Financial Statement Analysis Bình Minh Plastic (BMP), phân tích tài chính Bình Minh Plastic, nhựa bình minh

1. BINH MINH PLASTIC JOINT STOCK COMAPNY
FINANCIAL STATEMENTANALYSIS
20
20////////////////////////////////////////////
Lecture
TRAN MINH TAM
Nguyễn Diệu Linh 030633170966
Phạm Việt Trinh 030805170095
Nguyễn Tiến Sỹ 030805170146
Cổ Vạn Tấn 030805170127
Nguyễn Hà Phương 030805170170

2. CONTENTS
Table of
01
10
02
04
› Executive Summary
› Investment Summary
› Company Profile
› Overview
› Overview About Vietnam’s
Plastic Industry
› Porter Five Forces Analysis
› Captital Structure Analysis
11
› Coefficient Of Capital Structure
› Coefficient Of Solvency
› The Profitability Indicators
14 › References

3. Executive
Summary
aw materials used for production must be imported up to 80%. The
BMP’s market share is 26% in plastic pipes market. From 2015 to 2018,
Company EAT decreased.
The Owner Equity propotion each year from 79% to 87% make the
company less reliable on Liabilities but don’t have much benefit from tax
saving by having more loans. The Net Working Capital/ Working Capital
ratio is extremely high, between 93,76% to 96,11% and the Net Working
Capital/Current Asset is between 72,85% - 80,15% . Make the financial
structure stable and low liquidity risk. The Interest Cover Ratio is super
high from 163,98 to 1535,52
R
We recommend buying for shares of Binh Minh Plastic
JSC (HOSE: BMP) with a target price of 60,853 VND,
presenting 49.52%, upside potential. Our valuation is
Recommendation
BUY
(Date:09/04/2020)
Share Price (VND) 40,700
Target Price (VND) 60,853
Upside 49.52%
based on a 70%/30% blend of Discounted Free Cash Flow to Firm model and
a P/E analysis by Phu Hung Securites.
In the short term
We make positive recommendations for the industry Vietnam plastic in the short
term, industry growth in 2020 is forecast at 7.3%; due to the improved domestic
plastic material production capacity, which reduces dependence on imports;
prices of plastic materials are on a downward trend in the short term to help
businesses in the industry able to improve gross profit margin; The EVFTA
agreement, which comes into effect in the second half of 2020, is expected to
help plastic enterprises expand their EU export markets.
In the mediumand long-term
We recommend monitoring for Vietnam's plastic industry due to the price of
fossil raw materials in the medium and long-term. As crude oil and natural gas
fluctuate, it is difficult to predict the impact on prices of plastic materials.

4. BUSINESS
DECRIPTION
Company Profile
•Company’s name: Binh Minh
Plastics Joint-Stock Company
•Stock code: BMP
•Listed floor: HOSE
•Business code no: 0301464823
•Head office: 240 Hau Giang, ward
9, dist 6, Ho Chi Minh city
•Fax: (028) 39606814
•Website:
www.binhminhplastic.com.vn
•Capital: 818.609 million VND
•Chairman of Binh Minh Plastics:
SAKCHAI PATIPARNPREECHAVUD
was a recognition from the
international community as the only Vietnamese company to
receive the “World Class” award of the Global Performance
Excellence Award (GPEA) 2018 voted by Asia-Pacific Quality
Organization (APQO). They have been firmly committed to the
perfect operation and bring to Vietnamese customers new
products and services.
BUSINESS DECRIPTION

