BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC HOA SEN

KHOA KINH TẾ & QUẢN TRỊ

--- * ---

BÁO CÁO MÔN HỌC

ĐỀ TÀI:
PHÂN TÍCH DOANH NGHIỆP
CAO SU PHƯỚC HÒA
Môn học : Phân tích báo cáo tài chính
Lớp MH : TC302DE_2878. (20.1B)
Nhóm Sinh viên thực hiện : Nhóm 06
1. Trương Mỹ Ngân (MSSV:
2190546)
2. Trịnh Thanh Mi (MSSV:
2192793)
3. Huỳnh Thanh Ngân (MSSV:
2181752)

Giảng viên hướng dẫn : ThS. Đặng Thị Thu Hằng.

i
 TP. Hồ Chí Minh, tháng 06 năm 2020

TABLE OF CONTENTS

TABLE OF CONTENTS............................................................................................ii
LIST OF TABLES.....................................................................................................iv
LIST OF CHARACTERS...........................................................................................v
LIST OF PICTURES.................................................................................................vi
CONTENTS................................................................................................................ 1
I. General Overview:...........................................................................................1
1. Overview of Vietnam's rubber industry:.....................................................1
1.1 Current situation:.....................................................................................1

1.2 The impact of COVID-19:......................................................................2

1.3 Future prospects:....................................................................................3

2. Overview of Phuoc Hoa Rubber Joint Stock Company:.............................4

2.1 Introduction:............................................................................................4

2.2 Phuoc Hoa company position:.................................................................4

2.3 Development prospects of the company and industry.............................5

2.4 Organizational structure:.........................................................................6

2.5 Shareholder Structure:............................................................................6

2.6 Executive Board:.....................................................................................7

2.7 Business field of PHUOC HOA rubber joint stock company:.................7

II. Financial Analysis:.........................................................................................14

1. Common-size:...........................................................................................14
2. Ratio Analysis:.........................................................................................22

ii
 2.1 Liquidity ratios:.....................................................................................22

2.2 Solvency ratios:.....................................................................................25

2.3 Activity ratios:.......................................................................................26

2.4 Profitability ratios:.................................................................................29

III. Recommendations:.......................................................................................30
REFERENCE DOCUMENT.....................................................................................31

iii
 LIST OF TABLES
Table 1: Rubber tree acreage, production, and productivity in Vietnam 2017-2019. . .1
Table 2: Income statement of PHR 2018-2020..........................................................13
Table 3: Balance sheet of PHR 2018-2020................................................................14
Table 4: Resources of PHR 2018-2020.....................................................................16
Table 5: Income statement of PHR 2018-2020..........................................................18
Table 6: Balance sheet of PHR 2018-2020................................................................19
Table 7: Resources of PHR 2018-2020.....................................................................20
Table 8: Cash flow from operation ratio of PHR 2018-2020....................................21
Table 9: Debt to total capital & Debt to equity of PHR 2018-2020..........................24
Table 10: Net debt to equity & Debt to equity of PHR 2018-2020...........................24
Table 11: Times interest earned, Fixed charge coverage, Financial Leverage of PHR
2018-2020.................................................................................................................24
Table 12: Inventory turnover & Average number of days inventory in stock of PHR
2018-2020.................................................................................................................25
Table 13: Receivables turnover ratio & Average number of days receivables of PHR
2018-2020.................................................................................................................26
Table 14: Payables turnover & Average number of days of payables of PHR 2018-
2020........................................................................................................................... 26
Table 15: Working capital turnover ratio of PHR 2018-2020..................................27
Table 16: Total asset turnover & Fixed asset turnover of PHR 2018-2020..............28

iv
 LIST OF CHARACTERS
Chart 1: Rubber tree acreage, production in Vietnam 2017-2019..............................2
Chart 2: Rubber prices at SHFE Shanghai - Source: Export Department, Ministry of
Industry and Trade......................................................................................................3
Chart 3: Rubber tree acreage, production in Vietnam.................................................5
Chart 4: Business field of PHUOC HOA rubber joint stock company........................6
Chart 5: The chart shows the product structure.........................................................10
Chart 6: The chart shows consumer market...............................................................12
Chart 7: Current asset & current liabilities of PHR 2018-2020................................21
Chart 8: Components of current assets of PHR 2018-2020......................................22
Chart 9: Cash flow from operation & current liabilities of PHR 2018-2020............23
Chart 10: Inventory turnover ratio of PHR 2018-2020.............................................25
Chart 11: Net sales & Average working capital of PHR 2018-2020........................27
Chart 12: Profitability ratios of PHR 2018-2020......................................................28

v
 LIST OF PICTURES
Picture 1: Phuoc Hoa Rubber Joint Stock Company organizational chart (Source: PHR
Annual Report 2020)................................................................................................................6
Picture 2: Productions of Phuoc Hoa firm...............................................................................8

vi
 CONTENTS
I. General Overview:

1. Overview of Vietnam's rubber industry:

1.1 Current situation:
According to the Vietnam Rubber Association, Vietnam is the
third-largest natural rubber exporter in the world. Each year, about 80% of
natural rubber from Vietnam, including a large number of imports from
Cambodia and Laos, exports with a turnover of 2.3 billion USD. With this
turnover, the rubber industry has become one of the most important
agricultural and forestry exports of Vietnam today.

Year Total area Harvesting Production Productivity

(000 ha) area (000 tons) (kg/ha/year)
(000 ha)

2017 971,6 653,2 1.094,5 1.676

2018 961,8 685,5 1.137,7 1.660

2019 941,3 710,7 1.185,2 1.668

Table 1: Rubber tree acreage, production, and productivity in Vietnam 2017-

2019

1
 1400
Area and production of rubber trees in
Vietnam
1200 1,185.20
1,137.70
1,094.50
1000 971.6 961.8 941.3

800
685.5 710.7
653.2
600

400

200

0
2017 2018 2019

Chart 1: Rubber tree acreage, production in Vietnam 2017-2019

Through the Table of Rubber tree acreage, production, and

productivity in Vietnam from 2017-2019 and the chart of Rubber tree
acreage, production in Vietnam from 2017-2019, we see that although the
productivity has decreased slightly, the cultivated area and output of
rubber products still increased, showing that the rubber industry has high
prospects in the future.

1.2 The impact of COVID-19:

According to the estimate of the Agency of Foreign Trade -
Ministry of Industry and Trade, Vietnam's rubber export in 4/2020
reached about 55 thousand tons, worth USD 71 million, down 9.2% in
volume and 18.5% in decrease in value compared to 3/2020, down 26.3%
in volume and 33.7% in value compared to 4/2019.

2
 The average export price decreased 10.1% over the same period in
2019, down to 1,291 USD/ton.
However, in 2020, China is still the largest rubber export market
of Vietnam, accounting for 77.88% of the total rubber export volume of
the country, reaching 1.36 million tons, worth 1.83 billion USD, up 17.3%
in volume and 18.1% in value compared to 2019; The average export
price to the Chinese market reached 1,343 USD/ton, an increase of 0.6%
compared to 2019.

1.3 Future prospects:

Chart 2: Rubber prices at SHFE Shanghai - Source: Export Department,

Ministry of Industry and Trade
The rubber export index of Vietnam in 1/2021 increased strongly
by 25.9% over the same period last year, according to a report from the
Export Department, Ministry of Industry and Trade.
In 1/2021, rubber prices in Asian markets increased due to the
expectation of investors about an economic recovery in China. At SHFE
Shanghai, on 18/01/2021, the price of RSS3 rubber traded at 14,775
yuan/ton (equivalent to 2.28 USD/ton), up 0.1% over 10 days earlier and
up 15.6% over the same period in 2020. These signals forecast a positive
one-year outlook for Vietnamese rubber businesses.

3
2. Overview of Phuoc Hoa Rubber Joint Stock Company:
2.1 Introduction:
Phuoc Hoa Rubber Joint Stock Company (PHR) was formerly
known as Phuoc Hoa Rubber Plantation, after the liberation of the South,
it was renamed as Phuoc Hoa State- owned Rubber Farm. This is a state-
owned enterprise directly under Vietnam Rubber Group.
On 25/12/1982, Phuoc Hoa Rubber Company was officially
established under the decision of the General Department of Rubber of
Vietnam and transformed name from Phuoc Hoa State-owned Rubber
Farm to Phuoc Hoa Rubber Company.
In 2007, transformed into a Joint Stock Company.
In 2009, officially listed on the Ho Chi Minh City Stock
Exchange (HOSE) with the stock symbol is PHR.
Phuoc Hoa is one of the companies with the largest rubber
plantation area in the top 5 rubber area and production in the industry.
With a total area of more than 15,000 hectares of rubber plantation, along
with nearly 30,000 tons of rubber processed and consumed annually,
Phuoc Hoa company is currently one of the leading companies in the
rubber industry.

