Equity Report on

Fu-Wang Foods Limited

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 Equity Report on Fu-Wang Foods Limited

Submitted to:
Md. Sajib Hossain, CFA
Assistant Professor
Department of Finance, University of Dhaka
&
Md. Imran Hossain
Assistant Professor
Department of Finance, University of Dhaka

Submitted by:
Group No: 07
4th Year, 1st Semester
BBA 23rd Batch, Section: A
Department of Finance
University of Dhaka

A combined effort by:

Sl. No. Name Student ID Remarks
1 MD. Mozammel Haque Riyad 23-065
2 Bishakha Roy 23-101
3 Pranta Roy Chowdhury 23-104
4 MD. Tanvir Rahman 23-113
5 Md. Nowshad Ayub 23-135

Date of Submission: December 08, 2020

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 Letter of Transmittal

December 8, 2020
Md. Sajib Hossain, CFA
Assistant Professor
Department of Finance, University of Dhaka
&
Md. Imran Hossain
Assistant Professor
Department of Finance, University of Dhaka

Subject: Submission of “Equity Report on Fu-Wang Foods Limited”

Dear Sir,

Here is the Equity Report on Fu-Wang Foods Limited as per our requirement for course F-401;
Financial Statement Analysis and Valuation.

Though we are in a learning curve, this report has enabled us to gain insight into the financial
analysis and equity valuation. It has been extremely challenging and interesting for us. We are
confident that this knowledge will prove to be of utmost value and importance to us in future.

We have put our sincere effort to make this report a presentable shape and make it as
informative and precise as possible. We hope that any unintentional error, omission or mistake
committed by us while preparing this report will be considered with sympathy.

Sincerely yours
Group No: 07
4th Year, 1st semester
Section: A
BBA 23rd Batch
Department of Finance
University of Dhaka

Signature
Md. Tanvir Rahman
(On behalf of the whole group)
Roll: 23-113, Sec: A

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Department of Finance
University of Dhaka

Acknowledgement

Successful completion of any kind of report requires help from several sources. We have also
taken help from our course instructors. So, we don’t deserve all the praise. Our course teachers
Assistant Professors Md. Sajib Hossain, CFA, & Md. Imran Hossain helped us by providing
us with their valuable advice and guidance.

For any BBA student course report is an essential part for his educational life. One can gather
a lot of practical knowledge and experience by observing and doing the work of allocated
report. In this regard, our report has been arranged based on Equity Report on Fu-Wang Foods
Limited.

First of all, we would like to express our gratitude to Almighty Allah for enabling us to
complete this report.

Then, we would like to thank our F-401, Financial Statement Analysis and Valuation, course
instructors, Assistant Professors Md. Sajib Hossain, CFA, & Md. Imran Hossain of Department
of Finance, University of Dhaka. Their constant presence and words of encouragement inspired
us to do our very best. It would probably be impossible to complete this report without their
guidance and availability.

This report is prepared for meeting our academic purpose, not for any other reason. It might
not be used for the benefit of any other purposes.

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Target Prizen (In BDT): 24.98 Fu Wang Foods Ltd.
Current Prize (In BDT): 13.50
Rating: Overweight Buy Decision
Valuation Date: 31 October, 2020

Rating Criteria:
Overweight Expected to outperform the broader market averages
Market weight Expected to equal performance of broader market averages
Underweight Expected to underperform broader market averages
Not-Rated Currently the analyst does not have adequate conviction about the stock's
total return relative to the broader market average
Company Profile
• Name : Fu-Wang Foods Ltd
• Company Type : Public Ltd Company
• Sector : Food Processing
• Main Activities : Food Manufacturing, Beverage Manufacturing
• Date of Incorporation : February, 1997
• Enlisted in : Dhaka Stock Exchange Ltd. (July 2000)
Chittagong Stock Exchange Ltd. (July 2000)
• Authorized Capital : Tk. 1,500 Million
• Paid-up Capital : Tk. 1108.39 Million
• ISO-9002 Certification : 4 November, 1998
• Number of Employees : 1659 Person
• Products : Bread, Cake, Biscuit, Toast, Wafer Bar, Chocolate,
Instant Noodles, Drinking Water, Carbonated
Drinks, Energy Drinks etc.