5. BUSINESS DECRIPTION
OVERVIEW
• In 1977, Binh Minh Platic Partnership factory under the
Industrial Goods Corporation - Ministry of Light Industry was
established. In 2004, the company was equitized and Binh Minh
Plastic Joint-stock company officially went into operation under
the name of Binh Minh Plastic Joint-stock Company,
abbreviated as BMP Plasco.
M I S S I O N
oProviding products and
services to meet increasing
demands of the market
oEnsuring harmonization of
interests of customers,
employees, shareholders
and the society
C O R E V A L U E
o High consensus
o Repect of the past
o Strong development at
the present
o Confidence for the
future
V I S I O N
oMaintaining the status as a
leading Enterprise in plastic
building materials industry
in Vietnam
oActively improvin g
capacity for competition in
the region and in the world
• The Company mainly produces and trades civil and industrial plastic products and molds.
It also engages in assembling and merchandizing machinery and equipment for interior
designs, providing consultancy services for drainage and warehousing systems, as well as
evaluating chemicals and others. Main products include uPVC (Unplasticised Polyvinyl
Chloride) pipe, HDPE (High Density Polyethylene) pipe, and other supporting products
and plastic resins.
8.08% 54,39% 35%
FIGURE 1: O w n e r s h i p S t r u c t u r e
Templeton
Frontier Markets
Fund
Nawaplastic
Industies (Saraburi)
Co., Ltd
Others
8.08%
54.39%
37.53%
FIGURE 2: B u s i n e s s
oBinh Minh Plastic has domestic business areas
nationwide and accounts for 43% of plastic pipe
market share in the South and 28% of the
national plastic pipe market share.
oThe Company has 4 plants in HCMC, Binh
Duong, Long An and Hung Yen with total
capacity by 150,000 MT product/ year,
meeting goods demand of the national market
focusing on R&D, diversification kind and size.
oBy the end of 2018, the Company has owned
nearly 1,800 distributors nationwide. As a result,
goods have been timely provided to customers.
Additionally, the Company has provided plastic
pipes to water supply and construction
businesses as well as participated in major
national projects.

6. INDUSTRY ANALYSIS
Packaging
Constructio
n
Civil
Technicall
Overview About
Vietnam’s Plastic Industry
Northern 37%
Central 9%
Southern 55%
According to the General Statistics Office, the plastic
industry currently has more than 3,300 businesses in operation.
› In which manufacturing enterprises in packaging plastic account
for the largest proportion with 41% in the structure. Enterprises
operating in two fields, construction plastic and civil plastic,
account for 24% and 20% of the total Vietnamese plastic
enterprises respectively.
› By geographical area, plastic enterprises are concentrated in the
South region with about 55% of enterprises operating in this
area. The North and Central regions are concentrated with 37%
and 9% of the distribution of plastic enterprises, respectively.
The reason plastic enterprises are concentrated in the South and
the North is because these are two key economic areas where
densely populated as well as beverage manufacturing and
processing enterprises. , food.
Source: GSO Vietnam, FPTS
About Construction Plastic
The business model of plastic construction enterprises is mainly B2C (Business to Customer) model:
The main products of construction plastic enterprises are water pipes, plastic doors, ceiling panels,
plastic floors in service for finishing construction.
NTP
BMP
HSG
Others
Source: FPTS on Plastic Pipes
Marketshare in 2018
Attractive market share in 2018
Plastic construction products have higher added value and the
difference in products is also more obvious. Unlike plastic
packaging businesses, construction plastic businesses can
fully brand themselves and carry out product marketing. Due
to relatively bulky product characteristics, large
transportation costs, plastic construction enterprises mainly
compete by region and through dealer system. Compared to
the plastic packaging market, the construction plastic market
is relatively concentrated. Typically, Vietnam plastic pipe
market, the two leading enterprises are Tien Phong and Binh
Minh plastic, accounting for 53% of market share in 2018.

