Kingdo Financial Analysis
Essay by Hanguyen91 • September 30, 2015 • Case Study • 6,008 Words (25 Pages) • 1,071 Views
TABLE OF CONTENT
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KINH DO CORPORATION
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- Official name: Kinh do Corporation
- Abbreviation: Kinh do
- Stock code: KDC (HOSE)
- Sector: Food and beverage industry
- Major businesses: sweets and non-alcoholic beverages, including cookies, cakes, crackers, candies, moon cakes, beverages and ice cream, merchandise of operating supplies and real estate...
- It was listed on HASTC in 2005 with the ticker KDC
- Initial chartered capital: VND 150 billion
- Until now, chartered capital: VND 1,195,178,810,000
OVERVIEW
Kinh Do Corporation is a business group of Vietnam with an emphasis on food production. Kinh Do Corporation, together with its subsidiaries, engages in processing agricultural products and foods in Vietnam. The company also produces confectionery, purified water, fruit juice, biscuits, cakes, buns, candies, chocolates, ice-creams, yogurt, and milk products. In addition, it purchases and sells agricultural products and foods, industrial products, and fabrics. The corporate group also includes companies in the fields of financial services, real estate and a retail bakery chain. Kinh Do Corporation was founded in 1993 and is headquartered in Ho Chi Minh City, Vietnam.
HISTORY HIGHLIGHTS
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- It was established in 1993 and 1994 with the capital USD 750,000 to buy a modern production line with Japanese technology for Snacks production.
- In 1996, Kinh Do constructed new factories and office at 6/134 National Road 13, Hiep Binh Phuoc Ward, Thu Duc District, Ho Chi Minh City with the area of 14,000 m2. At the same time, the company invested USD 5,000,000 to buy a Cookies production line with the modern Danish technology and equipments
- In 1997 and 1998, the company continued to invest USD 1,200,000 to buy a production line for making the sweet bun and the cake
- At the end of 1998, an USD 800,000 valued Chocolate candy production line was continuously put into operation.
- In 2000, Kinh Do widened the factory up to 60,000 m2. In order to diversify the products, the company invested around USD 2,000,000 to buy a new Crackers production line from Europe
- In April 2001, company put the modern poduction lines producting the hard and soft candies with total value of about USD 2,000,000 and capacity of 40 tons per day to meet the markets' requirements.
- In 2001,the company had also put a new Crackers production line valued USD 3,000,000 with the capacity 1.5 ton per hour into operation
After 12 years' operation and development, beside the financial achievement of increasing the capital from USD 125,000 to $ 10 Million USD ,one of the more important achievement and pride that Kinh Do has gained is to gather a high professional management team and a skillful staffs and workers team who have been trained in Vietnam and foreign countries. This will be a very important fundamental platform to help company develop in future..
SHAREHOLDER STRUCTURE
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MARKET POSITION
Kinh Do Corporation is one of the leading confectionery companies in Vietnam and has a very popular brand. Its market is very large and Kinh do focuses not only domestic market but also foreign market. The company has exported its products to 30 countries, including the European Union, the United States, Japan, South Korea, and Australia. Kinh Do has won gold medal awarded products recognized at Quang Trung and Can Tho International Trade Fair in 1995, 1996; Gold medal award for marketing activities and Gold Medal award for quality, hygiene and safety in 2001. From 1997 till now, The Kinh Do brand is always trusted and elected the Vietnamese High Quality ProductsIn general, Kinh Do is always in top Five and remains its leading position in confectionery industry of Vietnam.
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2. SWOT:
Strengths · Exclusive technology · Leading brand · Wide distribution channel · Large scale · Experienced management | Weaknesses · Weak service · Old sales staff · Bad decoration and packaging
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Opportunities · Bakery, Bakery & Cafe is new and have high potential in Vietnam market · Vietnamese customers are getting more familiar with Western foods and culture
| Threats · Customers prefer uniqueness and quality. · More and more famous franchise · Food hygiene is huge problem in Vietnam · Inputs supply like egg can be affected |
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Balance sheet Analysis
Items | 2007 | 2008 | 2009 | 2010 | 2011 |
CURRENT ASSETS | 175,463 | 147,443 | 251,007 | 232,829 | 255,853 |
Cash and cash equivalents | 53,044 | 20,681 | 98,461 | 67,232 | 96,733 |
Short-term investments | 52,252 | 58,429 | 51,818 | 16,041 | 37,377 |
Short term Receivables | 56,032 | 48,941 | 82,518 | 101,836 | 72,491 |
Inventory | 13,627 | 18,166 | 16,248 | 43,433 | 39,803 |
Other current assets | 508 | 1,227 | 1,962 | 4,288 | 9,449 |
NON CURRENT ASSETS | 131,285 | 150,898 | 173,753 | 270,363 | 325,089 |
Long-term receivables | 3,091 | 3,106 | 2,255 | 61 | 34 |
Fixed assets | 48,086 | 74,909 | 65,608 | 127,905 | 143,103 |
Real estate investments | 0 | 0 | 0 | 2,917 | 2,659 |
Long-term investments | 79,735 | 67,338 | 99,454 | 116,308 | 125,572 |
Goodwill | 0 | 3,843 | 3,204 | 12,700 | 39,351 |
Other long-term assets | 372 | 1,701 | 3,232 | 10,472 | 14,369 |
TOTAL ASSETS | 306,747 | 298,341 | 424,760 | 503,192 | 580,942 |
LIABILITIES | 59,351 | 83,593 | 176,744 | 117,646 | 195,948 |
Current liabilities | 46,780 | 66,388 | 163,268 | 104,505 | 178,356 |
Short-term debts and borrowings | 26,300 | 33,592 | 40,735 | 38,055 | 88,265 |
Trade accounts payable | 15,633 | 10,666 | 12,740 | 27,138 | 27,413 |
Advances from customers | 310 | 983 | 3,545 | 3,515 | 3,606 |
Taxes and payables to the State Budget | 859 | 8,034 | 6,517 | 3,964 | 5,817 |
Payable to employees | 459 | 150 | 989 | 2,250 | 6,568 |
Accrued expenses | 105 | 483 | 5,572 | 14,267 | 22,110 |
Other payables | 3,113 | 197,100 | 93,170 | 12,344 | 20,318 |
Bonus and welfare fund | 0 | 0 | 0 | 2,971 | 4,259 |
Long-term liabilities | 12,571 | 17,204 | 13,476 | 13,141 | 17,592 |
Other long-term liabilities | 0 | 0 | 0 | 680 | 1,704 |
Long-term debt | 11,241 | 15,603 | 11,939 | 9,379 | 11,408 |
Provision for severance allowances | 1,330 | 1,601 | 1,536 | 3,082 | 4,480 |
SHAREHOLDERS' EQUITY | 245,349 | 207,592 | 241,802 | 373,926 | 381,467 |
Capital and reserves | 244,740 | 207,592 | 241,313 | 373,926 | 381,467 |
Budget sources and other funds | 610 | 0 | 489 | 0 | 0 |
MINORITY INTERESTS | 2,047 | 7,156 | 6,214 | 11,620 | 3,527 |
TOTAL LIABILITIES AND SHAREHOLDER | 306,747 | 298,341 | 424,760 | 503,192 | 580,942 |
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