Analysis of Company Performance

2015- 2016- 2017- 2018- 2019- 2019- 2019-
16 17 18 19 20(Q1 20(Hal 20(Q3)
) f
Yearly)
Profitability Ratios
Operating Profit 16.39 14.90 15.04 16.35 14.05 16.54% 14.50%
Margin % % % % %
Net Profit Margin 10.45 9.06% 8.84% 9.09% 8.58% 10.32% 8.79%
%

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 Return on Equity 7.88% 5.39% 5.03% 6.93% 1.53% 3.66% 9.08%
Return on Asset 5.45% 3.72% 3.45% 4.78% 1.06% 2.53% 6.28%

2015- 2016- 2017- 2018- 2019- 2019- 2019-

16 17 18 19 20(Q1) 20(Half 20(Q3)
Yearly)
Solvency Ratios
Debt-to-Asset 0.1015 0.1090 0.1112 0.1164 0.1082 0.1055 0.1156
Debt-to-Equity 0.1462 0.1582 0.1613 0.1706 0.1551 0.1525 0.1673
Interest Coverage 9.9447 6.7513 5.9544 7.5143 6.8191 7.8811 6.5705

2015- 2016- 2017- 2018- 2019- 2019- 2019-

16 17 18 19 20(Q1) 20(Half 20(Q3)
Yearly)
Liquidity Ratios
Current Ratio 2.2410 2.4904 2.5405 2.4596 2.6041 2.6020 2.5005
Quick Ratio 1.0139 1.1301 1.0978 1.0842 0.9147 0.8970 0.8624

2015- 2016- 2017- 2018- 2019- 2019- 2019-

16 17 18 19 20(Q1) 20(Half 20(Q3)
Yearly)
Efficiency Ratios
Inventory Turnover 2.7536 2.1304 2.0560 2.9208 0.7197 1.3823 4.1025
Asset Turnover 0.5215 0.4101 0.3901 0.5263 0.1237 0.2450 0.7141
Fixed Asset 1.3577 1.1359 1.1233 1.5550 0.3758 0.7451 2.1577
Turnover
Receivables 1.9416 1.5041 1.4154 2.1335 0.5768 1.1598 3.4357
Turnover
Payables Turnover 16.0292 13.9167 16.6710 21.2233 4.7568 9.1934 13.4206

2015- 2016- 2017- 2018- 2019- 2019- 2019-

16 17 18 19 20(Q1) 20(Half 20(Q3)
Yearly)
DuPont Analysis
Tax burden 0.7439 0.7486 0.7397 0.6697 0.7513 0.7504 0.7504
Interest burden 0.8574 0.8123 0.7947 0.8296 0.8131 0.8316 0.8076
EBIT margin 0.1639 0.1490 0.1504 0.1635 0.1405 0.1654 0.1450
Asset turnover 0.5215 0.4101 0.3901 0.5263 0.1237 0.2450 0.7141
Financial leverage 1.4459 1.4503 1.4580 1.4491 1.4388 1.4459 1.4470
ROE 7.88% 5.39% 5.03% 6.93% 1.53% 3.66% 9.08%
Understanding Types of Companies
Growth vs Value Companies:
Intrinsic Value < Current Market Price (Growth Company)

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 Intrinsic Value > Current Market Price (Value Company)
FU Wang Food Ltd is a Value Company. The current market share price of the company is
13.60. And the calculated intrinsic value for the company is higher, which means the share
price of the company is undervalued. Market price is lower than the original value. So it can
be said that Fu Wang Food Ltd is a Value Company.
Defensive Companies vs Cyclical Companies:
To determine if FUWANG Food is a Defensive or Cyclical Company the GDP growth rate of
Bangladesh and earnings Growth rate of FUWANG Food is compared:

40.00% 37.78%

30.00%

20.00%

7.10% 7.30% 7.90% 8.20%

10.00% 6.01% 6.06% 6.55%
1.80% 2.13%
1.15%
0.00% 3.15%
2013 2014 2015 2016 2017 2018 2019
-10.00%
-16.31%
-20.00%

GDP Growth Earnings Growth of Fuwang Food

FUWANG Food Ltd is a Defensive Company. This company produces food and beverages
which are necessary goods for consumers. Their demand is always the same. As the company’s
earnings growth is not significantly influenced by the changes in economy, it can be said that
FUWANG Food Ltd is a Defensive Company.

