LIDECO ( NTL – HOSE) Tu Liem Urban Development Joint Stock

Content Overview of LIDECO Requirement 2 Requirement 3

Overview Tu Liem Urban Development Joint Stock Company ( LIDECO ) History: Main business: the real estate industry new urban areas, residential areas and industrial zone provides architectural and engineering services constructs power transmission systems Ownership

Requirements  The relationship between Vietnamese financial markets and corporate financial management of LIDECO  The implementation of the goal of corporate finance over time with two aspects: profitability and risk

Requirement 2 Vietnamese financial market 2011 July CPI 1.17%. Inflation 22.16% Trade deficit - SBV kept allowing banks to re- export gold. 7 month trade deficit- $7bil But in Sept, trade deficit Contracted FDI 0.7%, month disbursed FDI: $6.3 bill The foreign exchange market is relatively stable in July but it is volatile in Sept

Vietnamese financial market 2011 ( cont) Around VND 45 trillion of VGBs and nearly VND 37 trillion of government guaranteed bonds were issued Until July, about 94VND tril: net-withdrawn via OMO by SBV

Requirement 2 Corporate financial management of LIDECO Charter capital: VND328 bill VND656 bill by issuing more stocks, auction 2,000,000 stocks of NTL on stock exchange But Due to unfavorable market, LIDECO not issue stock with list price “ not below 35,000 VND/ stock” Resolution No. 14/NQ-HDQT-LIDECO: delay to issue 2 mil stocks( 8/3/2011) until /7/2011: listing & trading additional shares common stock / 10,000VND / 30.8 mil shares / July /8/2011: Announcement on share buyback- repurchase 1mil registered shares

The price and volume of shares

Requirement 3 profitability and risk Balance sheet Current assets586,529941,3311,142,565 2,045,847 Short-term investment59, ,330 Short-term accounts receivables172,735156,296198,032243,740 Inventories242,626654,916486,089822,469 Other current assets53,46959,39083,75274,775 Non-current assets73,84424,60928,87189,162 Long-term account receivable---- Fixed assets5,5356,48811,98026,421 Investments in properties---4,623 Long-term investments66,02115,97214,87154,573 Good-wills2,2892,1492,0203,546 Total assets660,373965,9401,171,4362,135,009 Liabilities366,263709,292615,5731,170,632 Current liabilities366,083709, ,523 1,124,448 Non- current liabilities ,05046,185 Owner Equity294,110256,648555,862927,389 Total assets+ owner equity660,373965,9401,171,4362,135,009 Balance sheet

Assets: increasing dramatically ( especial current assets) => enhance liquidity and broaden scale Liability : mainly current liability ( from customers, suppliers, and the characteristics of the business area) Equity: rise with 67% ( 2009/2010)- the profit of Tram Troi and Dich Vong projects

Cash flow of statement Statement of cash flow Cash flow from operating activities22,52074,474469,054581,680 Cash flow from investing activities3,0103,55421,49414,257 Cash flow from financing activities(9,000)(65,182)(187,842)(69,235) Net cash flow of the year16,53112,846303,101526,702 Cash and cash equivalents at the beginning of year 41,35457,88470,729373,830 Cash and cash equivalents at the end of year57,88470,730373,831900,532 Comment: Good cash flow Operating activities: significant rise=> the efficiency of the ongoing projects Investing : pay more attention to its industry Financing: reduce ( ): tend to attract its own capital and shareholders

Income statements Income Statement Revenues371,3071,379,5541,389,725 Cost of goods sold241,434671,699632,564 Gross profit129,873707,855757,161 Operating expenses Operating profit78,991715,891783,084 Interest expense Earnings before taxes79,023713,250781,122 Taxes Net profit after taxes61,812530,403583,969 Profit after tax of parents' shareholders--7,407 Net income61,812530,403576,562 Comment: the striking feature is the dramatic increase in revenues from 2008 to 2009, because of the optimistic view of real estate market and the support of governmental policy

Financial ratios Valuation EPS (Thu nhập 1 cổ phần ( đ ồng/cp)34, , , P/E BVPS ( Giá trị sổ sách 1 cổ phần)35, , , P/B Dividends DPS ( dividend per share) 3,000 (Dividend Yield) Cổ tức/giá 15.00% Payout Ratio 9.28%17.07% Growth Rates (%) Sales growth129.63%-17.56%271.54%0.74% Pre-tax profit growth56.16%-51.53%802.58%9.52% Net profit growth25.97%-53.00%758.09%10.10% Internal Liquidity Ratios Current Ratio Quick Ratio Cash Ratio Profitability Ratios (%) Gross Profit Margin37.29%34.98%51.31%54.48% Pre-tax Margin36.20%21.28%51.70%56.21% Net Profit Margin29.20%16.65%38.45%41.49% Return on Assets (ROA)24.93%7.60%49.63%34.88% Return on Equity (ROE) %77.74% Operating Efficiency Receivable Turnover Inventory Turnover Payables Turnover Total Asset Turnover Capital Structure Debt/Equity124.53%276.37%110.74%126.23% Debt/Total Assets55.46%73.43%52.55%54.83%

Profitability Industry ROA24.93%7.60%49.63%34.88%10.76% ROE59.81%22.52%130.45%77.74%34.95% Comment: ROA&ROE of NTL > these of industry ( real estate) => have a good prospects of development ROE : dramatic fluctuation=> pay more attention to the capital structure In 2010, ROE &ROA – reduce => the effect of the market and the effiency of its projects ( Tram Troi, Dich Vong )

Valuation Industry EPS34, , , ,584 P/E P/B Comments: P/E & P/B of NTL ROE of NTL risker EPS of NTL>> this of industry => the good effects of the government policy of housing and apartment

Dupont Analysis Net profit margin29.20%16.65%38.45%41.49% Total assets turnover Asset/equity ROE59.81%22.52%130.45%77.74%

Dupont analysis ROE by: increasing net profit margin upgrading asset turnover determine the capital structure => LIDECO should pay more attention to change its capital structure by calculating the number of issued stocks

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