REPORT OF:

THIEU NIEN TIEN PHONG PLASTIC

JOINT STOCK COMPANY
2021-2023

Student name: Nguyen Thi Thanh Lam

Code: HS186301
Class: MKT1912 - Lecturer: HaDT72
I - Business Overview..................................................................................................2
1. Introducction about Thieu Nien Tien Phong Plastic Joint Stock Company........2
a. Introduction about the company:.....................................................................2
b. The main revenues stream:..............................................................................2
c. Market shares:.................................................................................................2
d. The main peer group in the Plastic industry:...................................................3
II - Analyzing common- size financial statements:.........................................................3
1. Common- size financial statements.....................................................................4
a. Common size balance sheet analysis:.............................................................4
b. Common size income statement analysis:.......................................................5
c. Compare common size balance sheet:.............................................................7
d. Compare common size income statement:......................................................8
III - Financial ratios analysis:..........................................................................................9
1. Current ratios:......................................................................................................9
2. Efficiency ratios:...............................................................................................10
3. Leverage ratios:.................................................................................................12
4. Profitability ratios:.............................................................................................13
5. Market values ratios:.........................................................................................14
6. Compare ratios with the peer group:.................................................................15
7. Dupont analysis:................................................................................................17
IV - Conclusion:............................................................................................................18

2
I - Business Overview
1. Introducction about Thieu Nien Tien Phong Plastic Joint Stock Company
a. Introduction about the company:
Tien Phong Plastic Joint Stock Company traces its origins back to Tien Phong Plastic
Factory, founded in 1960. The factory underwent a name change to Tien Phong Plastic
Company on April 29, 1993, following Decision No. 386/CN/CTLD from the Ministry
of Light Industry, now known as the Ministry of Industry and Trade. Subsequently, on
August 17, 2004, the company evolved into a joint-stock entity. (vnr500.com.vn,
2024)

b. The main revenues stream:

A prominent player in Vietnam, Tien Phong Plastic Joint Stock Company specializes
in the production of uPVC, PPR, PEHD pipes, and plastic pipe fittings for the
construction, industrial, and agricultural sectors. Utilizing cutting-edge machinery
from various countries including Germany, Austria, South Korea, and Italy, the
company ensures that all its products adhere to international standards and hold
certification from QUACERT.
Presently, the company boasts an annual production volume of around 80,000 tons,
maintaining an average growth rate of 15% or higher per year. Being a trusted name
for plastic pipes in a multitude of projects spanning from North to South Vietnam,
Tien Phong Plastic Joint Stock Company consistently invests in development,
technical advancements, and elevating product quality. Notably, in 2015, the company
made a bold move by investing in a production line for HDPE DN 2000 pipes and
double-wall HDPE DN 800 pipes through European technology, marking a significant
milestone as the first Vietnamese company to embark on such a venture, with the
HDPE DN 2000 pipe being the largest in Asia to date. (vnr500.com.vn, 2024)

c. Market shares:
NTP stands out as a key player in Vietnam's plastic pipe industry, commanding a
market share of over 35%, with the Northern market alone capturing more than 60%.
From 2014 to 2020, NTP experienced an average annual production growth of 7.3%.
Despite a notable reduction in industry-wide production between 2021 and 2022,

3
NTP's production continued on a steady growth trajectory, leading to an expansion in
its market share. (TWEB.COM.VN, 2024)

d. The main peer group in the Plastic industry:

BMP: In 1977, the merger of Vietnam Chemical Plastic Pipe Company (Kepivi) and
Kieu Tinh Plastic Company resulted in the establishment of a joint venture known as
Binh Minh Plastics Factory, which fell under the administration of the General
Chemical Company - Ministry of Light Industry. Throughout this period, the principal
commodities consisted of household items that were passed down from the previous
entities. The official commencement of operations for Binh Minh Plastics Joint-Stock
Company, operating under the trade name BMPLASCO, took place on January 2,
2004. Subsequently, on July 11, 2006, it was formally introduced on the Vietnam
Stock Market with the stock code BMP. (CafeF.vn, 2023)
TDP: Thuan Duc Joint Stock Company was founded on January 22, 2007, in Hung
Yen, Vietnam, by entrepreneur Nguyen Duc Cuong. Specializing in manufacturing
products from polypropylene, the company places emphasis on recycled plastic pellets
and PP packaging. (CafeF.vn, 2024)

