real estate are
based on sales, success depends on effort. This is an industry for hardworking, goal-
oriented people who are always ready to take on more. However, the hard-charging
lifestyle is balanced by some flexibility: Those who succeed in the real estate industry
often set their own hours, are not limited by a fixed salary, and can be their own boss.

Industry statistics

Valuation

P/E 23,03
P/B 2,66
P/S 3,08

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 Profitability
Coupon rate 31,17%
EBIT ratio 55,64%
Profit from operating activity -49,66%
Net profit ratio 43,40%
Financial strength
Quick payment ratio 2,33
Current payment ratio 3,01
Long-term liability/equity 0,3
Total debt/Equity 3,19
Manage efficient
ROA 5,96%
ROE 17,47%
ROIC 5,7%
Table 3 Industry statistics of real estate
- P/E equal 23,03 means high P / E ratio reflects investors expectation that the income
growth from that stock will be higher in the future.
- Quick payment ratio is 2,33>1, This reflects the company's ability to pay off its
liabilities with short-term assets that can be converted into cash quickly.
- Current payment ratio= 3,01. A high ratio indicates a good solvency for the company
- Long term liability/ equity equal 0,3 and total debt/ equity equal 3,19. This
demonstrate that short term debt is quite high.
- Return on asset and return on equity are also high , 5,96% and 17,41% respectively.
- As the result, investor can consider to invest in long term.

II. COMPANY ANALYSIS :

1. 1, Vingroup - Joint Stock Company.
1.1 Overview:
- Compay’s English name: Vingroup - Joint Stock Company.

- Transaction Name of business: Vingroup

- Securities Code: VIC

- Website vingroup.net

- Type of busines: Joint stock company

- Field operations: Real estate, tourism, education, health services, agriculture,

technology

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 - Established August 8, 1993; 26 years ago
- Founders: Pham Nhat Vuong, Le Viet Lam, Pham Thuy Hang, Pham Thu Huong,
Nguyen Huong Lan, Tran Minh Son, Nguyen Thuy Ha.
- Head office No. 7, Bang Lang 1 Street, Vinhomes Riverside, Viet Hung Ward, Long
Bien District, Hanoi
- Products: Vinhomes, Vin City, Happy Town, Vincom, Vin Office, Vinpearl, Vinpearl
Land, Vinpearl Golf, Vinpearl Luxury, Vintata, Vinpearl Hotels & Resort, Vinpearl
Discovery, VinOasis, Vinpearl Safari, VinMart & VinMart +, VinPro, Adayroi.com ,
VinFast, VinSmart, VinMec, VinFa, Vin DS, Vinschool, VinUniversity, VinEco,
VinTech, Vincom Retail, Vinpearl Safari, Vinpearl Air, Vin ID, Vin ID Pay, VinBus,
Vin KE, Vincharm, ALMAZ.
- Revenue increased by VND 122,575 billion (2018)
- Real interest: Increase VND 5,815 billion (2018)
- Total assets Increase VND 289,105 billion (2018)

