KDC-CompanyVisitNote

8/3/2019 KDC-CompanyVisitNote

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Sept 9t

2011

Kinh Do Joint Stock Company (HOSE: KDC)Sector:Food and Confectionery IndustryEstablishment: Feb 27

th, 1993

Website:www.kinhdofood.com Listed date:Dec 12th, 2005

Company Updated ReportKey information updated

Outstanding performances in main business lines withdiversified category of products and customers. KDC isnow concentrating on 4 fields including Food, Retail, Propertiesand Financial Investment. Currently 90% of its revenue comesfrom food production activity, real estate activity has just startedto bring considerable revenue and profit since 2010.

Strong brand name supported by effective marketingactivities in accordance with a wide distribution network.With more than 17 years of exsistence in the domestic market,Kinh Do Brand name has been familiar to the consumers fromurbans to suburbans, being reaffirmed by many prestigiousawards, constantly elected to the High quality Vietnam productsand recently ranked 4

thin the list of most famous brandname in

Vietnam. Currently KDC is considered the biggest company inthe industry which has the strongest distribution network with

more than 246 distributors, 93,000 retail shops and 34 bakeriescommiting to selling its Moon Cake.

Large-scale operation and market domination help creatinggood condition for profit stablilization strategy. Thedomination in many product markets created good advantagesfor KDC to adjust selling prices in orderto stablilize profit in thedisadvantage condition of materials price fluctuations. Thelarge-scaled operation in connection with a close expensecontrolling systems also helped the company to control itsoperating costs, enhancing projection ability. The large-scaledmaterial consumptions also created KDC good advantages tobargain price as well as inputing more profitable conditions inthe contracts with suppliers which other competitors dont, thisis one of the reasons why KDC has higher gross profit margin

than other competitors in the industry such as BBC, HHC

M&A transactions are keys to wider business in both widthand depth.KDCs business strategy for the upcoming years isto strengthen main business activities by widening in both widthand depth via M&A trans actions. The recent M&A with NKDand KIDO brought KDC not only huge capital surplus but alsoreaffirmed KDCs strategy focusing on main businesses as bothNKD and KIDO are good companies with considerablepositions and brand names in the industry.

Highly seasonal revenue and profit mostly fall to thesecond half of the year.End of second quarter 2011, KDCearned VND1,512bn net revenue but only VND56bn net profitbefore tax. This result would be low compared to the yeartarget (only 36% revenue target and 11% profit target fulfilled)but progressed compared to the same period of last year.Within the last six months of 2011, KDC targets to earn moreVND2,758bn revenue and VND390bn profit before tax. So it islikely that year plan for revenue can be completed, but only81% profit target will be done.

One of the most safe and sound company in the industry

with healthy financial structure.Owners equity always

accounted for 73% total resources averagely. Current ratio as

at 30 June 2011 was 1.86, slightly lower than 3 years average

of 2.43 but still high compared to industry average.

Stock statistics as at Sep 9th , 2011

Market cap (VNDb) 4,558 Current price (VND) 3

30 day av tradingvolume 932,106 52 weeks high 5

Outstanding share (mn) 119.33 52 weeks low 3

Chartered capital(VNDb) 1,195 TTM P/E (x)

Adjus ted EPS (VND) 8,952 P/B(x)

Dividend yield (%) 6.28% Foreign ownership (%)

Technical Price Chart

(Source: http://www.fpts.com.vn/user/

List of Famous Brand Name

#Brandname Country Industry

RW

kn

1 HONDA Japan Means of transporation

2 OMO Netherlands Chemicals

3 NOKIA Finland Telecomunication

4 KINH DO Vietnam Food

5 SONY Japan Electricity Equipments

6 METRO Germany General Commerce

Financial Business Plan 2011

VND'bn 2010 * 2011 Revenue from food productionand trading 3,317 4,200 2Profit from food production andtrading 420 500

Profit from investment activities 381 50 -8

Cash dividend (% on facevalue) 24% 24%

Distribution Networks

2009 2010 2011%

Number of distributors 227 211 212

Number of supplies chains 814 1,003 1,383

Number of sa les units 69,977 76,294 120,000

Number of employees 1,216 1,371 1,802

Tran Hang Nga [email protected] Analysis Department, FPT Securities JSC
http://www.kinhdofood.com/http://www.kinhdofood.com/http://www.kinhdofood.com/http://www.kinhdofood.com/


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Companys Highlights

Main Business Activities

1. Food production, processing & trading

2. Retail

3. Properties

4. Financial Investments

Food products

Ice-cream & other products from milk

Moon Cake

Crackers

Cookies

Wafers

Cakes

Buns

Snacks

Chocolate & Sweets

With the mission to become leader in the Food Industry of Vietnam andthe region, over the last few years, KDC has been building firm basetargeting to a high, sustainable and different development direction.