4
II - Analyzing common- size financial statements:
1. Common- size financial statements
a. Common size balance sheet analysis:
2021 2022 2023
COMMON SIZE BALANCE SHEET
% of % of % of
Assets Assets Assets
1. Assets
Cash and cash equivalents 132,976,715,364 2.92% 164,141,010,132 3.47% 446,071,490,535 8.75%
Short-term financing investment 700,000,000,000 15.39% 432,857,808,219 9.16% 950,000,000,000 18.65%
Short term account receivable 772,993,167,178 17.00% 938,490,552,873 19.85% 878,903,787,837 17.25%
+ Short term account receivable from customers 780,774,759,010 17.17% 866,051,626,939 18.32% 860,337,905,474 16.89%
Inventories 946,172,372,471 20.80% 1,365,841,984,676 28.89% 1,073,875,638,543 21.08%
Other current assets 5,549,339,156 0.12% 45,308,877,305 0.96% 16,864,511,728 0.33%
Total Current Assets 2,557,691,594,169 56.24% 2,946,640,233,205 62.33% 3,365,715,428,643 66.06%
Long-term account receivable(note receivable) 0 0.00% 0 0.00% 0 0.00%
Fixed Assets 1,369,979,099,015 30.12% 1,324,966,964,370 28.03% 1,230,626,000,643 24.15%
+ Accumulated depreciations - Tangible Fixed Assets (1,344,104,095,521) 29.55% (1,485,703,845,114) 31.43% (1,613,350,034,343) 31.66%
+ Accumulated amortizations - Intangible Fixed Assets (2,501,022,223) 0.05% (2,501,022,223) 0.05% (2,501,022,223) 0.05%
Investment for Real Estates 0 0.00% 0 0.00% 0 0.00%
Long-term unfinished assets 32,881,860,391 0.72% 2,173,973,393 0.05% 47,357,468,650 0.93%
Long-term financing investment 465,272,188,600 10.23% 315,272,188,600 6.67% 325,272,188,600 6.38%
Goodwill and other long term assets 122,275,536,407 2.69% 138,062,979,032 2.92% 126,170,050,880 2.48%
Total Long-Term Assets 1,990,408,684,413 43.76% 1,780,476,105,395 37.67% 1,729,425,708,773 33.94%
Total Assets 4,548,100,278,582 100.00% 4,727,116,338,600 100.00% 5,095,141,137,416 100.00%

2. Liabilities
Short- term debt 2,032,926,897,090 44.70% 2,129,542,537,289 45.05% 2,220,207,566,510 43.57%
Long term debt 16,720,597,523 0.37% 0 0.00% 0 0.00%
Total liabilities 2,049,647,494,613 45.07% 2,129,542,537,289 45.05% 2,220,207,566,510 43.57%
3. Shareholder's Equity 0.00% 0.00% 0.00%
Common shares 1,177,961,830,000 25.90% 1,295,753,340,000 27.41% 1,295,753,340,000 25.43%
Surplus equity 0 0.00% 0 0.00% 0 0.00%
Undistributed after-tax profit 285,914,021,777 6.29% 278,657,399,268 5.89% 404,928,845,920 7.95%
Investment and Developing Fund 1,034,576,932,192 22.75% 1,023,163,062,043 21.64% 1,174,251,384,986 23.05%
Other fund of owner capital 0 0.00% 0 0.00% 0 0.00%
Non-controlling shareholders interest 0 0.00% 0 0.00% 0 0.00%
Treasury stock 0 0.00% 0 0.00% 0 0.00%
Total Equity 2,498,452,783,969 54.93% 2,597,573,801,311 54.95% 2,874,933,570,906 56.43%
Total Liabilities and Equity 4,548,100,278,582 100.00% 4,727,116,338,600 100.00% 5,095,141,137,416 100.00%

Total Assets: Over the period spanning from 2021 to 2023, NTP observed a notable
escalation in its total assets, demonstrating consistent growth across the three years
from 4,548 billion dong in 2021 to 5,095 billion dong in 2023. This phenomenon is
indicative of the company's progression and broadening of asset composition during
this timeframe. Nevertheless, it is worth mentioning that this expansion not only
represents an upsurge in asset value but also signifies an enhancement in the
company's asset configuration to bolster their operational endeavors. With a steady
advancement in asset value throughout the three-year duration, this progression is
expected to notably facilitate NTP's business undertakings.

5
Total Current Assets: In a similar vein, current assets underwent a substantial surge
from 2,558 billion dong to 3,366 billion dong within this timeframe. Their relative
share within the total assets escalated from 56.24% to 66.06%. This shift suggests that
the company has prioritized fortifying its short-term resources over concentrating on
long-term asset investment schemes. This relatively efficient approach of NTP,
especially amidst the persistent challenges in the market, is poised to augment the
company's liquidity and financial adaptability concerning short-term obligations. It is
my contention that this investment approach adopted by NTP aligns well with the
prevailing economic conditions.
Liabilities: The total debt of the company experienced a marginal uptick from 2,050
billion to 2,220 billion during the aforementioned period. However, its ratio within the
total assets diminished from 45.07% to 43.57%. This adjustment indicates the
company's optimization of its debt framework within the total assets while
concurrently augmenting capital from their stakeholders. This strategic maneuver is
anticipated to provide interim relief from the financial burden on the company,
particularly in light of their relatively elevated debt levels. Moreover, leveraging more
capital from shareholders will aid NTP in establishing a more resilient financial and
asset framework.
Equity: With regards to shareholder equity, the total owner's equity of the company
escalated from 2,498 billion to 2,875 billion throughout this timeframe. Its share
within the total assets surged from 54.93% to 56.43%. This development underscores
the heightened value and significance of shareholder equity for the company within its
strategy of expanding the asset scale. Notably, in 2022, the company bolstered its
capital through conventional stock avenues, raising over 1,295 billion dong while
curbing the growth in debt usage. This trend signals NTP's gradual inclination towards
harnessing the latent potential of shareholder capital to propel the company's growth.

