HEP

• Beneish M-Score = 0.3393, Vietnam peer percentile = 94th, YoY change = +3.93 — the M-Score is well above most Vietnamese peers and has moved sharply year-over-year. The Beneish components show very high DSRI = 3.9287 (days-sales-receivables index), which measures receivables growth relative to sales and can indicate revenue recognition or collection changes.
• Earnings Quality Score = 24.9/100; Cash conversion = 0.0/100 and Receivables quality = 0.0/100 — profits are not being converted to cash and receivables-related signals are weak.
• Cash conversion (3-year operating cash flow / net profit) = 0.20 (26th percentile) — over three years reported net profit has not turned into operating cash at a rate typical for Vietnamese peers.
• LVGI = 1.2210 (large-value growth index) and SGAI = 1.1083 (selling/general/admin growth) — asset or expense growth relative to sales is elevated, which can accompany aggressive accounting or operational scaling.
• Director-deal registrations total net registered volume = -43.44% of shares outstanding (5 sale registrations for 2,606,600 shares between 2025-10-30 and 2026-10-30) — multiple sale registrations by insiders/related persons were disclosed (registrations, not executed trades).
• Altman Z-Score = 2.91 (grey zone) and Piotroski F-Score = 3/9 — these indicate middling to weak bankruptcy distance and weak earnings/financial-score fundamentals.

• GMI = 0.8927 (gross margin index <1) — gross margins improved year-over-year, which is generally a favourable sign for underlying profitability trends.
• DEPI = 1.0000 — depreciation index is neutral (no material change in depreciation policy or asset-life assumptions reflected in this index).
• No accumulated losses; owner's equity (excluding minority interest) is positive and parent net loss count = 0 years up to FY2025 — the company’s statements show retained earnings are not negative and the parent did not report a net loss for FY2025.
• Receivables outside the trade cycle = 1.2% of total assets (38th percentile) — the level of long-term prepayments/loans/other receivables outside normal trade is low relative to peers.

Majority ownership is concentrated: the Provincial People’s Committee of Thừa Thiên Huế holds 51.0% (state control), with the second-largest institutional holder at 8.8% and several individuals holding 6.0% and 5.8%. Insider sale registrations were disclosed during the past year (net registered volume -43.44% of shares outstanding); registrations are intentions recorded with the exchange, not proof of executed trades.

• Compare the change in trade receivables and the DSRI computation to the notes to receivables: reconcile the DSRI driver to the receivables ageing and related-party receivables disclosures.
• Inspect the cash-flow statement and the note on 'cash and cash equivalents' / 'operating cash flows' to confirm the components used in the three-year cash-conversion ratio (operating cash flow / net profit).
• Review the notes for 'prepayments', 'loans receivable' and 'other long-term receivables' to verify the 1.2% of total assets reported as receivables outside the trade cycle and any related-party exposures.
• Read the equity and retained-earnings schedules to confirm there are no accumulated losses, and check the parent-company profit (net loss count = 0) as presented in the statutory financial statements.