1.2 Development history:

- 9/2009, Technocom Group in Vietnam changed its name to Vingroup, moved its
headquarters from Kharkov (Ukraine) to Hanoi.
- 2/2010, Nestle Group of Switzerland acquired Technocom facility in Ukraine and
Mivina brand, the purchase price was agreed to 150 million usa. At the time,
Technocom had three factories in Kharkov: "Mivina-3", "EF-G-FOOD" and
"Pakservis", with 1900 employees and an annual turnover of about $ 100 million.
- 11/2011, the extraordinary shareholders' meeting 2 Vincom Joint Stock Company
and Vinpearl officially approved the merger plan to establish Vingroup - Joint Stock
Company (Vingroup) with expected charter capital after the merger. is nearly 5,500
billion VND (approximately 265 million USD) and capitalization of about 50,000
billion VND (equivalent to about 2.4 billion USD)
- 1/2012: Merging Vinpearl Joint Stock Company and Vincom Joint Stock Company,
raising the total charter capital to nearly VND 5,500 billion and through the strategy
of building and developing the Group with 4 brand groups:
Vincom (Real estate)
Vinpearl (Tourism - entertainment)
Vincharm (Beauty and health)
Vinmec (high quality health service) and operates as a new legal entity: Vingroup.
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January 7, 2012: Inauguration of Vinmec International General Hospital, a hospital
modeled after a hotel hospital.
- 3/2012: Successfully issuing international convertible bonds with a volume of USD
185 million, listed on the Singapore Stock Exchange.
- 6/2012: Successfully issuing additional USD 115 million convertible bonds,
bringing the total issued in 2012 to USD 300 million.
- 12/2012: The deal of issuing 300 million USD of international convertible bonds
was Finance Asia - Asia's leading prestigious magazine in the field of finance and
banking voted "The best transaction in Vietnam in 2012".
- 1/2013: Vingroup became a founding member of the World Economic Forum.
- 4/2013: Officially entered the Vietnamese education market with the brand
Vinschool - The system of schools from preschool to high school.
- 5/2013: Invested in cooperation with Warburg Pincus - the world's leading
investment fund, attracting US $ 200 million in Vincom Retail Joint Stock Company.
- 7/2013: Opening of Vincom Mega Mall Royal City - The largest commercial center
complex in Asia.
- 10/2013: Launched VinKE brand - A system of shopping centers, education and
health advice for children Vingroup officially entered the retail market.
- November 2013: Vingroup issued US $ 200 million of international bonds and
became the first private enterprise to successfully issue international bonds.

- 11/2013: Launched Vinhomes brand, a line of luxury housing real estate services.

- 1/2015: Establishing VinDS, a company that operates retail chains of sports goods
(Sports World), footwear (ShoeCenter), cosmetics (BeautyZone), fashion (Fashion
MegaStore).

- September 2, 2017: Establishing VINFAST, a company whose registered business

lines are manufacturing motor vehicle bodies, trailers and semi-trailers, producing
spare parts and supporting parts for motor vehicles. and vehicle engines, shipbuilding
and floating structures, building boats, sport and recreational boats, manufacturing
locomotives, trams and wagons.

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1.3 Area of opeations:
- Vingroup is one of Asia's largest multidisciplinary private economic groups with a
market capitalization of nearly US $ 16 billion. The Group operates in 3 core business
areas, including:
+ Technology
+ Industry
+ Trade in Services

1.4 Shareholder Structure:

Key staffs:
- Pham Nhat Vuong, Chairman of the Board.
- Nguyen Viet Quang, CEO, General Director, legal representative.
- Nguyen Dieu Linh, Vice Chairman of the Board of Directors, information provider.
1.5 Business activities:
- Real Estate is the best revenue source of VinGroup in quarter 1 / 2019. It is accounted
for the largest proportion of VND 8,430 billion (accounting for 38.5% of total revenue).
- Vingroup's retail and supermarket sales increased sharply in the first quarter, closely
following the real estate transfer. It increased by 70% to VND 7,026 billion, accounting
for 32% of total revenue.
- In addition, revenue from financial activities of Vingroup also increased sharply from
VND 533 billion to VND 3,429 billion, of which mainly came from the liquidation of
financial investments and transfer of subsidiaries. Interest income of the company also
doubled to 574 billion.
1.6 Competitors:
- In retail and supermarket sales field, The two strongest competitors are Saigon
CO.OP and BigC.

1.7 Analyzing financial status:

Indicators Year 2017 Year 2018 Differences
Net revenue 89,350,048,597,913 121,894,400,421,104 26.70%
Cost of goods
62,796,326,957,038 92,971,050,559,634 32.46%
sold
Gross profit 26,553,721,640,875 28,923,349,861,470 8.19%
Income from
financial 1,636,951,439,612 7,478,549,889,431 78.11%
activities

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 Financial
3,786,983,558,714 4,908,949,587,074 22.86%
expenses

General and
Administrative 6,852,447,761,955 7,367,839,332,550 7.00%
expenses

Selling expenses 8,150,455,992,627 10,112,288,715,044 19.40%

Profit before tax 9,114,281,478,576 13,853,637,650,408 34.21%

Net profit after

5,654,941,791,226 6,190,881,470,603 8.66%
tax
Table 4 Operation efficency analysis of VIC’s between 2017 and 2018
Comments:

