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Kingdo Financial Analysis

Essay by   •  September 30, 2015  •  Case Study  •  6,008 Words (25 Pages)  •  973 Views

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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

 

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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