HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

- INFORMATION TECHNOLOGY

FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION

……..***……..

FINAL REPORT

STOCK EXCHANGE

NAME: REPORT

Instructor: Dang Quan Tri

Course: Stock Exchange

Group: Captain

Student’s name:

La Thi Thu Truc - 22DH123746

Do Nguyen Anh Thu - 22DH122723

Nguyen Thi Thanh Thuy - 22DH122709

HCMC, 4/2025
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CONTENTS
Chapter 1. MACROECONOMIC ANALYSIS................................................................2
1.1. Macroeconomic indicators of Vietnam in 2023 or 2024................................................
1.1.1. Economics growth rate 2023 and 2024...............................................................

1.1.2. Technological status in 2023 and 2024...............................................................

Chapter 2. INDUSTRY ANALYSIS................................................................................7

Chapter 3. COMPANY ANALYSIS................................................................................9
3.1. Company overview........................................................................................................
3.1.1. Vision – Mission...............................................................................................

3.1.2. CORE VALUE..................................................................................................

3.2. Business line.................................................................................................................

3.3. Company milestones....................................................................................................
Chapter 4. BUSINESS ACTIVITIES IN 2023..............................................................14
Chapter 5. ANALYSIS FINACIAL POSITION OF THE COMPANY.........................17
5.1. ELCOM’s Income Statement in the period 2021-2023................................................
5.2. Revenue, Cost and Profit over 2021 to 2023...............................................................
Chapter 6. ASSET AND CAPITAL...............................................................................21
6.1. ELCOM’s Balance Sheet in the period 2021-2023......................................................
6.2. Asset Structure.............................................................................................................
Chapter 7. FINANCIAL RATIO ANALYSIS................................................................29
7.1. Profitability Ratio.........................................................................................................
7.2. Efficiency Ratio...........................................................................................................
7.3. Solvency Ratio.............................................................................................................
7.4. Liquidity Ratio.............................................................................................................
Chapter 8. STOCK VALUATION.................................................................................32
8.1........................................................................................................................................

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 Chapter I. MACROECONOMIC ANALYSIS

I.1. Macroeconomic indicators of Vietnam in 2023 or 2024

Vietnam has emerged as one of the fastest growing economies in Southeast Asia, benefiting
from strong foreign investment, a young workforce and rapid industrialization. Over the past
decade, Vietnam has positioned itself as a key player in the global supply chain, with significant
economic transformation, leading in import-export and many other sectors. Contributing to the
country's GDP growth, with GDP in 2023 and 2024 considered to be the most prominent in the
economy.

1.1.1. Economics growth rate 2023 and 2024

According to the General Statistics Office of Vietnam

(Report on social-economic situation in the fourth quarter
, the GDP size at current prices in 2023 is
estimated at 10,221.8 trillion VND, equivalent to 430 billion USD. With this result, Vietnam's
economic scale in 2023 ranked 34th according to CEBR's rankings.

Regarding GDP use in 2023, final consumption increased by 3.52% compared to 2022,
contributing 41.04% to the overall growth rate of the economy; asset accumulation increased
by 4.09%, contributing 26.64%; exports of goods and services decreased by 2.54%; imports of
goods and services decreased by 4.33%; the difference between exports and imports of goods
and services contributed 32.32%.

2
 8 7.35
6.86 6.65 7.29
7 6.43 6.72
6 5.47
5 5.16
4.25
4 3.41 4.3 4.13
3.85
3
2.92
2 1.95
1
0 -0.34
Quarter I Quarter II Quarter III Quarter IV
-1 GDP Agriculture, Forestry and Fishery
Industry and Construction services

Figure 1: GDP and VA regions in the quarter of 2023 (%)

(Source: General Statistics Office of Vietnam)

In 2023, economic growth is estimated at 5.05% (increased by 3.41% in the first

quarter; 4.25% in the second quarter; 5.47% in the third quarter; 6.72% in the fourth quarter);
of which, the agriculture, forestry and fishery sector increased by 3.83%, contributing 0.46
percentage points; industry and construction increased by 3.74%, contributing 1.51 percentage
points (industry alone increased by 3.02%) (according to the General Statistics Office of
Vietnam) (Report on social-economic situation in the fourth quarter and 2023, 2023) and
services increased the most with 6.82%, contributing 3.25 percentage points and product taxes
minus product subsidies increased by 3.33%

3
 10

9
8.98
8.57 8.35
8 7.52 8.21
7.37
7 6.85 7.55
7.25 7.43
6.24
6
5.98
5

3 3.5 3.77
2.95 2.99
2

0
Quarter I Quarter II Quarter III Quarter IV

GDP Agriculture, Forestry and Fishery

Industry and Construction Services

Figure 2: GDP and VA regions in the quarter of 2024 (%)

(Source: General Statistics Office of Vietnam)

