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 · FY2020
- Receivables outside the trade cyclePrepayments to suppliers, loans and other long-term receivables / total assets
- 8.5%80th pctile
- Accumulated losses / paid-in capitalUndistributed earnings below zero
- 2.25×Statutory test met
- Consecutive years of net lossProfit after tax of the parent
- 8Statutory 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 -0.0101 (90th percentile vs Vietnamese peers) with a year-over-year increase of +2.73, indicating its accounting profile has become more aggressive relative to Vietnamese peers (note the -1.78 US cutoff is not directly applicable). Earnings-quality metrics are mixed: accruals and receivables quality score 100/100 but cash conversion and revenue quality score 0/100, producing an overall Earnings Quality Score of 46.2/100. The financial-statement checks show deep and persistent losses (net parent loss for 8 consecutive years, accumulated losses 2.25x paid-in capital) and negative owner's equity, while the Piotroski F-Score is middling at 4/9.
- Beneish M-Score -0.0101 (90th percentile vs VN peers) and YoY change +2.73 — the M-Score has moved materially year-over-year and ranks high versus Vietnamese peers, which signals a notable shift in accounting metrics (Beneish components below).
- SGI (sales growth index) = 4.3800 — very high growth index component which can elevate manipulation signals in Beneish decomposition.
- GMI (gross margin index) = 1.3172 — gross margins deteriorated (GMI > 1 measures worsening margins), a component that increases manipulation risk in Beneish.
- Receivables outside the trade cycle = 8.5% of total assets (80th percentile) — sizable non-trade receivables (prepayments, loans receivable, long-term receivables) relative to peers.
- Accumulated losses = 2.25x paid-in capital and owner's equity (excluding minority interest) negative — the company has accumulated losses well above contributed capital and negative equity on the parent accounts.
- Net loss (parent) for 8 consecutive years up to FY2020 and losses in each of latest 3 years — prolonged operating losses are evident in the financial statements.
- Cash-conversion and revenue-quality components = 0.0/100 each (Earnings Quality Score subcomponents) — operating cash flow and revenue persistence/quality metrics are weak or inconsistent with reported earnings.
- Margin quality = 8.3/100 — low margin quality indicates earnings may not be supported by stable margins (consistent with GMI > 1).
- Statutory loss test results (Decree 155/2020 Art.120(1)(e), amended) present in the published statements: accumulated losses above paid-in capital, losses in each of latest 3 years, negative owner's equity — the company meets the listed criteria described in the decree (note the company trades on UPCoM, where the HOSE/HNX cancellation rule does not apply).
- Accruals quality = 100.0/100 — accrual measures in the Earnings Quality Score indicate low abnormal accruals in the period measured.
- Receivables quality = 100.0/100 — within the earnings-quality framework, receivables-related measures score highly (despite the absolute level of receivables outside the trade cycle noted above).
- TATA (total accruals to total assets) = -0.0272 — a small negative total-accruals ratio, consistent with the high accruals-quality score.
- LVGI (leverage index) = 1.1202 — moderate increase in leverage; not extreme by this metric alone.
Ownership is concentrated: PVX holds 24.7% (significant influence disclosed 2025-10-05) and the listed parent controls multiple related construction/energy affiliates (several with 36–51% holdings). Institutional holders include Leadvisors (8.6%) and Long Sơn industrial investor (7.2%); an individual holds 2.0%. The group structure and related-party network are material to the company’s position and may explain related-party balances and group cash flows.
- Compare the line(s) for 'loans receivable', 'prepayments to suppliers' and 'other long-term receivables' in the annual notes to the balance sheet and quantify the 8.5% of total assets figure disclosed for receivables outside the trade cycle.
- Read the statement of changes in owner's equity and the auditor’s notes that disclose accumulated losses to confirm the 2.25x paid-in capital figure and the negative owner's-equity presentation (parent and consolidated).
- Verify the income-statement and parent-profit note showing net losses for each of the latest 3 years and the 8 consecutive years up to FY2020 (confirm year-by-year parent profit/loss lines).
- Examine related-party schedules and the notes on transactions with the listed parent and group entities (PVX and the listed subsidiaries) to reconcile intra-group receivables, loans and prepayments disclosed in the financial statements.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
- P/B
- —
- P/S
- 0.15
- ROE
- 4.2%
- ROA
- −4.5%
- EPS
- −501
- BVPS
- 0
- Gross Margin
- −1.8%
- Net Margin
- −15.3%
- D/E
- —
- Current Ratio
- 0.40
- Rev Growth
- +338.3%
- Profit Growth
- −47.5%
- EV/EBITDA
- —
- Div Yield
- —
Company Overview
- Shares outstanding
- —
- Charter Capital
- —
- Sector (ICB L2)
- Xây dựng và Vật liệu
- Industry (ICB L3)
- Xây dựng và Vật liệu
- Sub-industry
- Xây dựng
- Company Type
- CT