2.2 Phuoc Hoa company position:

- Phuoc Hoa Rubber Joint Stock Company is one of the leading
enterprises in the rubber industry and is a member of Vietnam Rubber
Group, which is currently the main supplier of almost all rubber latex for
export as well as domestic and foreign consumption.
- Exploitation output, purchasing volume and consumption
volume ranked first in comparison with other enterprises in the same
industry. Specifically, PHR's exploitation output reached 18,355 tons,
purchasing volume reached 11,110 tons and consumption volume reached
28,621 tons.

4
 Chart 3: Rubber tree acreage, production in Vietnam
2.3 Development prospects of the company and industry
The exploited output of Vietnam's rubber industry compared to
other countries such as Thailand, Malaysia, Indonesia,... is still quite
small, so we can not be proactive about the price as well as the supply and
demand of the output and have to depend on fluctuations of the world
market.
However, recently, Vietnam has joined The International Rubber
Conference Organization (IRCO) to cooperate in stabilizing rubber prices
on the world market. This is a good sign for rubber growers in Vietnam in
this era of price volatility.

5
6
 2.4 Organizational structure:

Picture 1: Phuoc Hoa Rubber Joint Stock Company organizational chart

(Source: PHR Annual Report 2020)
2.5 Shareholder Structure:

Chart 4: Business field of PHUOC HOA rubber joint stock company

7
 2.6 Executive Board:

Mr. Huỳnh Kim Nhựt Mr. Nguyễn Văn Tược

(chairman of the board) (member of the board and CEO)
He has experienced many
positions: Deputy Head of Sales
Department, Chairman of VRG
Young Entrepreneurs Association
for the term 2019 - 2022. He is a
dynamic, responsive and highly
experienced person.

2.7 Business field of PHUOC HOA rubber joint stock company:

-Planting and exploiting rubber trees.

-Exploitation and processing of latex rubber.
-Purchasing wood and processing rubber wood.
In addition to rubber, the company also has other ways to do
business such as:
-Fuel retail and construction and repair of bridges, roads, traffic
works and residential areas.
- Investment, construction and trading in technical infrastructure
of the industrial park.
- Real estate business. Housing and service industry development
business.
-Financial investment.

8
  Businesses scale:

PHUOC HOA RUBBER JOINT STOCK COMPANY has a

total rubber plantation area: 15,277.
The company has 3 rubber processing factories designed with a
total capacity of 27,000 tons / year, including:
Bo La processing factory: 6,000 tons / year and a latex
processing line Com 6,000 tons / year.
Factory processing latex Ly Tam 3,000 tons / year.
Cua Paris processing factory 18,000tons/ year.
+Two processing lines of latex Com 12,000tons/year.
+One processing lines of impurities latex 6,000tons/year.

9
 Product structure:

Picture 2: Productions of Phuoc Hoa firm

10
  Captions:

-SVR CV60 Rubber

This type of rubber is widely used in technical systems, or
products for daily life.
This type of rubber is used to make elastic bands, glue, tire side,
ping pong rubber ...
-SVR 20 Rubber
This type of latex is produced from hard latex, mixed with
impurities latex and undergone proficient treatment, so the nature of
rubber latex is hard. So in this rubber-based tire technology mixed with
low-grade RSS, the CV50 makes a very good product.
-SVR CV50 Rubber
Has the same characteristics as the SVR CV60.
-SVR 10 Rubber
Has the same characteristics as the SVR20
-SVR L
This is a very popular rubber in primary rubber and is produced
by many companies. This product is used in many fields.
Very suitable for products that need high elasticity, high wear
resistance, high durability such as tires, power cables ... etc.
-Latex (Natural Rubber)
This type of rubber is derived from nature, is harvested from
rubber trees, mainly Hevea Brasiliensis (belonging to the Euphorbiaceae
family) by tapping. This natural rubber Latex is very environmentally
friendly thanks to its ability to decompose faster than synthetic rubber.

11
 Chart 5: The chart shows the product structure
(Source https://www.phr.vn/san-pham.aspx)
 Analysis SWOT

Strengths:
Because PHR is a leading company in the rubber industry, PHR
has many advantages compared to other companies in the same industry,
such as: Having the highest scale among 5 listed companies and receiving
many advantages in price rubber rose.
Weakness:
PHR has a large rubber plantation area, so this can be both a
benefit and a weakness, because old rubber has to be disposed of and new
planting should reduce rubber production.
Subsidiaries are only put into operation, so they have not achieved
high efficiency,
Opportunity:
PHR already has a foothold in the domestic market because it is
an extremely large-scale enterprise, and not to mention there are two