VIC's net revenue of sales and service in 2017 reached 89.350 billions VND but then
increased dramatically to 121.894 billions VND. Along with the increase in sales, there were
the growth in its cost of goods sold by 32.46% , so gross profit went up slightly to 8.19%.
Income from financial activities of VIC also went up over 6 times from 1.63 billions VND
to 7.47 billions VND, the reason of which mainly came from the liquidation of financial
investments and transfer of subsidiaries. Therefore, the profit before tax and increased
significantly from 9.114 billions VND to 13.853 billions VND. In short, thanks to incomes
from operating and financing activities increased significantly and expenses increased
slowtly , the profit increased in this period.

 Profitability ratios

Indicators Year 2017 Year 2018

Total asset 18347562594724.00 213792056984597.00

Equity 48291171155513.00 52557010177655.00

ROA 30.82% 20.90%

ROE 11.71% 11.78%

EPS 1.82 1.27

Table 5 Analysis the profitabilty ratios of VIC’s

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  Comments:
- VIC's ROA in 2017 is 30.82%, it means that for every 100 assets, the company created
30.82 earnings per share. While the average ROA of the industry is 5,96%, this proves
that VCF had a higher return on its peers. In 2018, ROA ratio decreased slightly to
20.90%
- VIC's ROE in 2017 was 11,71%, which means that for every 100 of equity capital, PHR
made 11,71 profit after tax for shareholders. Although there was a slight increased to
11,78% in the following year, VIC’s ROE also higher than average rate of industry.
- VIC's EPS in 2017 was 1.82 VND/share and then gone down to 1.27 VND/share.
 Turnover ratios

Indicators Year 2017 Year 2018

Total revenue 89,350,048,597,913 121,894,400,421,104
Net sales+
98,285,053,457,704 13,416,865,688,911
VAT(10%)
Cost of goods
62,796,326,957,038 92,971,050,559,634
sold
Total asset 183,475,625,944,724 213,792,056,984,597
Total average
55,617,017,780,000 55,582,164,370,000
inventory
Total receivable 18,720,162,920,000 27,898,756,620,000
Total Assets
0.49 0.57
Turnover
Account
Receivable 5.25 0.48
Turnover
Inventory
1.13 1.67
Turnover
Table 6 Analysis the turnover ratios of VIC’s
 Comments:
- Total assets turnover in 2017 was 0.49, this means 1 asset generated 0.49 revenue
unit. But then this rate increased to 0.57 in 2018. The reason of this was because the
speed of total revenue in 2018 went up dramatically than one’s total asset. Other
while, net sales from good and services dropped the number of customers debt tend to
went up, so account receivable turnover went down from 5.25 to 0.48.
- Inventory turnover in 2018 increased slightly, compared to 2017 (from 1.13 to 1.67)

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2. SAB Coperation:
2.1 Overview:
Compay’s English name: Saigon Beer – Alcohol – Beverage Corporation.

Transaction Name of business: Sabeco

Securities Code: SAB

Tax Code: 0300583659

Head Office: 6 Hai Ba Trung Street, Q1 District, HCM City.

Telephone: (08) 3829 6342 – 3829 4081 – 3829 4083 Fax: (08) 3829 6856
Website: www.sabeco.com.vn
Chartered Capital: 6.412.811.860.000 VND
2.2 Development history:
- Saigon Brewery, was established on 05.17.1977 under Decision No. 854 / foodstuff
by the Minister of Food and Food. After that, implementing the State's policy on
reorganizing production and business in the state economic sector, on September 14,
1993, the Minister of Light Industry issued Decision No. 882 / QD-TCCB. the State
enterprise and renamed Saigon Beer company.
- On December 28, 2007, the Prime Minister issued Decision No. 1862 / QD-TTg
approving the plan and transforming Saigon Beer - Alcohol - Beverage Corporation
into the Beer Joint Stock Corporation - Alcohol - Saigon beverage.
- On September 20, 2016, the Ministry of Industry and Trade issued Document No.
8845 / BCT-CNN approving the proposal to list SABECO shares on the Ho Chi Minh
Stock Exchange. Ho Chi Minh City.
- On October 20, 2016, SABECO's General Meeting of Shareholders issued Resolution
No. 62/2016 / NQ-DHDCD approving the listing of SABECO's shares at Ho Chi
Minh Stock Exchange. Ho Chi Minh City.
2.3 Area of opeations:
Sabeco is a large corporation operating mainly in the field of beer, wine and soft drinks
in the territory of Vietnam.
1.1 Shareholder Structure:
On October 6,2016, the company has 1,227 shareholders of which 01 major shareholder
(State shareholder: Ministry of Industry and Trade) holds 574,519,134 shares, accounting
for 89.59%; Domestic shareholders hold 581,056,097 shares, accounting for 90.61%;