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 Business Model of Company
Value Customer Customer
Key Partners Key Activities Propositions Relationships Segments

- Distinct
- Share Holders - Collection of Raw products - Brand Awareness - Massive
- Fu Wang Food materials - Good Value - Campaign Markets
Beverage Ltd - Processing on Offering & - Recommendation - Wide Range
- Fu Wang Food Some of these Pricing - Events of Products
Property materials - A broad range - Customer - All Ages of
- Fu Wang - Processing others of food choices Loyalty Customers
Ceramics minerals as - Provide - After Sales - Kids
- MABS & J byproducts consistent, high- Services - University
Partners - Production of quality end Students
Bakery Products products - People With
- Safety & Security - Keep consumers low to medium
- Safety & Health and personnel earnings
- Supply Chain safe - Breakfast
Management - Need/want of Items for
- Trading Activities customers for Everyone
- Marketing & Sales better satisfaction - Teen agers
- Suitable for a - Family
variety of ages Snacks
Key Resources Channels
- A Workforce of - Television
approximately 1652 - Traditional
employees Media
- Strong Balance - Website
Sheets and - Facebook
operational - Retailers Shops
Excellence - Fast Food Chain
- 23 years of - Sponsors
Experience - Events &
- Talented Workshops
Employees - Newspaper &
- 10900 M. Ton Magazine
yearly Production
Capacity
Cost Structure Revenue Structure

- COGS - Revenue From Sale

- Administrative Expenses
- Selling & Distribution Expenses
- Tax Expenses
- Financial Expenses

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Key Strategy of the Company to Generate Profit
Generic strategy pursued by Fu-Wang Foods Limited is “Differentiation”
Product Differentiation helps the firm to make their products dissimilar to other company’s
products. Fu Wang Food believes in product differentiation. It helps to make the products more
attractive to the particular target market. Fu Wang food’s target market is lower to middle class.
So they try to provide different types of quality products at a lower price than their customers.
They have a huge product line of foods and beverages. And these are increasing according to
the need of customers. They produce products in different size, amount, price, flavor, shape,
which attracts the customer to buy their products.

Assessment of Company Strategy

The company can survive and prosper given its strategy because of the following factors:

Higher Demand at given More Varieties of More Value-added

Price Product Services

Less Price-Sensitive
Quality Product
Demand

✓ Higher Demand at given price: Fu Wang Food try to set the price of the products
lower than its competitors. This helps them to attract more customer demand.
✓ Less Price-Sensitive Demand: Price sensitivity means when the cost of a product or
service changes the demand also changes. Fu Wang food is less price-sensitive because
it provides consumer staples, for which the demand is usually the same.
✓ More Varieties of Product: Fu Wang Food has different product lines and has varieties
of products according to customer needs. Bread, Cake, Biscuit, Toast, Wafer Bar,
Chocolate, Instant Noodles, Drinking Water, Carbonated Drinks, Energy Drinks etc.
are different products produced by Fu Wang Food.
✓ More Value-Added Service: Fu Wang focuses on lower to middle class customers. So
it gives customer friendly products with good price. It also works for maintaining
customer loyalty.
✓ Quality Product: Fu Wang always gives quality products at a lower price. They try to
sell different kinds of food products at better quality and better price.

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 Macro Economic Analyses
Economic Factors:

Year GDP Growth Rate Increase GDP Amount (in Billion) Total Marekt Capital in the year end (In Billion) Change Market Capitalisation to GDP
2015 6.60% 0.50% 16665.76 3159.757747 19%
2016 7.10% 0.50% 17713.6 3412.441493 0.08 19%
2017 7.28% 0.18% 19976.8 4228.945456 0.2393 21%
2018 7.86% 0.58% 21923.2 3872.952837 -0.084 18%
2019 8.15% 0.29% 24205.6 3395.510635 -0.123 14%
2020 5.20% 0.41% 15444.0638 3926.764266 0.1565 25%
2021 6.80% 0.39% 20196.08344 4137.430177 0.0536 20%
2022 7.00% 0.37% 20790.08589 4359.398046 0.0536 21%
2023 7.20% 0.41% 21384.08834 4593.27421 0.0113 21%
2024 7.40% 0.37% 21978.0908 4839.697532 0.0303 22%
2025 7.60% 0.39% 22572.09325 5099.341152 0.0611 23%

Here, in terms of macroeconomic analyses, GDP has been considered as one of the prime
parameters and in the white shade, we have placed the GDP inputs since 2015 to 2019 and
based on that considering the pandemic situation, we considered the forecasting of the ADB
and put the forecasted value in 2020 and 2021. And to reflect the GDP impact, we have
considered the GDP amount and the total market capita in the year end. And we have found
the Market capital to the GDP ratio. And we have found that, there is a positive move in the
economy after the pandemic recovery onwards. And that is how it is ocular that, the company
that we have mentioned will have a robust and positive influential environment to grow.

