VE4

• Beneish M-Score = -1.6494. The M-Score is a model that flags earnings manipulation risk; the company's score sits above the US -1.78 cutoff but the Vietnamese context matters. This company ranks at the 76th percentile among Vietnamese peers (higher = more aggressive accounting versus VN peers), and the M-Score rose by +0.82 year-over-year, indicating the most recent change toward more aggressive signals.
• DSRI = 1.1682. Days-sales in receivables index >1 suggests receivables are rising faster than sales (a signal sometimes associated with revenue recognition pressure).
• AQI = 1.4717. Asset quality index >1 indicates reclassification toward less conservative asset categories (for example more receivables, other noncurrent assets or capitalized items).
• GMI = 1.8421. Gross margin index >1 means gross margins have deteriorated year-over-year, which can create incentives to manage earnings.
• TATA = 0.0378 (total accruals to total assets). While not extremely large, positive TATA indicates accrual-based earnings rather than cash-based, and combined with very poor cash metrics it merits attention.
• Earnings Quality Score = 26.5/100 with Cash conversion = 0.0/100, Margin quality = 0.0/100 and Revenue quality = 0.0/100. These specific zeros indicate the company scores at the bottom on cash conversion, margin sustainability and revenue quality in the applied scoring framework.
• Receivables quality = 26.4/100 and Receivables outside the trade cycle = 3.5% of total assets (59th percentile). The receivables-quality metric is weak and 3.5% of assets are receivables classified outside the trade cycle (prepayments to suppliers, loans receivable and other long-term receivables), which raises questions about collectability and classification.
• Piotroski F-Score = 3/9. A score of 3 indicates weak fundamentals across profitability, leverage/liquidity and operating efficiency tests.
• Director-deal registrations: net registered volume = +66.05% of shares outstanding between 2025-10-30 and 2026-10-30, with 0 sale registrations and 1 purchase registration (one trader registered to buy 2,000,000 shares). Registrations are intentions filed with the exchange and are not executed trades; the large net registered volume is notable as an insider disclosure signal.

• Altman Z-Score = 4.04. This places the company in the traditional ‘safe’ zone for bankruptcy distance in the Altman model, suggesting low near-term bankruptcy risk by that metric.
• Accruals quality = 84.9/100. This relatively high sub-score indicates accrual items (the relation of accounting earnings to cash flows) are of comparatively better quality than other earnings-quality dimensions.
• LVGI = 1.0097 (leverage index ≈1). A leverage index near 1 implies leverage has been relatively stable year-over-year.
• SGI = 0.8175 and SGAI = 0.8260 (sales growth index <1 and SGA index <1). These indicate sales growth slowed (SGI <1) and selling/general/admin expenses did not expand relative to sales, reducing one pressure that can lead to aggressive expense capitalization or classification.
• Statutory loss tests: none met under Decree 155/2020 Art.120(1)(e) as amended by Decree 245/2025, and owner's equity (excluding minority interest) is positive. The published statements therefore do not meet the exchange’s statutory loss criteria for cancellation.

Ownership is highly concentrated: an individual, Trần Quang Đức, holds 66.0% of shares, and VNE (Tổng Công ty Cổ phần Xây dựng điện Việt Nam) holds 18.6%. There is a group link: the company holds 0.2% of VNE, while VNE holds 18.6% of this company (cross-holding). Such concentrated control and cross-holdings can affect related-party transactions and disclosures; additionally, one large insider registered to buy 2,000,000 shares during the reporting window (registrations are intentions, not executed trades).

• Compare the FY2025 note on related-party transactions to the 3.5% of total assets classified as receivables outside the trade cycle (prepayments to suppliers, loans receivable and other long-term receivables) to identify counterparties and terms.
• Reconcile the cash-flow statement operating cash flow to reported profit and TATA = 0.0378 (total accruals to total assets) to see which accruals drive the gap and whether they are recurring.
• Inspect the revenue recognition note and detailed sales schedules for signs behind DSRI = 1.1682 (days-sales in receivables index), specifically aging of trade receivables and any large movements in the top customers.
• Review the auditor’s report and the statutory loss-related disclosures to confirm the published statements did not meet the statutory cancellation tests referenced (Decree 155/2020 Art.120(1)(e) as amended).