SRC

• Beneish M‑Score = -0.863 (US cutoff -1.78; SRC is in the 89th percentile versus Vietnamese peers and M‑Score increased by +1.04 YoY). The M‑Score measures a composite of eight accrual and performance ratios intended to flag earnings manipulation signals; the high peer percentile and positive YoY change show relative and directional concern in the Vietnamese context.
• DSRI (Days Sales in Receivables Index) = 1.3970. DSRI > 1 suggests receivables or revenue recognition has grown faster than sales, a signal of potential revenue recognition timing differences.
• GMI (Gross Margin Index) = 1.4384. GMI > 1 indicates deteriorating gross margins year‑over‑year, which can be a pressure that prompts aggressive accounting.
• SGAI (Sales, General & Admin Index) = 0.6888. SGAI < 1 shows SG&A declined relative to sales; while this may be positive operationally, in combination with other indices it can reflect cost capitalization or timing shifts.
• TATA (Total Accruals to Total Assets) = 0.1582. Elevated accruals (positive) indicate earnings are supported by accruals rather than cash flows.
• Earnings‑quality component scores very weak: cash conversion 0.0/100, receivables quality 0.0/100, margin quality 0.0/100, revenue quality 0.0/100 — these individual 0/100 readings are specific flags that profits are poorly supported by cash, receivables behaviour, margins and revenue persistence.
• Three‑year cash conversion (operating cash flow / net profit) = -1.65 (11th percentile). This low ratio shows profits have not translated into operating cash over three years relative to peers.
• Receivables outside the trade cycle = 0.2% of total assets (14th percentile). Though small in absolute terms, the percentile shows SRC ranks low relative to peers in using non‑trade receivables structures; such items (prepayments, loans receivable, long‑term receivables) should be inspected in disclosures.
• Altman Z‑Score = 2.54 (grey zone). Z > 1.8 and < 3.0 places the company in an intermediate distance from distress, a signal to monitor liquidity/solvency metrics alongside accruals signals.

• AQI (Asset Quality Index) = 0.7661. AQI < 1 suggests asset reclassification or write‑downs reduced non‑current asset capitalization relative to sales, which can be a conservative signal on asset recognition.
• DEPI (Depreciation Index) = 1.0198 and LVGI (Leverage Index) = 1.1607. DEPI close to 1 indicates depreciation policies were broadly stable year‑over‑year; LVGI > 1 signals rising leverage but the change is modest to date.
• SGAI < 1 (0.6888) can reflect improved operating efficiency or reduced discretionary SG&A rather than capitalization, depending on disclosures.
• No accumulated losses; owner's equity (excluding minorities) is positive; net parent profit did not report loss in the last three years — these are signs the company is not currently recording statutory losses or negative retained earnings.

Ownership is highly concentrated: Công ty Cp Tập Đoàn Hoành Sơn holds 50.2% and Tập đoàn Hóa chất Việt Nam holds 36.0%, together controlling 86.2% of shares. The presence of a large state‑associated institution (Tập đoàn Hóa chất Việt Nam) and a dominant corporate shareholder implies group/related‑party and policy influences are likely material to accounting and transaction decisions.

• Compare the 2025 movements in trade receivables and revenue in the notes to accounts: reconcile the DSRI (1.3970) with line items for accounts receivable, revenue by customer and aging schedules.
• Inspect the notes for 'prepayments', 'loans to related parties' and 'other long‑term receivables' to quantify the 0.2% of total assets flagged as receivables outside the trade cycle.
• Reconcile operating cash flow and profit for FY2023–FY2025 in the cash flow statement and management commentary to understand the three‑year cash conversion ratio of -1.65.
• Review the fixed‑asset, depreciation and impairment notes to verify the AQI (0.7661) and DEPI (1.0198) drivers: check for reclassifications, disposals or impairment charges that reduced capitalized asset carrying amounts.