Kingdo Financial Analysis
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TABLE OF CONTENT[pic 1][pic 2][pic 3][pic 4]KINH DO CORPORATION [pic 5]Official name: Kinh do CorporationAbbreviation: Kinh doStock code: KDC (HOSE)Sector: Food and beverage industryMajor businesses: sweets and non-alcoholic beverages, including cookies, cakes, crackers, candies, moon cakes, beverages and ice cream, merchandise of operating supplies and real estateIt was listed on HASTC in 2005 with the ticker KDCInitial chartered capital: VND 150 billionUntil now, chartered capital: VND 1,195,178,810,000OVERVIEWKinh 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 [pic 6]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 cakeAt 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 operationAfter 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[pic 7]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. [pic 8]2. SWOT:Strengths路聽聽聽聽聽聽Exclusive technology路聽聽聽聽聽聽Leading brand路聽聽聽聽聽聽Wide distribution channel路聽聽聽聽聽聽Large scale路聽聽聽聽聽聽Experienced management Weaknesses路聽聽聽聽聽聽Weak service路聽聽聽聽聽聽Old sales staff路聽聽聽聽聽聽Bad decoration and packaging聽Opportunities路聽聽聽聽聽聽Bakery, Bakery & Cafe is new and have high potential in Vietnam market路聽聽聽聽聽聽Vietnamese customers are getting more familiar with Western foods and culture聽Threats路聽聽聽聽聽聽Customers prefer uniqueness and quality.路聽聽聽聽聽聽More and more famous franchise路聽聽聽聽聽聽Food hygiene is huge problem in Vietnam路聽聽聽聽聽聽Inputs supply like egg can be affected[pic 9][pic 10][pic 11][pic 12]Balance sheet AnalysisItems20072008200920102011CURRENT ASSETS175,463147,443251,007232,829255,853Cash and cash equivalents53,04420,68198,46167,23296,733Short-term investments52,25258,42951,81816,04137,377Short term Receivables56,03248,94182,518101,83672,491Inventory13,62718,16616,24843,43339,803Other current assets5081,2271,9624,2889,449NON CURRENT ASSETS131,285150,898173,753270,363325,089Long-term receivables3,0913,1062,2556134Fixed assets48,08674,90965,608127,905143,103Real estate investments0002,9172,659Long-term investments79,73567,33899,454116,308125,572Goodwill03,8433,20412,70039,351Other long-term assets3721,7013,23210,47214,369TOTAL ASSETS306,747298,341424,760503,192580,942LIABILITIES59,35183,593176,744117,646195,948Current liabilities46,78066,388163,268104,505178,356Short-term debts and borrowings26,30033,59240,73538,05588,265Trade accounts payable15,63310,66612,74027,13827,413Advances from customers3109833,5453,5153,606Taxes and payables to the State Budget8598,0346,5173,9645,817Payable to employees4591509892,2506,568Accrued expenses1054835,57214,26722,110Other payables3,113197,10093,17012,34420,318Bonus and welfare fund0002,9714,259Long-term liabilities12,57117,20413,47613,14117,592Other long-term liabilities0006801,704Long-term debt11,24115,60311,9399,37911,408Provision for severance allowances1,3301,6011,5363,0824,480SHAREHOLDERS EQUITY245,349207,592241,802373,926381,467Capital and reserves244,740207,592241,313373,926381,467Budget sources and other funds610048900MINORITY INTERESTS2,0477,1566,21411,6203,527TOTAL LIABILITIES AND SHAREHOLDER306,747298,341424,760503,192580,942