AAA An Phat report

1. DEAL BACKGROUND COMPANY INFORMATION Company Name An Phat Plastics & Green environment JSC. Company Ticker AAA Industry Plastics Status HNX – Listed Chartered Capital VND 99 bn Share Price (20/08/10) VND 50,300 Market Cap. VND 485.1bn SHAREHOLDERS STRUCTURE as of 18 Aug 2010 VALUATION (at the current price) EPS 2010 VND 8,350 P/E 2010 F 6.02x

2. COMPANY SUMMARY Chartered Capital (VND) 3/2007 33 bn 4/2007 60 bn An Phat 12/2007 66 bn Yen Bai Factory Factory no. 1 Factory no. 2 Factory no. 3 5/2009 99 bn

4. Self-destroyed plastic products have great opportunity in the future when people are more aware of environment.

5. AAA has high gross margin thanks to plastic recycling technology which helps to reduce COGS.

6. AAA has successfully built up trade mark and faith with foreign customers in EU and US.

7. An Phat has a clear and reasonable development strategy as well as being profitable and low valuation

8. Competition from foreign and domestic company due to attractive of margin.

9. The plastic recycling technology of AAA is not too complicated and it can be copied by other competitors.

10. AAA still does not pay much attention to potential domestic industry.

11. Short-term investment

13. Bags occupied 80% revenue of AAA but accounted for 94% of NPAT.

14. Other sources of revenue:

15. Selling machines and transferring recycle technology.

17. Shopping bags

18. Garbage bags

19. Recycled pellets

20. Used to manufacture plastic products

21. Unlike other plastic company, AAA can produce pellets from recycles. This can provide about 20% of An Phat production, help to reduce cost.

23. EXPENSES Capacity of each factory Factory1 Bags: 700 ton/m Factory2 Bags: 700 ton/m Recycled Pellet: 400 ton/m Factory3 Bags: 800 ton/m

26. BALANCE SHEET Remarkable increase in current assets due to high revenue growth Completion of the second factory Decrease in 2010 year end as a result of lower investment demand when CaCo3 factory is completed Interest incentive of 2% for mid-term loans, used to finance hotel project in Lao Cai province Issuance of VND 54 bn convertible bond

27. PLANS & PROJECTS (1)An Phat allies with an Japanese partner to set up a plastic recycling factory in which An Phat will provide a package of technology transfer and human resource. Accordingly, the factory’s plastic materials (after being recycled) will be sold to An Phat at discount price (20% lower than market price), which may enable An Phat to economize about USD 1 million p.a. The factory will be likely put into operation in 2011. (2)CaCo3 plant is expected to start operation in Oct 2010 and generate revenue from 2011. The output of the plant will not only be partially sold but internally utilized as additives as well. It is expected to generate turnover of VND 11 -13 billion. (3)The hotel project in Yen Bai has a good location at the centre of Yen Bai town. This project is appreciated for its potentials because there are no high-end hotel (3 stars and above) in Yen Bai up to now. In addition, the implementation of this project will help An Phat to build up good relation with provincial leaders. Estimated investment is VND 100 bn in which VND 30 bn is AAA’s capital and the rest is loan from BIDV bank. The project is in designing stage and expected to start in 2012.

28. COMPARISON

29. SWOT

32. VALUATION (cont.) Long term growth rate WACC