IME

• Beneish M-Score = -1.6655 (76th percentile among Vietnamese peers). The M-Score synthesizes eight ratios to flag earnings manipulation risk; being at the 76th percentile means IME shows more aggressive accounting signals than most Vietnamese peers.
• M-Score year-over-year change = -3.44. This is a large movement in the score year-on-year and is a secondary cue that accounting ratios shifted materially (note: consecutive-year M-Scores have low persistence).
• DSRI (days sales receivables index) = 1.6760. DSRI > 1 can indicate receivables growing faster than sales, a possible signal of revenue recognition stretching or slower collections.
• TATA (total accruals to total assets) = 0.1166. Positive and sizeable accruals relative to assets indicate earnings include non-cash accrual components (TATA measures accrual intensity).
• LVGI (leverage index) = 1.1437. LVGI > 1 signals rising leverage year-over-year, which can increase pressure on reported earnings.
• Earnings Quality Score = 23.8/100 with Cash conversion = 0.0/100 and Receivables quality = 0.0/100. The 3-year cash-conversion ratio (operating cash flow / net profit) is 0.38 (29th percentile), indicating profit has not translated well into cash flows.
• Piotroski F-Score = 3/9. This low score signals weak operating and balance-sheet fundamentals by Piotroski's checklist.

• Altman Z-Score = 5.90 (safe zone). The Z-Score measures distance to bankruptcy; 5.90 is in the safe zone, indicating low bankruptcy risk on that metric.
• GMI (gross margin index) = 0.8133 (GMI < 1). A GMI below 1 indicates gross margins have improved year-over-year rather than deteriorated (GMI measures change in gross margin).
• AQI (asset quality index) = 0.6417 (AQI < 1). AQI below 1 suggests asset reclassification to lower-risk categories or no large increase in asset-intensive activities that typically inflate future expenses.
• SGI (sales growth index) = 0.9398 (SGI < 1). Lack of rapid sales growth reduces one common motive for aggressive recognition to meet growth expectations.
• DEPI = 1.0000 (depreciation index). Stable depreciation patterns suggest no obvious change in depreciation policy that would inflate earnings.
• No accumulated losses; owner's equity (ex. minority interest) positive and the parent reported no net loss for up to FY2025. These are factual balance-sheet indicators of positive retained earnings.

Ownership is concentrated: Công Ty TNHH Một Thành Viên Cơ Khí Sa Be Co holds 26.0%, and an individual, Nguyễn Thị Huệ, holds 23.6%; together they hold nearly half the company. Three institutions plus two individuals make up the largest holders (top five: 26.0%, 23.6%, 16.4%, 7.9%, 5.1%). Director-deal registrations in the year include 1 sale registration (one registrant; one without a volume) and 4 purchase registrations (one registrant registering 782,984 shares) — these are exchange-disclosed intentions to trade, not executed trades.

• Compare FY2025 note(s) and the trade receivables schedule: reconcile the components that produce the DSRI = 1.6760 and the receivables outside the trade cycle = 0.7% of total assets (identify prepayments, loans receivable and other long-term receivables).
• Reconcile operating cash flow to reported net profit in the cash-flow statement and management discussion to verify the 3-year cash-conversion ratio = 0.38 (ranked 29th percentile).
• Examine the fixed-asset and depreciation note to confirm DEPI = 1.0000 and check for any policy changes or reclassifications that would affect AQI and TATA.
• Review related-party disclosures and the schedules for loans to/from related parties and prepayments to suppliers to validate the low receivables-outside-cycle figure (0.7% of assets) and to detect concentrated intra-group balances.
• Check the exchange filing that discloses director-deal registrations (dates, registrants, volumes) to confirm the 1 sale registration and 4 purchase registrations (782,984 shares registered by one registrant).
• Verify statutory reporting items in the audited financial statements and auditor's report for any mention of the statutory loss tests; note that IME trades on UPCoM where the HOSE/HNX cancellation rule for the statutory loss test does not apply.