HANOI UNIVERSITY SCIENCE OF AND TECHNOLOGY
SCHOOL OF ECONOMICS AND MANAGEMENT
---- & -----
Financial Statement Analysis
An Pha Petroleum JSCCompany
Instructor: Nguyen Thuc Huong Giang
Student: Phan Ngoc Anh
Code: 20223464
Class: 152484
Ha Noi, 12/2023
, Chart 1: Influence of USD/VND (LHS) and Saudi EXECUTIVE SUMMARY
Aramco Price (1st-RHS) on ASP Price (2nd-RHS), 2023- Objective & Methodologies of the Analysis: This analysis follows the
2024.1 financial performance approach, focusing on profitability, efficiency
(asset operation efficiency), solvency, liquidity, and debt obligations.
The author employs the Multiplier Model and the Free Cash Flow
Model to estimate the present value of the stock.
Period Covered: The 3-year financial data is considered a short and
biased timeframe, particularly in the post-COVID-19 pandemic period
Therefore, a five-year period is used for financial analysis, an eight-
year period is utilized to provide a broader snapshot of the industry.
From this point onward, "ASP" will stand for An Pha Petroleum JSC.
COMPANY OVERVIEW
Chart 2: Porter 5-force
From the very first “flame”…
The predecessor of ASP was Gia Dinh Service and Trading Co., Ltd.
(now Gia Dinh Gas Co., Ltd.). In April 2004, amidst market fluctuation
and growth demands, ASP was established to invest in and manage
upstream infrastructure, storage facilities, and LPG transportation
systems for strategic partners and Gia Dinh Gas-branded residential
gas businesses. In April 2005, ASP in Hanoi was founded to oversee
and operate northern storage facilities.
To a comprehensive ecosystem
Chart 3: Determining the Type of Company
ASP has been building an ecosystem from import, transportation, an
storage to wholesale and retail distribution on a nationwide scale
Based on these ratios in Chart 3, the company is most likely a
commerce/trading company due to its: high inventory ratio,
significant working capital low reliance on fixed or intangible assets.
Chart 4: Market Capitalization [Bn Vnd], BVPS
This aligns with typical characteristics of companies engaged in
[VND], 9/12/2024 wholesale, retail, or distribution activities. If additional context about
the company's operations is provided, this classification can be furthe
refined.
, Based on 16 activities, 3 main sectors are categorized as follow:
[1] Energy and Oil & Gas (main) Trading and filling liquefied gas (LGP
oil and gas equipment, and acting as agents for fuel, oil, and
lubricants. Installation and maintenance of oil and gas facilities.
[2] Transport and Logistics: Transporting oil and gas products by road
and sea. Renting warehouses and specialized transportation for oil an
gas by road and waterway. Trading vehicles.
[3] Construction and Building Materials: Trading wood, construction
Chart 5 Net cash flow, Mn VND, FY19-23 materials, machinery for industrial and agricultural sectors, and
household goods. Producing and trading construction materials, pre-
cast concrete structures, and interior decorations (excluding on-site
production). Manufacturing, installing, repairing, maintaining, and
trading elevators and construction equipment.
Others: Trading goods and industrial supplies, and services such as
real estate.
COMPETITIVE POSITIONING
Gassing Up the Competition: ASP’s Role in a “Heated” Market
Based on Market Cap., BVPS (Chart BVPS), % return (Appendix 1); the
Chart 6: Asset Allocation, FY19-23, Mn VND
main competitors of ASP at the moment are: PGC, CNG, PVG. The
leading company in the industry is GAS.
From the major companies like GAS to mid-sized firms like ASP, can
only produce a portion of their required supply domestically, with the
remainder relying on imports from foreign markets. The industry is
highly influenced by [1] exchange rates and [2] the contract prices se
by global suppliers. This is clearly demonstrated through a Multiple
Regression model with an R-squared value of 0.7 (Appendix:
Regression Analysis) and the almost perfect correlation between
exchange rate trends and ASP stock prices (Chart 1).
