KBC

• Beneish M-Score -0.5166: measures the likelihood of earnings manipulation using eight financial ratios; company ranks in the 91st percentile versus Vietnamese peers (higher = more aggressive accounting relative to peers) and the M-Score rose by +0.89 year-over-year (a substantial trajectory change). Note: the -1.78 cutoff is US-calibrated and less directly applicable to Vietnam.
• Earnings-Quality total 26.9/100 with very low subcomponents: Cash conversion 0.0/100 (operating cash flow poorly converting reported profits), Revenue quality 0.0/100 (signals about persistence and quality of reported revenue), Margin quality 19.5/100 and Accruals quality 15.9/100 — these point to weak reported profitability and heavy reliance on non-cash or non-recurring items.
• Three-year cash conversion (operating cash flow / net profit) = -2.70 (8th percentile among Vietnamese non-financials): measures whether reported profits are turning into operating cash; a negative and low percentile indicates profits have not generated cash over the last three years.
• TATA (total accruals to total assets) = 0.2811: measures the size of accruals relative to assets; a relatively large positive value suggests earnings contain substantial accruals.
• LVGI (sales general and administrative to inventory/ gross?) = 1.4620 and SGI 2.4091 (Sales Growth Index): high SGI (2.4091) measures rapid revenue growth relative to peers and LVGI/GMI/DEPI movements indicate inventory and cost dynamics that can accompany aggressive recognition (DEPI 1.1032, AQI 1.1315).
• Altman Z-Score 1.56 (distress zone): measures proximity to bankruptcy using five balance-sheet and income items; a score of 1.56 places the company in the distress zone for financial health.
• Director-deal registrations in 2025-10-30 to 2026-10-30: 1 sale registration (1 trader; 1 without a volume) and 5 purchase registrations (5 traders; 28,000,000 shares; 2 without a volume). These are registered intentions with the exchange, not executed trades.

• Receivables quality 100.0/100: measures the proportion and behavior of receivables; a top score suggests receivables are not the primary source of accounting concern.
• No accumulated losses and owner's equity (excluding minority interest) positive: accumulated losses absent and equity is positive, so the company does not meet statutory loss thresholds reported in the financial statements.
• Piotroski F-Score 4/9: a neutral-to-weak fundamental signal (measures profitability, leverage/liquidity, and operating efficiency across nine binary tests) rather than an extreme deterioration.

Top shareholders are dispersed with the largest institutional holder at 10.3% and no single holder above 50%; a listed group holds 21.5% of SGT (significant influence). Several institutions and an individual appear among the top holders. Director-deal registrations show several insiders registered purchases and one registered sale in the last year (registrations, not executed trades).

• Compare FY2025 operating cash flow with parent net profit in the consolidated cash-flow statement and the cash-flow note to confirm the drivers of the three-year cash-conversion ratio (-2.70).
• Review the receivables/similar-account schedules and the related-party disclosures to identify the composition of the 8.5% of total assets classified as receivables outside the trade cycle (prepayments, loans receivable, long-term receivables).
• Inspect the notes on revenue recognition and significant contracts (revenue notes, advances from customers) to reconcile why revenue quality scores 0.0/100 while SGI is 2.4091.
• Examine the accruals and working-capital schedule and the auditor’s report for commentary on large accrual items (TATA = 0.2811) and any emphasis-of-matter paragraphs relating to going concern or accounting estimates.