According to the General Statistics Office of Vietnam

(Report on socioal-economic situation in the fourth quarte
gross domestic product (GDP) in the fourth
quarter of 2024 is estimated to increase by 7.55% over the same period last year, only lower
than the fourth quarters of 2017 and 2018 in the 2011–2024 period, maintaining the trend of
each quarter being higher than the previous quarter (the first quarter increased by 5.98%, the
second quarter increased by 7.25%, and the third quarter increased by 7.43%). Of which, the
agriculture, forestry, and fishery sector increased by 2.99%, contributing 4.86% to the total
added value of the entire economy; the industry and construction sector increased by 8.35%,
contributing 44.03%; the service sector increased by 8.21%, contributing 51.11%. Regarding
GDP use in the fourth quarter of 2024, final consumption increased by 7.54% over the same
period last year; asset accumulation increased by 7.98%; exports of goods and services
increased by 11.35%; and imports of goods and services increased by 13.49%.

GDP scale at current prices in 2024 is estimated at 11,511.9 trillion VND, equivalent to
476.3 billion USD. GDP per capita in 2024 at current prices is estimated at 114 million
VND/person, equivalent to 4,700 USD, an increase of 377 USD compared to 2024
(Report on socioal-economic situation in t
. Labor productivity of the

4
entire economy in 2024 at current prices is estimated at 221.9 million VND/worker
(equivalent to 9,182 USD/worker, an increase of 726 USD compared to 2023); at comparable
prices, labor productivity increased by 5.88% due to improved qualifications of workers (the
rate of trained workers with degrees and certificates in 2024 is estimated at 28.3%, 1.1
percentage points higher than in 2023).

1.1.2. Technological status in 2023 and 2024

According to International Trade Administration, the Government of Vietnam has

identified ICT as a major industry and socio-economic growth driver and is urging
government agencies at all levels to apply advanced ICT solutions towards the goals of
improving operational efficiencies and providing better governance services. In particular, the
Government of Vietnam has approved the National Digital Transformation Program through
2025, with vision to 2030, which will further support the growth of the ICT market

5,000,000
4,500,000 4,320,000
3,878,296
4,000,000
3,350,720 3,397,492
3,500,000 3,220,118
2,883,950
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
2020 2021 2022 2023 2024 2025 (Plan)

Revenue (Billion VND)

Figure 3: ICT Industry sector revenue (Billion VND)

(Source: Ministry Science and Technology)

5
300,000
278,075 278,075

250,000 239,580
217,696
199,371
200,000

150,000

100,000

50,000

-
2020 2021 2022 2023 2024

Revenue (Billion VND)

Figure 4: Profit after tax of ICT Industry sector (Billion VND)

(Source: Ministry Science and Technology)

60,000
54,334 54,334

50,000
41,871
39,347 40,752
40,000
34,697

30,000

20,000

10,000

-
2020 2021 2022 2023 2024 2025 (Plan)

Revenue (Billion VND)

Figure 5: Contribution to the state budget in the ICT Industry sector (Billion VND)

(Source: Ministry Science and Technology)

6
 900,000

855,154
850,000
818,291

800,000

750,000 731,149
719,304 726,345

700,000

650,000
2021 2022 2023 2024 2025 (Plan)

Revenue (Billion VND)

Figure 6: Contribution to GDP of ICT Industry (Billion VND)

(Source: Ministry Science and Technology)

According to Ministry of Science and Technology, in 2023 ICT industry revenue was
estimated at 3,397,492 (equivalent to 142 billion USD), up 1.4% compared to 2022. The state
budget was estimated at 41,871 billion VND, up 1.1% compared to 2022; Contributing to the
GDP of the Information and Communications sector is estimated at VND 726,345 billion, up
0.98% compared to 2022

According to Ministry of Science and Technology, In 2024 revenue was estimated at

VND 3,878,296 billion (~ 151.86 billion USD, at an exchange rate of 25,538.77 VND/USD),
up 11.2% compared to 2023 (137 billion USD)
(Summary report of Ministry Science and Technology, 2024)
. Hardware and electronic export turnover is estimated at 132,341 billion
USD, up 11.6% compared to 2023

Chapter II. INDUSTRY ANALYSIS

The IT industry is expected to continue to grow strongly because the wave of digital
transformation continues to take place strongly at a very fast speed; technology investment is
considered an indispensable need, helping to improve operating efficiency and minimize

7
production costs in all fields. Not only that, but Vietnam also promotes the application of
information technology in many socio-economic fields.

ICT—the fulcrum for the economy: Becoming one of the industries that contribute
significantly to the state budget, helping Vietnam transform into one of the leading countries
producing hardware and electronic telecommunications technology, with the second ranking in
phone production, the 10th in electronics, and the 9th in software processing.

The Vietnam Communication Technology Market (hardware, software, IT services,

telecommunications services) is valued at US $ 21.11 billion by 2023 and is expected to reach
US $ 36.06 billion by 2029 with a CAGR of 9.1%. The media information technology market
plays an important role in the process of digital transformation in many industry groups such
as health, education, finance, and production. The expansion of the ICT market in the coming
time is motivated by emerging technologies such as artificial intelligence, the Internet of
things, and blockchain technology. 5G connection, boundary computing, network security
measures, and data analysis are the main trends of the communication technology industry
soon.