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 Foreign shareholders hold 60,225,089 shares, accounting for 9.39%.

2.4 Framework of organization:

Sabeco is organized under the model of Parent Company - Subsidiary with the following
model:
- Total Company Beer - Alcohol - Beverage Saigon (Parent Company)
- Representative offices, representative offices, branches;
- The Company Ltd. is a member of SABECO 100% investment (3 companies)
- Sabeco Subsidiaries own more than 50% (20 companies)
- Sabeco's associated joint ventures (31 companies)
2.5 Business activities:
The Corporation's principal business is to produce and trade beer, wine and soft drinks.
Beer accounted for the largest proportion, accounting for 87% of the Corporation's total
revenue in 2014 and 2015. Alcohol and beverage segment accounted for a negligible
proportion.
- The main beer products of the Corporation include Saigon Beer 333, Beer Bottle
Saigon 355, Saigon Beer Bottle 450, Saigon Beer Bottle 330, Saigon Beer 330.
- Other products: Binh Tay wine; Dong Xuan wine; Chuong Duong Beverages (These
products are used and managed by subsidiaries.)
2.6 The competitor:
Currently, with the average income level and rising consumer demand, Vietnamese
consumers are paying more and more attention to the quality of beer products. They set
higher standards, tending to consume higher-end products.
- The product of other competitors such as Saigon Special beer, Heineken, Tiger,
Carlsberg, Budweiser, ...
- The presence of many world's largest brewers from Germany, Belgium, Japan,
Thailand, ...
2.7 Company’s postion:
The unique taste of Saigon Beer is the crystallization of the products of the rich southern
land and the generous and generous spirit of Saigon people, becoming an indispensable
part of the happy and sad daily life. With 2 types of 610 ml Larue beer bottles and 33 ml
330 bottles beer bottle in the first takeover, so far, Saigon Beer has developed 8 product
lines: Saigon Lager 450 bottle beer, Saigon Export beer bottle, beer Saigon Special bottle,
Saigon Lager 355 beer bottle, 333 Premium beer bottle, 333 beer can, Saigon Special beer,
14
 Saigon Lager can beer fully on the market.
From a modest production of 21.5 million liters in 1977, after 39 years of development, by
2016, Saigon Beer has reached the consumption level of 1.59 billion liters, striving to
reach 1.66 billion liters in 2017. Up to now, although there have been many famous beer
brands in the world, Saigon Beer is still the Vietnamese brand leading the Vietnamese beer
market and is on its way to conquering. fastidious markets such as Germany, USA, Japan,
Netherlands, etc.
2.8 Analyzing financial status:

Indicators Year 2017 Year 2018 Differences

Net revenue 34.438.171.048.592 36.043.018.331.946 4,45%
Cost of goods 25.327.872.489.662 27.864.413.389.551 9,10%
sold
Gross profit 8.865.518.064.577 8.084.139.172.396 -9,67%
Income from 506.107.630.554 630.350.383.424 19,71%
financial
activities
Financial 25.805.674.678 74.634.952.869 65,42%
expenses
General and 935.974.797.536 912.705.312.866 -2,55%
Administrative
expenses
Selling 2.811.111.874.500 2.731.090.859.491 -2,93%
expenses
Profit before 6.077.091.655.134 5.390.439.641.506 -12,74%
tax
Net profit after 4.948.599.251.864 4.402.749.946.424 -12,40%
tax
Table 7 Operation efficency analysis of SAB’s between 2017 and 2018
 Comments:

SAB’s net revenue of sales and service increased with 1,755 bilions in 2018. The reason
effect on the declined of gross profit that is the increased of cost of goods sold might the
affect of cost management or cost of selling. Income from financial activities increased by
65,42% while the general and administraive expenses and selling declined by 2,55% and
2,93% respectively.Therefor, the profit before tax and net profit after tax has decreased.
+ Profitability:

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 XIndicators Year 2017 Year 2018

Total asset 22.013.689.109.910 22.366.742.792.213

Equity 14.420.526.434.948 16.111.905.568.169

ROA  22,48% 19,68%

ROE  34,32% 27,33%

EPS  1,82 1,27

Table 8 Analysis the profitabily of SAB’s

 Comments:

Total assets and Equity both increased in 2018. ROA, ROE (ROA was 100 VND of assets,
generating 22.48 VND of profit in 2017 and 19.68 VND 2018, ROE was 100 VND of capital
generated 34,32 VND in 2017, 27.33 in 2018) While capital and assets increased, ROA and
ROE still decreased, the main reason was the declined of net revenue and inefficient use of
assets and capital lead to EPS declined. Conclusion, ROA,ROE of SAB’s company still
higher than ROA,ROE of industry (7,75% &17,44%)
+ Solvency:

Indicators Year 2017 Year 2018

Current Assets 13.686.327.476.651 14.690.168.205.219

Current Liabilities 7.401.584.603.555 5.925.696.932.383

Receivables 715.326.353.415 765.630.597.003

Cash 4.268.598.818.042 4.467.391.585.137
Inventory 2.003.535.067.335 1.813.754.190.894
Current Ratio 1,849107753 2,479061682
Quick Ratio 0,673359211 0,883106619
Cash Ratio 0,576714183 0,753901463
Table 9 Analysis the turnover ratios of SAB’s

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  Comments:

- The current ratio > 1 and increased over 2 years. Therefor, The company have ability
to pay short-term debts (such as debts and payables) with its short-term assets, such
as cash, accounts receivable, and inventories).
- The Quick Ratio < 1 It’s mean that the company's financial situation is in a weak
state, unable to pay off short-term debts immediately. However, 2018 have a mark to
rose up which was SAB’s had strategy to improve the activities of company.
- Cash Ratio < 1 it’s mean that the ability of payments such as debt, current liabilities
by cash decreased and not enough to pay short-term debt.
+ Performance:

Indicators Year 2017 Year 2018

Total Assets 1,553278525 1,607232349
Turnover
Account 47,80110559 46,95286827
Receivable
Turnover
Inventory Turnover 17,06652961 19,8199694
Table 10 Analysis the turnover ratios of SAB’s
 Comments:

- Total assets turnover in 2017 was 1,553, this means 1 asset generated 1,553 revenue
unit. But then this rate increased to 1,607 in 2018. The reason of this was because the
speed of total revenue in 2018 went up dramatically than one’s total asset. Other
while, net sales from good and services dropped the number of customers debt tend to
went up, so account receivable turnover went down from 47,8 to 46,95.
- Inventory turnover in 2018 increased slightly, compared to 2017 (from 17,0665 to
19,81)

III. RESOLVE THE SITUATION:

1. Collecting the datas of two stocks from 1/1/2018 to 31/08/2019
Collecting the data

Using the websites https://vietstock.vn/ to collect the datas of two stocks which named SAB,
VIC and that of VNINDEX from 1/1/2018 to 31/08/2019.

+ According to the equation below and the data of historical closed prices:

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Belong to two stocks, we estimated the daily rate of return.

2. Calculate daily rate of return:

Calculate daily rate of return of each stock and VN-Index using the following formula:

P ( t+1 )−P(t)
R (t)=
P (t)
Pt: Price of stock in t,
Pt+1: Price of stock in t+1,
Rt: Rate of return of stock in t.