Outstanding performances in main business lines with diversified category ofproducts and customers

KDC is now concentrating on 4 fields including Food, Retail, Properties and FinanciaInvestment. Currently 90% of its revenue comes from food production activity, reaestate activity has just started to bring considerable revenue and profit since 2010.

Food production, processing & trading. KDC is now having a huge category of over 50products types covering all lines of confectionary industry including crackers, cookiesmoon cake, wafer, bun, snak, chocolate & sweet, ice-cream . Its products target to agroups of customers from children to young people, elders as well as workers, pupilsofficers, homemakers As

Regarding sales volume, KDC is now dominating domestic market with 4 main productincluding moon cake, cookies, cracker and cake with marketshare relatively of 75%25%, 34% and 29%. Considering revenue structure by products, 4 main products greatcontribute are Cookies (28%), Cakes (21%), Crackers (21%) and Buns (19%).

Main consumption of KDCs products comes from domestic market, another 10% fromexport markets concentrates in America, Japan, Cambodia and Taiwan. After the M&Atransaction with NKD and KIDO, KDC has become leader in the Vietnam Sweets Savoury Snack market with marketshare of 28%. This activity has been contributin

averagely 90% revenue to the company in the past and will still remain main activity othe company in the future, according to KDCs strategic plan for 2011.

Retail. The company will participate in some retail fields including construction anmanagement, operation of supermarket and hypermarket chains, other convenienstores, shop chains for specialized food products and fastfoods, complex andepartment stores, professional and modern distribution centers and logistics whilmaintaining developing traditional distribution channel. By purchasing franchise of biname in the world, KDC will be able to widen the network.

Real estates. KDC mainly concentrates in high office building for lease. This activitstarted to bring considerable revenue to KDC in the first quarter 2010 initially brecording profit from transfer of shares in Sai Gon Kim Cuong JSC (investor of Le LoOffice Building project). Currently, KDC is investing in Thu Duc department project andCong Hoa Complex Plaza project. These two projects are both expected to be finishe

and generate revenue since the 4

th

quarter 2011. Contributions of KDC in these projectare 70% and 30% or VND 252bn and VND 90bn respectively.

Financial Investments. KDC concentrates on two main activities including investments ifood production and processing companies and capital contribution in potential reaestate projects. Besides, KDC also invests in the stock market with huge portfoliconsisting of both listed and OTC stock with total estimated value of VND 471bn (as aJune 30

th, 2011). Almost all stock investments are long-term and provisions for suc

investments are not provided.

Strong and wide distribution network

Currently KDCs products are distributed over a wide range of distribution networconsisting of 246 distributors, 93,000 retail shops and 34 bakeries commiting to sellinits Moon Cake. The Corporations competitors, except for Bibica, can only sell productsin Hochiminh City, Hanoi and some minor other cities. In addition to that, KDC has

very competitive commission policy with the highest rate up to 30%. With more tha1,300 employees to the end of 2010, KDC is considered one of the companies that hastrongest distribution network in Vietnam.

Large-scale operation and market domination help creating good condition foprofit stablilization strategy

With total revenue of KDC in 2010 of VND1,934bn (if consolidation was made at thebeginning of 2010, this amount could be VND3,31bn including both revenue of NKD andKIDO), KDC is considered the biggest confectionary company in the country at themoment. Compare to other domestic confectionary companies, KDC now taking 28%marketshare, meanwhile other competitiors only count for less than 50% of KDC (OrioVietnam 11.6%, BBC: 7.4%, HHC: 5.4%, Huu Nghi: 9.1%). KDC is also dominatinmooncake market (nearly 80% marketshare) and other products such as crackers (AFCcounts 50% marketshare), buns, cookies this is an advantavge for the compan


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creating good condition for it to adjust selling price in order to stablilize profit in thdisadvantage condition of materials price fluctuations. The large-scaled operation iconnection with a close expense controlling systems also helped the company to controits operating costs, enhancing projection ability.

