SGC

• Beneish M-Score: -1.5641, Vietnam peer percentile 78th — the score is above the US -1.78 cutoff and sits high versus Vietnamese peers; the YoY change +0.80 shows a notable shift in the M-Score direction compared with the prior year.
• DSRI (Days Sales in Receivables Index) = 1.3340 — measures whether receivables are rising faster than sales; a value above 1 can indicate revenue recognition or collection issues.
• AQI (Asset Quality Index) = 2.5494 — measures increases in asset components that are often subject to discretion (capitalized costs, other assets); a reading well above 1 suggests asset composition has become materially more aggressive.
• DEPI (Depreciation Index) = 1.7064 — measures changes in depreciation rates; >1 indicates slower depreciation (i.e., lower depreciation expense relative to prior period), which can boost reported profits.
• TATA (Total Accruals to Total Assets) = -0.0187 — while the sign is negative (which reduces the M-Score contribution), it is small in magnitude and must be interpreted with the other indicators.
• Receivables and revenue quality = 0.0/100 each — the Earnings Quality Score components show complete weakness on receivables and on revenue recognition quality.
• Receivables outside the trade cycle = 3.3% of total assets (58th percentile) — non-trade receivables / prepayments / loans represent a non-trivial portion of assets relative to peers and merit scrutiny.
• Year-over-year movement: several Beneish components (AQI, DEPI, DSRI) moved enough to push the M-Score upward by +0.80, indicating the recent changes in accounting composition are the proximate driver of the elevated M-Score.

• Accruals quality = 100.0/100 — the model's accruals component indicates low abnormal accruals relative to peers, suggesting current-period accruals are not a primary concern.
• Cash conversion (operating cash flow / net profit, 3-year) = 1.15 (52nd percentile) and Cash conversion score 89.2/100 — operating cash flow has been converting reported profit into cash at a broadly average-to-strong rate over three years.
• SGI (Sales Growth Index) = 1.0512 and GMI (Gross Margin Index) = 0.8790 — modest sales growth and an improving/strongening gross margin index (GMI < 1 indicates gross margin has not deteriorated) are supportive of earnings sustainability.
• Altman Z-Score = 7.99 (safe zone) — the company is distant from the typical bankruptcy thresholds used in the Z-Score framework.
• Piotroski F-Score = 6/9 — fundamentals are more positive than negative (profitability, leverage/liquidity, and operating efficiency metrics net to a neutral-to-favourable score).
• No accumulated losses; owner's equity (excluding minority interest) positive; 0 consecutive years of parent net loss up to FY2025 — the statutory balance-sheet signals of distress are absent.

Control is highly concentrated: Vĩnh Hoàn (VHC) holds 76.7%, indicating a dominant parent listed shareholder and strong group control. The next largest holders are two individuals at 10.2% and 4.0%; this concentrated ownership plus the presence of a majority-listed parent implies decisions and related-party transactions with the group are likely material.

• Compare the breakdown of 'Receivables' and 'Other long-term receivables' in the FY2025 balance sheet and notes to the related-party and other receivables schedules to quantify the 3.3% of total assets identified as receivables outside the trade cycle.
• Reconcile FY2023–FY2025 profit, operating cash flows and the three-year cash-conversion ratio (operating cash flow / net profit = 1.15) using the consolidated cash-flow statement and the consolidated income statement to confirm cash conversion drivers.
• Inspect the fixed-asset and depreciation policy notes (useful lives, depreciation methods, changes in estimates) to understand the DEPI = 1.7064 signal and whether amortization/depreciation assumptions changed between years.
• Review the notes on asset reclassifications, other long-term assets and capitalized costs to explain AQI = 2.5494 (which measures increases in discretionary asset categories) and any related-party disclosures tied to those assets.