HSL

• High Beneish peer percentile: M-Score -0.4494 at the 91st percentile vs Vietnamese peers (the score rose by +2.73 YoY) — this measures a composite of eight earnings/manipulation-related ratios and shows the firm is more aggressive than most local peers.
• Days Sales Receivable Index (DSRI) = 3.7611 — measures abnormal increases in receivables relative to sales and suggests receivables grew much faster than revenue.
• Leverage-related and inventory indicators: LVGI = 3.7211 and DEPI = 2.0664 — LVGI measures changes in leverage and liquidity patterns; DEPI measures changes in depreciation policies/asset aging. Both are elevated.
• Selling, general & admin expense index (SGAI) = 3.0014 — measures changes in SG&A relative to sales and indicates SG&A rose strongly versus revenue.
• Tangible accruals (TATA) = 0.0436 and AQI (accrual quality index) = 1.1134 combined with low cash conversion (0.0/100) — the company reports profits that are not converting into operating cash flow.
• Receivables outside the trade cycle = 28.6% of total assets (94th percentile) — a large share of assets are in prepayments, loans receivable or other long-term receivables rather than trade receivables.
• Earnings-quality composite is low at 28.5/100 with revenue quality only 52.2/100 and margin quality 0.0/100 — indicates weak underlying profitability metrics.
• Piotroski F-Score = 3/9 — weak fundamentals (profitability, leverage/liquidity, operating efficiency signals are limited).

• Accruals quality = 82.6/100 — measures the extent to which reported earnings are supported by cash-based accruals; this is a relatively strong score within the earnings-quality components.
• No accumulated losses and owner’s equity (excluding minority interest) is positive — the statements do not show retained losses and equity is not negative.
• Statutory loss tests under Decree 155/2020 Art.120(1)(e) (as amended) are not met — the company’s audited annual statements did not trigger the listed-company statutory loss condition.
• Director-deal activity is limited to registrations: 2 sale registrations (2,826,900 shares) and 2 purchase registrations (no volumes reported for the purchases) between 2025-10-30 and 2026-10-30 — these are exchange-registered intentions, not executed trades.

Shareholdings are relatively dispersed among individuals with the largest holder at 6.2% (Đỗ Hà Anh) and several other individuals between 2.3%–3.9%; there is no single dominant shareholder listed. Director-deal registrations include 2 sale registrations totaling 2,826,900 shares and 2 purchase registrations (no volumes disclosed), which are registered intentions rather than executed transactions.

• Compare the 2025 schedule/note for receivables and prepayments to the balance-sheet total to confirm the 28.6% of assets in non-trade receivables and identify counterparties and related-party labels.
• Reconcile operating cash flow to reported net profit in the cash-flow statement and the accounting-policy note to verify why the three-year cash conversion metric is 1.00 (45th percentile) and to identify large non-cash adjustments.
• Inspect the notes on related-party transactions, loans receivable and long-term receivables to see the nature, terms and counterparties of amounts outside the trade cycle.
• Review the accounting-policy and fixed-asset schedules for depreciation methods and useful lives to assess drivers of DEPI = 2.0664 and the AQI/TATA reconciliation in the financial-statement notes.