THAI NGUYEN UNIVERSITY

INTERNATIONAL SCHOOL

MIDTERM REPORT
TOPIC:
VINAMILK ANNUAL REPORT 2021

This submitted to
Lecturer: Tran Quoc Huy
 Subject: Corporate Finance

Student full name : LÊ THỊ MAI PHƯƠNG

Student ID : DTQ2153401200028

Class : IBK11

Major : International Business

THAI NGUYEN, 2023

VINAMILK ANNUAL REPORT 2021

Part I: Introduction
1.
Vinamilk (Vietnam Dairy Products Joint Stock Company) is the largest dairy company
in Vietnam, with a market share of over 50%. It is also one of the 40 largest dairy
enterprises in the world in terms of revenue. Vinamilk produces and distributes a wide
range of dairy products, including fresh milk, powdered milk, yogurt, ice cream, and
cheese. By 2021, Vinamilk has reached the 45th anniversary of its establishment.
During this process, Vinamilk has achieved great achievements as follows:
- In 1976, Establishment of Thong Nhat Dairy Factory, Truong Tho Dairy Factory, and
Dielac Powdered Milk Factory.
- In 2003, Equitized and officially became a joint stock company under the name of
Vietnam Dairy Products JSC.
- In 2006, Official listing on the City Stock Exchange HCM (HOSE) on January 19.
Establishment of Vietnam Dairy Cow One Member Company Limited in November.
- In 2021, Celebrating 45 years of establishment, Vinamilk has not only become the
leading nutrition company in Vietnam but also established a solid position as a
Vietnamese national brand in the global dairy industry. The Company has risen to the
36th rank on the world’s top 50 dairy companies in terms of revenue.
At the same time, this year VNM has completed a few projects such as Launching the
VNM Green Farm system; Official product distribution to Philippine consumers by the
end of 2021; Building a new factory in Hung Yen.
- Vinamilk's business activities can be summarized as follows:
+ Production and distribution of dairy products
+ Research and development
+ Marketing and sales
- Vinamilk is a key player in the Vietnamese dairy industry and plays an important
role in providing Vietnamese consumers with nutritious and affordable dairy products.
Highlight in 2021
2.
- VNM is the stock code for Vietnam Dairy Products Joint Stock Company, also
known as Vinamilk. It is the largest dairy company in Vietnam, with a market share of
over 50%.
Vinamilk is a well-established company with a strong brand reputation. It has a long
history of profitability and dividend growth. This makes it a popular stock for both
domestic and foreign investors.
VINAMILK's stock price in 2021 ranged from a low of VND 84,300 on 1 Jan 2021 to
a high of VND 116,300 VND/share on December 31, 2021.
Part II. Vinamilk Annual report 2021(Financial year ended 31/12/2021)

Ratio Value Detailed Caculation Explain & comment

1. Liquidity
ratios(3)

1.1. Current 2.12 36,109,910,649,785 / Code 100 / Code 310

ratio 17,068,416,995,520 - Current ratio > 1 but not too high,
showing that the company has the
ability to pay debts and use capital
effectively

1.2. Acid-test 1.72 (36,109,910,649,785 - (Code 100 - Code 140) / Code 310
6,773,071,634,017) / - Acid-test >1, the company has
17,068,416,995,520 enough short-term assets to pay
short-term liabilities without having
to sell inventory

1.3. Cash 0.14 2,348,551,874,348 / Code 110 / Code 310

ratio 17,068,416,995,519 Cash ratio < 0.5, the company can
pay its debts very quickly

2. Solvency
ratios(5)

2.1. Debt 33% (53,332,403,438,219 - (Code 270 – Code 400) / Code 270
ratio 35,850,114,249,384)/ _- Debt ratio < 50% shows that the
53,332,403,438,219 majority of their assets are wholly
owned (with low financial leverage).
Loan applications with banks will be
easily approved because the
company has a large debt
repayment ability.

2.2. Debt to 49% 17,482,289,188,835 Code 300 / Code 400

Equity ratio /35,850,114,249,384 - Debt to equity ratio < 100%, this
company has liabilities that account
for a small percentage compared to
total assets or total capital, the
business will have fewer financial
difficulties.

2.3. Equity 1.49 53,332,403,438,219 / Code 270 / Code 400

multiplier 35,850,114,249,384 - Equity multiplier < 2shows that
half of the company's assets are
financed by shareholders with
equity instead of liabilities. Vinamilk
also has quite low financial
leverage.

2.4. Times 146.52 (12,922,235,486,919 + Code 50 + Code 23/ Code 23

Interest 88,799,090,663) /
earned (TIE) 88,799,090,663 - Shows that Vinamilk's operating
income is 146 times larger than the
proposed interest claim on those
earning. The higher this number,
the more profit the business earns
and good solvency

2.5. Cash 170.41 (12,922,235,486,919 + Code 50 + Code 02 + Code 23 / Code

coverage 2,121,337,734,780+ 23
ratio 88,799,090,663) / - For each VND interest expense,
the company has 170 VND available
88,799,090,663
to pay credit interest expense. At
the same time, it also shows that
this group has low debt capital

3. Turnover
ratios(5)

3.1. 5.93 34,640,863,353,839 / Code 11 / Average Code 140

Inventories ((6,773,071,634,017 + - In 2021, Vinamilk will have 5.93
turnover 4,905,068,613,616) /2) inventory sales, which is lower than
in 2020 (6.47 times), showing that
this year's sales are less effective
than last year.

