THW

• High DSRI = 1.9538: The Days' Sales in Receivables Index measures growth in receivables relative to sales; a value near 2 suggests receivables are growing faster than sales.
• Elevated AQI = 1.4308: The Accruals Quality Index measures accrual-based distortions; a value >1 indicates accrual patterns that differ from peers and may reduce earnings quality.
• Large Vietnam peer percentile for M-Score = 91st percentile and YoY change +2.64: Although the raw M-Score (-0.4364) is above the US manipulation cutoff, the high local percentile and substantial year-over-year rise show accounting behaviour has grown more aggressive versus Vietnamese peers.
• Very low cash conversion (three-year operating cash flow / net profit) = 0.35, 28th percentile: Only 35% of reported profits converted to operating cash over three years, indicating profits are not translating into cash.
• Poor Piotroski F-Score = 2/9: Measures nine fundamentals (profitability, leverage/liquidity, and operating efficiency); a 2 indicates weak operational and financial fundamentals year-to-year.

• Altman Z-Score = 3.14 (safe zone): The Z-Score combines profitability, leverage, liquidity and activity to estimate bankruptcy distance; 3.14 places the company in the safe zone for the score's intended interpretation.
• DEPI = 0.9870 and SGAI = 0.9578 near 1.0: DEPI (depreciation index) below 1 and SGAI (selling, general & admin index) slightly below 1 show no large unusual increases in depreciation rates or SG&A expense growth relative to sales.
• Receivables outside the trade cycle = 2.5% of total assets (53rd percentile): The portion of receivables attributable to prepayments, loans receivable and other long-term receivables is moderate and near-median among Vietnamese peers.
• No accumulated losses; owner's equity (ex-minority) positive; parent reported no net loss in the most recent year: These statutory balance-sheet facts show retained earnings/equity are not in deficit as of FY2025.

Ownership is highly concentrated: Tổng Công ty Cấp nước Sài Gòn holds 65.0% (state-owned enterprise institution), with three individuals holding 10.4%, 4.3% and small residual stakes. Director-deal activity shows 1 purchase registration (100,000 shares) and no sale registrations in the past year; these are registered intentions with the exchange, not executed trades.

• Compare the 2025 movements in trade receivables and revenue in the notes to revenue recognition to reconcile the DSRI (1.9538) with the receivables ageing and provision schedules.
• Inspect the statement of cash flows and the notes to reconcile operating cash flow to reported net profit over the last three years to verify the three-year cash conversion ratio (0.35).
• Review the schedules for ‘loans and receivables’ and ‘prepayments’ in the FY2025 notes to confirm the composition that makes up the 2.5% of total assets classified as receivables outside the trade cycle.
• Check the consolidated equity and retained earnings lines and the auditor’s report to confirm there are no accumulated losses and that owner’s equity excluding minority interest is positive.