40
36.6
35

30

25 CAGR=9.1%
21.11
20

15

10

0
2023 2029

Figure 7: ICT industry revenue of Vietnam (billion USD)

(Source: Imarc Group and TPS research synthesis)

8
 In addition, government support policies, digital explosion, rapid increasing
urbanization, and young people who know technology will be catalysts for the acceleration of
the information technology industry soon.

Vietnamese technology consumers are increasingly interested in IT services on cloud

computing, artificial intelligence, and network security. This enthusiasm is due to the
increasing process of digitizing businesses and the demand for systems more efficiently and
safely.

Vietnam becomes the first group of money in the world to master 5G technology,
producing 5G infrastructure equipment and producing 5G phones. Very few people, both
domestically and abroad, believe that Vietnam can do this, but this is the result of creative
labor; triggering this creative labor is a great aspiration. 5G has appeared for a few years, but
users have not used its full potential when the service is supported on the existing 4G
infrastructure. The next roadmap during the 5G network deployment is to switch to the 5G SA
—Standalone model completely separated from the 4G network. 5G SA can work on its own,
which makes the 5G network deployment simpler and cheaper. 5G will help businesses
connect hundreds of IoT/IIIT devices, improve efficiency and productivity, and allow the
development of important applications in most industries.

Chapter III. COMPANY ANALYSIS

III.1. Company overview

Company name: ELCOM Technology Communications Corporation

Abbreviation: Elcom Corp

Charter capital: 822,900,770,000 VND

Equity: 1,152,156,934,085 VND

Head office: ELCOM Building, Duy Tan Street, Cau Giay District, Hanoi.

Phone : +84 2438 359 359

FAX : +84 24 38 355 884

Email : contact@elcom.com.vn

Website: https://www.elcom.com.vn
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 Stock code: ELC

Established in 1995, more than a quarter of the century formed and developed, Elcom
constantly researched and mastered the most advanced technologies such as Aiot, Big Data,
Cloud to create, produce intensive technology products, effective application in many fields.

With production capacity and application of technology, ELCOM provides solutions,

products and high -tech services for the largest information technology and
telecommunications groups in Vietnam such as Viettel, Vinaphone, Mobifone, ... and is a
strategic partner with many large corporations in the world such as CIAA, IBM, Radwin,
Nokia, OSA, ...

3.1.1. Vision – Mission

Vision

To become the leading Information Technology - Telecommunications Group in

Vietnam and expand to the region, a place that gathers talented people, shares the same
passion and aims to lead the demand to pioneer the development of smart technology solutions
to serve human life and society.

Mission

Taking people as the center, technology as a means to serve the community, creating
technology solutions with high applicability, to shape future needs and bring a life that is not
only smarter but also more humane to the people.

3.1.2. CORE VALUE

Proactive

Always move forward with a spirit of readiness to act, respond flexibly in all
situations, be many steps ahead in understanding customer needs, meeting work progress and
quality, bringing high efficiency to partners and customers

Discipline

Comply with the general principles and regulations of the organization, respect
commitments to customers, be consistent between words and actions, promote professionalism
in work to promote the professional capacity of each individual and create collective strength

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Creativity

Constantly develop and innovate in thinking and working methods to find superior
products, services, and technological solutions, anticipate future human needs instead of just
meeting current needs, thereby contributing to creating a smarter and better future

Kindness

Doing valuable things for customers and partners, for the community, ELCOM always
adheres to ethical principles and values, working and doing business based on the spirit win-
win, healthy competition to build together a sustainable and better world for everyone

III.2. Business line

One well-known company working in electronics and technology is ELCOM. The

company’s principal commercial endeavors encompass the installation of sophisticated
systems and production lines, the transfer of information technology; the development of
software, the provision of consultancy in electronic telecommunications, automation, and
information systems; the delivery of entertainment and information services via radio,
television, and print media; the leasing of office spaces, business residences, and real estate,
along with other operations as stipulated in the business registration certificate.

The corporation specializes In the development of quite advanced technological

solutions spanning a wide spectrum of sectors, including technology, smart transportation,
national security, telecommunications, information technology, and online services. At
ELCOM, we guide and plan society’s future needs to improve people’s lives through
technology. Constant research and innovation, as well as the expansion of product lines, helps
one achieve this.

