HJC

• Beneish M-Score -1.2489 (84th percentile among VN peers): the M-Score combines multiple indicators to screen for earnings manipulation; the company ranks high versus Vietnamese peers (higher = more aggressive accounting signals).
• DSRI = 1.8395: Days-Sales-in-Receivables Index >1 indicates receivables grew faster than sales in the period, a common early warning that revenue recognition or collection timing has shifted.
• TATA = 0.1186 (11.86% of assets): Total Accruals to Total Assets measures accrual intensity; a positive and material TATA indicates profit is being supported by accruals rather than cash flow.
• LVGI = 1.4908: Leverage growth index >1 shows rising leverage relative to assets, which can amplify risk if earnings or cash flow weaken.
• Earnings Quality overall 29.1/100 with Cash conversion = 0.0/100 and Receivables quality = 0.0/100: profits are not translating into cash and receivables-related metrics are poor by the scoring model.
• Three-year cash conversion (operating cash flow / net profit) = -2.94 (8th percentile): operating cash flow has been strongly negative relative to reported profit across three years, indicating reported profits are not being converted into cash.
• Piotroski F-Score = 3/9: the company scores poorly on profitability, leverage/liquidity, and operating efficiency tests embedded in the F-Score.

• AQI = 0.6783: Asset Quality Index <1 suggests the non-current asset composition or write-offs improved relative to the prior period (AQI measures change in asset mix excluding receivables), which is a stabilising signal in the M-Score components.
• GMI = 0.9180 (<1): Gross Margin Index <1 indicates gross margin improved rather than declined year-over-year (GMI >1 would signal deteriorating margins).
• SGI = 1.2705: the company is growing sales (Sales Growth Index >1); revenue growth can be a legitimate driver when supported by cash and margin quality.
• DEPI = 1.0294 and SGAI = 1.0407 near 1: depreciation and SG&A show only modest change year-over-year, reducing concern about large one-off accounting policy swings in those areas.

Ownership is highly concentrated in state-owned tobacco enterprises: Tổng Công ty Thuốc lá Việt Nam 76.1%, Công ty TNHH MTV Thuốc lá Sài Gòn 6.5%, and Công ty TNHH MTV Thuốc lá Thăng Long 2.8%, so roughly 85%+ is held by related state-industry entities. This concentration implies group and state influence over corporate strategy and reporting; individual free float is very small (top listed individuals 0.2% each).

• Compare the three-year operating cash flow line on the consolidated cash-flow statement with consolidated net profit and the notes on 'reconciliation of profit to cash flows' to verify drivers of the -2.94 cash-conversion metric.
• Inspect the receivables and other receivables / long-term receivables schedules and the related-party disclosures to reconcile DSRI = 1.8395 and the 0.9% of assets classified as receivables outside the trade cycle.
• Review the notes on depreciation policy and the fixed-asset roster to corroborate DEPI = 1.0294 (change in depreciation rate) and the AQI movements.
• Examine the related-party transactions note and the loans/advances to/from related parties to check whether receivables, prepayments or intercompany balances explain the low receivables-quality and zero cash-conversion scores.