6
 b. Common size income statement analysis:
2021 2022 2023
COMMON SIZE INCOME STATEMENT
% of Net % of Net % of Net
Sales Sales Sales
Net Sales from selling goods and providing services 4,307,374,939,558 100.00% 5,126,493,878,944 100.00% 4,608,021,959,350 100.00%
Cost of goods solds and services (3,400,178,830,499) 78.94% (3,996,856,401,088) 77.96% (3,377,147,519,398) 73.29%
Gross profit from selling goods and providing services 907,196,109,059 21.06% 1,129,637,477,856 22.04% 1,230,874,439,952 26.71%
Revenue from financing activities 183,416,292,057 4.26% 219,750,798,893 4.29% 268,510,609,512 5.83%
Interest in associate company 0 0.00% 0 0.00% 0 0.00%
Financing expenses (71,226,691,511) 1.65% (132,393,083,058) 2.58% (122,082,875,555) 2.65%
Selling expenses (366,984,642,228) 8.52% (548,243,888,694) 10.69% (566,912,774,298) 12.30%
Administrative expenses (124,760,140,619) 2.90% (138,180,258,062) 2.70% (172,973,208,791) 3.75%
Earnings From Operating Activities 527,640,926,758 12.25% 530,571,046,935 10.35% 637,416,190,820 13.83%
Other Net Income/(Loss) (6,224,208,829) 0.14% 1,714,572,252 0.03% 3,970,646,817 0.09%
Earnings Before Taxes ( EBT) 521,416,717,929 12.11% 532,285,619,187 10.38% 641,386,837,637 13.92%
Taxes (76,007,720,872) 1.76% (76,464,518,139) 1.49% (89,294,289,937) 1.94%
Deferred corporate tax income 0 0.00% 0 0.00% 0 0.00%
Net income After corporate income tax 445,408,997,057 10.34% 455,821,101,048 8.89% 552,092,547,700 11.98%
Allocation profit after tax of non-controlling shareholders 0 0.00% 0 0.00% 0 0.00%
Net income after tax ( Net profit) 445,408,997,057 10.34% 455,821,101,048 8.89% 552,092,547,700 11.98%
+ Interest expenses (37,809,926,367) 0.88% (76,016,547,399) 1.48% (83,318,618,128) 1.81%
Earnings Before Interest, Taxes (EBIT = EBT + Interest expenses) 559,226,644,296 12.98% 608,302,166,586 11.87% 724,705,455,765 15.73%
+ Depreciation expenses - Tangible Fixed Assets (1,344,104,095,521) 31.20% (1,485,703,845,114) 28.98% (1,613,350,034,343) 35.01%
+ Amortizations expenses- Intangible Fixed Assets (2,501,022,223) 0.06% (2,501,022,223) 0.05% (2,501,022,223) 0.05%
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA = EBIT + D and A) 1,905,831,762,040 44.25% 2,096,507,033,923 40.90% 2,340,556,512,331 50.79%

Net Sales: During the period from 2021 to 2023, NTP's net sales underwent significant
fluctuations. It increased from 4,307 billion dong to 5,126 billion dong and then
decreased to 4,608 billion dong in 2023. The fluctuations in net sales were primarily
driven by macroeconomic factors such as inflation, interest rates, and particularly the
impact of the real estate and construction sectors on the building materials industry. In
2023, the real estate demand had not fully recovered, resulting in a sluggish demand
for construction materials. Consequently, this rapid decline in NTP's net sales from 5.1
trillion dong to 4.6 trillion dong. This is certainly a common challenge that all
companies in the construction materials industry have to face.
Gross Profit: Gross profit from sales and services experienced stable growth but not
excessively high, from 907 billion dong in 2021 to 1,231 billion dong in 2023. The
proportion of gross profit in total sales revenue increased from 21.06% to 26.71%.
This indicates a significant improvement in the company's management of input costs
to produce its products. Most notably, in 2023, despite facing a decrease in net sales,
NTP managed to control the cost of goods sold at a stable level as raw material costs
tended to decrease. Therefore, NTP recorded a gross profit of over 1,230 billion dong
in 2023. Effective cost management combined with market economic conditions

7
helped NTP maintain steady gross profit growth. This is truly an important factor in
keeping NTP's profit margins stable throughout the year.
Net Income: The company's net income increased from 445 billion dong to 552 billion
dong over three years. However, the proportion of net income in total sales revenue
fluctuated, decreasing from 10.34% to 8.89% before increasing to 11.98% in 2023.
Despite the rapid decline in net sales in 2023, with successful cost reduction in cost of
goods sold and input costs, as well as relatively effective operational cost management
strategies, NTP achieved an impressive net profit margin of 11.98% during this period.
In my opinion, with a net profit margin of over 10%, NTP is relatively efficient
compared to other companies in the same industry.

c. Compare common size balance sheet:

2023
NTP BMP TDP
% of Assets % of Assets % of Assets
1. Assets
Cash and cash equivalents 446,071,490,535 8.75% 793,122,914,281 26.86% 254,262,436,440 7.81%
Short-term financing investment 950,000,000,000 18.65% 900,000,000,000 30.48% 425,722,126,125 13.08%
Short term account receivable 878,903,787,837 17.25% 146,559,828,823 4.96% 557,459,597,740 17.13%
Inventories 1,073,875,638,543 21.08% 286,267,838,341 9.69% 985,817,565,134 30.29%
Other current assets 16,864,511,728 0.33% 43,490,799,167 1.47% 33,131,659,223 1.02%
Total Current Assets 3,365,715,428,643 66.06% 2,169,441,380,612 73.46% 2,256,393,384,662 69.32%
Long-term account receivable(note receivable) 0 0.00% 20,000,000,000 0.68% 105,385,641,714 3.24%
Fixed Assets ( = Original price - accumulated depreciation) 1,230,626,000,643 24.15% 271,585,928,133 9.20% 341,825,308,272 10.50%
Investment for Real Estates 0 0.00% 0 0.00% 0 0.00%
Long-term unfinished assets 47,357,468,650 0.93% 12,421,681,336 0.42% 313,145,000 0.01%
Long-term financing investment 325,272,188,600 6.38% 219,725,000,000 7.44% 542,500,961,124 16.67%
Goodwill and other long term assets 126,170,050,880 2.48% 259,899,421,246 8.80% 8,507,763,138 0.26%
Total Long-Term Assets 1,729,425,708,773 33.94% 783,632,030,715 26.54% 998,532,819,248 30.68%
Total Assets 5,095,141,137,416 100.00% 2,953,073,411,327 100.00% 3,254,926,203,910 100.00%

