Company LOGO ALPHANAM JSC INDUSTRIAL COMBINATION Content Company Overview Relationship between Vietnamese financial market and Alphanam’s financial management 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 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 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 ... Vietnamese financial market and Alphanam s financial management Company’s Profitability and Risks Company Overview • Established in 1995 as Alphanam Co., Ltd • 2002: Alphanam JSC • Industry: Industrial... 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%... - Effects: Alphanam did not want to sell their shares at 90% market price as agreed months ago - Financial Decision: put off the deal temporarily Example #2 EXAMPLE #2 - 10/2010: Alphanam intended