With its large-scaled material consumptions, KDC also has good advantage to bargaiprice as well as inputing more profitable conditions in the contracts with suppliers whicother competitors dont. This is one of the reasons why KDC has higher gross profmargin than other competitors in the industry such as BBC, HHC

Strong brandname supported by effective marketing activities

With more than 17 years of exsistence in the domestic market, Kinh Do Brand name habeen familiar to the consumers from urbans to suburbans. Kinh Do Brand name has alsbeen reaffirmed through many prestigious awards: ranked 4

thin the list of most famou

brandname in Vietnam, and constantly elected to the High quality Vietnam products fomany years.

RankBrandname Country Industry

Rate ofWell-known

1 HONDA JapanMeans oftransporation 72.6

2 OMO Netherlands Chemicals 67

3 NOKIA Finland Telecomunication 66

4 KINH DO Vietnam Food 60

5 SONY JapanElectricityEquipments 58

6 METRO Germany General Commerce 58Table: List of famous brand name in Vietnam

M&A transactions are keys to wider business in both width and depth

The Companys business strategy for the upcoming years is to strengthen maibusiness activities by widening in both width and depth via M&A transactions. Continuto the success of 2010, 2011 is the transiton year of KDC from Kinh Do Company tKinh Do Corporation, is the time for KDC to improve the Corporation Model, taking theresonant advantage between member companies, hastening merging and equisitioprocesses. Besides, KDC continue investing to build strong brandname, wideninmarket and covering areas via products lists in many forms including joint ventures

associates, business co-operations concurrently creating more competitivadvantages and barriers by concentrating on product quality improvement, building andeveloping systems control ability, strengthening technological capacity and improvineffectiveness of personnel resources.


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Financial Reports and Comparison

Profit & loss Q2/2011 2010 2009 2008

Net sales 877,253 1,933,634 1,529,355 1,455,768

Gross profit 311,361 685,390 505,393 369,789

Financial income 23,343 663,953 63,854 118,538

Financial expense 56,309 242,453 (8,807) 313,379

Net operating profit 35,010 617,66 301,789 (80,112)

Profit before tax 36,341 673,993 572,309 (61,689)Taxation 6,580 110,883 60,919 -

Profit after tax 19,760 578,61 522,943 (60,602)

PAT of mothercompanysshareholders 18,314 522,57 480,524 (85,316)

Balance sheet 30/6/2011 31/12/2010 31/12/2009 31/12/2008

Cash & cash equiv. 156,855 672,316 984,611 206,808

Short-term invmts 713,811 161,660 518,184 584,291

Current receivables 748,279 1,018,35

825,183 489,407

Inventories 468,735 434,328 162,476 181,656

Other current 48,498 42,877 19,621 12,271Long-term invmts 685 612 22,553 31,059

Fixed ass et 1,057,94

937,725 656,085 749,092

Goodwill 689,670 428,128 32,036 38,428

Invmts properties 27,878 29,165 - -

Long-term invmts 1,138,32

1,209,97

994,535 673,385

Other long-termassets 98,604 104,720 32,318 17,012

TOTAL ASSETS 5,149,281 5,039,864 4,247,601 2,983,410

Short-term liabilities 1,147,83

1,033,99

1,637,57

663,885

Long-term liabilities 211,861 151,454 134,757 172,041

Owners equity 3,754,87

3,738,21

2,413,13

2,075,92

Minority Interest 34,705 116,198 62,140 71,561TOTALRESOURCES 5,149,281 5,039,864 4,247,601 2,983,410

Notes:

Figures are consolidated FS of Kinh Do at the date FinancialReports were made.

The unit of BS and PL items are quoted with VNDmil;

Comparable figures for PL items are on year-on-year and quarter-on-quarter basis;