Telecommunication & Information Technology

Certain well-known companies, such as Ciena, IBM, Radwin, Nokia, and OSA, are
among those with which ELCOM has entered into strategic partnerships. As a result of their
industrial and technological capabilities, ELCOM supplies advanced technological solutions,
products, and services to leading information technology and telecommunications companies
in Vietnam, such as Viettel, Vinaphone, and Mobifone, included: IP Core, Access, and

11
Security Systems; Wireless and wired routing solutions (Viba, DWDM, Metro); Digital
Conversion Portal; BSS/OSS – Compute Telecommunications Tariffs and Client Support;
VAS – Augmented Entertainment Services: Ringback Tone, Missed calls Alert; Server
infrastructure, storage, and cloud computing

Smart transportation

With more than ten years of experience in the field of digital transformation in the
transportation industry, ELCOM has continuously led the way in introducing cutting-edge
technology to improve the intelligence of Vietnam's roads. ELCOM offers an extensive
ecosystem of products that includes: Intelligent Transport System; iTMON - Intelligent Traffic
Monitoring; Electronic Toll Collection; Weighing-in-Motion; VTS - Vessel Traffic Service

Digital Transformation

Research and the development of digital transformation product lines for the provinces
were undertaken by ELCOM, which helped to Vietnam's efficient and quick transition into a
digital nation. ELCOM provides several popular options for digital transformation, including:
Intelligent Operation Center (IOC); eMDP - ELCOM Modern Data Platform; EPSS - ELCOM
Public safety system.

National Defense

Permission to engage in military industry activities has been granted to ELCOM by the
General Department of Military Industry within the Vietnamese Ministry of Defense, effective
2015-ish. Customers in the security and military sectors can trust ELCOM's solutions because
of the company's extensive technical knowledge and in-depth commercial acumen.
Communication, transmission, monitoring, interception, command and control, information
security, network surveillance, and customized solutions are just a few of the many areas
where Vietnamese government agencies have depended on ELCOM. Here are some products
that you could find in Elcom's Defense Security section: Skyeye; EyeSea - BLOS AIS
Analysis and Monitoring System; MetaINT.

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 Communication transmission solutions include: Telecom office: Digital
PBX/Collaboration; Backbone optical transmission: DWDM, Fiber Optics; New generation
information infrastructure: Networking, Policy & Routing Configuration Control; Viba, Viba
connection for VNP, VMS & Saigon port: Wideband Microwave system; Maritime
communications for the navy: Radio transmission, Mesh/Ad-hoc, environmental
communications defense; Mobile communication stations, experimental radio communications
for MoD & MoPs: Voice, Data, Switch TDMA, Radio Trunking, etc.

Main business areas

ELCOM's operational center and headquarters are in Hanoi. The corporation mostly
operates in Hanoi, Ho Chi Minh City, Da Nang, Binh Duong, Dong Nai, and Ba Ria-Vung
Tau. ELCOM is augmenting the implementation of camera systems for urban traffic
surveillance in major cities, including Hanoi and Ho Chi Minh City, while also monitoring
traffic safety on principal thoroughfares. ELCOM is also enhancing the implementation of
Internet of Things services and optimizing 5G network strategies.

III.3. Company milestones

Telecommunications Electronics Technology Development Company Limited is an

investment corporation that was established in 1995 in Hanoi. The main office of the
corporation may be found at 12A Ly Nam De, Ba Dinh, Hanoi. The Software Development
and Training Center (SDTC) has been around since 1995.

After opening an office in Ho Chi Minh City in 2004, ELCOM changed its name to
Telecommunications Electronic Technology Development Investment Co., Ltd. and became a
joint-stock corporation.

The Software Development and Training Center (SDTC) has been referred to as
ELCOM Software Solutions Limited since 2008.

In 2010, ELC's shares were formally listed on the Ho Chi Minh City Stock Exchange.

In 2011, the company entered the transportation sector with the creation of the VTS
maritime traffic management system.

13
 To enhance national security, the VSAT and Inmarsat satellite monitoring technologies
were fully mastered by 2012.

The official inauguration ceremony of the ELCOM building took place on Duy Tan
Street in the Cau Giay district of Hanoi, precisely in the Dich Vong Hau neighborhood. In
2014, we were recognized as one of the top 30 information technology businesses in Vietnam.

In 2015, many technical items created and published found extensive application in
public transportation networks, including traffic signal systems, automatic parking guidance,
and cloud car management. The Vietnamese prime minister also awarded the company a
certificate of merit and ranked it among the top 40 IT enterprises in the country.

In 2016, our software, solutions, and IT services earned us a place among the top 50 IT
enterprises in Vietnam. We have successfully extended our service delivery capabilities into
the American market. The company successfully completed a crucial project for Mobi-Fone's
North-South transmission line, propelling it into the ranks of Vietnam's 500 largest private
companies.

In 2017, the EGREEN category was established to highlight innovative agricultural

products and services. PROFIT500 lists Vietnam's 500 most profitable firms and 500 largest
private companies.

In 2018, ELCOM was recognized as one of Vietnam's top 50 IT firms for software,
solutions, and IT services.

In 2019, cloud computing, big data, and artificial intelligence research will continue.

In 2021, Vinasa Association recognized the top 10 firms providing information

technology solutions for smart cities and the top 10 enterprises providing information
technology services and solutions.

In 2022, ELCOM underwent rebranding and implemented a new strategy after over
fifty years of operation and significant expansion. One of the objectives of the new strategy
was to penetrate new markets. The corporation has rebranded as ELCOM Technology—
Telecommunications Joint Stock Corporation.

