VFG

• Beneish M-Score = -1.5075 (measures likelihood of earnings manipulation based on eight variables); this is above the US -1.78 threshold but the note: about 28% of Vietnamese firms exceed -1.78, so the peer-percentile (80th) and the YoY change (+1.16) are more relevant here.
• DSRI = 1.4630 (Days' Sales Receivables Index; measures whether receivables are growing faster than sales). A DSRI of 1.4630 implies receivables (or revenue recognition exposure) have grown relative to sales and is the largest single contributor to the M-Score.
• Earnings-quality component — Receivables quality = 0.0/100 (measures the composition and riskiness of receivables). A zero score indicates poor measurable quality of receivables for FY2025.
• Earnings-quality component — Revenue quality = 0.0/100 (measures persistence and reliability of reported revenue). A zero score signals weak observable revenue quality.
• Cash-conversion problems: Cash conversion = 30.0/100 and the three-year operating-cash-flow/net-profit ratio = 0.25 (26th percentile among Vietnamese non-financials). This shows reported profit is not converting to cash at industry-normal rates.
• Year-over-year M-Score change = +1.16 (measures trajectory; the accounting profile moved noticeably in one year even though M-Scores have low year-to-year correlation).
• TATA = 0.0883 (Total Accruals to Assets; measures the magnitude of accruals). Although relatively small in absolute terms, when combined with very low cash conversion it suggests earnings include non-cash elements that are not converting to cash.
• AQI = 1.0481 (Asset Quality Index; >1 indicates investment in potentially less-reliable assets such as receivables, intangibles or capitalized costs). AQI >1 supports the receivables/revenue concerns raised by DSRI and revenue-quality scores.
• Receivables outside the trade cycle = 0.3% of total assets (20th percentile). While the absolute percentage is low, the combination of high DSRI and zero receivables-quality score suggests the composition or aging of receivables merits scrutiny rather than relying on size alone.

• Altman Z-Score = 5.39 (measures distance to bankruptcy using balance-sheet and earnings items); a score of 5.39 places the company in the "safe" zone for bankruptcy risk based on the Altman model.
• Piotroski F-Score = 6/9 (measures nine fundamental improvements/weaknesses). A 6 indicates generally neutral-to-favourable operational and profitability fundamentals.
• Margin quality = 93.3/100 (measures stability and quality of gross/net margins). A very high score indicates margins are robust and not the immediate source of the earnings-quality deterioration.
• SGAI = 0.8236 (SG&A Index; <1 indicates SG&A has not grown faster than sales). This suggests selling/general/admin expenses are not an obvious source of manipulation pressure.
• DEPI = 0.7887 (Depreciation Index; <1 implies either higher depreciation or less aggressive capitalisation policies versus the prior period). This is consistent with conservative or modestly more rapid depreciation rather than capitalization-based earnings inflation.
• LVGI = 0.8139 (Leverage Growth Index; <1 indicates leverage has not expanded materially). Low leverage growth reduces one common financial pressure that can motivate aggressive accounting.
• Accrued losses and statutory tests: accumulated losses = none; parent's net loss years = 0; owner's equity (ex-minority) positive; and statutory loss tests per Decree 155/2020 (amended) are not met — these are factual, positive signals on reported solvency and loss status.

Ownership is concentrated: PAN Farm (institution) holds 51.2% of shares, giving the largest shareholder majority control. Several individuals hold mid-single-digit stakes (Trương Công Cứ 4.5%, Thân Trọng Hoàn Mỹ 3.7%, Nguyễn Văn Hiếu 3.3%) and a foreign institutional holder (FTIF - Templeton Frontier Markets Fund) holds 3.7%. Director-deal registrations in the past 12 months include one sale registration (1,100,000 shares) and one purchase registration (1,100,000 shares); these are registered intentions and not executed trades.

• Compare the FY2025 note/schedule for trade receivables and the aging table with the revenue note to reconcile where DSRI (1.4630) is coming from and whether receivables growth is matched by sales growth and ageing.
• Inspect the related-party disclosures and the 'receivables outside the trade cycle' lines (prepayments, loans receivable, other long-term receivables) and reconcile them to the 0.3% of total assets figure to understand composition and counterparty risk.
• Reconcile reported net profit to cash from operating activities in the cash-flow statement across the last three years and verify items driving the 0.25 three-year cash-conversion ratio (look at depreciation, changes in working capital, one-off items and related-party cash flows).
• Review notes on revenue recognition policies, significant contracts and any description of timing or performance obligations to assess the basis for the Revenue Quality = 0.0/100 signal (check for contract liabilities, principal/agent disclosures or large one-off revenue items).