Kinh Do Corporation
Part1: Introduction of Kinh Do Corporation1
Part 2: KDC’s Performance Analysis4
KDC’s performance recent years 4
Common-Size Balance Sheet & Income Statement5
Ratio and DuPont Analysis6
Part 3: Analysis KDC’s Shock4
Assumptions regarding growth rate, required rate of return, expected dividends7
Calculate intrinsic value of the stock 8
Introduction of Kinh Do Corporation
Kinh Do Corporation (KDC) was established in 1993. It is the leading food company which was voted by consumers as the Vietnam high quality foods during 15 years. It owns distribution system spreading over 64 provinces and cities with 200 distributors and 120 retail outlets. Its products have been exported to 35 markets around the world such as USA, Europe, Australia, Middle East, Singapore, Taiwan ... with high export turnover. The registered head office is located at 141 Nguyen Du, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam. Stock Symbol: KDC
Total Listing Volume: 159,921,625
Outstanding Volume: 158,429,369
Key products and services: The KDC’s principal activities are to process agricultural products and foods; produce confectionery, purified water, and fruit juice; sell and purchase agricultural products and foods, industrial products, and fabric. KDC’s Mission: to create suitable and convenience products, including common and essential foods, additional products and beverages. Kinh Do provides safe, delicious, nutritious, convenient and nice products for everyone. KDC’s Targets in 2012:
* The prior choice for business partners, performance and sales productivity. * To establish 200 retail outlets.
* To lead in the distribution of commodities.
* To lead distribution system.
* More than 50 product enhancements.
* 3 new commodities will be broken in market.
* Net revenue will be increased by at least 30% from the current products. * Gross profit will be maintained at 38%.
* The ratio of operating profit will be 9.1%
* Net profit after tax will be 7.3%
* Kinh Do Binh Duong Corporation (KDBD)
* Vinabico Confectionery Joint-Stock Company (Vinabico)
* KIDO Corporation (KIDO)
* North Kinh Do Food Joint-Stock Company (NKD)
* Tan An Phuoc Company Limited (TAP)
* Thanh Thai Land Holding Joint-Stock Company (TTR)
* Nutifood Food Joint-Stock Company (Nutifood)
KDC’s Jointly-controlled organizations: Lavenue Investment Joint-Stock Company (Lavenue)
KDC’s Performance Analysis
KDC’s performance recent years
The graphs provide information about KDC’s the total revenue and total net income from 2009 to 2011. We can see from figures that during this period, KDC’s total revenue increased significantly, especially in 2011, with over 4,278 billion. Although in 2011, KDC had more revenue than 2010 and 2009, total net income declined dramatically from nearly 581 billion (2010) to about 278 billion (2011) due to increased expense considerably. Comparing to Bibica Joint-Stock Company and Hai Ha Joint-Stock Company, total revenue of Bibica and HH didn’t have strong growth rate as KDC, however, while there had a significant decrease of KDC's net income, both of them had the slightly increased in 2011. Nevertheless, we can’t deny that KDC maintained its leading position in the food industry in Vietnam. The graphs provide information about KDC’s the total revenue and total net income from 2009 to 2011. We can see from figures that during this period, KDC’s total revenue increased significantly, especially in 2011, with over 4,278 billion. Although in 2011, KDC had more revenue than 2010 and 2009, total net income declined dramatically from nearly 581 billion (2010) to about 278 billion (2011) due to increased expense considerably....