In 2023, the company achieved a dominant position in the highway ITS market,
including the North-South Expressway Project's first-ever "ITS flag" installation. We are

14
proud to introduce meCall, the pioneering video waiting platform in Vietnam. Honored with
the Outstanding Digital Product Award at the Make in Vietnam event, hosted by the Ministry
of Information and Communications, was the eWIM Automatic Re-weighting System.

Chapter IV. BUSINESS ACTIVITIES IN 2023

The Intelligent Transportation segment makes the company's 2023 results much better
by putting in place strategic products like the Intelligent Transportation System for
Expressways (eITS Expressways), Non-stop Toll Collection (ETC), and Automatic Vehicle
Weight Control (eWIM). This is especially true when big clients sign contracts. Significant
projects encompass the subsequent examples:

The corporation currently occupies 60% of the smart traffic sector for highways. As
part of the country's three smart traffic systems, ELCOM will launch two projects in 2023:
Nha Trang—Cam Lam and Dien Chau—Bai Vot. Through the implementation of this project,
an Intelligent Transportation System will be constructed on the portion of the highway that
runs between Cam Lam and Nha Trang. ELCOM signed an intelligent transportation system
(ITS) in June 2022, with the projected cost for the approximately 50-kilometer Dien Chau-Bai
Vot segment of the North-South Eastern Expressway project, phase 1, exceeding 200 billion
VND. In addition to all of the components that make up ELCOM's comprehensive intelligent
traffic framework, the system will incorporate a communication network, a surveillance
camera, a continuous toll-collecting system, an operational monitoring system for the route
and tunnel, and extra features. Under the terms of the concluded transaction, which is
estimated to be worth approximately 350 billion Vietnamese Dong, a comprehensive
Intelligent Transportation System (ITS) will be implemented. Several components will be
included in this system, such as a communication network, traffic cameras, a continuous toll-
collecting system, and a monitoring system for both the road and the tunnel, all of which will
work together to guarantee that the system functions as efficiently as possible.

In the fourth quarter of 2023, Thua Thien-Hue province contracted with ELCOM to
install security surveillance cameras and provide solutions. ELCOM contracts with significant
partners, such as Viettel Industry and Telecommunications Group, and these contracts will go
into force in December 2023. These contracts are a significant deal because their value is
estimated to be in the hundreds of billions of Vietnamese dong. Moreover, as part of a service

15
delivery strategy that is included in this transaction, the Vietnam Digital Traffic Joint Stock
Company (VDTC) will get 130,000 Etag cards. To be more specific, it comprises a contract
with Viettel Technology—Telecommunications Group to provide advice, develop, and carry
out plans for upgrading the DWDM transmission network.

The improvement of fundamental business operations, together the considerable rise in

financial revenue—from VND 6.7 billion in the fourth quarter of 2022 to over VND 40 billion
in Q4 2023—substantially aids profit expansion. In the fourth quarter of 2023, financial
investment activities yielded roughly VND 35 billion. This amount was significant relative to
the pre-tax profit of around VND 45 billion during the same timeframe.

In 2023, ELCOM has distributed more than 23.5 million incentive shares, representing
40% of the total. The present charter capital amounts to VND 823 billion, with retained
earnings surpassing VND123 billion. Liabilities account for roughly 37% of the capital
structure; however, bank loans represent a negligible fraction, predominantly consisting of
debt capital from payables to suppliers.

Non – finance activities:

The "Bright Moon of Love" event took place on September 23, 2023, and was
organized by ELCOM in partnership with the Youth Union of the Faculty of Information
Technology at the University of Technology VNU. The endeavor involved handing over 120
presents to highland pupils enrolled at Phu Tho's Coi Lap school. The volunteer contributions
of these folks will guarantee a delightful Mid-Autumn Festival celebration for the school. This
gives a chance for ELCOM staff to collaborate and develop ideas that are more sensitive to the
citizens of the community.

16
 Figure 8: The "Bright Moon of Love" event at
Phu Tho’s Coi Lap school
Renovations to the ELCOM building are scheduled for 2023. ELCOM recognizes the
imperative to improve the office's green space and optimize the utilization of natural energy
resources during the renovation process. This approach benefits the organization over time by
fostering innovation and creativity among employees while concurrently reducing energy
usage and operational expenses. Due to renovations, the ELCOM office has implemented a
green tree system and designed each window frame to maximize the influx of natural light.

