Financial analysis based on investors' viewpoint domesco medical import export joint stock corporation ( DMC) - Imexpharm pharmaceutical joint stock company ( IMP)
Abstract
The thesis focuses mainly on analyzing competitiveness and financial position of two pharmaceutical companies, DOMESCO and IMEXPHARM, to help investors to make better investment decision in these two companies. The research is done based on analysis of competitiveness to assess influence of competition on profitability of companies and analysis of financial ratio to evaluate company performance in the past, plus expectation of investors on company through equity evaluation and valuation. From those points, recommendation of investment is given.
Using Five Forces Model of Michael Porter, financial analysis, Capital Asset Pricing Model, and equity valuation, the thesis provides investors with some important information such as competitive position of the company, operating efficiency of the company compared to industry from 2006 to 2008, and evaluation as well as valuation of equity of two companies in comparison with market value.
During implementation of the research, several limitations still exist such as the limited approach to primary data, subjectiveness of analyst in assessment and analysis of the company. However, the result of this research can be served as reference for investors in making investment decision in the stock market.