Data covers the period from 1/1/2018 to 31/08/2019, including 412 days trading (n=412)

3. Calculate the expected rate of return:

Calculate the expected rate of return of the two stocks and the VN-Index using the following
formula:

412

∑ R(t )
1
E( R)=
412

We have the result:

Stocks SAB VIC VNINDEX

Expected return 0,001312 0,000322 0,000042

4. Calculate the covariance and correlation:

Calculate the variance of VIC using the following formula:

412

∑ A2
A=R ( t )−E (RVIC ), σ 2 = 1
412−1

Calculate the variance of SAB using the following formula:

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 412

∑ B2
B=R ( t )−E ( RSAB ) , σ 2 = 1
412−1

Calculate the Standard Deviation:

σ =√ σ 2

Then, we have the result:

Stocks SAB VIC

Variance 0,000400 0,000262

Standard 0,019993398 0,016189348

Deviation

Calculate the covariance using the following formula:

412

∑ (A∗B)
1
Cov( R VIC , R SAB)=
412−1

Calculate the correlation using the following formula:

Cov (RVIC , R SAB)

ρ=
σ VIC ∗σ SAB

So, the result:

Covariance 0,000051

0,157382981
Correlation

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5. Draw the minimum variance frontier and point out the efficient frontier:
5.1 Draw the minimum variance frontier:
Draw the minimum variance frontier by using Expect return and Standard Deviation of
tagency portfolio. Vertical show expect return and horizontal show Standard Deviation.

5.2 Point out the efficient frontier:

Point out the efficient frontier: Efficient frontier which haven’t other portfolio dominates, the
highest return given a level of risk and the lowest risk given a level of return.

- Step 1: Find the portfolio have σ Min

σ 2P= √ w 2VIC∗σ 2VIC +w 2SAB∗σ 2SAB +2W VIC W SAB σ VIC , SAB

- Step 2: Point out the efficient frontier: upper half of minimum variance frontier.

0.001400
EXPECTED RETURN

0.001200
0.001000
0.000800 EF
0.000600 CAL
Risk free rate
0.000400
Tangency portfolio
0.000200 GMV portfolio
0.000000
0.000000 0.010000 0.020000 0.030000
STANDARD DEVIATION

6. If you had 100 million dong, how would you invest?

 Find the optimal CAL => CAL* have sharp ratio maximum

E ( R P )−R F
S=
σP

3.55
Risk free asset return is 3.55% per year => Daily return: ≈ 0.000099
360

 Tagency portfolio: P*(wvic, wsab) = P*(0.92, 0.08)

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  Suposse that “y” is the weight of tangency portfolio; (1-y) is the weight of risk free
asset; C: is the completed portfolio.

We have Unity function:

U=E ( R C )−0.5 A σ 2C

With:

E ( RC ) =w p E ( R p ) + w F R F

σC = y σP

Therefore, we have:

2
U= y E ( R p ) +(1− y ) R F −0.5 A( y σ P )

 y ≈ 0.563824788

In conclusion, the weight of tangency portfolio is 0.563824788 , the weight of risk free
asset is 0.436175212. And if we had 100 million dong, we should invest

Amount of money
VIC 51.87188052
invest in tangency
56.38247882
portfolio (million
SAB 4.510598306
VND)
Amount of money
invest in risk free asset 43.61752118
(million VND)

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 REFERENCE MATERIAL
https://vietstock.vn/

http://cafef.vn/

https://www.gso.gov.vn/default.aspx?
tabid=621&ItemID=18668&fbclid=IwAR2OCIDSNBcWhAiNNc0YooNDnAbk3Fvz498Jvn-
o4qwTU-F6xA3-9739O2o

https://www.stockbiz.vn/IndustryOverview.aspx?
Code=3500&fbclid=IwAR20lI_dlFOLvLxAvZpebpzorlKLTMmvJCsOl5MTDNOQUjbdMpOw-
6xKhLU

https://www.stockbiz.vn/IndustryOverview.aspx?
Code=8630&fbclid=IwAR2KSos4w2J4IPcmAMe9q6QvMnjIutJ2k6nGclgcKVDK7RYQXcb3VrhT-
RU

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