Business outcomes in 2023:

2023 Plan 2023 Actual Completion Ratio

(Billion VND) (%)
(Billion VND)

Revenue 850 980 115

After tax - profit 56 84 150

The key performance indicators for the company have achieved their targets for 2023:
We achieved 115% of our goal with the achievement of 980 billion Vietnamese dong, a 13%
increase from 2022. With a 125% increase to VND 84 billion, the profit after taxes reached
150% of the aim set for 2022. The last 12 months saw the firm concentrating on completing
large contracts related to ITS (Intelligent Transportation Systems). The deployment of
Intelligent Transportation Systems on the Nha Trang–Cam Lam route is particularly
noteworthy. The company participated in ETC and WIM projects for VEC, VDTC, and other
entities, as well as in public safety, traffic safety, and order monitoring initiatives in Thua
Thien Hue. The company's financial growth, especially in the Intelligent Transportation area,
has been significantly supported by these initiatives. Clients have effectively embraced and
commended the company's strategic solutions and products, which encompass intelligent
security, automated toll collection, expressway security, traffic infraction monitoring and
fines, and automatic vehicle load management. In future initiatives, the business will persist in

17
providing and enhancing these solutions and products. The financial performance in other
business sectors, particularly telecommunications and national security, remains stable.

Chapter V. ANALYSIS FINACIAL POSITION OF THE COMPANY

V.1. ELCOM’s Income Statement in the period 2021-2023

Table 1. Income Statement in the period 2021-2023

Unit: Million VND

Item 2021 2022 2023

Revenue 659,132 863,283 980,090

Cost of Goods Sold 530,050 722,791 786,358

Gross Profit 129,082 140,492 193,732

Sales, General and Admin Expenses 94,601 102,627 139,154

Research & Development 0 0 0

Non-Recurring Items 0 0 0

Other Operating Income/Expenses 29,956 47,878 46,279

Operating Income 64,437 85,743 100,857

Additional Income/Expenses (1,966) (913) (247)

Earnings Before Interest & Tax 62,471 84,831 100,61

Interest Expenses 3,677 38,308 3,716

Profit/(Loss) Before Tax 5,794 46,523 96,894

Tax 8,485 9,150 12,573

Net Profit/ (Loss) 50,309 37,373 84,321

18
 Source: ELCOM's audited financial statement 2021-2023

As 2024 approaches, Vietnam and the global economy continue to navigate significant
transformations in the technical sector. Businesses currently face both opportunities and
challenges arising from the rapid advancement of artificial intelligence, cloud computing, and
digital transformation. Macroeconomic uncertainty persists despite the acceleration of
technology adoption; inflationary pressures, elevated interest rates, and shifting global demand
affect investment flows.

The company's ability to leverage digital transformation trends has led to significant
income growth for ELCOM, increasing from 659,132 million VND in 2021 to 980,090 million
VND in 2023. Profitability was impacted by fluctuating interest rates in 2022 and increasing
operational expenses. The company's net profit for 2023 is 84,321 million VND, reflecting a
125.7% increase over 2022, indicating improved operational efficiency and financial stability.

ELCOM may benefit from the increasing demand for digital infrastructure as
technology spending continues to escalate in 2024. To maintain consistent growth, however,
challenges such as workforce shortages, cybersecurity concerns, and competition from global
digital corporations necessitate strategic investments in innovation and financial risk
management.

V.2. Revenue, Cost and Profit over 2021 to 2023

Recent commercial operations at ELCOM have demonstrated consistent growth,

despite economic shifts and challenges in the technology sector. Through the effective
implementation of cost management strategies and enhancements in operational efficiency, the
company has consistently increased its revenue and profits.

Unit: Million VND

19
 Chart 5.2 ELCOM’s Revenue, Cost of Revenue and Gross
Profit
In 2023, ELCOM's net income reached VND 980,090 million, reflecting a 13.5%
increase compared to 2022. Increased running and production expenses increased the short-
term cost of income to VND 786.36 billion. The company's gross profit increased by 37.9%
from 2022, totalling VND 193.73 billion. This positive indication illustrates that profit
margins have improved.

The cost structure analysis indicates that the substantial increase in sales, general, and
administrative expenses from VND 102,63 million in 2022 to VND 139,15 million in 2023
poses a challenge to profit optimization. The other operational income/expenses remained
stable, decreasing slightly from VND 47,878 billion in 2022 to VND 46,279 million in 2023.

The data shows that ELCOM's profitability has increased and its income has been steadily
increasing despite rising expenses. Long-term development will depend on prioritizing
financial stability, strategic technical investments, and cost efficiency.

20
Compare to industry peer

A comparison of ELCOM's financial performance with that of competitors such as

CMC Corporation, Information Technology and Network Joint Stock Company, and Sao Bac
Dau Technology Joint Stock Company, using two data indicators from 2021 to 2023—
Revenue and Net Profit—provides important information about the company's performance
and position in the market.

Figure 9: Revenue and Net Profit

Source: vietstock.vn

An analysis of ELCOM's financial performance relative to its competitors—CMC

Corporation, Information and Networking Technology JSC, and SaoBacDau Technologies
Corporation—uncovers substantial insights regarding its operational efficiency and market
standing. In 2023, ELCOM's profits amounted to VND 980.09 billion, which, while
substantially smaller than CMC Corporation's VND 7,341.77 billion, above that of
SaoBacDau (VND 871.48 billion) and Information and Networking Technology JSC (VND
626.28 billion). ELCOM will continue to be a mid-tier operator in the industry, with
potential to increase its market share and further extend its activities.

