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 · FY2023
- Receivables outside the trade cyclePrepayments to suppliers, loans and other long-term receivables / total assets
- 24.4%92nd pctile
- Accumulated losses / paid-in capitalUndistributed earnings below zero
- 0.82×
- Consecutive years of net lossProfit after tax of the parent
- 1
- Owner's equityWithout the non-controlling interest
- Positive
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 1.6777 (96th percentile vs Vietnamese peers) with a year-over-year increase of +1.79, indicating accounting metrics have moved materially more aggressively than most Vietnamese peers; the DSRI is 10.0000 and SGAI is 10.0000, while TATA is -0.3483. Other distress and quality signals include an Altman Z-Score of -0.75 (distress zone) and a low Piotroski F-Score of 3/9, while earnings-quality subcomponents show very poor receivables and margin quality (0/100) and weak cash conversion (33.5/100).
- High Beneish M-Score 1.6777 (96th Vietnam percentile) and large YoY jump +1.79 — the M-Score measures statistical likelihood of earnings manipulation features; the percentile shows this score is higher (more aggressive on these metrics) than 96% of Vietnamese peers.
- Days' sales receivable index (DSRI) = 10.0000 — DSRI measures change in receivables relative to sales; a value this large indicates receivables (or receivable-style items) have grown far faster than sales.
- SGAI = 10.0000 — SGAI measures change in selling, general & administrative expenses relative to sales; a very high SGAI suggests SGA expenses have risen much faster than revenue.
- Receivables outside the trade cycle = 24.4% of total assets (92nd Vietnam percentile) — this line (prepayments, loans receivable, long-term receivables) is large versus peers and matches the DSRI concern about receivable-like balances.
- TATA = -0.3483 (total accruals to total assets negative) together with accruals-quality metrics: although 'Accruals quality' scores 100/100, the negative TATA indicates operating cash changed differently to accounting profit; TATA measures the proportion of accruals in reported earnings.
- Earnings-quality components: Receivables quality 0/100 and Margin quality 0/100 — these scores measure the reliability of receivables and margins; both are assessed as very weak.
- Altman Z-Score = -0.75 (distress zone) — Z-Score estimates bankruptcy distance; this value is in the model's distress range.
- Piotroski F-Score = 3/9 — the F-Score measures nine fundamentals; a score of 3 indicates weak operating profitability, liquidity and/or efficiency signals.
- Accumulated losses = 0.82x paid-in capital — the company has accumulated losses amounting to 82% of paid-in capital, a substantial historic deficit relative to capital.
- Accruals quality = 100.0/100 — this component measures the quality of accruals; a top score indicates accruals, as computed here, appear internally consistent.
- AQI = 0.9946 — the asset quality index close to 1 suggests limited deterioration in the broad asset composition measure used in Beneish's model.
- LVGI = 1.1692 — the leverage index >1 indicates rising leverage, which can be consistent with growth or investment; it is one of the M-Score components explicitly reported.
- Owner's equity (excluding minority interest) is positive — despite accumulated losses, the company reports positive equity attributable to owners.
Ownership is concentrated: HLA holds 24.5% (listed) and an individual, Huỳnh Đình Thành, holds 22.9%; together these two control a large share of votes. No director-deal registrations were provided in the data set (director-deal registrations, when present, are exchange filings of intended trades rather than executed trades).
- Compare the 2023 'Receivables and prepayments' note (and any loans receivable schedules) to the balance-sheet line items to reconcile the 24.4% of total assets classified as receivables outside the trade cycle.
- Inspect the revenue and trade-receivables schedules to reconcile the DSRI = 10.0000 (check whether large intercompany receivables, long-term receivables or reclassifications drove receivables growth versus sales).
- Review the SGA expense note and the segment/expense breakdown to identify what drove SGAI = 10.0000 (confirm whether non-recurring items, related-party charges or reclassifications caused the jump).
- Reconcile profit (loss) to cash-flow from operations and the components of total accruals to verify TATA = -0.3483 and to understand the source of the 'Accruals quality = 100/100' rating.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
- P/B
- —
- P/S
- —
- ROE
- 0.0%
- ROA
- 0.0%
- Gross Margin
- 0.0%
- Net Margin
- 0.0%
- D/E
- —
- Current Ratio
- 0.00
- EV/EBITDA
- —
- Div Yield
- —
Company Overview
- Shares outstanding
- 5.3M
- Charter Capital
- 52.9B VND
- Sector (ICB L2)
- Tài nguyên Cơ bản
- Industry (ICB L3)
- Kim loại
- Sub-industry
- Thép và sản phẩm thép
- Company Type
- CT