M&A Roadmap

May 8th

2010:M&A plan was approved byShareholder Meeting Resolution

Dec 2nd

2010:Additional issuance of18,241,295 shares approved by SSC

Dec 30th

2010:Distribution of newshares completed

Ratios Q2/2011 2010 2009

Net Revenue Growth (%) 214% 26% 5%

Net PAT Growth (%) 156% 11% 963% -

Net PAT of mothercompanys shareholders (%) 148% 9% 663% -

Owners Equity Growth (%) 0.28% 0.4% 16.2% -1

otal Asset Growth (%) 2.23% 18.7% 42.4%

Gross profit margin (%) 37.25% 35.45% 33.05% 25

Net profit margin (%) 11.42% 29.92% 34.19% -4

Net Profit Margin of mothercompanys shareholders(%) 9.47% 27.03% 31.42% -5

ROA (%) 5.64% 11.25% 13.29% -2

ROE (%) 7.62% 16.99% 21.41% -3

Basic EPS (VND) 2,714 NA NA

Current Ratio (x) 1.86 2.25 1.53

otal Interest bearingLiab/Equities (x) 0.19 0.13 0.22

otal Liab/Equities (x) 0.36 0.32 0.73

M&A and Financial Statement Consolidation 2010

As approved in the Shareholders Resolution, KDC would be mwith NKD and KIDO by issuing more shares at the rate of 1.1:1current shares of NKD and KIDO would be exchanged by 1 share of KDC). Accordingly, 18,241,295 shares were issuecurrent shareholders of NKD and KIDO for the M&A transactiothe price of VND50,000 per share. As at Dec 30th 2010, thtransactions have been completed. NKD & KIDO becsubsidiaries of KDC since then.

Hereunder are some stastistics for the M&A transactions as at30th 2010 (please be noted that the valuations were estimationswill be restated after official valuation done by authorized body):

M&A (VND'000) NKD KI

Net asset value @ Dec30th, 2010 333,008,554 265,285,

% Merged 100% 71.6

Net asset value for M&A 333,008,554 190,129,

Goodwill from M&A 361,166,970 36,879,

Total M&A costs 694,175,524 227,009,

Total share issued 13,746,050 4,495,

Price (VND) 50,500 50,

As the M&A transactions were completed at the financial year2010, which means no additional revenue contributed by NKDKIDO for 2010 except for VND 35bn profit shared from Krecorded as profit from associates. If the transactions were atbeginning of the year, NKD could contribute VND 1,023bn reveand VND 86,9bn profit before tax to the Corporation, these figfrom KIDO could be approximately VND 476bn revenue and V64bn profit before tax.


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Historical Performance Analysis

Growth

High and stable revenue from mainbusiness acitivities

Main business activities are highlyseasonal

Regarding annual income structure of KDC, revenue from main business activities always highest with average ratio of 90% over total income, those for financial incomeother income was 7.2% and 1.6%. The abnormal fluctuation witnessed in 2009 and when the rate for main revenue decreased to about 70-75%, other income for 2009 rato 19.13% and financial income for 2010 accounted for 25% total income resources.

Significant increase in other income for 2009 was gain from revaluation of land use rto invest in associates with the additional value of VND319bn. Relatively, signifincrease in financial income for 2010 (first quarter 2010) was interests earned of aVND550bn from transfer of investments in Sai Gon - Kim Cuong JSC, which is alsomain reason for higher of financial expense in the same year.

In the business strategy for 2011 and the upcoming years, KDC has reaffirmed production and trading will be the main focus of KDC in the future and will continue tthe main income generator for the company. The recent merging with NKD and KIDObeen an important step of KDC to fulfill its target to become market leader in the industry. As the M&A was at the end of 2010, revenue and profit of NKD and KIDO wnot counted for in the Groups report. Both revenue and Profit before tax were moupward, except for the loss in 2008 due to provision for investments diminution of nVND245bn. Standing alone in a regular working condition, excluding such abnormal it

average growth rate of profit before tax remained positive.

End of second quarter 2011, KDC earned VND1,512bn net revenue but only VND56bprofit before tax. This result would be low compared to the year target, but progrecompared to the same period of last year. Except for the fact that these are low seasfor KDCs products, the modest results were also due to t he fact that KDC is in theyear of merging with NKD and KIDO, revenue raised significantly but profit would not relatively at the same rate as performances of these companies are not as good as KOther income and expense increased as the result, however no abnormal items incurre

Seasonal aspects of KDCs main business activities could be seen clearly in the crevenue always concentrated in the second half of the year. In the third quarter, revenat its peak as this is mid autumn festival time, time for KDCs moon cakes. The last quof the year is time to prepare for Noel, traditional Lunar Tet so the volume sales are

high, especially in the high quality products segments.