Forecasted Market Capitalisation to GDP

0.3

0.25

0.2

0.15

0.1

0.05

0
2014 2016 2018 2020 2022 2024 2026

In this regard, there is another factor and this is interest rate. This interest rate is regarded as
the lending rate for the banks and borrowing rate for the companies.

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Now the reported lending rate of Bangladesh’s Bank Lending Rate was 7.790 % pa in Jul 2020
which is a decrease from the previous reported number of 7.950 % pa for Jun 2020. Since 2976
to 2020, the average lending rate was 12.480 % pa from Jan 1976 to Jul 2020, considering 535
observations.

Year Lending Rate

2015 11.71
2016 10.71
2017 9.54
2018 9.65
2019 9.55
2020 9
2021 9
2022 9
2023 9
2024 9
2025 9

Here, it is seen there is decreasing in terms of lending rate which is a good sign in that logic
that the less that interest will be the more the companies will be able to take borrowings. Here,
till 2019, the companies needed to pay more than 13-15% interest rate but in 2020 onwards
that has been reduced to 9% and during pandemic this has been reduced more and this is now
7-8% and that will help the mentioned company to borrow more and that reflects a favorable
situation.

Here, reducing the interest rate, BB has increased the money supply and that will be helpful for
the mentioned company onwards.

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 Year Inflation rate Change
2015 6.16%
2016 5.68% -0.48%
2017 5.61% -0.07%
2018 5.54% -0.07%
2019 5.59% 0.05%
2020 5.70% 0.11%
2021 5.59% -0.11%
2022 5.63% 0.04%
2023 5.64% 0.01%
2024 5.62% -0.02%
2025 5.63% 0.01%

Inflation rate
6.30%
6.20%
6.10%
6.00%
5.90%
5.80%
5.70%
5.60%
5.50%
5.40%
5.30%
5.20%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Here, The Bangladesh's Domestic Credit got an increase of 13.4 % YoY in August 2020 in
comparison with an increase of 14.1 % YoY in July. From July 1988 to August 2020, it
averaged 13.9 %. In line with that, we can have an ocular perspective that the credit growth
rate is increasing and that is a good sign in that sense that this credit has been being used to
reduce the intensity of the pandemic situation. And the economy will have a speedy recovery
and that will have positive impact on the mentioned company’s stock price. Here, we have seen
that, the foreign reserve has exceeded USD40 billion dollar. And it is a god sign but if this
cannot be implemented properly that will be boomerang. Here, due to pandemic situation, in
our country almost 2/3 of our population got affected. For that, per family the income got a
decrease of income by 20.24% and that leads to decrease the consumption rate. And here, the
shrinkage in GDP and the 10 multiples unemployment rate has grappled the economy very
horribly. Like the GDP per capita got a decrease and in that period, people do not have money
to feed staple food let alone the luxury or not that much of necessary foods that are offered by
the mentioned company. And that will reduce the consumption of the provided or offered food
or products of the company and that will lead to have a downturn impact on the stock price.

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 Industry Analysis
Growth Scenario of the Industry:
FMCGs industry is one of the fastest growing segments of the market. The population of
Bangladesh was 164.67 million in the end of 20171. This large number of population of the
country makes the FMCGs industry very prospective. With the considerable growth of GDP,
the private consumption growth has also increased over the years. In FY 2016-17, GDP Growth
rate was 7.28% compared to 7.11% in FY 2015-16 whereas Private consumption growth in FY
2016-17 was 10.3% compared to 9.1% in FY 2015-162.

As private consumption rate is directly related to FMGC industry the subtle and steady percent
of private consumption rate in the nominal GDP can be a decent indicator of the industry’s
growth rate.