7. INDUSTRY ANALYSIS
PORTER’S FIVE FORCES ANALYSIS
is a construction plastic company and has
competitors in the construction plastic market.
Therefore, we need to understand the intensity of
competition in the market of construction plastic
production through Porter's five forces analysis.
Binh Minh
Plastic Company
▪ The degree of difference between domestic plastic products is not high,
customers can easily convert other businesses without spending a lot of
money.
▪ The uniformity of product quality makes plastic businesses have incentives
to attract customers in order to gain market share
▪ When international trade agreements take effect, tariff barriers are removed,
but the competitive pressure will be much higher
▪ New entrants will not achieving a significant market share to reach the
minimum effective scale and will be at a cost disadvantage.
▪ In the construction industry, there have been big and reputable companies.
This will make it difficult for new businesses to enter this industry.
▪ Vietnam joins the World Trade Organization (WTO), it also helps attract
investment from foreign countries, facilitating the development of new
businesses.
▪ In construction, plastic products can replace with products made of metals
such as copper, steel, aluminum, etc. But, plastic products have the
outstanding advantages like lightweight, easy to transport, internal and
outer tube ball, small friction coefficient, long usage time (BMP plastic
tube has a life of nearly 50 years), low price, low installation costs...
New Entry’s
Threat
The risk of
new entrants to
the industry is
average.
Substitute’s
Threat
The level of
risk from
substitutes is
low.
Suppliers
The bargaining
power of
suppliers is
low.
▪ At present, Vietnam has only a few suppliers of plastic materials and cannot
meet the demand, and the cost of conversion is low.
▪ Plastic materials can be easily stored and Vietnam has now cooperated with
major plastic material production areas in the world with Free Trade
Agreements.
Industry
Competitions
The level of
competition of
the industry is
moderate.
Customers
The risk from
power of
customers is
considered at
high levels.
▪ Customers in need of construction plastic today are contractors, constructions,
industrial enterprises ... with a large degree of dispersion.
▪ Most of the construction plastic products are quite similar. Therefore, plastic
businesses, always have discount incentives to attract and retain customers.

8. Items
2015 2016 2017 2018
value proportion value proportion value proportion value proportion
Net operating profit (loss) 666,628,728 99.20 785,833,750 98.59 589,360,702 113.813 527,981,892 117.58
Profit from financial activities ( not
excluding loan interest )
2,929,718 0.44 10,867,526 1.36 (72,094,163) -13.922 (80,085,958) (17.84)
Other Profit (2,002,473) (0.30) (2,342,898) (0.29) (6,857,165) -1.324 867,359 0.19
EBIT 671,986,488 100.00 797,085,961 100.00 517,832,337 100.000 449,028,475 100.00
INCOME STATEMENT ANALYSIS
INCOME STATEMENT
ANALYSIS
Analysis the Profit Structure1
thousand VND
The net operating profit
accounted for the highest proportion of the three
divisions of the business from 2015 to 2018, in 2015 the net operating
profit accounted for 99.2% of EBIT (666,628,729), profit from financial activities Main
accounted for 0.44% of EBIT (2,929,717), other profits accounted for -0.3% compared to
EBIT equivalent (2,002,473).
2016 2017 2018
Net operating profit
accounted for 98.59% of
EBIT, down 0.61%
compared to 2015 but
profit from financial
activities increased by
0.93% compared to 2015
and accounted for 1.36%
of EBIT equivalent
10,867,525, other profits
accounted for -0.29% of a
decrease of 0.1%
compared to 2015.
Net operating profit accounted
for 113.81% of EBIT,
(589,360,704), increased by
15.22% compared to 2016,
profit from financial activities
accounted for -13, 92% of EBIT
a decrease of 15.29%
compared to 2016, other
profits accounted for -1.32% of
EBIT equivalent to a decrease
of 1.03% compared to 2016.
Net operating profit
accounted for 117.58% of
EBIT (527,981,893), net
operating profit in 2018
increased by 3.77%
compared to 2017, profit
from financial activities
accounted for - 17.84 %
EBIT decreased by 3.91%
compared to 2017, other
profits accounted for 0.19%
of EBIT, an increase of
1.52% compared to 2017

