company logo alphanam jsc industrial combination

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