Earnings Quality
Financial Forensics
Ranked vs Vietnamese peers. The −1.78 Beneish cutoff is US-calibrated; ~28% of VN stocks exceed it.
Checks measured on Vietnamese companies · FY2025
- Receivables outside the trade cyclePrepayments to suppliers, loans and other long-term receivables / total assets
- 0.9%33rd pctile
- Accumulated losses / paid-in capitalUndistributed earnings below zero
- 1.14×Statutory test met
- Consecutive years of net lossProfit after tax of the parent
- 3Statutory test met
- Owner's equityWithout the non-controlling interest
- NegativeStatutory test met
Percentiles rank each fiscal year against Vietnamese non-financial companies (0 lowest, 100 highest). Over FY2015-2024, low cash conversion and a large share of receivables outside the trade cycle came before more listing trouble and more net losses the next year.
Statutory loss tests (Decree 155/2020/NĐ-CP, Art. 120(1)(e), amended by Decree 245/2025/NĐ-CP): a HOSE or HNX listing is cancelled when the audited annual statements show net losses in each of the latest 3 years, accumulated losses above the paid-in charter capital, or negative owner's equity. Read here from the annual statements as the data vendor publishes them. The company trades on UPCoM, where these tests do not apply.
The company's Beneish M-Score is -1.1709 (86th percentile versus Vietnamese peers) with a year-over-year increase of +1.65, indicating accounting measures that are more aggressive than most domestic peers and that moved materially year-on-year. Beneish component signals include an unusually low Days-Sales Receivable Index (DSRI 0.4300 — measures receivables growth relative to sales), a very high Gross Margin Index (GMI 10.0000 — measures deterioration in gross margin), low Sales Growth Index (SGI 0.8427 — measures sales growth), high SGA index (SGAI 2.0085 — measures growth in selling/general/admin expenses relative to sales), negative total accruals (TATA -0.5228 — measures accruals relative to assets), elevated Leverage/Volatility index (LVGI 1.4779), and near‑par Asset Quality Index (AQI 1.0121) and Depreciation Index (DEPI 0.9385). The earnings-quality composite is mixed: accruals and receivables quality score 100/100, but cash conversion is 2.0/100 and margin quality 0.0/100. Altman Z-Score is 1.99 (the "grey zone" for bankruptcy distance) and Piotroski F‑Score is 4/9 (neutral fundamentals).
- Beneish M-Score -1.1709 (86th percentile among Vietnamese peers; YoY change +1.65): the absolute M-Score is above the US -1.78 manipulator cutoff, but the Vietnam peer percentile (86th) and the material YoY rise (+1.65) indicate relatively aggressive accounting metrics versus local comparators and a notable year-on-year shift.
- Gross Margin Index (GMI) = 10.0000: this index measures deterioration in gross margin (values >1 suggest margin deterioration); a value of 10 is an extreme reading and signals meaningful gross-margin pressure or reclassification effects.
- SGA Index (SGAI) = 2.0085: SGAI measures growth in selling, general and administrative expenses relative to sales (values >1 indicate SGA rising faster than sales); a 2.0085 reading shows SGA increased much faster than sales.
- Cash conversion 2.0/100 and Margin quality 0.0/100 in the Earnings Quality Score: these measure operating cash generation relative to profits (cash conversion) and stability of margins across periods (margin quality); both are very weak, indicating poor conversion of reported profits into cash and volatile or deteriorating margins.
- Altman Z-Score 1.99 (grey zone): this distance-to-distress metric places the company in an intermediate risk band for bankruptcy distance rather than a clear safe zone.
- Three consecutive years of net loss to FY2025 and accumulated losses 1.14x paid-in capital; owner's equity (excluding minority interest) is negative: the statements show losses in each of the latest 3 years and accumulated losses greater than paid‑in capital — facts that meet the statutory loss conditions referenced in Decree 155/2020 Art. 120(1)(e) (amended) for cancellation of a HOSE/HNX listing, though UPCoM trading is not subject to that cancellation rule.
- Receivables outside the trade cycle = 0.9% of total assets (33rd percentile): although not large in absolute terms, this line aggregates prepayments, loans receivable and long-term receivables and indicates some off-cycle receivables are present in the balance sheet.
- Director-deal registrations (2025-10-30 to 2026-10-30): 10 sale registrations by 7 registrants (6,405,666 shares aggregate, but 6 registrations lacked a volume) and 7 purchase registrations by 6 registrants (2,235,040 shares aggregate, with 6 lacking a volume). These are registered intentions (not executed trades) and show net registered selling volume exceeds registered buying volume in disclosed totals.
- Accruals quality 100.0/100: this score (and TATA = -0.5228 measuring total accruals to assets) indicates reported profits are supported by conservative or low accruals activity in the period measured.
- Receivables quality 100.0/100 and DSRI = 0.4300: DSRI measures receivables growth relative to sales; a DSRI well below 1 (0.4300) and a perfect receivables quality score indicate receivables did not expand relative to sales and the receivables profile appears high quality on the metrics used.
- AQI = 1.0121 and DEPI = 0.9385 near parity: AQI measures shifts into high‑risk asset categories and DEPI measures changes in depreciation rates; both are close to 1, suggesting no large one‑off asset‑quality reclassifications or aggressive depreciation changes captured by these indices.
- Piotroski F-Score 4/9: while neutral, this score shows some positive but limited operating or profitability signals among the nine F‑Score criteria rather than uniformly weak fundamentals.
Ownership is concentrated: three institutional/strategic holders (VCG, An Quý Hưng Holding, and Long Hải Development) each hold about 24.0%, a fourth institution holds 15.5%, and an individual holds 12.0%. VCG (24.0%) is a listed state‑linked group with related listed subsidiaries noted; no single controller above 50% is shown, but substantial block holdings imply significant influence and typical group-related related‑party and operational linkages.
- Compare the FY2025 line for 'prepayments to suppliers, loans receivable and other long-term receivables' in the balance-sheet schedule to the note that breaks down receivables by related party and by term (to verify the 0.9% of total assets classification).
- Reconcile the consolidated statement of cash flows to the parent profit (loss) note and the cash-conversion note to substantiate the Cash Conversion Score of 2.0/100 (check operating cash flows, changes in working capital and cash items supporting reported profit).
- Inspect the equity note and the audited accumulated-losses and paid-in capital lines to confirm accumulated losses = 1.14x paid-in capital, the three-year net-loss history, and the negative owner's equity (excluding minority interest) disclosed in the statutory statements.
- Review the director/insider transaction register filings and the exchange disclosure schedules for the period 2025-10-30 to 2026-10-30 to verify the 10 sale and 7 purchase registrations, the listed registrants, and the disclosed aggregate volumes and volume‑omissions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
- P/B
- —
- P/S
- 12.61
- ROE
- −557.9%
- ROA
- −39.5%
- EPS
- −4.165
- BVPS
- −1.336
- Gross Margin
- 0.6%
- Net Margin
- −58.3%
- D/E
- —
- Current Ratio
- 0.36
- EV/EBITDA
- —
- Div Yield
- —
Company Overview
- Shares outstanding
- 9.3M
- Charter Capital
- 93.0B VND
- Sector (ICB L2)
- Hàng cá nhân & Gia dụng
- Industry (ICB L3)
- Hàng cá nhân
- Sub-industry
- Giầy dép
- Company Type
- CT