12
subsidiaries: Truong Phat Rubber Joint Stock Company (Binh Duong),
Phuoc Phuoc Rubber Development Co., Ltd. Hoa Kampong Thom
(Cambodia), it shows that PHR has entered foreign markets to enhance its
position compared to competitors.
And also links with companies such as Nam Tan Uyen Industrial
Park Joint Stock Company, Vietnam Rubber Infrastructure Business
Construction Company Limited.
Threats:
Depends on world prices and bad weather
Due to the epidemic and the lack of containers, the transportation
to the large Chinese market plummeted
Prices are intermixed due to oversupply.
 Consumer market

Over the past years, Phuoc Hoa Rubber Joint Stock Company has
boldly built a consulting system, building a suitable factory system to
have enough production facilities and upgrade product quality according
to customers' requirements. row. The company's products are ranked in
the domestic and international line, with high quality, beautiful colors,
ensuring the prestige of receiving customers, the school is always stable
and expanding. The company's products consume more than 30 countries
around the world. Strong consumption markets in East Asia, Europe and
North America.
Exporting markets:
+Asia: China, Koria,Japan,Taiwan,…
+ Europe: Spain , Turkey , England, Italy,…

13
+ Americas: Brazil,  Mexico, Argentina,…

Chart 6: The chart shows consumer market

(Sourcehttps://www.phr.vn/gioi-thieu.aspx?pid=1)

14
II. Financial Analysis:

1. Common-size:
VERTICAL COMMON SIZE

INCOME STATEMENT
  2018 2019 2020
Net revenue 100.00% 100.00% 100.00%
Cost of good sold 82.39% 78.45% 76.18%
Gross profit 17.61% 21.55% 23.82%
Financial income 10.45% 11.42% 11.52%
Financial expenses 2.62% 2.93% 3.30%
In which: Interest expense 1.78% 1.85% 3.09%
Share of profit/(loss) in associates 4.41% -0.05% 2.31%
Selling expense 1.57% 1.69% 1.79%
General and administration expense 5.04% 5.51% 5.15%
Net operating profit 23.24% 22.78% 27.41%
Other income 26.95% 14.36% 57.34%
Other expenses 0.76% 0.10% 0.04%
Other activities profits 26.19% 14.25% 57.30%
Profit before tax 49.43% 37.04% 84.72%
Income tax 8.12% 7.27% 15.76%
Net profit after tax 41.31% 29.77% 68.95%
Table 2: Income statement of PHR 2018-2020

The income statement of PHR shows that the percentage of COGS to net revenue
fluctuates from year to year, which has affected the firm's gross profit.
- Cost of good sold: From 2018-2020: the ratio of gross profit to net revenue
was 17.61% to 23.82% => Gross profit margin increased by 6.21%, showing that
PHR is efficient and profitable.
- Gross profit: From 2018-2019 the ratio of net profit after tax to net revenue is
41.31% to 29.77% => Net profit after tax decreased by 11.54%, showing that
PHR had difficulties in business and production activities due to the decrease
in rubber prices at that time.

15
 From 2019-2020 the ratio of net profit after tax to net revenue is 29.77% to
68.95% => Net profit after tax increased by 39.18%, showing that PHR is
profitable due to the rubber market has recovered well and the export value is
increasing.
 Conclusion: PHR's business is highly effective.

BALANCE SHEET
  2018 2019 2020
CURRENT ASSETS 26.91% 39.32% 47.57%
Cash and cash equivalents 7.12% 11.44% 6.54%
Short-term financial investment 6.77% 16.54% 31.66%
Accounts receivable short-term 5.84% 3.88% 3.69%
Inventories 6.05% 5.59% 4.50%
Other current assets 1.13% 1.87% 1.18%
LONG-TERM ASSETS 73.09% 60.68% 52.43%
Account receivable long- term 0.18% 0.11% 0.03%
Fixed assets 23.83% 24.38% 27.24%
Investment property 2.40% 3.03% 2.68%
Long - term work in progress 23.48% 16.34% 8.77%
Long - term financial investments 17.79% 10.21% 6.33%
Other long - term assets 5.40% 6.62% 7.38%
TOTAL ASSETS 100.00% 100.00% 100.00%
Table 3: Balance sheet of PHR 2018-2020
Conclusion:
- From 2018 to 2020:

Total assets increased by 28.53%. However, the decrease in long-term

assets shows that the enterprise has concentrated capital for business activities,
but long-term assets still account for a high proportion of total assets, showing
that the enterprise has high economic potential.

16
 The increase in short-term assets due to the increase in short-term financial
investments shows that the enterprise knows how to take advantage of money
in financial investment activities to increase the profit rate for the business.
The small inventory and decrease over the years shows that the enterprise
has almost no inventory to spare, which will affect the asset structure.