Regarding revenue and gross profit movement by quarters, the significant increasrevenue in the first half 2011 compared to same period 2010, especially revenue foquarter 2011 was VND900bn, even higher than that of 3

rdquarter 2010 (highest rev

quarter of 2010) would be explained by the additional revenue of NKD and KIDO startibe consolidated since 2011. To the end of second quarter 2011, total consolidated reveof KDC was VND1,512bn, fulfilled 36% year target (VND4,200bn), profit before tax VND56bn, fulfilled 11% year target (VND550bn). Within the last six months of 2011, targets to earn more VND2,758bn revenue and VND390bn profit before tax. So it is that year plan for revenue can be completed, but only 81% profit target will be done.

Revenue continued to grow rapidly over years, meanwhile Cost of goods sold to Revratio tended to decrease making gradual higher gross profit margin (GPM). The increa

GPM over time indicated an improvement in the cost control systems, measureindicators in the cost norms have gradually been standardized accurately. In additiocould be noted that Moon cake and Tet products are those bring the most revenue to however these also have a lower rate of COGS over Revenue compared to noproducts, as the result contribute higher rate of gross proit margin. We can see this clein the chart besides, average GPM of all products are normally only 25% while aveGPM of Moon cake and Tet products are normally high of about 38%.

Up to Sept 05th, 2011, volume sales of Kinh Do Moon Cakes have raised 5% ove

original plan and reached more than 2,100 tons. The companys representative saidmoon cake season, KDC used a less sweet recipe to create a light taste of sweetness kinds of its moon cakes, so the possibility to exceed sales target is likely.


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Assets Quality

Except for the loss from provision for financial investments that reduced accumulated

in 2008, the overall trends of total assets and equity were to increase from 2007 to cur

Equity and total assets moved in line with each others for most of the time, howev

2009 when owners equity only grew by 16%, total assets grew by 42%. The reaso

such difference is because in 2009, KDC received a bank deposit for the transfer o

investment in Sai Gon Kim Cuong of VND700bn, this amount was also recorded as

payables in the resources. As at June 30th 2011, total assets was VND5,149bn, m

contributed by VND1,862bn financial investments (36%), VND1,057bn fixed assets (2VND748bn short-term receivables (15%) and VND689bn goodwill (13%).

Regarding financial investments, major investments valuing VND800bn came

associates, another VND675bn went to other investments (mostly loans to other par

and about VND400bn went to securities, among which VND92bn short-term securities

provided for. Scanning through the portfolio, we could see the average cost for secu

were pretty much higher than current market price.

ItemsVolume

(shares)Costs(VND) VND'mn

- Short-term securities 92,446

SD9 (KDC) 77,710 45,799 3,559

REE (NKD) 55,440 58,096 3,221

STB (NKD) 83,958 36,910 3,099

SABECO (NKD) 50,000 70,000 3,500

EIB (NKD) 1,674,826 25,431 42,592

Vien Dong Insurance (VNC) 237,520 52,612 12,496

- Long-term Securities 378,465

Dong Tam JSC 3,705,000 65,770 243,677

EIB 1,646,345 25,976 42,765

Tribeco Binh Duong 255,000 171,912 43,838

Total Investments in Securities 470,911

Owners' equity 3,754,875

Financial investments/Owners' equity 13%

Other receivables were mostly advances for BODs members and from related partie

payments on-behalf. The goodwill was generated from M&A transactions and stated t

depreciated on a s traight-line basis during 10 years since the M&A date.

Compare to companies in the same food industry such as VNM, BBC and HHC, it coul

noted that KDC is more diversified in terms of business activities; in addition, excluding

financial investment activities , KDC performed well with ROA & ROE for the recent 2 y

at average rates of 12% and 20% relatively. Those for the first half of 2011 were lower

the average due to abnormal additions to income of 2009 and 2010 noted above. Prof

the second half of 2011 is expected to be significantly higher, thus ROA & ROE fo

whole year 2011 will be improved.

Financial structure of KDC could be considered one of the most safe and sound in

industry with 73% total resources are owners equity, interest bearing liabilities accounted for 13% total resources and 19% owners equity. Movements of Total resou

were always in line with that of owners equity, except for 2009 when short-term liab

recorded VND700bn as other payables for the deposit of investment transfer noted ab

Current ratio as at 30 June 2011 was 1.86, slightly lower than 3 years average of 2.4

still high compared to industry average.

Positively good performances including adjusted EPS of VND8,952 and 6.28% divid

yield have been attractive figures for investors to consider raising ownership in KDC.

of foreign ownership have been remaining high over the time of around 35%.