9. INCOME STATEMENT ANALYSIS
Items
2016/2015 2017/2016 2018/2017
value proportion value proportion value proportion
Net operating profit ( loss) 119,205,022 -61% -196,473,048 15.22% -61,378,810 3.77%
Profit from financial activities
(not excluding loan interest)
7,937,809 93% -82,961,689 -15.29% -7,991,795 -3.91%
Other Profit -340,425 0% -4,514,266 -1.03% 7,724,524 1.52%
EBIT 125,099,473 -279,253,624 -68,803,862
ccording to the table, we find that the profit of core business decreased by 0.61% in
2016 compared to 2015, however, operating profit of core business still accounted
for a large proportion in total increase of EBIT 2016. Financial operating profit before loan
interest was improved and increased to 0.93% in 2016. Profit of companies also improved
over the years and has increased since 2015 to 2016.
-The profit of the main business in 2017 increased by 15.22% compared to 2016, however,
the operating profit of the core business still accounted for a large proportion of the total
increase of EBIT 2016. Operating profit Financial activities before interest rates in 2017
were reduced by 15.29% compared to 2016 and other profits decreased by 1.03%
compared to 2016.
-The profit of main business activities in 2018 increased by 3.77% compared to 2017 and
the proportion of profit from financial activities before interest in 2018 decreased by
3.91% compared to 2017, the proportion of profit Other on EBIT increased by 1.52%
compared to 2017.
A
› The company is still focusing on developing activities from
the main business each year and improving other profits.
Currency in Millions of VND except per share VND change % change
Items 2015 2016 2017 2018 2016/2015 2017/2016 2018/2017 %2016/2015 %2017/2016 %2018/2017
Total Revenues 2,822,477,434 3,358,106,467 3,849,706,201 3,945,876,580 535,629,034 491,599,733 96,170,380 18.98 14.64 2.44
Costsof good sold 1,901,883,604 2,248,176,460 2,901,883,582 3,047,590,783 346,292,856 653,707,122 145,707,201 18.21 29.08 4.78
Gross profit/(loss) 920,593,830 1,109,930,008 947,822,619 898,285,797 189,336,178 (162,107,389) (49,536,821) 20.57 -14.61 -5.51
Costsof sales 125,938,132 166,921,965 135,639,590 165,853,774 40,983,833 (31,282,375) 30,214,184 32.54 -18.74 18.22
Enterprise cost
management
95,995,478 115,282,372 124,418,207 97,832,604 19,286,894 9,135,835 (26,585,603) 20.09 7.92 -27.17
Net operating
profit/(loss)
666,628,728 785,833,750 589,360,702 527,981,892 119,205,022 (196,473,048) (61,378,810) 17.88 -25.00 -11.63
Financial Income 28,435,307 48,978,173 24,481,735 25,106,601 20,542,866 (24,496,437) 624,866 72.24 -50.02 2.49
Financial expenses (not
excludingloan interest)
25,505,589 38,110,646 96,575,898 105,192,559 12,605,057 58,465,251 8,616,661 49.42 153.41 8.19
Profit from financial
activities (not excluding
loan interest)
2,929,718 10,867,526 (72,094,163) (80,085,958) 7,937,809 (82,961,689) (7,991,795) 270.94 -763.39 9.98
Other inome 2,428,042 384,684 565,798 1,132,541 (2,043,358) 181,114 566,743 -84.16 47.08 50.04
EBIT 671,986,488 797,085,961 517,832,337 449,028,475 125,099,473 (279,253,624) (68,803,862) 18.62 -35.03 -15.32
Loan interest expenses 4,097,860 3,396,590 1,262,424 292,428 (701,271) (2,134,166) (969,996) -17.11 -62.83 -331.70
EBT 667,888,627 793,689,371 516,569,913 448,736,048 125,800,744 (277,119,458) (67,833,866) 18.84 -34.92 -15.12
Corporate income tax 168,986,287 133,538,243 144,928,431 89,704,488 (35,448,044) 11,390,188 (55,223,943) -20.98 8.53 -61.56
EAT 498,902,340 660,151,128 371,641,482 359,031,560 161,248,788 (288,509,646) (12,609,922) 32.32 -43.70 -3.51
2 Horizontal Analysis