17
 RESOURCES
2018 2019 2020
LIABILITIES 47.19% 55.57% 49.36%
1. Current liabilities 15.38% 21.27% 17.39%
Accounts payable to suppliers 1.23% 1.30% 0.80%
Advances from customers 1.07% 0.53% 0.36%
Taxes and others payable to State 0.87% 0.34% 1.47%
Treasury
Short-tem borrowings 2.50% 1.70% 1.78%
Bonus and weifare fund 2.82% 1.21% 0.76%
2. Long-term liabilities 31.80% 34.30% 31.97%
Long-term accrued expenses 1.51% 1.32% 1.19%
Other long-term payments 0.12% 0.10% 0.00%
Long-term borrowings and finance 7.42% 7.16% 8.08%
lease liabilities
EQUITY 52.81% 44.43% 50.64%
Owners’ equity 52.81% 44.43% 50.59%
Paid-in capital 26.63% 23.14% 20.72%
Capital surplus 0.42% 0.36% 0.32%
Exchange rate differences 2.60% 2.02% 1.97%
Development investment fund 15.62% 15.64% 17.76%
Undistributed profit after tax 6.13% 2.03% 8.11%
Non-controlling interest 1.40% 1.24% 1.69%
Other funds 0.00% 0.00% 0.05%
TOTAL RESOURCES 100.00% 100.00% 100.00%
Table 4: Resources of PHR 2018-2020

18
 - Liabilities: Liabilities from 2018 to 2019 increased by 8.38% but from
2019 to 2020 decreased by 6.21%, showing that PHR has quite good debt
payment ability.
- Equity: Equity has not changed much over the years, always
maintaining at 45% to over 50%.

Conclusion: PHR's capital structure is quite stable, showing that the enterprise has a
strict financial management policy. A debt ratio of less than 65% shows that the
enterprise has good control over its liabilities, ensuring that it does not create a
burden on the business.

19
 HORIZONTAL COMMON SIZE

INCOME STATEMENT
  2018 2019 2020
Revenue from sales of goods and
provision of services 100.00% 105.05% 104.71%
Revenue deductions 100.00% 27.87% 90.77%
Net revenue 100.00% 105.20% 104.74%
Cost of good sold 100.00% 100.18% 96.84%
Gross profit 100.00% 128.72% 141.68%
Financial income 100.00% 114.91% 115.42%
Financial expenses 100.00% 117.60% 131.76%
In which: Interest expense 100.00% 109.03% 181.45%
Share of profit/(loss) in associates 100.00% -1.28% 54.84%
Selling expense 100.00% 112.75% 119.13%
General and administration
expense 100.00% 115.02% 107.08%
Net operating profit 100.00% 103.13% 123.53%
Other income 100.00% 56.05% 222.88%
Other expenses 100.00% 14.50% 5.46%
Other activities profits 100.00% 57.26% 229.20%
Profit before tax 100.00% 78.83% 179.51%
Income tax 100.00% 94.26% 203.40%
Net profit after tax 100.00% 75.80% 174.82%
Table 5: Income statement of PHR 2018-2020
Revenue decreased but profit after tax increased: due to the decrease in demand and
price reduction of the market, combined with the stagnation of production activities
due to the epidemic, sales decreased significantly. However, the sharp increase came
from other sources of income (mainly from the recognition of the first phase of
compensation from the Nam Tan Uyen project phase 2), at the same time cutting
management costs, and supporting corporate tax cuts. of the State, profit after tax
gives extremely positive results.

BALANCE SHEET

20
   2018 2019 2020
CURRENT ASSETS 100.00% 168.14% 227.24%
Cash and cash equivalents 100.00% 184.79% 118.08%
Short-term financial investment 100.00% 281.32% 601.44%
Accounts receivable short-term 100.00% 76.48% 81.16%
Inventories 100.00% 106.24% 95.48%
Other current assets 100.00% 190.58% 95.48%
LONG-TERM ASSETS 100.00% 95.55% 134.71%
Account receivable long- term 100.00% 69.96% 23.65%
Fixed assets 100.00% 117.74% 146.93%
Investment property 100.00% 145.08% 143.05%
Long - term work in progress 100.00% 80.06% 48.02%
Long - term financial investments 100.00% 66.04% 45.74%
Other long - term assets 100.00% 140.93% 175.48%
TOTAL ASSETS 100.00% 115.08% 128.53%
Table 6: Balance sheet of PHR 2018-2020

