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 · FY2024
- Receivables outside the trade cyclePrepayments to suppliers, loans and other long-term receivables / total assets
- 10.1%80th pctile
- Accumulated losses / paid-in capitalUndistributed earnings below zero
- 2.68×Statutory test met
- Consecutive years of net lossProfit after tax of the parent
- 3Statutory 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 -1.8251 (76th percentile vs Vietnamese peers), with a year-over-year change of -4.90; the score components show a large sales growth index (SGI 3.3487) and small total accruals (TATA -0.1373). Earnings-quality components are mixed: accruals and receivables score 100/100 while cash conversion, margin and revenue quality score 0/100. The Altman Z-Score is -2.92 (distress-zone) and the Piotroski F-Score is 5/9 (neutral).
- Altman Z-Score -2.92: this Z-Score places the company in the distress zone (a measure combining liquidity, profitability, leverage and activity ratios).
- Accumulated losses 2.68x paid-in capital and negative owner’s equity (owner's equity excluding minority interest is negative): the audited statements show accumulated losses exceeding paid-in capital and negative equity, a statutory fact.
- Net loss (parent profit) in three consecutive years to FY2024: the parent-company profit line reports losses in each of the latest three years (this triggers statutory loss tests under Decree 155/2020 Art.120(1)(e) for HOSE/HNX listings, though the company trades on UPCoM where that delisting rule does not apply).
- Receivables outside the trade cycle 10.1% of total assets (80th percentile among Vietnamese non-financials): a sizable portion of assets are prepayments, loans receivable and other long-term receivables rather than trade receivables.
- Earnings-quality weak on cash and margins: cash-conversion score 0/100 and margin quality 0/100 indicate operating cash flow and margins exhibit poor quality relative to peers or expected patterns.
- High SGI 3.3487: sales growth index at 3.3487 signals rapid reported revenue growth (SGI measures year-over-year sales growth), which increases pressure on revenue recognition controls.
- Beneish M-Score -1.8251 (slightly more negative than the US -1.78 cut-off) and a high peer percentile (76th): the absolute M-Score is marginally below the US cutoff while the peer percentile shows the company is more aggressive than most Vietnamese peers; the YoY change -4.90 indicates movement in the score versus the prior year (Beneish-year persistence is weak).
- Accruals quality 100/100 and TATA -0.1373: the total accruals measure (TATA) is negative (small accruals relative to assets) and the accruals-quality component scores 100, suggesting reported earnings are not driven by large discretionary accruals.
- Receivables quality 100/100 despite elevated non-trade receivables: receivables-quality scoring indicates trade receivables behavior is consistent with revenue, even though 10.1% of assets are receivables/prepayments outside the trade cycle.
- Piotroski F-Score 5/9: the firm’s fundamentals read as neutral rather than strongly negative across profitability, leverage/liquidity, and operating efficiency tests.
State ownership is concentrated: Tổng Công ty Đầu Tư Và Kinh Doanh Vốn Nhà Nước holds 49.8% (near-majority control). Individual insiders together hold material stakes (Ngô Hữu Tài 6.7%, Phạm Quốc Bình 6.4%, Ngô Thị Thanh Trúc 4.8%, Phan Trọng Tài 3.3%). No director-deal registrations were provided in the data set (director deal registrations are filings of intended transactions, not executed trades).
- Compare the FY2024 statement of cash flows (cash flows from operating activities) to reported net profit to quantify the company’s cash-conversion weakness and reconcile the low cash-conversion score.
- Inspect the receivables / prepayments / loans-receivable schedules and related-party notes to identify the composition of the 10.1% of assets classified as receivables outside the trade cycle and their maturities.
- Verify the accumulated losses and paid-in capital lines in the equity note and the auditor’s report to confirm the 2.68x accumulated-losses-to-paid-in-capital figure and the negative owner’s equity disclosure.
- Review the revenue-disaggregation, sales growth note and revenue-recognition policy to assess drivers of SGI 3.3487 and whether unusually fast revenue growth is concentrated in particular segments or related parties.
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
- 4.0M
- Charter Capital
- 40.5B VND
- Sector (ICB L2)
- Xây dựng và Vật liệu
- Industry (ICB L3)
- Xây dựng và Vật liệu
- Sub-industry
- Vật liệu xây dựng & Nội thất
- Company Type
- CT