10. INCOME STATEMENT ANALYSIS
125,099,473
-68,803,862
-279,253,624
18.62%
35.03%
15.32%
2016/2015
2017/2016
2018/2017
In 2016, EBIT increased because of an
increase of net revenue from sales of goods
and services, and revenue from financial
activities in 2016 increased.
In 2017, EBIT decreased because of the
revenue from financial activities in 2017
decreased by 50% compared to 2016, and
net operating profit decreased by 25%, so
EBIT decreased by 35%.
In 2018, EBIT decreased because of a
decrease of 5.5% in gross profit from goods
sale and service provision and cost of goods
sold increased by 5.02%.
EBT in 2016 increased by 18.84%
compared to 2015, equivalent to an
increase of 125,800,744, due to a
decrease in interest expenses of 17.11%,
equivalent to a decrease of 701,271
compared to 2015.
EBT in 2017 decreased by 34.92% over
the year 2016 due to EBIT decreased by
35% compared to 2016
EBT in 2018 decreased by 13.13%
compared to 2017 equivalent to a
decrease of 67,833,866 due to EBIT
decreased by 13.29% compared to 2017.
EAT in 2016 increased by 32.32% compared
to 2015, equivalent to an increase of
161,248,789 due to a reduction of 20.98%
of corporate income tax, equivalent to a
decrease of 35,448,045.
EAT in 2017 decreased by 43.7% compared
to 2016 equivalent decreased by
288,509,646 due to an increase of 8.53% in
corporate income tax and EBT decreased
by 34.92% compared to 2016.
EAT in 2018 decreased by 3.39% compared
to 2017 due to EBT reduction of 13.13%
and income tax businesses decreased by
38.1% so EAT in 2018 only decreased by
3.39%
Earning before Tax (EBT) Earning after Tax (EAT)
In 2016, it increased by 18.52% compared to 2015 equivalent to
517,129,525 due to Revenues from sales and service provisions increase in
by 23.8%.
In 2017, it increased by 15.6% compared to 2016, equivalent to
515,915,057 due to the increase in Revenues from sales and service
provisions by 10.3% and sales deductions 37 ,2%.
In 2018, it increased by 2.48% compared to 2017, equivalent to 94,978,770
due to the increase of 1.9% in Revenues from sales and service provisions.
Net revenue
from sales of
goods and
services

11. 3 Vertical Analysis
currency in Thousand of VND
Items Value Proportion Change
Currency in Millions of VND except
per share
2015 2016 2017 2018 2015 2016 2017 2018 2016/2015 2017/2016 2018/2017
Total Revenues 2,822,477,434 3,358,106,467 3,849,706,201 3,945,876,580
Costs of good sold 1,901,883,604 2,248,176,460 2,901,883,582 3,047,590,783 67.38 66.95 75.38 77.23 -0.44 8.43 1.86
Gross profit/(loss) 920,593,830 1,109,930,008 947,822,619 898,285,797 32.62 33.05 24.62 22.77 0.44 -8.43 -1.86
Costs of sales 125,938,132 166,921,965 135,639,590 165,853,774 4.46 4.97 3.52 4.20 0.51 -1.45 0.68
Enterprise cost management 95,995,478 115,282,372 124,418,207 97,832,604 3.40 3.43 3.23 2.48 0.03 -0.20 -0.75
Net operating profit /(loss) 666,628,728 785,833,750 589,360,702 527,981,892 23.62 23.40 15.31 13.38 -0.22 -8.09 -1.93
Financial Income 28,435,307 48,978,173 24,481,735 25,106,601 1.01 1.46 0.64 0.64 0.45 -0.82 0.00
Financial expenses ( not excluding
loan interest)
25,505,589 38,110,646 96,575,898 105,192,559 0.90 1.13 2.51 2.67 0.23 1.37 0.16
Profit from financial activities ( not
excluding loan interest)
2,929,718 10,867,526 (72,094,163) (80,085,958) 0.10 0.32 -1.87 -2.03 0.22 -2.20 -0.16
Other inome 2,428,042 384,684 565,798 1,132,541 0.09 0.01 0.01 0.03 -0.07 0.00 0.01
EBIT 671,986,488 797,085,961 517,832,337 449,028,475 23.81 23.74 13.45 11.38 -0.07 -10.28 -2.07
Loan interest expenses 4,097,860 3,396,590 1,262,424 292,428 0.15 0.10 0.03 0.01 -0.04 -0.07 -0.03
EBT 667,888,627 793,689,371 516,569,913 448,736,048 23.66 23.64 13.42 11.37 -0.03 -10.22 -2.05
Corporate income tax 168,986,287 133,538,243 144,928,431 89,704,488 5.99 3.98 3.76 2.27 -2.01 -0.21 -1.49
EAT 498,902,340 660,151,128 371,641,482 359,031,560 17.68 19.66 9.65 9.10 1.98 -10.00 -0.55
EBT
TOTAL
REVENUES
In 2016, it was 23.74%, equivalent
to a decrease of 0.07% due to
financial expenses increased by
0.23%.
In 2017, it was 13.45%, equivalent
to 10.28% reduction due to
business operating profit on total
revenue decreased 8.09%, financial
income on total revenue decreased
2.2%
In 2018, it was 11.38%, equivalent
to a decrease of 2.07% due to the
decrease in net profit from business
activities to 1.93%, financial profit
on total revenue decreased by
0.16%
EBIT
TOTAL
REVENUES
▪ EBT on total revenue in 2016
was 23.64%, down 0.03%
compared to 2015 figures.
▪ EBT on total revenue in 2017
was 13.42%, down 10.22%
compared to 2016 due to
EBIT on revenue.
decreased by 10.28%
in 2017, EBT on total revenue in 2018 was 11.37%,
down 2.05% compared to 2017 because EBIT on
revenue in 2018 decreased by 2.07% compared to 2017.
ROSIn 2016, it decreased by 0.41%
compared to 2015 because of other
income decreased by 84.16% but other indicators
increased sharply such as financial income in 2016
increased by 72.24%, Net revenues from sales and
service provisions increased by 18.52%.
In 2017, it decreased by 5.6% compared to ROS in
2016 because the cost of goods sold in 2017 increased
by 29%, revenue from financial activities decreased by
50%.
In 2018, it decreased by 1.12% as COGS increased by
5% and selling expenses increased by 22.3%, financial
expenses increased by 7.8% but revenue and income
increased.
▪ In 2018, it
INCOME STATEMENT ANALYSIS