As of December 31, 2020, PHR's total assets increased by 11.8% to VND6,538.1

billion. In which, mainly assets are cash and short-term financial advice reached
VND 2,498.5 billion, accounting for 38.2% of total assets, fixed assets reached VND
1,779.9 billion, accounting for 27.2% of total assets. assets, Long - term work in
progress 574.4 billion dong, accounting for 8.8% of total assets

RESOURCES

21
  2018 2019 2020
100.00 135.53
LIABILITIES
% % 134.46%
100.00 159.10
1. Current liabilities
% % 145.28%
100.00 121.74
Accounts payable to suppliers % % 83.63%
100.00
Advances from customers % 56.78% 43.18%
100.00
Taxes and others payable to State Treasury % 44.64% 217.96%
100.00
Short-tem borrowings % 77.98% 91.45%
100.00
Bonus and weifare fund % 49.23% 34.45%
100.00 124.13
2. Long-term liabilities
% % 129.22%
100.00 100.47
Long-term accrued expenses % % 101.24%
100.00 100.00
Other long-term payments % % 1.06%
100.00 111.08
Long-term borrowings and finance lease liabilities % % 139.93%
100.00
EQUITY
% 96.81% 123.24%
100.00
1. Owners’ equity
% 96.81% 123.12%
100.00 100.00
Paid-in capital % % 100.00%
100.00 100.00
Capital surplus % % 100.00%
100.00
Exchange rate differences % 89.18% 97.31%
100.00 115.19
Development investment fund % % 146.16%
100.00
Undistributed profit after tax % 38.07% 170.07%
100.00 101.49
Non-controlling interest % % 155.09%
100.00 301.39 8144.49
2. Other funds
% % %

22
 100.00 115.08
TOTAL RESOURCES
% % 128.53%
Table 7: Resources of PHR 2018-2020
PHR's debt structure is still considered low risk due to its strong liquidity, being able
to pay all debts without much impact on the Company's day-to-day operations.

23
2. Ratio Analysis:
2.1 Liquidity ratios:
  2018 2019 2020
Current ratio 1.75 1.85 2.74
Quick ratio 1.36 1.59 2.48
Cash ratio 0.9 1.32 2.2
Cash flow from operation ratio 0.6 0.51 0.69

Table 8: Cash flow from operation ratio of PHR 2018-2020

- Current ratio, quick ratio and cash ratio:
From 2018 to 2020 the current ratio increased steadily from 1.75 to 2.74;
the quick ratio increased significantly from 1.36 to 2.48; and the cash ratio
also increased sharply from 0.9 to 2.2. All of these ratios are greater than
benchmark.
 A high rise of these ratios indicates that the firm has a good ability to pay its
short-term liabilities.
3,500,000,000,000 3,110,756,990,95
9
3,000,000,000,000
2,301,780,379,80
2,500,000,000,000 8

2,000,000,000,000
1,368,946,392,56
2 1,245,108,606,28
1,500,000,000,000 4 1,136,931,679,24
2
1,000,000,000,000 782,596,523,887

500,000,000,000

0
2018 2019 2020

Current asset Current liabilities

Chart 7: Current asset & current liabilities of PHR 2018-2020

24
 However, the main reason for increasing these ratios is the increase in
current assets, especially, at the end of 2018, the firm’s current assets was
1,369 billion VND, equivalent to 26.9% of total assets. By 2020, PHR's
current asset value increased to 3,111 billion VND, equivalent to 47.6% of
total assets.
The reason for the increase in current assets came from the
cooperation in converting rubber plantations to industrial real estate.
Income from land compensation and profits distributed from industrial
zones increases the value of the firm's short-term investments, so the size of
current assets of PHR increased sharply in the past two years. However, it
is warned that, due to limited land reserves, the conversion of rubber
plantation land to industrial zone real estate will directly affect the firm's
core business of rubber production.

Components of current assets

2,500,000,000,000 2,070,504,409,57
4
2,000,000,000,000

1,500,000,000,000
968,455,029,175
1,000,000,000,000
669,749,069,862
362,430,068,707
344,259,853,216 427,963,672,949
327,128,862,028
500,000,000,000 307,901,995,744
297,005,379,236 227,152,626,379 293,974,204,639
241,058,784,239
57,349,095,659 109,294,792,364 0
0
2018 2019 2020

1. Cash and cash equivalents  2. Short-term financial investment

 3. Short- term receivables  4. Inventories
 5. Other current assets

Chart 8: Components of current assets of PHR 2018-2020

25
- Cash flow from operation ratio

  1,400,000,000,000 2018 2019 2020

1,245,108,606,284
Debt to total capital 47.19% 55.57% 49.36%
1,200,000,000,000 1,136,931,679,242
Debt to equity 89.34% 125.07% 97.47%
1,000,000,000,000