3.2. Day's 61.55 365/ 5.93 365/ Inventory Turnover

sales in - On average, Vinamilk will sell out a
inventories batch of inventory every 2 months.
This number is quite long compared
to Vinamilk's dairy and food
products

3.3. 11.07 60,919,164,846,146 / Code 10 / Average Code 130

Receivables (5,822,028,742,791+ - In a year, Vinamilk must have 11
turnover 5,187,253,172,150)/2 times the customer receivable
turnover, lower than 2020. Showing
that the company's debt collection
is quite effective but lower than
2020.

3.4. Day's 32.91 365/11.07 365 / Receivable turnover

rsales in - Within 1 month the company will
Receivables collect debt from customers. This
number is considered quite high for
a large corporation like Vinamilk
3.5. Total 1.20 60,919,164,846,146 / Code 10 / Average Code 270
Assets ((53,332,403,438,219 + - For every 1 unit of assets, the
turnover 48,432,480,673,629)/2) company will generate 1.2 units of
revenue. Shows that asset
management and use is effecti

4.
Profitability
ratios(4)

4.1. Profit 17.45% 10,632,535,972,478 / Code 60 / Code 10

margin 60,919,164,846,146 - It shows that with such revenue,
Vinamlik earns 17.45% of profit
after tax. This ratio shows that the
business has invested effectively
and earned large profits

4.2.Operating 43.14% 26,278,301,492,307 / Code 20 / Code 10

margin ratio 60,919,164,846,146 - Operating margin shows a more
comprehensive view, taking into
account operating costs to generate
revenue.

4.3. Return 19.94% 10,632,535,972,478 / Code 60 / Code 270

on Assets 53,332,403,438,219 - For every 100 units of currency,
(ROA) Vinamilk has 20 units of profit the
business will earn. That means
businesses will earn an average of
20% of their assets. However, this
index decreased by 3% compared to
2020

4.4. Return 29.66% 10,632,535,972,478 / Code 60 /Code 400

on Equity 35,850,114,249,384 - For every 100 units of equity,
(ROE) shareholders will receive 30 units of
revenue. This business is using
capital effectively when earning
large profits

5. Market
value
ratios(6)

5.1. Earnings 4,517 4517 Code 70

Per Share
(EPS)

5.2. Price Per 86,400 86400 On 31/12/2021

 Share (PPS)

5.3. Price- 19.13 86400 / 4517 Price per share / earning per share
Earnings (PE) - Shows that for every 1 dong of
after-tax profit, shareholders are
willing to spend 19.13 dong to buy
shares. It can be seen that
Vinamilk's shares are very potential

Sale per 29,148.8 60,919,164,846,146 / Code 10/ Share outstanding

share 9 2,089,930,807

5.4. Price/ 2.96 86400/ 29148.89 Price per share/ sale per share
Sale ratio - Shows that the market values each
unit of revenue 2.96 times higher.
Help attract investors to buy shares
of vinamlik

Book value 17,153.7 35,850,114,249,384 / Code 400 / share outstanding (note

per share 3 2,089,930,807 VI.11)

5.5. Market 5.04 86400/ 17153.73 Price per share / book value per
to book ratio share
- Shows that the market values
vinamlik's shares 5 times higher
than the book price. That means the
stock price has increased 5.04 times
since the company issued shares.

5.6. Dividend 4.17% (7,523,560,503,000 / (Code 36 / share outstanding) /

yield 2,089,930,807) / 86400 Price per share
- Shows that for every 100 VND in
market value of that stock, the
Investor will receive 4 VND back.
Proving that the Company is
operating effectively, and investors
and owners are the ones who
benefit the most.

Part III.
- The above indicators show that Vinamilk is operating its business quite well.
Despite a decrease compared to 2020, assets, profits and equity all performed well.
Low debt capacity and good debt repayment. Stocks are stable and have rapidly
increasing value.
- Whether or not I buy VNM now depends on a number of factors, including my
investment goals, risk tolerance, and time horizon. VNM is an ETF fund of the
Vietnamese stock market, so it is subject to risks when investing in Vietnam such as
political and economic instability, currency fluctuations, and liquidity risks. However,
VNM also has the potential to bring high profits because Vietnam is a rapidly growing
economy. Looking at the financial statements and proposed indicators, we can see that
VNM stock has quite potential and attracts many investors.
- If I buy VNM now, I will aim for a price between 90,000 and 120,000 VND per
share (based on 2021 prices). This price range is based on VNM's previous valuation
and Vietnam's current economic outlook.