2. Liabilities
Short- term debt 2,220,207,566,510 43.57% 503,132,809,965 17.04% 2,206,747,775,974 67.80%
Long term debt 0 0.00% 18,527,646,459 0.63% 202,565,685,650 6.22%
Total liabilities 2,220,207,566,510 43.57% 521,660,456,424 17.67% 2,409,313,461,624 74.02%
3. Shareholder's Equity 0.00%
Common shares have voting rights 1,295,753,340,000 25.43% 818,609,380,000 27.72% 755,279,930,000 23.20%
Surplus equity 0 0.00% 1,592,782,700 0.05% 0 0.00%
Undistributed after-tax profit 404,928,845,920 7.95% 513,306,256,419 17.38% 74,132,812,286 2.28%
Other fund of owner capital 0 0.00% 44,983,552,000 1.52% 0 0.00%
Investment and Developing Fund 1,174,251,384,986 23.05% 1,052,920,983,784 35.66% 16,200,000,000 0.50%
Non-controlling shareholder interests 0 0.00% 0 0.00% 0 0.00%
Treasury stock 0 0.00% 0 0.00% 0 0.00%
Total Equity 2,874,933,570,906 56.43% 2,431,412,954,903 82.33% 845,612,742,286 25.98%
Total Liabilities and Equity 5,095,141,137,416 100.00% 2,953,073,411,327 100.00% 3,254,926,203,910 100.00%

Total Assets: The total assets of NTP are projected to reach VND 5,095 billion in
2023. NTP's asset scale surpasses that of BMP, which stands at VND 2,953 billion,
and TDP, which is at VND 3,254 billion. This disparity indicates that NTP's parent
company currently exhibits a larger asset scale compared to its industry counterparts,
attributed to robust investment strategies in both long-term and short-term assets. This

8
scenario will provide NTP with more favorable conditions for asset utilization in
business operations when juxtaposed with BMP and TDP.
Total liabilities: NTP's total liabilities amount to 2,220 billion VND, representing
43.57% of the total assets. In contrast, BMP's total liabilities are 521 billion VND,
constituting only 17.67% of the total assets, whereas TDP's total liabilities reach
2,409,313 billion VND, accounting for 74.02% of the total assets. NTP's debt ratio
falls between that of BMP and TDP, illustrating a more balanced financial structure in
managing debt and utilizing debt capital sources. Nonetheless, NTP's liabilities
significantly exceed those of BMP, leading to potential financial strain due to higher
debt levels than BMP, which maintains a highly sustainable asset structure derived
from shareholder capital.
Total Equity: In terms of equity, NTP possesses 2,874 billion VND, equivalent to
56.43% of the total assets. Comparatively, BMP's equity constitutes 82.33% of the
total assets, significantly higher than both NTP and TDP. This discrepancy highlights
BMP's robust capital structure stemming from substantial shareholder capital, relying
less on debt leverage to alleviate financial pressure and ensure liquidity. Conversely,
TDP's equity represents only 25.98% of the total assets, considerably lower than NTP
and BMP. Overall, NTP demonstrates an average position relative to its industry peers
in terms of equity utilization, leaning towards a higher reliance on equity over debt.
This strategy ensures NTP maintains a sustainable and secure asset structure.

d. Compare common size income statement:

2023
NTP BMP TDP
% of Net % of Net % of Net
sales sales sales
Net Sales from selling goods and providing services 4,608,021,959,350 100.00% 5,002,513,611,005 100.00% 3,380,405,834,933 100.00%
Cost of goods solds and services (3,377,147,519,398) 73.29% (2,987,718,765,145) 59.72% (3,089,952,233,808) 91.41%
Gross profit from selling goods and providing services 1,230,874,439,952 26.71% 2,014,794,845,860 40.28% 290,453,601,125 8.59%
Revenue from financing activities 268,510,609,512 5.83% 99,791,319,850 1.99% 74,755,296,180 2.21%
Interest in associate company 0 0.00% 0 0.00% 0 0.00%
Financing expenses (122,082,875,555) 2.65% (142,644,533,918) 2.85% (196,909,828,026) 5.83%
Selling expenses (566,912,774,298) 12.30% (650,076,710,779) 13.00% (41,124,958,258) 1.22%
Administrative expenses (172,973,208,791) 3.75% (87,923,741,466) 1.76% (52,113,167,452) 1.54%
Earnings From Operating Activities 637,416,190,820 13.83% 1,233,941,179,547 24.67% 75,060,943,569 2.22%
Other Net Income/(Loss) 3,970,646,817 0.09% 8,979,959,423 0.18% (8,430,630,778) 0.25%
Earnings Before Taxes 641,386,837,637 13.92% 1,242,921,138,970 24.85% 66,630,312,791 1.97%
Taxes (89,294,289,937) 1.94% (257,694,259,386) 5.15% (21,651,138,201) 0.64%
Deferred corporate tax income 0 0.00% 4,820,436,895 0.10% 0 0.00%
Net income After corporate income tax 552,092,547,700 11.98% 990,047,316,479 19.79% 44,979,174,590 1.33%