Chart 7: In comparing asset and Owner Equity &
Liability Difficulties when selling LPG business is gas cylinder shells
management. In Japan, all gas cylinder housings have a serial numbe
, to manage. When the bottle shells are lost, the authorities will be
responsible for investigating and retrieving the bottle shells. But in
Vietnam, gas cylinder shells do not have serial numbers, so they are
not managed and controlled, so it is not easy to recover a sufficient
number of cylinder shells that have been sold, leading to loss of
assets, as well as leading to illegal gas filling, creating an unfair
competitive environment. Because genuine companies have to bear a
fixed cost when investing in gas cylinder shells. (Chart 2)
Fueling Growth: ASP’s Strengths
[1] Industry Leadership: As one of the top three companies with the
Chart 8: Profit from Operating Activities, FY19-23 largest LPG retail market share in Vietnam, ASP plays a pivotal role in
addressing the country’s growing energy needs.
[2] Business Value-chain: the LPG trading market in Vietnam still has
number of inadequate regulations, making businesses afraid of
imbalance in supply and unfair competition such as the appropriation
of LPG bottles, illegal LPG extraction is still taking place and has not
been thoroughly controlled. Therefore, a complete and closed system
seems to be the biggest advantage of ASP.
[4] Market Capitalization: ASP's market capitalization stands at
151,225 billion VND, placing it among medium-sized companies in the
oil and gas sector. However, it significantly trails behind industry gian
Chart 9: COGS/ Revenue (RHS), COGS/ Total such as GAS (162,347,233 billion VND) and PGD (1,669,960 billion
expense (RHS), Total Expense (LHS, Mn VND), VND). The company can set a medium- and long-term strategy to
OPEX (LHS,Mn VN ), FY19-23 expand the company's capitalization to further develop. (Chart 4)
Company Strategic:
Long term: [1] For industrial gas wholesale: The business model is
gradually transitioning from bidding to supply large industrial
customers to collaborating on stable, long-term supply investments.
Additionally, there is a shift from using LPG to replacing it with LNG.[2
For cylinder gas wholesale: The focus is shifting from wholesale
distribution to general agents and dealers towards building an
SCHOOL OF ECONOMICS AND MANAGEMENT
---- & -----
Financial Statement Analysis
An Pha Petroleum JSCCompany
Instructor: Nguyen Thuc Huong Giang
Student: Phan Ngoc Anh
Code: 20223464
Class: 152484
Ha Noi, 12/2023
, Chart 1: Influence of USD/VND (LHS) and Saudi EXECUTIVE SUMMARY
Aramco Price (1st-RHS) on ASP Price (2nd-RHS), 2023- Objective & Methodologies of the Analysis: This analysis follows the
2024.1 financial performance approach, focusing on profitability, efficiency
(asset operation efficiency), solvency, liquidity, and debt obligations.
The author employs the Multiplier Model and the Free Cash Flow
Model to estimate the present value of the stock.
Period Covered: The 3-year financial data is considered a short and
biased timeframe, particularly in the post-COVID-19 pandemic period
Therefore, a five-year period is used for financial analysis, an eight-
year period is utilized to provide a broader snapshot of the industry.
From this point onward, "ASP" will stand for An Pha Petroleum JSC.
COMPANY OVERVIEW
Chart 2: Porter 5-force
From the very first “flame”…
The predecessor of ASP was Gia Dinh Service and Trading Co., Ltd.
(now Gia Dinh Gas Co., Ltd.). In April 2004, amidst market fluctuation
and growth demands, ASP was established to invest in and manage
upstream infrastructure, storage facilities, and LPG transportation
systems for strategic partners and Gia Dinh Gas-branded residential
gas businesses. In April 2005, ASP in Hanoi was founded to oversee
and operate northern storage facilities.
To a comprehensive ecosystem
Chart 3: Determining the Type of Company
ASP has been building an ecosystem from import, transportation, an
storage to wholesale and retail distribution on a nationwide scale
Based on these ratios in Chart 3, the company is most likely a
commerce/trading company due to its: high inventory ratio,
significant working capital low reliance on fixed or intangible assets.
