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
- 2.3%52nd pctile
- Accumulated losses / paid-in capitalUndistributed earnings below zero
- 1.91×Statutory test met
- Consecutive years of net lossProfit after tax of the parent
- 9Statutory 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 -1.2914 (Vietnam peer percentile: 83rd, year-over-year change +4.46), indicating more aggressive accounting metrics than most Vietnamese peers and a notable upward move in the score. Key financial-failure signals include an Altman Z-Score of -2.83 (distress zone), accumulated losses equal to 1.91x paid-in capital with nine consecutive years of parent net losses and negative owner's equity; earnings-quality components are mixed (Accruals quality 100/100 but Receivables quality 0/100 and overall Earnings Quality 41.2/100).
- Beneish M-Score -1.2914: measures an eight-variable statistical index intended to detect earnings manipulation; company ranks at the 83rd percentile among Vietnamese peers (higher = more aggressive accounting) and the M-Score rose by +4.46 year-over-year, showing an upward trajectory versus its own history.
- DSRI 3.3812: the Days Sales Receivable Index (DSRI) compares receivables relative to sales year-over-year; a DSRI well above 1 indicates receivables grew faster than sales and can signal revenue recognition or collection issues.
- Receivables outside the trade cycle 2.3% of total assets (52nd percentile): this line (prepayments to suppliers, loans receivable and other long-term receivables) shows non-trade receivables are present and measurable in the balance sheet.
- Accumulated losses 1.91x paid-in capital and nine consecutive years of parent net loss up to FY2025: these are statutory statement facts showing losses have exceeded contributed capital for an extended period.
- Owner's equity excluding minority interest: negative — the consolidated statements show negative owners' equity (a balance-sheet solvency concern).
- Altman Z-Score -2.83: Z-Score is a composite bankruptcy-distance indicator; at -2.83 the company sits in the 'distress' zone, implying low distance from insolvency based on the formula's inputs.
- Receivables quality 0.0/100 and Margin quality 0.0/100 (Earnings Quality 41.2/100): the scoring indicates very weak receivables collectability metrics and weak margin persistence or quality.
- Statutory-loss indicators in the audited statements: accumulated losses above paid-in capital, losses in each of the latest three years, and negative owner's equity — these are the specific conditions referenced in the Decree (noting the company trades on UPCoM, where HOSE/HNX delisting rules do not apply).
- Accruals quality 100.0/100: this component measures the relation of accruals to cash flows; a perfect score indicates reported earnings are supported by cash-flow patterns rather than large discretionary accruals.
- TATA -0.0146: Total Accruals to Total Assets (TATA) of -0.0146 indicates overall accruals are small and slightly negative as a fraction of assets (this is a low accruals magnitude).
- GMI 0.1213 and SGAI 0.3648: Gross Margin Index (GMI) and SG&A Index (SGAI) are both well below 1, which (in their standard interpretations) indicates gross margin and SG&A trends have not deteriorated year-over-year; these point to operating-margin stability or improvement versus the prior period.
- Piotroski F-Score 5/9: a neutral fundamentals score showing mixed signals across profitability, leverage/liquidity, and operating efficiency — neither strongly healthy nor strongly weak on the Piotroski scale.
Top ownership is concentrated in individuals: Nguyễn Thị Phương 12.5%, Đinh Mạnh Thắng 6.7%, and Nguyễn Thị Thanh Vân 4.5%; the largest institutional holder is a bank at 2.2% and a related listed group company (Sông Đà 12) holds 1.1%. There is therefore significant insider/individual ownership concentration, which is relevant to related-party and group-transaction assessment.
- Compare the FY2025 line items for 'Prepayments to suppliers', 'Loans receivable' and 'Other long-term receivables' in the balance sheet with the related-party note and the schedule of receivables — verify counterparty, term, interest, and whether any are outside normal trade terms.
- Reconcile cash flow from operations with reported profit for FY2025: inspect the cash-flow statement's adjustments for changes in receivables, inventory and payables to validate the Accruals quality and the low TATA.
- Examine the statutory schedule or note that shows accumulated losses and paid-in capital to confirm the 1.91x figure and the note describing the consecutive-year losses and negative owner's equity.
- Read the auditor's opinion and the management discussion & analysis (MD&A) or explanatory notes on going concern and related-party transactions to see how the auditors and management describe solvency, related-party balances, and any restructuring or group support arrangements.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
- P/B
- —
- P/S
- 0.97
- ROE
- 0.9%
- ROA
- −0.4%
- EPS
- −55
- BVPS
- −5.894
- Gross Margin
- 49.1%
- Net Margin
- −8.9%
- D/E
- —
- Current Ratio
- 0.59
- EV/EBITDA
- 18.00
- Div Yield
- —
Company Overview
- Shares outstanding
- 11.1M
- Charter Capital
- 111B VND
- Sector (ICB L2)
- Xây dựng và Vật liệu
- Industry (ICB L3)
- Xây dựng và Vật liệu
- Sub-industry
- Xây dựng
- Company Type
- CT