9
Net Sales: The net revenue derived from sales and service provision by NTP in 2023
amounted to VND 4,608 billion, a figure significantly lower despite possessing higher
total assets compared to BMP. BMP, on the other hand, reported a net revenue of
5,002 billion VND, while TDP lagged behind at 3,380 billion VND. This discrepancy
highlights NTP's larger revenue scale in comparison to TDP, though still falling short
of BMP in terms of leveraging opportunities to enhance net revenue and bolster
overall business performance. It is imperative for NTP to delve deeper into this
disparity and closely monitor the underlying reasons for their inferior performance to
BMP.
Gross Profit: The gross profit generated by NTP through sales and service provision in
2023 stood at VND 1,231 billion, representing 26.71% of the net revenue. In contrast,
BMP exhibited a substantially higher gross profit of 2,015 billion VND, constituting
40.28% of the net revenue, whereas TDP's gross profit was a mere 290 billion VND,
amounting to 8.59% of the net revenue. Although NTP's gross profit margin trails
behind that of BMP, it significantly surpasses TDP, indicating superior cost
management efficiency compared to the latter. However, NTP needs to enhance its
cost control strategies to compete effectively with BMP, particularly in terms of
reducing the costs associated with production.
Net Income: The profit after tax realized by NTP in 2023 amounted to 552 billion
VND, equivalent to 11.98% of the net revenue. In stark contrast, BMP achieved a
substantially higher profit after tax of 990 billion VND, representing 19.79% of the net
revenue, while TDP's profit after tax was a modest 45 billion VND, accounting for
1.33% of the net revenue. These figures underscore NTP's superior profitability
relative to TDP, yet it still lags behind BMP in terms of effectively managing cost
structures and addressing business performance challenges. Evidently, in the realm of
the plastic industry, NTP falls significantly short of BMP. Therefore, NTP must devise
comprehensive strategies to refine their cost management practices and enhance
overall business performance to effectively compete with BMP..

III - Financial ratios analysis:

1. Current ratios:
2021 2022 2023
10
 Current ratio 1.26 1.38 1.52
Quick ratio 0.79 0.74 1.03
Cash Ratio 0.07 0.08 0.20

Current Ratio: NTP's current ratio rose from 1.26 in 2021 to 1.52 in 2023, reflecting a
marked improvement in short-term liquidity. This suggests that the company's capacity
to repay short-term debt with short-term assets has increased over the years, thereby
enhancing financial flexibility. The balance sheet reveals a substantial increase in
short-term assets over the three years, averaging over 10%, with significant
fluctuations in inventory and short-term financial investments. Although total short-
term liabilities grew, the variations were minimal, attributed to the company's efforts
to tighten and optimize short-term debt. As a result, NTP maintains strong liquidity,
and managing debt more effectively will help minimize short-term payment pressures
and financial risks.
Quick Ratio: NTP's quick ratio varied, starting at 0.79 in 2021, dropping to 0.74 in
2022, and then rising to 1.03 in 2023. Despite these fluctuations, the ratio remained
below 1 for the most part, indicating the company's ability to meet short-term
obligations with its most liquid assets without relying heavily on inventory. The
increase from 2022 to 2023 signifies notable improvements in financial management
and risk mitigation. This also reflects effective inventory management and a stable
inventory sales strategy compared to the previous year.
Cash Ratio: NTP's cash ratio increased significantly from 0.07 in 2021 to 0.20 in 2023.
This rise indicates that the company has accumulated a considerable amount of cash
compared to 2021, providing a stronger financial cushion. However, given that the
cash ratio remains relatively low, it is advisable for NTP to closely monitor and
manage its cash holdings, which are the most liquid assets, to maintain financial
flexibility and liquidity when necessary.
2. Efficiency ratios:
2021 2022 2023
Inventory turnover 3.59 2.93 3.14
Days sale in inventory 101.57 124.73 116.06
Account receivable turnover 5.52 5.92 5.36
11
 Days sale outstanding 66.16 61.66 68.15
Total assets turnover 0.95 1.08 0.90
Fixed assets turnover 3.14 3.87 3.74

Inventory Turnover: NTP's inventory turnover ratio experienced fluctuations over the
three-year period, starting at 3.59, decreasing to 2.93, and then increasing to 3.14.
Despite this slight recovery, the overall trend was downward compared to 2021. In
2022, inventory levels surged, reaching a peak of 1,365 billion dong, which
represented 28.89% of total assets. This substantial increase led to a significant drop in
the inventory turnover ratio to 2.93, indicating challenges in managing and selling
inventory. By 2023, improvements in inventory management were evident as
inventory levels reduced to just over 1 trillion dong, accounting for 21.08% of total
assets, resulting in an increased turnover ratio of 3.14. Nonetheless, NTP's inventory
turnover remains lower than industry standards, necessitating strategic measures to
enhance inventory management in upcoming quarters.
Account Receivable Turnover: NTP's accounts receivable turnover showed variability,
rising from 5.52 to 5.92, and then decreasing to 5.36 over three years. This fluctuation
was largely influenced by significant increases in short-term receivables from
customers each year. The relatively low turnover ratio indicates persistent challenges
in collecting short-term debts from customers. To address this, NTP needs to
implement effective policies for managing and collecting receivables to prevent them
from turning into bad debts, which could adversely impact both the company’s assets
and liquidity.
Total Assets Turnover: NTP's total assets turnover ratio (TAT) increased from 0.95 to
1.08 before decreasing to 0.90 over the three-year period. Despite efforts to enhance its
asset structure, NTP faced significant challenges in 2023, particularly within the
construction materials industry, leading to a decline in net sales to just over 5 trillion
dong. This drop indicates that the company did not fully capitalize on its assets despite
significant growth initiatives. However, maintaining a TAT close to 1 suggests that the
company is still utilizing its assets relatively effectively to generate revenue.
Fixed Assets Turnover: NTP's fixed assets turnover ratio rose from 3.14 to 3.87 before
slightly decreasing to 3.74 over three years. Similar to the TAT, the challenges faced
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by the construction materials industry in 2023 led to a significant decline in net sales,
affecting the fixed assets turnover ratio. Despite the drop to 3.74, the ratio remains
relatively high, indicating effective utilization of fixed assets to generate revenue. This
suggests that, even in challenging market conditions, NTP is efficiently leveraging its
fixed assets for revenue generation..
3. Leverage ratios:
2021 2022 2023
Debt ratio 0.45 0.45 0.44
Debt to equity ratio 0.82 0.82 0.77
Equity multiplier 1.82 1.82 1.77
Interest coverage ratio 14.79 8.00 8.70
Cash coverage ratio 50.41 27.58 28.09