Chart 4: Market Capitalization [Bn Vnd], BVPS
This aligns with typical characteristics of companies engaged in
[VND], 9/12/2024 wholesale, retail, or distribution activities. If additional context about
the company's operations is provided, this classification can be furthe
refined.
, Based on 16 activities, 3 main sectors are categorized as follow:
[1] Energy and Oil & Gas (main) Trading and filling liquefied gas (LGP
oil and gas equipment, and acting as agents for fuel, oil, and
lubricants. Installation and maintenance of oil and gas facilities.
[2] Transport and Logistics: Transporting oil and gas products by road
and sea. Renting warehouses and specialized transportation for oil an
gas by road and waterway. Trading vehicles.
[3] Construction and Building Materials: Trading wood, construction
Chart 5 Net cash flow, Mn VND, FY19-23 materials, machinery for industrial and agricultural sectors, and
household goods. Producing and trading construction materials, pre-
cast concrete structures, and interior decorations (excluding on-site
production). Manufacturing, installing, repairing, maintaining, and
trading elevators and construction equipment.
Others: Trading goods and industrial supplies, and services such as
real estate.
COMPETITIVE POSITIONING
Gassing Up the Competition: ASP’s Role in a “Heated” Market
Based on Market Cap., BVPS (Chart BVPS), % return (Appendix 1); the
Chart 6: Asset Allocation, FY19-23, Mn VND
main competitors of ASP at the moment are: PGC, CNG, PVG. The
leading company in the industry is GAS.
From the major companies like GAS to mid-sized firms like ASP, can
only produce a portion of their required supply domestically, with the
remainder relying on imports from foreign markets. The industry is
highly influenced by [1] exchange rates and [2] the contract prices se
by global suppliers. This is clearly demonstrated through a Multiple
Regression model with an R-squared value of 0.7 (Appendix:
Regression Analysis) and the almost perfect correlation between
exchange rate trends and ASP stock prices (Chart 1).
Chart 7: In comparing asset and Owner Equity &
Liability Difficulties when selling LPG business is gas cylinder shells
management. In Japan, all gas cylinder housings have a serial numbe
, to manage. When the bottle shells are lost, the authorities will be
responsible for investigating and retrieving the bottle shells. But in
Vietnam, gas cylinder shells do not have serial numbers, so they are
not managed and controlled, so it is not easy to recover a sufficient
number of cylinder shells that have been sold, leading to loss of
assets, as well as leading to illegal gas filling, creating an unfair
competitive environment. Because genuine companies have to bear a
fixed cost when investing in gas cylinder shells. (Chart 2)
Fueling Growth: ASP’s Strengths
[1] Industry Leadership: As one of the top three companies with the
Chart 8: Profit from Operating Activities, FY19-23 largest LPG retail market share in Vietnam, ASP plays a pivotal role in
addressing the country’s growing energy needs.
[2] Business Value-chain: the LPG trading market in Vietnam still has
number of inadequate regulations, making businesses afraid of
imbalance in supply and unfair competition such as the appropriation
of LPG bottles, illegal LPG extraction is still taking place and has not
been thoroughly controlled. Therefore, a complete and closed system
seems to be the biggest advantage of ASP.
[4] Market Capitalization: ASP's market capitalization stands at
151,225 billion VND, placing it among medium-sized companies in the
oil and gas sector. However, it significantly trails behind industry gian
Chart 9: COGS/ Revenue (RHS), COGS/ Total such as GAS (162,347,233 billion VND) and PGD (1,669,960 billion
expense (RHS), Total Expense (LHS, Mn VND), VND). The company can set a medium- and long-term strategy to
OPEX (LHS,Mn VN ), FY19-23 expand the company's capitalization to further develop. (Chart 4)
Company Strategic:
Long term: [1] For industrial gas wholesale: The business model is
gradually transitioning from bidding to supply large industrial
customers to collaborating on stable, long-term supply investments.
Additionally, there is a shift from using LPG to replacing it with LNG.[2
For cylinder gas wholesale: The focus is shifting from wholesale
distribution to general agents and dealers towards building an