Below are information regarding private consumption as % of GDP,

YEAR Private
Consumption
as % of GDP
2016 69.13
2017 68.67
2018 70.8
2019 69.7
2020 68.45

So as it can be observed private consumption takes a sufficiently large portion of the total GDP
of the country, which is the main reason behind the constant growth of the industry.

Nature of Competition in the Industry:

Some of the main companies in the industry are-

a. Agricultural Marketing Company Ltd. (Pran) b. British American Tobacco c. Bombay

Sweets & co ltd. d.Fu Wang Food Ltd. e. Ispahani Foods ltd f. Ifad Multi pProducts Ltd. g.
ACI Foods ltd. h. Fine Foods Limited i. Rangpur Dairy & Food Products Ltd. j. Olympic
Industries Ltd. k. Shyampur Sugar Mills Ltd. l. Bangas Ltd. m. Golden Harvest Agro Industries
Ltd n. Apex Foods Limited. There are many more registered food and allied companies in the
industry so it is easily predictable that the industry has a high range of competition. In
Bangladesh, the FMCG industry can be classified in three major categories- (1) Foods and
Beverage, (2) Personal Care and (3) Household Care Industries. Foods and Beverage Industry
includes all food products such as milk & dairy products, biscuits and bakery products, frozen
foods, ice cream, tea, coffee, baby foods, soft drinks, tobacco and others.

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The Entry Barriers: The entry barriers to entry into this industry are essential because of
starting an essential venture. Most organizations have completely computerized generation
frameworks that make it troublesome for new business people to deliver indistinguishable
rivalry from the principle rivalry and survival in the market. Besides, the primary competitors
have just accomplished a huge part of the overall industry and brand value, which makes it
troublesome for new organizations to enter the market and share their products to consumers.
Despite the fact that this factor helped the food and beverage industry, it has influenced the
industry conversely. The administrative body isn't viable in frustrating the cooperative’s
administrative exercises to control the nature of the products sold in the food and beverage
industry

Performance of Major Companies In The Industry:

Below are the record of revenues generated by five paricipatig companies in the industry
thoroughout recent five years (amounts are in BDT million):

Company 2014-15 2015-16 2016-17 2017-18 2018-19

Name
Olympic 8853 10965 11290 12928 13733
Fu Wang 767 767 586 712 981
Fine Foods 26 34 47 46 52
Limited
Golden 776 1427 1526 1870 2240
Harvest
Apex 2751 2031 1642 1922 1712
Foods Ltd
In terms of financial revenue the two highest revenue generating companies from our selected
five companies are Olympic and Apexx foods ltd. The revenue for most of the companies are
sufficient and a steady growth is also observed for most of them. But with the rise in
competetion some companies like apex foods are loosing money.

Below are the record of net profit ratio generated by five paricipatig companies in the industry
thoroughout recent five years (%):

Company 2014-15 2015-16 2016-17 2017-18 2018-19

Olympic 12.39 14.81 14.55 13.85 13.62
Fu Wang 13.43 11.21 10.40 8.84 8.97
Fine Foods 3.84 29.41 17.02 2.17 5.76
Limited
Golden 10.95 12.47 12.25 11.87 10.80
Harvest
Apex 3.05 1.42 2.92 7.18 0.64
Foods Ltd

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DCF Valuation

In case of DCF valuation, our calculated beta was 1.11(approx.), WACC was 10.43%, Cost
of equity was 9.23% and terminal growth rate was assumed to be 2% depending on recent
performance and industry situation.

Particulars (BDT mn) 2021 2022 2023 2024 2025

NPAT 117.39 117.39 125.02 133.14 141.79
Depreciation and ammortization 76.670743 82.93109 89.702617 97.027052 104.94954
Financial Expenses 24.498168 24.49817 26.090013 27.785292 29.590728
Tax rate 35% 35% 35% 35% 35%
Capex 57.877656 62.60351 67.715232 73.244344 79.224921
Change in NWC -28.27675 54.7865 49.673969 51.772556 53.915341
Net Borrowing 40.349679 60.62679 82.239097 122.92122 211.67551
Terminal growth rate 2%
WACC 10.43%
FCFF 188.88 127.63 162.61 210.01 306.04 312.16
Terminal Value 3,703.88
Cost of equity 9.23%
PV Factor for FCFF 0.9055674 0.820052 0.7426127 0.6724859 1.6420865
PV Factor for FCFE
Enterprise value 7,122.34
Equity value 5,313.17
Number of outstanding share (in thousands) 110.83928 110.8393 110.83928 110.83928 110.83928
Per share price 47.94