CMC Corporation dominates the market in profitability, achieving a net profit of VND
401.88 billion in 2023. ELCOM's net profit for 2023 amounts to VND 84.32 billion, markedly
lower than CMC's, although surpassing that of its competitors. Amidst profitability challenges,
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SaoBacDau (VND 14.24 billion) and Information and Networking Technology JSC (VND
10.27 billion) illustrate that ELCOM possesses a competitive edge in financial efficiency
compared to these companies.

As ELCOM's superior profitability structure compared to smaller rivals, CMC

Corporation excels in both revenue and profit. Increasing operating expenses (COGS and
SG&A) may impede the preservation of profit margins. To further augment profitability, the
firm must leverage digital transformation and optimize cost efficiency. ELCOM continues to
be a robust mid-sized market player, surpassing smaller rivals in net profit while lagging
behind CMC Corporation in both revenue and profit. Bridging the gap with business leaders
necessitates continuous strategic investments in innovation, diversification of service
offerings, and enhancement of operational efficiency.

Chapter VI. ASSET AND CAPITAL

VI.1. ELCOM’s Balance Sheet in the period 2021-2023

Unit: Million VND

ITEMS 2021 2022 2023

ASSETS

A. Current Assets

Cash & Cash Equivalents 154,655 72,858 185,197

Short-term Investment 27,245 83,288 104,620

Accounts Receivable 556,367 535,121 809,415

Inventory 138,755 123,930 108,832

Other Current Assets 1,323 5,807 4,053

Total Current Assets 878,345 821,004 1,214,118

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B. Long Term Assets

Long term Investments 244,356 234,876 120,839

Property, Plant and Equipment 8,729 65,729 79,481

Other Fixed Assets 8,038 5,568 8,421

Goodwill 0 0 0

Intangible Assets 2,080 3,881 10,480

Other Long-Term Assets 3,778 13,817 387,776

Total Long-Term Assets 266,981 323,872 606,997

TOTAL ASSETS 1,145,326 1,144,876 1,821,114

RESOURCES

LIABILITIES

A. Current Liabilities

Accounts Payable 129,412 152,545 474,895

Accrued Expenses 10,393 3,884 714,863

Short-Term debt/Current Portion of 31,386 20,251 42,456

Long-Term Debt

Other Current Liabilities 96,776 95,984 152,853

Total Current Liabilities 267,968 224,394 584,577

B. Long Term Liabilities

Long term Debt 0 0 0

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 Other Long-Term Liabilities 8,974 9,043 84,380

Total Long-Term Liabilities

8,974 9,043 84,380

TOTAL LIABILITIES 276,941 233,437 668,957

EQUITY

Share Capital 509,282 587,788 822,901

Share Premium 86,677 85,410 0

Retained Earnings 213,859 166,376 123,393

Treasury Stock (1,349) 0 0

Other Equity 59,917 71,865 205,863

Total Equity 868,386 911,439 1,152,157

TOTAL RESOURCES 1,145,326 1,144,876 1,821,114

VI.2. Asset Structure

Chart 6.2 Asset Structure

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 Between 2021 and 2023, the ELCOM asset composition has shifted markedly from
short-term to long-term investments. In 2021, current assets constituted 76.69% of total
assets, indicating the significant importance of liquid assets. By 2023, the proportion of
current assets decreased to 66.67%, but the absolute value increased to 878,345 million VND.
This indicates that while the company's short-term assets have risen, the primary emphasis is
shifting from immediate liquidity to more strategic, long-term investments.

Long-term assets have experienced a substantial increase, both in absolute terms and
relative to overall assets. Long-term assets rose to 606,997 million VND, constituting 33.33%
of total assets in 2023, up from 266,981 million VND, which represented 23.31% of total
assets. This change represents a conscious turn toward long-term assets or capital investments
meant to support future expansion. If these investments yield the expected returns, this
initiative positions the business for long-term sustainability, albeit potentially signaling a
decrease in liquidity. The organization is poised for growth through enhanced long-term asset
allocation, as seen by its emphasis on continuous development rather than short-term asset
management.\

Compare to industry peer

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 Figure 10: Total Asset

Source: vietstock.vn
Compared to CMC Corporation, which has the most total assets among the
corporations, with a peak of 6,853,773 million VND in 2023, ELC's asset base is substantially
less. In contrast, Information and Networking Technology JSC and SaoBacDau Technology
Corporation have significantly smaller total assets, consistently remaining below 800,000
million VND throughout time. This demonstrates that, while ELC's asset size is modest when
compared to CMC Corporation, it is significantly larger than that of Information and
Networking Technology JSC and SaoBacDau Technology Corporation, putting it in the mid-
tier of the industry's total assets. The chart demonstrates that there are significant disparities
between ELCOM Technology and Communications Corporation (ELC) and its competitors in
the industry. A slight decrease from 1,145,326 million VND to 1,144,876 million VND
occurred in the total assets of ELC during the years 2021 and 2022, followed by an increase to
1,821,114 million VND in 2023.