12. Items (31/12/2015) (31/12/2016) (31/12/2017) (31/12/2018)
CHANGE
2017/2016 2018/2017
Current Assets 1,886,339,698 2,185,930,164 1,818,270,863 1,806,688,353 -367,659,301 -11,582,510
Short Term Payables 361,619,098 487,541,771 361,856,213 299,920,881 -125,685,558 -61,935,332
Working Capital 1,524,720,600 1,698,388,392 1,456,414,650 1,506,767,472 -241,973,742 50,352,822
Long Term Capital 2,015,615,446 2,297,541,340 2,449,079,781 2,453,652,522 151,538,441 4,572,740
Long Term Assets 529,601,913 705,145,134 1,056,977,318 1,005,510,237 351,832,184 -51,467,081
Net Working Capital 1,463,620,413 1,592,396,205 1,395,102,463 1,448,142,285 -197,293,742 53,039,822
Short-Term Loans 61,100,187 105,992,187 61,312,187 58,625,187 -44,680,000 -2,687,000
Net working Capital/
Working capital
95.99% 93.76% 95.79% 96.11% 2.03% 0.32%
Net working Capital/
Current Assets
77.59% 72.85% 76.73% 80.15% 3.88% 3.43%
CAPITAL STRUCTURE ANALYSIS
NET
WORKING
CAPITAL
At the end of 2016, the company reached 1,592,396,205 in net
working capital. In comparison with the last year, net working
capital of BMP in 2017 decreased with 197,293,742. The reason for
this was the increased of 151,538,441 in long-term liabilities and
owner’s equity while the long-term assets only increased
351,832,184. Keeping increasing steadily, net working capital
increased from 1,395,102,463 at the end 2017 to 1,448,142,285,
making a 53,039,822 growth in 2018. This could be explained by
the fact that long-term liabilities and owner’s equity in this year
had increased 4,572,740 while the long-term assets lost, but only
by 51,467,081. With the increase of net working capital over the
years, the solvency was guaranteed more certainly and the
financial position of the company also became safer and safer.
Long-term capital sponsor mor than 93% financing for working capital needs each year.
Financial structure is safe, stable and low risk.
› From 2016 to 2018, long-term liabilities and owners’s equity of Binh Minh was not only
enough to sponsor for long-term assets but also for short-term assets.
› In 2016, 72.85 % of short - term assets was sponsored by long - term liabilities and owner’s
equity. This percentage increased by 3.88 % in 2017, it continued to rise in 2018 and reached
80.15 %, making a growth of 3.43 % in change.
› The trend of increasing in the ratio of net working capital over short- term assets showed
that the capital structure of Binh Minh was orientes to become more and more stable so
that the financial risk as well as the liquidity risk would be less.