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BUSINESS PLAN FOR 2011

In 2011, KDC targets to continuously sustainable development, initiatively takes any chance in the economys recovery period, crefirm bases for the future and reaffirm leadership in the food processing industry. Some highlights in the companys targets for the2011 are summarized belows.

Development Strategies

Building Kinh Do House is

to create a Best Companycapable to create

unrepeatable diffrence

1.2010: Good Company + Sustainable Development

Launch of Annual Planning, Demand Planning, S&OP v Go to market SBUmodeling;

Deploy Business Intelligence of management software SAP;

Sucessfully deployed KPI & HR to calculate the effectiveness of business activitie

Creating firm base for Kinh Do to become a Good Companywith sustainabledevelopment.

2.Year 2011: Better Company + Long-term Competitivecompetence

Launch of Demand Planning and S&OP software; corporate governance system,

improve internal control system;

Deployment of important projects => High and di fferent growth rate not only for 20but later. This is an important mark for 2011.

Widen the network; restructure products; redesign and deploy new distribution

systems; rationalize quality control; Creating KPIs to evaluate assets quality.

Creating long-term competitive competencefor Kinh Do to become a BetterCompany.

3.Long-term: Best company + Different High and medium level management board with clear understandings about

market and consumers (insights) and experiences in the market (Execution).

Market information systems assembled to realize strategies .

Creating Best Companywith ability to make different which is not easily repeat

Overall Financial Plan for 2011

VND'bn 2010 * 2011 % chan

Revenue from food production and trading 3,317 4,200 2

Profit from food production and trading 420 500 1

Profit from investment activities 381 50 -8

Cash dividend (% on facevalue) 24% 24%

Distribution Networks

2009 2010 2011% 2

/2

Number of distributors 227 211 212

Number of supplies chains 814 1,003 1,383 3

Number of sales units 69,977 76,294 120,000 5

Number of employees 1,216 1,371 1,802 3


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Strategies for product lines

Ice-cream & other products from milk

Increase marketshare to meet marketdemand to the fullest

Moon Cake

Seasonal products but contribute

highest revenue (15%) with more than

60 kinds;

Current capacity: 1,485tons/month;

Remain leader in the Moon Cake

market

Crackers Current capacity: 1,484tons/month;

Market share: biggest cracker

producers in Vietnam with 55%

domestic market;

Exported to many countries

Creating distance with competitors,

remaining leadership in marketshare.

Cookies

Traditional products of KDC

Current capacity: 843tons/month

Current marketshare: 45% countrys

cookies market

Enhance product quality

Wafers

Wide varieties of products: 14 kinds

Diversify products, meeting demands

from diversified segments

Cakes

Investment and exploitment of high

class segment


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Buns

Concentrate on high quality products

and develop to the depth

Snacks

Investment to raise revenue

Chocolates and Sweets

Restructure of product categories

CORPORATION STRUCTURE, SUBSIDIARIES AND ASSOCIATES

The Corporation has Kinh Do JSC (KDC), 4 subsidiaries, 1 associate and 1 co-manjoint venture.

The Company Kinh Do JSC

Main operating activity is production of food & agricultural products: sweets, mineral w& fruit juices; trading of agricultural products, technological products and fabric.

First listed in Hochiminh Stock Exchange: Nov 18th

2005

Head office is located in 141 Nguyen Du, Ben Thanh Ward, District 1, Hochiminh City

80% owned subsidiary Kinh Do Binh Duong JSC (KDBD)

Established in Oct 13rd

, 2004;

Main operating activity is production of food & agricultural products: sweets, mineral w& fruit juices; trading of agricultural products, technological products and fabric;

Head office and factory are located in Vietnam -Singapore Industrial Zone, ThuanCommune, Binh Duong Province.

51.20% owned subsidiary Vinabico JSC (Vinabico)

Established in Nov 3rd

, 2003;

Main operating activity is production of food & agricultural products: sweets, mineral w& fruit juices;

Head office and factory are located in 436 No Trang Long, Ward 13, Binh Thanh DisHochiminh City.

100% owned subsidiary KIDO JSC (KIDO)

Established in April 14th, 2003;

Main operating activities are production and trading of food and drink varieties incluice-cream, mi lk and other products of milk.