782,596,523,887 783,671,874,505
800,000,000,000
641,118,844,311
600,000,000,000
468,443,139,887
400,000,000,000

200,000,000,000

0
2018 2019 2020

Cash flow from operation Current liabilities

Chart 9: Cash flow from operation & current liabilities of PHR 2018-2020
From 2018 to 2020 the firm’s CFO ratio increased gradually from 0.6
to 0.69. CFO ratio was not higher than 1, which indicates that the firm is
not generating sufficient revenues from its core business operations to pay
its current liabilities, and therefore it needs to generate additional positive
cash flow from either financing or investment activities.
However, it was still positively higher than Industry’s average CFO
ratio (nearly 0.3), so that the firm still had a stable financial health
compared to other firms in the industry.

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 2.2 Solvency ratios:

  2018 2019 2020

Debt to total capital 47.19% 55.57% 49.36%
Debt to equity 89.34% 125.07% 97.47%

Table 9: Debt to total capital & Debt to equity of PHR 2018-2020

The firm has a high debt to total capital ratio, which still within the allowable
benchmark from 35% to 65%.
From 2018 to 2020, although the debt to equity is higher than the benchmark (60%),
but it is still controlled and adjusted to maintain the coefficient below 1.

  2018 2019 2020

Debt to equity 89.34% 125.07% 97.47%
Net debt to equity 18.78% 19.93% 19.46%

Table 10: Net debt to equity & Debt to equity of PHR 2018-2020
Although the debt to equity ratio is quite high, if assessed carefully, the net debt to
equity is still remained below 20%, which indicates that borrowings and finance
lease liabilities are still kept at a reasonable level and do not put too much pressure
on a company with a quite good financial health as Phuoc Hoa company.

201
8 2019 2020
Times interest 28.7
earned 3 21.05 28.43
Fixed charge Tab
le 11:
coverage 8.82 6.26 10.01
Financial 184.
Leverage 06% 206.92% 209.62%
Times interest earned, Fixed charge coverage, Financial Leverage of PHR 2018-
2020

27
From 2018 to 2020, the times interest earned is higher than benchmark (> 6), means
that the firm has a good ability to pay back interest.
The firm’s fixed charge coverage is a good figure which indicates that the firm
can comfortably cover its fixed costs with its current earnings.
PHR’s financial leverage has increased gradually over the years. In 2018
reached 184.06% and in 2020 reached 209.62%, which indicates that the firm took
debt to explore its performance and took advantage of using financial leverage to
earn   2018 2019 2020
Inventory turnover 4.54 4.05 4
Average number of days inventory
in stock 79.37 88.91 90
profits for the corporation.

2.3 Activity ratios:

- The inventory turnover

Table 12: Inventory turnover & Average number of days inventory in stock of
PHR 2018-2020

Chart 10: Inventory turnover ratio of PHR 2018-2020

Inventory turnover ratio

9 8.32 8.34
7.87
8
7.09
7 6.72

6 5.51
5 4.54
times

4.05 4
4 3.41
3 2.56
1.97
2
1
0
TNC PHR HRC DPR

2018 2019 2020

28
PHR’s inventory turnover ratio was below than benchmark (<6) and this ratio is also
not very impressive compared to other competitors in the industry, which indicates
that the firm is selling goods relatively slowly and the demand for its products is not
very high.

- The receivables turnover

  2018 2019 2020 T

a b
Receivables turnover ratio 6.05 6.25 6.97
l e
Average number of days
receivables 59.53 57.57 51.65
13: Receivables turnover ratio & Average number of days receivables of PHR 2018-
2020
PHR’s receivables turnover ratio has increased gradually from year to year and
remained stable over 6, which indicates that the firm collected its average receivables
6 times a year or nearly 2 months a time. This is a reasonable figure which indicates
that the firm is quite cautious in granting credit to customers and preventing bad debt
risks.

- The payables turnover

  2018 2019 2020

Payables turnover 20.32 18.8 18.82 Tabl
e Average number of days of payables 17.72 19.15 19.13 14:
Payables turnover & Average number of days of payables of PHR 2018-2020
The firm has a high payable turnover ratio remained nearly 20 times a year or about
20 days a time, which means that your company has a good ability in cash and
financing to pay its bills.