Relative Valuation

Four companies have been used for making the relative valuation of Fu Wang Foods Ltd. by
using P/S, P/E and P/B Multiples.
Sales Earnings Book Value Market Value P/S P/E P/B
Olympic Industries Ltd. 13,350,627,645 1871427973 7,216,308,626 35449164488 2.66 18.94 4.912
AMCL (Pran) 2,821,830,393 58,400,000 635,950,009 1,528,000,000 0.54 26.16 2.403
Apex Foods 1,712,669,526 11,803,968.00 708,810,544 684,858,240 0.40 58.02 0.966
Fu Wang Food 981,860,152 88,671,427 1,108,392,840 1,418,742,835 1.44 16.00 1.280
981,860,152 88,671,427 1,108,392,840

Fu Wang Food
Fu Wang Food Fu Wang Food
Average Multiple Median Multiple Valuation
Numbers Valuation (Average)
(Median)
Sales 1.20 0.54 981,860,152 1,177,123,803 531,669,910
Earnings 34.38 26.16 88,671,427 3,048,110,308 2,320,033,232
Book Value 2.76 2.403 1,108,392,840 3,059,637,321 2,663,140,554
Average 2,428,290,477 1,838,281,232

# of Shares 110839284 21.91 16.59

Sensitivity Analysis
This analysis is made for the purpose of finding out how much sensitive the target prize is to
the change of WACC and Terminal growth rate. The findings of the analysis reveal that the
prize of the share is more sensitive to terminal growth rate than WACC. It also means that a
slight change in terminal growth rate can bring in a massive change in the price of the stock.

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 WACC
24.98 5% 8% 10.43% 12% 15%
1% 31.7325 25.6761 23.7231 22.9795 22.1368
1.50% 34.3755 26.6391 24.3177 23.4513 22.4747
Terminal Growth Rate 2% 37.8994 27.7626 24.9829 23.9704 22.8386
2.50% 42.833 29.0903 25.732 24.5441 23.2316
3% 50.2334 30.6836 26.5818 25.1815 23.6574

Target Prize
Though our analysis we have realized that we have 20% confidence on the prize determined
through DCF Valuation, 30% confidence on the average multiple prize and 50% confidence on
median multiple valuation. We have used these confidence levels as weights for determining
the weighted average target prize of share.

Weighted Average Prize 24.98

Weight of DCF 20%
Weigh on average multiple prize 30%
Weight on median multiple prize 50%

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 Appendices
Particulars (BDT mn) 2020A 2021E 2022E 2023E 2024E 2025E
Income Statement
Turnover (net of VAT) 1045.66 1113.6 1113.6 1185.96 1263.03 1345.1
Cost of Goods Sold 728.303 811.776 811.776 864.523 920.698 980.524
Gross Profit 317.357 301.829 301.829 321.441 342.328 364.572
Operating Expenses: 102.298 109.841 109.841 116.979 124.58 132.675
Administrative expenses 62.6075 70.8435 71.0526 76.0227 80.3579 81.1986
Selling and distributive expenses 39.6902 38.998 38.7888 40.956 44.2219 51.4761
Operating Proft before Financial Expenses 215.059 191.987 191.987 204.462 217.748 231.897
Financial Expenses 24.1033 24.4982 24.4982 26.09 27.7853 29.5907
Operating Income 190.956 167.489 167.489 178.372 189.963 202.306
Non Operating Income
Net Proft before tax and WPPF 190.956 167.489 167.489 178.372 189.963 202.306
Provision for WPPF & welfare fund 6.54438 7.67923 7.67923 8.17822 8.70962 9.27556
Net Profit before tax 184.411 159.81 159.81 170.194 181.253 193.031
Income Tax expenses 56.38 42.42 42.42 45.18 48.11 51.24
Current Tax 34.6309 34.02 32.43 33.33 35.29 31.47
Deferred Tax 21.747 8.40 10.63 13.46 17.03 21.55
Net Proft after tax 128.03 117.39 117.39 125.02 133.14 141.79