Debt Ratio: NTP's debt ratio saw a slight decline from 0.45 to 0.44 over three years,
stabilizing around 0.44. This stability indicates minimal variation in the company's
total debt relative to its assets. Despite the modest fluctuation, total debt grew
gradually over the period, reaching 2,220 billion dong, predominantly in short-term
debt. NTP is actively implementing strategies to limit additional borrowing,
underscoring its commitment to prudent debt management and mitigating financial
risks. Moreover, NTP is increasingly prioritizing the use of equity capital during this
timeframe. This shift towards relying more on shareholder equity rather than short-
term debt aims to foster a stable and sustainable financial structure.
Debt to Equity Ratio: NTP's Debt to Equity Ratio declined from 0.82 to 0.77 over
three years, reflecting a positive trend. This reduction stems from the company's
decreased reliance on debt compared to shareholder equity for financing operations.
Total debt in 2023 increased slowly to 2,220 billion dong, primarily comprising short-
term debt. Furthermore, NTP has significantly boosted its use of equity capital through
additional share issuances and substantial retained earnings. Emphasizing shareholder
equity over short-term debt aims to alleviate pressures from immediate payment
obligations and financial risks.
Equity Multiplier: NTP's Equity Multiplier (EM) decreased from 1.82 to 1.77 over
three years, mirroring trends observed in the Debt Ratio and Debt to Equity Ratio
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analyses. This decline reflects NTP's heightened utilization of shareholder equity and
tighter management practices compared to short-term debt. This strategic approach is
particularly prudent given the challenging economic conditions prevailing during this
period.
Interest Coverage Ratio: NTP's Interest Coverage Ratio decreased from 14.79 to 8.70
over three years, indicating a reduced capacity to cover interest payments despite
remaining relatively high. This decline is a cautionary signal of the company's growing
challenges in meeting interest obligations, exacerbated by a rapid increase in interest
expenses from 37 billion dong in 2021 to over 83 billion dong in 2023. While NTP
currently manages interest payments adequately from operational profits, continuous
vigilance and management of interest costs are crucial to mitigate potential financial
risks.
Cash Coverage Ratio: Similarly, NTP's Cash Coverage Ratio decreased from 50.41 to
28.09 over three years, although it remains relatively robust. This decline primarily
results from escalating interest expenses, climbing from 37 billion dong to over 83
billion dong during the same period. Despite sufficient cash reserves to service debts
and interest obligations, ongoing monitoring and prudent management of interest
expenditures are imperative for NTP to sustain financial stability and resilience against
future economic uncertainties..
4. Profitability ratios:
2021 2022 2023
GPM 21.06% 22.04% 26.71%
NPM 10.34% 8.89% 11.98%
EROA 12.30% 12.87% 14.22%
ROA 9.79% 9.64% 10.84%
ROE 17.83% 17.55% 19.20%

Gross Profit Margin (GPM): NTP's Gross Profit Margin showed substantial growth
from 21.06% in 2021 to 26.71% in 2023. This improvement is primarily attributed to
enhanced efficiency in managing production costs. Despite a decrease in net sales in
2023, NTP effectively controlled its cost of goods sold, benefiting from declining raw
material expenses. Consequently, NTP achieved a gross profit exceeding 1,230 billion
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dong in 2023. Effective cost management, coupled with favorable market conditions,
supported NTP in sustaining its gross profit growth. This enhancement positions NTP
favorably in terms of gross profit and competitiveness within the market, potentially
increasing investor interest.
Net Profit Margin (NPM): NTP's Net Profit Margin fluctuated over three years,
initially declining from 10.34% to 8.89% and then rising to 11.98%. The decrease
from 2021 to 2022 was primarily due to substantial growth in cost structures, resulting
in nearly stagnant net profit of 455 billion dong compared to 2020. However,
significant improvement in 2023 reflects enhanced business efficiency and effective
inflation management, contributing to a noteworthy net profit of 552 billion dong,
marking approximately 21.79% growth from 2022. Overall, this growth underscores
NTP's effective business operations and profitable income generation, highlighting
areas for continued development and reinforcement in subsequent periods.
Return on Assets (ROA): NTP's Return on Assets (ROA) rose from 9.79% to 10.84%
over three years, indicating improved efficiency in asset utilization for profit
generation. Effective cost management strategies contributed to NTP's achievement of
a significant net profit of 552 billion dong in 2023, reflecting approximately 21.79%
growth from the previous year. Moreover, efforts to increase asset turnover have
significantly supported NTP's operational effectiveness. With an ROA surpassing
10.84%, this figure underscores NTP's efficient deployment of assets to generate
revenue, a commendable feat for a manufacturing firm.
Return on Equity (ROE): NTP's Return on Equity (ROE) increased from 17.83% to
19.20% over three years, highlighting enhanced profitability and operational efficiency
in generating shareholder equity. This growth is particularly impressive for
shareholders, bolstering confidence in NTP's growth potential. With ROE nearing
20%, NTP's attractiveness to investors is expected to improve further, enhancing its
capability to attract capital for future endeavors..
5. Market values ratios:
2021 2022 2023
Price to earnings 15.88 9.10 9.27
EPS 3,781 3,518 4,261
Price of the stock(31/12) ( VND) 60,040 32,000 39,490
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 The total common shares outstanding 117,796,183 129,575,334 129,575,334