13. FINACIAL RATIOS ANALYSIS
FINANCIAL RATIOS ANALYSIS
31/12/2016 31/12/2017 31/12/2018
BMP NTP BMP NTP BMP NTP
Debt Ratio 0.21 0.46 0.15 0.51 0.13 0.54
Equity Ratio 0.79 0.54 0.85 0.49 0.87 0.46
Debt to Equity Ratio 0.26 0.87 0.17 1.04 0.15 1.16
Financial Leverage Ratio 1.26 1.87 1.17 2.04 1.15 2.16
Short -term Debt to Total Assets
Ratio
0.21 0.41 0.15 0.45 0.13 0.49
› The debt ratio of the company has increased from 2015 with 17% to 2016 at 21% and in 2017
and 2018 has decreased slightly by 15% and 13% respectively, this ratio is always lower than
NTP through the year in the period 2015-2018. This means that the debt ratio is relatively low
in the company's total capital.
› BMP's equity ratio is always high over the years and higher than NTP. This ratio decreased
slightly in 2016, but continued to increase over the years 2017 and 2018. This shows that the
level of financial autonomy and the ability to offset losses by equity of the company is always
high in the period 2015-2018.
› Debt to equity ratio increased slightly with the ratio from 0.21 in 2015 to 0.26 in 2016 and in
the period of 2017-2018, the ratio decreased slowly but not too much. This ratio is quite small
compared to the debt to equity ratio of Tien Phong Plastic (0.87-1.16), showing that the
company is less dependent on debt financing, can understand that businesses must low risk.
However, it can also prove that businesses dont want to take risk and exploit the benefits of tax
savings.
› The financial leverage ratio of Binh Minh plastics (1.15-1.21) is lower than the plastic leverage
ratio of the previous plastic (1.87-2.16), the financial leverage ratio of Binh Minh plastics has
decreased annually from 1.21 (2015) to 1.15 (2018) and this figure shows that the use of debt
on equity is quite low, indicating that the company has low liquidity risk and recieve benefits
from effective tax savings.
› The ratio of short-term debt to total assets of Binh Minh Plastic (0.13-0.21) is lower than that of
Tien Phong Plastic (0.41-0.49), this ratio shows the company's short-term debt. BMP is lower
than that of NTP, short-term debt in 2015 accounted for 17% of total assets and in 2016 it was
21%, in 2017 and 2018 short-term debt decreased to 15% and 13%.
1 Coefficient of Capital Structure

14. FINACIAL RATIOS ANALYSIS
31/12/2016 31/12/2017 31/12/2018
BMP NTP BMP NTP BMP NTP
Current Ratio 3.68 1.38 4.30 1.19 5.04 1.12
Quick Ratio 2.87 0.85 3.33 0.73 3.38 0.68
Interest Coverage Ratio 234.67 9.16 410.19 8.24 1535.52 4.55
2 Coefficient of Solvency
The current ratio over the years is greater
than 1, indicating that the enterprise has
sufficient short-term assets to pay short-
term debts
Compared to Tien Phong Plastic Company
(1.12% -1.38%), the current ratio of the
company is quite high. Prove that the
company has sufficient short-term assets
to secure payment for short-term debts.
Quick Ratio from 2015 to 2018 is greater
than 1, showing that the cash equivalents
of the enterprise in the short term are
good. Perhaps the turnover is good, or
the short-term investments are
profitable, and the business has less
short-term debt to pay.
Compared to Tien Phong plastic company
(0.68% -0.85%), Quick Ratio is quite high,
showing that the enterprise is able to pay
short-term debts from high liquidity
short-term assets.
Compared to 2016, the company's
interest rate coverage in 2017
increased by about 175.52, and
increased sharply by 1125.33 over
the same period last year. The ability
to guarantee a sharp increase in
interest rates shows that the profit
before tax and interest rates of
companies are many times larger, so
the ability to ensure payment of
interest payments from profits is
increasingly guaranteed. In 2014,
2015 and 2016, interest rates of all
companies were higher than those of
rival companies (Tien Phong Plastic),
showing EBIT's increased interest
rate. higher than the rate of interest
increase on the loan.
The current ratio
The quick ratio
Interest Coverage
Ratio

