PPH

• M-Score -1.5915 (Beneish) — measures the likelihood of earnings manipulation using eight ratios; this is above the US -1.78 cutoff and sits at the 77th percentile among Vietnamese non-financial peers, indicating more aggressive accounting than most local peers.
• Year-over-year M-Score change +0.32 — measures the trajectory of the M-Score; the positive change shows accounting metrics moved toward greater aggressiveness compared with the prior year.
• Earnings-quality: Cash conversion 0.15 (three-year operating cash flow / net profit) — in the 25th percentile versus Vietnamese peers and scored 2.6/100, indicating net profit has converted poorly into operating cash over three years.
• Revenue quality 24.6/100 — this measures the quality and persistence of reported revenue; a low score suggests revenue may be less cash-backed or less sustainable.
• AQI (Asset Quality Index) 1.3037 — part of the Beneish inputs; >1 implies an increase in non-current or other illiquid assets (e.g., capitalized costs, long-term receivables) relative to assets, which can signal more discretionary capitalization.
• TATA (Total Accruals to Total Assets) 0.1257 — measures accruals; a positive, material value indicates reported earnings include accrual-based components rather than cash, consistent with the weak cash-conversion signal.

• Piotroski F-Score 7/9 — measures nine indicators of profitability, leverage/liquidity, and operating efficiency; a 7 suggests relatively strong underlying accounting fundamentals.
• Altman Z-Score 2.45 — the company sits in the ‘grey zone’ for bankruptcy distance (not in immediate distress), which is neutral-to-modestly positive on solvency.
• Beneish components showing supporting operating improvement: GMI (Gross Margin Index) 0.9797 (<1) — measures gross margin deterioration/improvement; <1 indicates gross margins improved year-on-year; SGAI (Sales, General & Admin Index) 0.8996 (<1) — SG&A declined relative to sales; LVGI (Leverage Index) 0.8850 (<1) — leverage fell relative to prior year. These reduce M-Score pressure from operating deterioration.
• Receivables quality 70.3/100 and receivables outside the trade cycle at 4.1% of total assets (62nd percentile) — the level is moderate and the receivables-quality score is comparatively stronger than cash conversion, suggesting receivables are not an extreme outlier among peers.

Ownership is concentrated: Tập đoàn Dệt May Việt Nam holds 50.1%, with two other institutions at 8.6% each and two individuals holding 3.4% and 1.3%. The majority stake by a large institutional shareholder (Tập đoàn Dệt May Việt Nam) means control is concentrated in a single group; this can be associated with group and related-party transactions common in Vietnamese listed companies.

• Compare the three-year operating-cash-flow to net-profit schedule in the cash-flow statement and the auditor’s note to understand drivers of the 0.15 cash-conversion ratio (look for one-off items, timing differences, or non-cash gains).
• Inspect the notes on receivables, prepayments and 'other long-term receivables' to find the components behind the 4.1% of total assets classified as receivables outside the trade cycle (e.g., prepayments to suppliers, loans to related parties, long-term receivables).
• Review the related-party transactions and balances note for group companies (including transactions with Tập đoàn Dệt May Việt Nam and the two institutional investors) to see if intercompany receivables, prepayments or financing explain the elevated AQI (1.3037) or TATA (0.1257).
• Read the auditor’s report and the accounting-policy and significant-judgements notes for accruals, impairment and revenue recognition policies to assess whether revenue quality (24.6/100) and accrual levels are supported by conservative or aggressive VAS treatments.