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- The working capital turnover

Chart 11: Net sales & Average working capital of PHR 2018-2020
  2018 2019 2020
Working capital turnover ratio 5.42 2 1.08

Table 15: Working capital turnover ratio of PHR 2018-2020

The working capital turnover ratio decreased significantly from 5.42 in 2018 to 1.08
in 2020, which mostly came from the sharp increase in average working capital. The
main reason for increasing working capital is the increase in current assets, which
mostly came from land compensation and profits distributed from industrial zones, so
the size of current assets of PHR increased sharply. However, with limited land
reserves, the conversion of rubber plantation land to industrial zone real estate can
help the company to record "extraordinary" compensation and profits, but it will
directly affect the company's core business is manufacturing - trading in rubber.
 In the long term, Phuoc Hoa Rubber needs to find solutions to improve its core
business and have reasonable orientations to ensure sustainable development in
the future.

30
- The asset turnover
  2018 2019 2020
Total asset turnover 0.33 0.3 0.26
Fixed asset turnover 1.46 1.24 1.02
Table 16: Total asset turnover & Fixed asset turnover of PHR 2018-2020
The firm’s total asset turnover ratio decreased gradually from year to year and always
kept below 1, indicates that the company is underperforming, as the company is
generating less revenue compared to per unit of total assets spent. However, it is
typical for firms in the rubber sector. Since these companies have large asset bases, it
is expected that they would slowly turn over their assets through sales.
Looking at it objectively, the fixed asset turnover ratio still remained more than 1,
which indicates that the firm still generates more net revenue than net fixed assets
spent.
2.4 Profitability ratios:

Profitability ratios
80.00%
68.95% 68.95%
70.00%

60.00%

50.00%
41.31% 41.31%
38.06%
40.00%
29.75% 29.75%
30.00% 23.82% 25.25%
21.54%
20.00% 17.61% 18.16% 18.45%
13.72%
8.92%
10.00%

0.00%
Net profit margin Gross profit margin ROS ROA ROE

2018 2019 2020

Chart 12: Profitability ratios of PHR 2018-2020

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Although the firm used a high debt ratio, it knows how to use financial leverage,
there by generating very good profit for the business, especially in 2020 all
profitability ratios reached a new level, indicates that the company has extremely
good profit growth.
PHR's ROA remains higher than the bank loan interest rate and ROE also maintained
higher than bank deposits rate shows that the company creates very good benefits for
existing shareholders and this is very attractive to potential new investors in the
future.
III. Recommendations:

Highlights:
- The main highlight for PHR's position is the advantage of land reserves and
the transformation into industrial zone real estate with the potential to bring
large cash flow in at least the next 3-5 years.
- With a healthy financial position, cash flow from business activities always
remains at a high level, on that basis, PHR always maintains a very high
cash dividend payout ratio (annual dividend payout ratio of 15-35%) and
with the profits from the handover of industrial land in the future, this
figure is expected to be even more attractive.
Investment risk:
- The Covid-19 epidemic caused the price of rubber to fall deeply although
after that the price gradually recovered, however, facing with the current
serious epidemic situation, it is inevitable that the rubber price will continue
to follow the downward trend.
- According to experts, there will be more challenges in 2021 when the
export is limited. Besides, exports to the largest market - China showed
signs of slowing down as China bought strongly in the last quarters of
2020.

32
 REFERENCE DOCUMENT
Introduce about the company PHUOC HOA RUBBER JOINT STOCK
COMPANY and Businesses scale:
https://www.phr.vn/gioi-thieu.aspx?pid=1(Retrieved 9 April 2021)
Product structure:
https://www.phr.vn/san-pham.aspx (Retrieved 9 April 2021)
Consumer market:
https://www.phr.vn/gioi-thieu.aspx?pid=3 (Retrieved 10 April 2021)
Analysis SWOT:
http://luanvan.co/luan-van/xay-dung-chien-luoc-san-xuat-va-dieu-hanh-
cong-ty-co-phan-cao-su-phuoc-hoa-57992/ (Retrieved 10 April 2021)
CafeF:
https://cafef.vn/trien-vong-thi-truong-cao-su-the-nao-trong-nam-2021-
20210212233641258.chn
Vietnamfinance:
https://vietnamfinance.vn/nam-2020-cao-su-phuoc-hoa-phr-bao-lai-tang-gap-
doi-nho-tien-boi-thuong-dat-20180504224248241.htm
Vietstock:
https://finance.vietstock.vn/DPR-ctcp-cao-su-dong-phu.htm?tab=BCTQ
Vietstock:
https://finance.vietstock.vn/PHR/tai-tai-lieu.htm
Vietstock:
https://finance.vietstock.vn/TRC-ctcp-cao-su-tay-ninh.htm
Tăng trưởng chỉ số nhóm ngành:
https://www.cophieu68.vn/category_finance.php

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