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
- 9.3%79th pctile
- Accumulated losses / paid-in capitalUndistributed earnings below zero
- 2.58×Statutory test met
- Consecutive years of net lossProfit after tax of the parent
- 4Statutory 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 Beneish M‑Score is -3.6481 (4th percentile vs Vietnamese peers), indicating the company currently scores as less aggressive on the M‑Score relative to most Vietnamese peers, though the M‑Score moved by +2.52 year‑over‑year. Earnings‑quality metrics are mixed: accruals and receivables quality score 100/100, but cash conversion is very weak at 2.3/100 and revenue quality is 1.6/100. Balance‑sheet distress is pronounced: Altman Z‑Score = -5.38 (distress zone) and owner's equity excluding minority interest is negative with accumulated losses of 2.58× paid‑in capital and four consecutive years of parent net loss to FY2025.
- Altman Z‑Score = -5.38: measures bankruptcy distance; this value lies in the distress zone, signalling material insolvency risk by the Altman framework.
- Accumulated losses = 2.58× paid‑in capital: the company’s cumulative losses exceed contributed capital by 2.58 times (a statutory fact in the published statements).
- Owner's equity excluding minority interest = negative: the standalone/equity attributable to owners is below zero per the FY2025 statements.
- Four consecutive years of parent net loss up to FY2025: the parent reported losses each year for the last four years (statement line item).
- Cash conversion score = 2.3/100: measures cash‑based earnings conversion (operating cash flow relative to profit) and is extremely weak, indicating earnings are not being converted into operating cash.
- Revenue quality = 1.6/100 and Margin quality = 9.9/100: both low scores indicate revenue and margin patterns that score poorly on the earnings‑quality model used here.
- Receivables outside the trade cycle = 9.3% of total assets (79th percentile among VN non‑financials): a material portion of assets are prepayments, loans receivable or other long‑term receivables rather than normal trade receivables.
- Beneish M‑Score = -3.6481 (4th percentile vs VN peers): the absolute score is well below the US −1.78 cutoff, and the company ranks in the lower (less aggressive) tail among Vietnamese peers on the M‑Score.
- DSRI = 0.9437 and SGAI = 0.1484: the Days Sales Receivable Index below 1 suggests receivables are not growing faster than sales, and Sales, General & Administrative Index is low, both of which are not typical upward manipulation signals in the Beneish components.
- Accruals quality = 100/100 and Receivables quality = 100/100: these component scores indicate accrual accounting and receivable composition (as measured by the applied scoring model) appear high quality under the model’s metrics.
- Piotroski F‑Score = 6/9: a neutral to moderately positive operational/fundamental score indicating several improving or acceptable fundamentals under the Piotroski test.
Ownership is concentrated in individual shareholders: Thân Xuân Nghĩa holds 15.6%, followed by smaller individual stakes (4.7%, 1.0%, 1.0%, 0.4%). There is no listed state or corporate majority; concentrated individual control can lead to related‑party activity or group transactions—this is a structural observation from the shareholder list.
- Compare the FY2025 note(s) or schedule on related‑party transactions with the line items for 'prepayments to suppliers', 'loans receivable' and 'other long‑term receivables' to quantify the 9.3% of total assets classified as receivables outside the trade cycle.
- Verify the statement of changes in equity and the audited balance sheet to confirm the accumulated losses equal 2.58× paid‑in capital and to locate the line showing negative owner's equity (excluding minority interest).
- Inspect the parent company profit/(loss) line in the consolidated and parent financial statements for FY2022–FY2025 to confirm the four consecutive years of parent net loss and to see any explanations in management discussion and analysis.
- Reconcile operating cash flow (cash flow statement, operating activities) against net profit in the income statement to reproduce the cash conversion score (very low cash conversion) and identify timing or non‑cash items driving the gap.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
- P/B
- —
- P/S
- 0.82
- ROE
- 19.8%
- ROA
- −22.3%
- EPS
- −2.762
- BVPS
- −15.307
- Gross Margin
- 7.3%
- Net Margin
- −205.3%
- D/E
- —
- Current Ratio
- 0.36
- Rev Growth
- +5.5%
- Profit Growth
- +65.9%
- EV/EBITDA
- —
- Div Yield
- —
Company Overview
- Shares outstanding
- 19.3M
- Charter Capital
- 193B VND
- Sector (ICB L2)
- Ô tô và phụ tùng
- Industry (ICB L3)
- Ô tô và phụ tùng
- Sub-industry
- Lốp xe
- Company Type
- CT