Earnings Per Share (EPS): The company's Earnings Per Share (EPS) decreased from
3,781 in 2021 to 3,518 in 2022, then increased to 4,261 in 2023. The slight decrease
from 2021 to 2022 was primarily due to an increase in the number of outstanding
shares of BMP compared to 2021. However, the significant increase in 2023 indicates
that the company has improved its operational efficiency, as analyzed in the sections
above. Overall, the conclusion over the three years is that, with growth in both net
profit and the number of shares the company issues, NTP is indeed creating very good
value for its shareholders, with steadily increasing EPS.
Price to Earnings (P/E) Ratio: The Price to Earnings (P/E) ratio of NTP decreased
from 15.88 in 2021 to 9.10 in 2022, then slightly increased to 9.27 in 2023. The sharp
decrease from 2021 to 2022 reflects both the decrease in stock price and investors'
reduced expectations, despite the company's EPS growth. A lower P/E ratio typically
indicates that the stock is priced lower relative to its actual earnings. The slight
increase in 2023 suggests that the stock price has begun to reflect earnings growth, but
investors still perceive it as undervalued, leading to relatively unchanged expectations
for NTP's stock price.
6. Compare ratios with the peer group:
COMPARE RATIOS ( 2023) NTP BMP TDP

Current ratio 1.52 4.31 1.02

Debt ratio 0.44 0.18 0.74
Inventory turnover 3.14 10.44 3.13
Total assets turnover 0.90 1.69 1.04
GPM 26.71% 40.28% 8.59%
NPM 11.98% 19.79% 1.33%
ROA 10.84% 33.53% 1.38%
ROE 19.20% 40.72% 5.32%

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Current Ratio: In 2023, NTP exhibits a current ratio of 1.52, whereas BMP shows a
ratio of 4.31, and TDP reports 1.02. BMP's current ratio is the highest among the three,
indicating superior liquidity to meet short-term obligations using current assets.
Conversely, NTP, while higher than TDP, demonstrates comparatively weaker short-
term debt-paying ability compared to BMP, its primary competitor.
Debt Ratio: As of 2023, NTP's debt ratio stands at 0.44, BMP's at 0.18, and TDP's at
0.74. BMP maintains the lowest debt ratio of 0.18, signifying robust financial strength
and minimal reliance on debt. NTP's ratio of 0.44 positions it between BMP and TDP,
indicating a relatively stable financial structure with a balanced mix of debt and equity.
However, NTP's asset structure is less secure compared to BMP, reflecting disparities
in financial health and stability.
Inventory Turnover: In 2023, NTP records an inventory turnover of 3.14, BMP
achieves 10.44, and TDP reaches 3.13. BMP boasts the highest inventory turnover
rate, indicative of highly efficient inventory management with swift turnover and
replenishment. NTP and TDP exhibit similar turnover ratios, suggesting comparable
inventory management practices but notably trailing behind BMP in efficiency.
Total Assets Turnover: NTP's Total Assets Turnover in 2023 is 0.90, compared to
BMP's 1.69 and TDP's 1.04. BMP leads with the highest total assets turnover rate of
1.69, demonstrating superior asset utilization and business efficiency. In contrast,
NTP's ratio of 0.90 underscores the need for enhanced asset utilization to improve
business efficiency.
Gross Profit Margin (GPM): NTP's Gross Profit Margin stands at 26.71%, BMP's at
40.28%, and TDP's at 8.59% in 2023. BMP achieves the highest GPM, indicating
effective cost control and substantial gross profit generation. While NTP demonstrates
good cost control with a GPM of 26.71%, it does not match BMP's level of efficiency.
TDP's lower GPM suggests potential challenges in cost management or pricing
strategies.
Net Profit Margin (NPM): In 2023, NTP achieves a Net Profit Margin of 11.98%,
BMP reaches 19.79%, and TDP reports 1.33%. BMP's highest NPM underscores
effective management of production and operational costs, resulting in significant net
profit from revenue. NTP's NPM of 11.98% reflects its capability to generate net profit

