DMN

• M-Score year-over-year change +2.46: a notable upward move in the Beneish composite versus the prior year; the percentile is 58th among Vietnamese peers (higher = more aggressive accounting relative to peers). The -1.78 threshold is US-calibrated and should not be treated as definitive for Vietnam.
• GMI (Gross Margin Index) = 1.3628: gross margins have deteriorated (GMI > 1 measures falling gross margin), which is consistent with the margin-quality score of 0.0/100.
• DSRI (Days’ Sales in Receivables Index) = 1.0160 and Receivables outside the trade cycle = 10.7% of total assets (82nd percentile): small increase in DSRI plus a high share of receivables outside the trade cycle suggests receivables or related-party receivables/prepayments are material and growing relative to peers.
• Cash conversion (3-year operating cash flow / net profit) = 1.60 (67th percentile): profits are not converting to cash as efficiently as most Vietnamese peers; this can signal timing differences between reported profit and cash receipts.
• SGAI (Sales, General & Administrative Index) = 0.2999: unusually low SGAI (well below 1) may reflect falling SGA relative to sales—this should be reviewed for one-off expense timing or reclassifications.
• TATA (Total Accruals to Total Assets) = -0.0321: negative net accruals reduce some concern but must be viewed with the other signals (margins down, receivables elevated).
• Altman Z-Score = 1.99 (grey zone): the solvency proxy indicates increased bankruptcy distance risk relative to healthy firms, though not in the distress zone.
• Revenue-quality components: SGI = 1.2165 shows sales growth (SGI >1), but DEPI = 0.9212 (<1) suggests declining depreciation rate which can boost reported profit; combined with GMI deterioration this pattern warrants attention.

• Earnings-Quality overall = 79.6/100 with Accruals quality = 100/100 and Cash conversion = 100/100: the decomposition shows very clean accruals and, on the immediate measures, good cash-conversion metrics at the accounting-period level.
• Receivables quality = 90.4/100: despite the absolute level of receivables outside the trade cycle, their assessed quality score is high, indicating ageing and allowance patterns may be reasonable.
• TATA = -0.0321 (negative total accruals): overall the company reported slightly negative accruals, which generally reduces the likelihood of upward earnings manipulation via accruals in the measured year.
• Piotroski F-Score = 7/9: multiple operating and profitability fundamentals are strong (profitability, efficiency and leverage/ liquidity signals largely positive).
• LVGI (Leverage Index) = 1.0116 (close to 1): leverage has been broadly stable year-over-year rather than spiking.

Ownership is highly concentrated: an individual, Võ Đình Ân, holds 72.0% of shares, with two other individuals owning 6.5% and 0.7%. This high majority control concentrates economic and governance power in a single dominant shareholder, which is relevant to related-party transactions and intra-group flows.

• Inspect the related-party note and the schedule of receivables: quantify the components of the 10.7% of total assets “receivables outside the trade cycle” (prepayments to suppliers, loans receivable, long-term receivables) and compare year-on-year changes.
• Compare FY2025 depreciation schedules and fixed-asset notes with prior years to assess DEPI = 0.9212 (declining depreciation rate) and whether useful-life or method changes occurred.
• Reconcile reported gross margin and the cost-of-goods-sold note with the GMI = 1.3628: check for one-off inventory write-downs, valuation changes, or changes in inventory accounting policies.
• From the cash-flow statement and the notes, reconcile operating cash flow items to net profit to verify the 3-year cash conversion ratio = 1.60 and identify timing items (changes in working capital, non-cash adjustments, and related-party cash flows).