15. FINACIAL RATIOS ANALYSIS
ROI
ROA
ROE
31/12/2016 31/12/2017 31/12/2018
BMP TPP BMP TPP BMP TPP
Return on Investment 0.30 0.15 0.18 0.16 0.16 0.11
31/12/2016 31/12/2017 31/12/2018
BMP TPP BMP TPP BMP TPP
Return on Equity 0.31 0.22 0.16 0.25 0.15 0.15
31/12/2016 31/12/2017 31/12/2018
BMP TPP BMP TPP BMP TPP
Return on Assets 0.19 0.13 0.23 0.14 0.13 0.09
Compared to 2016, the company's ROI in 2017 will decrease from 30%
to 18% and slightly decrease to 16% in 2018. However, BMP's
profitability through years is still greater than that of TTP. The fluctuation
of ROI over the years shows that the total average capital over years
increases, the company has effectively saved capital.
In 2016, the company's ROA was 6% higher than that of TTP, showing
that the company's ROA is very good compared to its competitor.
In 2017, BMP's ROA was 2% higher than TTP's ROA, but the company's
ROA decreased slightly.
In 2018, the company's ROA was 5% higher than TTP's ROA, but it
continued to decrease compared to 2017.
In general, the ROA of the company is effective compared to the
competitors', but still slightly decreases over the years. So the company
needs to improve the efficiency of its investment activities to maintain
its style.
In 2016, BMP's ROE is about 9% larger than TTP. However, it was smaller
than this competitor in 2017, and equal to TTP's ROE in 2018. This shows
that the efficiency of equity after the impact of Binh Minh Plastic 's debt
and taxes is not stable, while Tien Phong Plastic has always increased
over the years.

16. 1. Báo cáo tài chính của NTP trên Vndirect.
https://www.vndirect.com.vn/portal/bang-can-doi-ke-toan/ntp.shtml
2. Báo cáo tài chính của BMP trên Vndirect
https://www.vndirect.com.vn/portal/bang-can-doi-ke-toan/BMP.shtml
3. Thông tin trên website của công ty Nhựa Bình Minh
http://www.binhminhplastic.com.vn/
4. Resources financewalk:
https://www.financewalk.com/resources/
5. Một số bài báo cáo phân tích trong cuộc thi CFA Institute Research
Challenge:
https://www.cfainstitute.org/community/challenge/about/Pages/past_cha
mpions.aspx
6. Slide bài giảng Phân tích tài chính doanh nghiệp Thầy Trần Minh Tâm
7. Thông tin trên website của Hiệp hội nhựa Việt Nam:
http://www.vpas.vn/
8. Báo cáo phân tích cổ phiếu BMP của Phú Hưng Securities 23/9/2019.
http://static1.vietstock.vn/edocs/Files/2019/09/23/bao-cao-phan-tich-co-
phieu-bmp-khuyen-nghi-mua_20190923162501.pdf
9. Báo cáo ngành nhựa của FPT Securities 13/09/2019.
http://www.fpts.com.vn/FileStore2/File/2019/09/13/FPTSPlastic_Industry
_ReportAug2019_e5e64506.pdf
References

17. This report is prepared, based on the data collected from
various resources, which, by the authors’ knowledge, is reliable.
All references used in this report are cited fully. This report is
not intended to serve as an advice for any economic decisions
and the authors of this report do not hold any financial interest
in the company. The sole purpose of this report is to serve for
the purpose of learning and researching.
Disclosures