17
from revenue, though it trails behind BMP. TDP's lowest NPM indicates difficulties in
generating net profit, possibly due to high operating costs or lower business efficiency.
Return on Assets (ROA): NTP's Return on Assets in 2023 is 10.84%, compared to
BMP's 33.53% and TDP's 1.38%. BMP achieves the highest ROA, highlighting
exceptional efficiency in asset utilization for profit generation. While NTP's ROA of
10.84% is commendable, it falls significantly short of BMP's performance. NTP
notably outperforms TDP, which reports a much lower ROA of 1.38%.
Return on Equity (ROE): NTP's Return on Equity stands at 19.20% in 2023, BMP's at
40.72%, and TDP's at 5.32%. BMP achieves the highest ROE, indicating substantial
returns to shareholders from equity. NTP's ROE of 19.20% demonstrates its ability to
generate returns from equity, albeit below BMP's performance. The stark difference
between NTP and BMP across all metrics underscores NTP's need for improvement to
compete effectively and attract investors.
7. Dupont analysis:
COMPARE DUPONT ANALYSIS NTP
2021 2022 2023
Net profit margin % 10.34% 8.89% 11.98%
Total assets turnover Times 0.95 1.08 0.90
Equity multiplier Times 1.82 1.82 1.77
Return on Equity % 17.83% 17.55% 19.20%

Dupont calculation: ROE = NPM × TAT × Equity Multiplier

Net Profit Margin: In 2021, NTP's net profit margin (NPM) reached 10.34%,
indicating a fairly good ability to generate profit from revenue. However, in 2022, this
margin decreased to 8.89%, signaling a challenging year with high costs and reduced
profits. Consequently, in 2022, with the declining NPM, NTP's return on equity (ROE)
was negatively impacted, leading to a slight decrease in ROE in 2022. By 2023, the net
profit margin rebounded to 11.98%, marking a significant improvement in cost
management and revenue enhancement. Therefore, NTP's ROE was positively
contributed by NPM during this period and quickly achieved a growth rate of 11.98%.

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Total Assets Turnover: NTP's total assets turnover increased from 0.95 times in 2021
to 1.08 times in 2022, indicating an improvement in asset utilization to generate
revenue. However, in 2023, this ratio decreased to 0.90 times, indicating a decline in
the efficiency of asset utilization and net revenue generation, which was much lower
than in 2022. This demonstrates that in 2023, the decreased ability to utilize assets and
generate net revenue was the primary factor leading to the decrease in ROE.
Equity Multiplier: NTP's equity multiplier remained stable at 1.82 in both 2021 and
2022, and slightly decreased to 1.77 in 2023. This multiplier indicates the company's
debt-to-equity ratio. The slight decrease in 2023 resulted from the company reducing
debt and increasing equity, helping to mitigate financial risk. Although the decrease
was not significant, it reflects a positive trend in financial management, maintaining
debt at a controlled level, and strengthening equity. This factor also contributed to the
fluctuation in NTP's ROE in 2023.

IV - Conclusion:
During the period spanning from 2021 to 2023, NTP has experienced consistent
expansion in total assets and equity, coupled with notable enhancements in financial
structure and liquidity. The entity's total assets surged from VND 4,548 billion to
VND 5,095 billion, with the ratio of equity in total assets also escalating from 54.93%
to 56.43%. This indicates a sustainable investment approach and amplified utilization
of shareholder funds as opposed to dependence on debt. The firm's debt-to-equity ratio
remains constant at approximately 0.45, showcasing adept and cautious administration
concerning financial capital.
Concerning operational performance, NTP has observed fluctuations in net revenue,
climbing from VND4,307 billion to VND5,126 billion before declining to VND4,608
billion in 2023, attributable to macroeconomic influences and the downturn in the real
estate and construction sector. Nevertheless, the firm has enhanced cost control,
sustained gross profit margins, and attained an upsurge in post-tax earnings from
VND445 billion to VND552 billion within the three-year span. The gross profit
margin surged from 21.06% to 26.71%, denoting enhancements in operational
efficiency and cost control. Despite the revenue decline, the corporation sustained a
commendable profit margin, mirroring an effective cost management tactic.
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Lastly, NTP's financial metrics such as the quick ratio, inventory turnover, and return
on equity (ROE) all manifest advancements in financial oversight and operational
performance. The cash liquidity ratio surged from 0.07 to 0.20, inventory turnover
ameliorated from 2.93 to 3.14, and ROE escalated from 17.83% to 19.20%.
Notwithstanding some hurdles in inventory supervision and receivables retrieval, NTP
has exhibited resilience in surmounting challenges and fostering enduring value for
stakeholders, while upholding operational steadiness and expansion.
1. References:
vnr500.com.vn. (n.d.). CÔNG TY CP NHỰA THIẾU NIÊN TIỀN PHONG. [online]
Available at: https://vnr500.com.vn/Thong-tin-doanh-nghiep/CONG-TY-CP-NHUA-
THIEU-NIEN-TIEN-PHONG-Chart--254-2017.html#:~:text=C%C3%B4ng%20ty
%20CP%20Nh%E1%BB%B1a%20Thi%E1%BA%BFu%20ni%C3%AAn%20Ti
%E1%BB%81n%20Phong%20l%
TWEB.COM.VN (2024). NTP - Cậu thiếu niên năm xưa nay đã trưởng thành. [online]
FINSUCCESS. Available at: https://fisc.vn/co-phieu-tiem-nang/ntp-cau-thieu-nien-
nam-xua-nay-da-truong-thanh-p1005.html
CafeF.vn. (2023). BMP: Công ty CP Nhựa Bình Minh - BM PLASCO (HOSE).
[online] Available at: https://s.cafef.vn/hose/bmp-cong-ty-co-phan-nhua-binh-
minh.chn.
CafeF.vn. (2024). TDP: Công ty cổ phần Thuận Đức (HOSE). [online] Available at:
https://s.cafef.vn/hose/tdp-cong-ty-co-phan-thuan-duc.chn

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