Head office and factory are located in East North Cu Chi Industrial Zone, Tan AnCommune, Cu Chi Ward, Hochiminh City.

100% owned subsidiary North Kinh Do JSC (NKD)

Established in Jan 28th, 2000

Main operating activities are production and processing of food varieties including quality assorted candies, trading food, dinks, liquor and tobacco in Vietnam, as werenting out factory.

Head office and factory are located in Ban Yen Nhan Distric, My Hao, Hung Yen Prov


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A branch in 200 Thai Ha, Dong Da District, Ha Noi.

49% owned associate Tan An Phuoc Limited (TAP)

Main operating activity is real estate.

Head office is located in No.6/134 Highway 13, Hiep Binh Phuoc Ward, Thu Duc DisHochiminh City.

As at Dec 31st, 2010, TAP is still in the pre-operating stage.

50% owned co-managed joint venture Lavenue Investment JSC (Lavenue)

Established in Sep 10th, 2010;

Main operating activity is real estate;

Head office is located at 7 th level, Sunwah building, 115 Nguyen Hue, Ben Nghe WDistrict 1, Hochiminh City.

As at Dec 31st, 2010, Lavenue is still in the pre-operating stage.

IMPORTANT MILESTONES

Starts (1993-1999)

1993 Establishment of Kinh Do

1996 Relocation of the factory to Thu Duc District and widened the total factory sca60,000m2

Firm development (1999-2008)

1999 Opened the first modern Kinh Do Bakery shop

2001 Established North Kinh Do and the factory in Hung Yen Province with total sca28,000m2

2002 Started to join Moon Cake market

Developed distribution network with 150 distributors and more than 30,000 sale uniover the country. Development growth annually raised from 20% to 30%.

2003 Officially bougt back Walls Icecream factory of Unilever Group in Vietnam, changedbrand name to Kidos

2004 Establishment of Kinh Do Binh Duong JSC

Establishment of Kinh Do Sai Gon Food JSC

2005 Investment in Sai Gon Tribeco

First Listed in the Vietnam Stock Market with stock code: KDC

2007 Became strategic investor of Eximbank

Construction of Tribeco North Factory in Hung Yen

Became strategic investor of Nutifood JSC

Invested and joint in managing Vinabico

2008 Officially opened and put into operation the Kinh Do Binh Duong factory with clomorden production lines from European technology, standardized GMP, HACCP. Withmodel of a modern factory, the companys products are automatically produced, methe most strict requirements and standards of domestic and overseas markets.

Changes for a Sustainable Development

2010 Officially moved the headoffice to 141 Nguyen Du, Ben Thanh Ward, District 1, HochimCity, marking a new start moving toward sustainable development future.

Kinh Do Bakery Systems developed and reconfirmed the first rank with a chain of 30 kof shops branded Kinh Do Bakery and K-Do Bakery & Caf.

North Kinh Do (NKD) and Kido JSC were merged into Kinh Do JSC (KDC)


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Disclaimer

The information herein is believed by FPTS to be reliable and has been obtained from public sources believed to be reliable. However, Fmakes no representation as to the accuracy or completeness of such information.

Opinions, estimates and projections in this report constitute the current judgment of the author as of the date of this repor t. Investors mmake their own investment decisions using their own independent advisors.

FPTS may trade for its own account as a result of the short term trading suggestions of analysts and may also engage in securtransactions in a manner inconsistent with this research report and with respect to securities covered by this report, will sell to or buy f

customers on a principal basis.

Additional information relative to securities, other detail information is available at https://ezsearch.fpts.com.vn or upon offrequest.

Copyright 2010, FPT Securities

FPT Securities Joint Stock Company

Head quarter

Level 2, Spring Garden building71 Nguyen Chi Thanh street,Ba Dinh district,Ha Noi

VietnamTel: (84-4) 3773 7070 / 271 7171Fax: (84-4) 3773 9058


Ho Chi Minh branch

31 Nguyen Cong TruNguyen Thai Binh ward,District IHo Chi Minh city

VietnamTel: (84-8) 6290 8686Fax: (84-8) 6290 6070


Da Nang branch

124 Nguyen Thi Minh KhaiHai Chau DistrictDa NangVietnam

Tel: (84-511) 355 3666Fax: (84-511) 355 3888
https://ezsearch.fpts.com.vn/https://ezsearch.fpts.com.vn/https://ezsearch.fpts.com.vn/

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