PXI

• High relative Beneish M‑Score: 0.5768 and 95th percentile among Vietnamese peers — the M‑Score is a composite intended to flag earnings manipulation risk; the peer percentile indicates PXI is more aggressive vs local peers even though the absolute -1.78 US cutoff is not directly calibrated to Vietnam.
• Low cash conversion and revenue/margin quality: Earnings‑Quality Score 44.4/100 with Cash conversion = 0.0/100, Margin quality = 0.0/100 and Revenue quality = 0.0/100 — these three measures indicate weak cash generation relative to reported profits and weak stability of margins and revenue streams in the scoring framework.
• Altman Z‑Score in distress zone: -0.20 — this Z‑Score measures distance to bankruptcy using working capital, retained earnings, EBIT, market value of equity and sales; a negative score signals limited buffer under that model.
• Accumulated losses material relative to capital: Accumulated losses = 0.59x paid‑in capital — this is a measurable, published shortfall against contributed capital.
• Receivables outside trade cycle present: 5.1% of total assets classified as receivables outside the trade cycle (ranked 68th percentile) — the line includes prepayments to suppliers, loans receivable and other long‑term receivables and can obscure the cash conversion picture if large or opaque.
• Group control concentration: PVX holds 51.0% (control) — a single listed parent has majority control (disclosed 2026‑06‑30), which raises considerations about related‑party flows and intra‑group transactions in the financials.

• Strong accruals and receivables metrics: Accruals quality = 97.5/100 and Receivables quality = 100.0/100 — TATA (total accruals) = 0.0062 indicates low aggregate accruals in the Beneish inputs, and DSRI = 0.2619 (Days' Sales Receivable Index) is low, suggesting receivables are not expanding relative to sales in that index.
• Some stability in M‑Score trajectory: Year‑over‑year M‑Score change = -0.21 (an improvement) even though the absolute score is high vs peers — the YoY direction is a secondary cue because consecutive M‑Scores correlate weakly.
• Piotroski fundamentals are neutral to positive: F‑Score = 6/9 — this indicates several healthy signals in profitability, leverage/liquidity, and operating efficiency in Piotroski's nine‑point checklist.
• Limited abnormal depreciation/SG&A signals in Beneish components: DEPI = 0.8370 (Depreciation Index) and SGAI = 0.2747 (SG&A Index) do not suggest large upward pressure from accelerated/deferred depreciation or abnormal SG&A inflation in the Beneish inputs; AQI = 1.0801 (Asset Quality Index) is modestly elevated but not extreme.

Control is concentrated: PVX (Tổng Công ty Cổ phần Xây lắp Dầu khí Việt Nam) holds 51.0% (control). Other significant listed group holdings under the same parent include multiple construction/pipe/installation subsidiaries. Institutional holder EZ holds 10.0%; remaining individual holdings are small (largest individual 4.9%). The majority listed parent and multi‑entity group structure suggest potential for related‑party transactions and centralised decision making.

• Compare the FY2025 'Prepayments to suppliers', 'Loans receivable' and 'Other long‑term receivables' line items with the note disclosing related‑party transactions and the schedule of receivables to confirm composition of the 5.1% of assets classified as receivables outside the trade cycle.
• Reconcile the total accruals/TATA input (reported TATA = 0.0062) with the cash flow statement: compare profit before tax to cash flows from operations and the movements in working capital lines to confirm low net accruals.
• Review the statutory retained earnings/accumulated losses note and the statement of changes in equity to locate the accumulated losses = 0.59× paid‑in capital and any explanatory disclosures.
• Examine the related‑party note and transactions schedules in the annual report for intra‑group sales, loans or guarantees between PXI and PVX (the 51.0% controlling shareholder) or the listed sibling companies to understand concentration and terms.