Balance Sheet
Particulars (BDT mn) 2020 2021 2022 2023 2024 2025
AS S ETS :
Non Current Assets 758.8298 816.7074 879.3109 947.0262 1020.271 1099.495
Property Plant & Equipment (net of accumulated dep.) 708.8298 766.7074 829.3109 897.0262 970.2705 1049.495
Investment 50 50 50 50 50 50
Current Assets: 1764.967 1389.134 1443.921 1530.012 1620.568 1715.788
Inventories 329.9172 297.00 297.00 316.30 336.85 358.74
Trade and other receivables 751.786 470.15 470.15 500.70 533.24 567.88
Advances, Deposits & prepayments 661.6993 576.10 576.10 613.54 653.40 695.86
Cash and cash equivalents 21.56485 45.881 100.6675 99.47685 97.0797 93.30549
Total Assets 2523.8 2205.84 2323.23 2477.04 2640.84 2815.28
EQUITY & LIABILITIES :
S hareholder's equity 1445.252 1474.856 1592.245 1709.634 1834.651 1967.791
Share Capital 1289.67 1289.67 1289.67 1289.67 1289.67 1289.67
Revaluation reserve 56.65195 56.65195 56.65195 56.65195 56.65195 56.65195
Retained Earnings 98.43 128.03 245.42 362.81 487.83 620.97
Non Controling Interest 0.5 0.5 0.5 0.5 0.5 0.5
Non-Current Liabilities: 132.1366 172.4862 233.113 315.3521 438.2734 649.9489
Deferred Tax Liabilities. 79.97 120.32 180.95 263.19 386.11 597.79
Loan from IDLC 52.16362 52.16362 52.16362 52.16362 52.16362 52.16362
Current Liabilities: 925.3133 577.7569 577.7569 614.1743 652.9581 694.262
Short term bank loans and others 123.23 121.2008 121.2008 129.0762 137.4633 146.3954
Trade and other payables 439.177 54.57 54.57 58.12 61.89 65.91
Payable for WPPF and Welfare Fund 17.3 17.3 17.3 17.3 17.3 17.3
Liabilities for expenses 12.15626 12.94615 12.94615 13.78737 14.68324 15.63733
Provision for Income Tax 333.45 371.7405 371.7405 395.8955 421.6201 449.0161
Total Equity and Liability 2523.8 2205.84 2323.23 2477.04 2640.84 2815.28

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 Dupont Analysis
Tax burden Interest burden EBIT margin Asset turnover Financial leverage

1.6000
1.4000
1.2000
1.0000
0.8000
0.6000
0.4000
0.2000
0.0000
2015-16 2016-17 2017-18 2018-19 2019-20(Q1) 2019-20(Half 2019-20(Q3) Average
Yearly)

Net Profit
29.41
30
25
20 17.02
14.81 14.55 13.85 13.62
13.43
15 12.39 10.95 11.21 12.47 10.4
12.25 11.87 10.8
8.84 8.97
10 7.18
5.76
3.84 3.05 2.92
5 1.42 2.17
0.64
0
2014-15 2015-16 2016-17 2017-18 2018-19

Olympic Fu Wang Fine Foods Limited Golden Harvest Apex Foods Ltd

Revenue
13733
14000 12928
12000 10965 11290

10000 8853
8000
6000
4000 2751
2031 1922 2240
1642 1712
2000 767 776 767 1427 586 1526 712 1870 981
26 34 47 46 52
0
2014-15 2015-16 2016-17 2017-18 2018-19

Olympic Fu Wang Fine Foods Limited Golden Harvest Apex Foods Ltd

18 | P a g e
 EPS
20
14.88
15
8.96 9.36
10 8.13 8.22
5.75
5 2.041.81 2.07
1.32 0.95 1.03 1.98 1.72
0.649 1.56 0.57 0.8 2.03
0.816 0.61 0.073 0.247
0
-0.149
2014-15 2015-16 2016-17 2017-18 2018-19
-5 -2.32

Olympic Fu Wang Fine Foods Limited Golden Harvest Apex Foods Ltd

NAV Per Share

150 137.41
124.3
109.16 108.61 115.1

100

50 31.53 36.09
21.46 20.71 23.08 22.72 27.07 20.12 22.31 20.01
11.83 12.92
7.79 11.34
6.67 10.91 11.71
2.18 3.72 4.14
0
2014-15 2015-16 2016-17 2017-18 2018-19

Olympic Fu Wang Fine Foods Limited Golden Harvest Apex Foods Ltd

19 | P a g e