6.3 Capital Structure

The company's capital structure from 2021 to 2023 can be inferred from the balance
sheet as well as the distribution ratio of Liabilities and Equity.

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 Chart 6.3 Capital Structure

Analyzing the Equity Structure of ELCOM, it is evident from Chart 6.3 on Capital
Structure that the total equity increased substantially from 2021 to 2023, rising from VND
276,941 million in 2021 to VND 668,957 million in 2023, reflecting a 32.68% increase. This
expansion signifies robust internal capital accumulation, enhanced profitability, and
prospective equity financing, resulting in a more favorable financial standing. Despite of
continued increasing of equity from 2021 to 2023, its percentage declined markedly from
75.82% to 63.27%. This indicates that, in relation to the rise in liabilities, the company has
become more leveraged, with liabilities increasing at a rate over that of equity.

To evaluate the ELCOM’s Liabilities Structure, in addition to the positive expansion of

capital, the total liabilities increased from VND 276,941 million in 2021 to VND 668,957
million in 2023. The company's liabilities-to-equity ratio rose from 24.18% in 2021 to 36.73%
in 2023, indicating a shift in the value of the company's equity. The increase in both the
absolute amount and the debt-to-equity ratio indicates that the corporation may have
substantially augmented its debt.

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Compare to industry peer

Figure 11: Net Assets/Equity

Source: vietstock.vn

The chart demonstrates that there are significant disparities between ELCOM
Technology and Communications Corporation (ELC) and its competitors in the industry. A
slight decrease from 1,145,326 million VND to 1,144,876 million VND occurred in the total
assets of ELC during the years 2021 and 2022, followed by an increase to 1,821,114 million
VND in 2023. ELCOM Technology and Communications Corporation (ELC) has a much
lower equity holding than its industry peers. CMC Corporation (CP1) leads in equity,
increasing from 2,721,761 million VND in 2020 to 3,344,148 million VND in 2022, indicating
excellent financial growth. SaoBacDau Technologies Corporation (CP3) follows with a
continuous increase in equity, expected to reach 1,152,157 million VND by 2022. Information
and Networking Technology JSC (CP2) has also shown gradual improvement, with equity
increasing from 214,020 million VND to 248,240 million VND within the same period. In
contrast, ELC's equity has been largely stable, moving little around 127,158 million VND in
2022, indicating limited capital expansion or retained earnings.
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 Figure 12: Total Liabilities

Source: vietstock.vn
Using financial resources to expand, CMC Corporation has the largest debt on the
liabilities side, with approximately 3,500,000 million VND in debt as of 2021–2023.
SaoBacDau Technologies Corporation has markedly augmented its liabilities from 276,941
million VND in 2021 to 668,957 million VND in 2023, indicating substantial borrowing
activity. Information and Networking Technology JSC upholds consistent liabilities, but
ELC's liabilities are among the lowest, remaining around 250,000 million VND. ELC's
minimal debt levels reflect a prudent financial strategy, although they may constrain its
capacity to compete with larger rivals that are utilizing financial resources for growth and
expansion.

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Chapter VII. FINANCIAL RATIO ANALYSIS

Table 2.Financial Ratio in the period 2021-2023

Unit: Million VND

Item 2021 2022 2023

Profitability

19.58 16.27
Gross Margin Ratio
% % 9.77%

10.27
Operating profit/Revenue
9.48% 9.83% %

Profit after tax/Revenue 7.63% 4.33% 8.60%

ROA 3.64% 2.73% 5.24%

ROE 5.84% 4.20% 8.17%

Efficiency

Accounts receivable
turnover 1.35 2.61 1.63

Accounts payable turnover 2.57 5.13 2.51

Inventory turnover 2.86 5.50 6.76

Total asset turnover 0.50 0.75 0.66

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 Equity turnover 0.77 0.97 0.95

Solvency

Debt-to-Asset ratio 2.74% 1.77% 2.33%

Debt-to-Equity ratio 3.61% 2.22% 3.68%

75.82 79.61 63.27

Equity Ratio % % %

Interest Coverage Ratio 16.99 2.21 27.08

Liquidity

Current Ratio 3.28 3.66 2.08

Acid-test Ratio 2.76 3.11 1.89

Cash Ratio 0.58 0.32 0.32

VII.1. Profitability Ratio

CHART 7.1 PROFITABILITY RATIO

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VII.2. Efficiency Ratio

CHART 7.2 EFFICIENCY RATIO

32
VII.3. Solvency Ratio
CHART 7.3 SOLVENCY RATIO

33
VII.4. Liquidity Ratio

Chapter VIII. STOCK VALUATION

VIII.1.

- Present at least 3 methods to value the Company’s shares.

- Compare with market prices and make investment advisory for company stocks.

Team, C. (2023, December 7). Debt to equity ratio. Corporate Finance

Institute. https://corporatefinanceinstitute.com/resources/commercial-lending/debt-to-
equity-ratio-formula/

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