HTG

• Beneish M‑Score = -1.5084 (80th percentile vs Vietnamese peers): the level is above most domestic peers and the YoY change +1.32 shows a recent move toward more aggressive accounting metrics (the -1.78 US cutoff is less applicable in Vietnam; use the percentile and trajectory).
• AQI (Asset Quality Index) = 3.0110: this measures the increase in non‑current or unusual assets (capitalized costs, long‑dated receivables, etc.); a value this high indicates a material shift in asset composition that can signal capitalization or reclassification of items.
• DSRI (Days’ Sales Receivable Index) = 1.1332: this measures whether receivables are growing faster than sales; DSRI > 1 suggests receivables are rising relative to revenue, a potential early sign of revenue recognition timing or collection deterioration.
• Receivables quality = 36.7/100 and Revenue quality = 0/100: the scoring shows receivables and revenue recognition measures are weak (revenue quality at the bottom), which is consistent with the DSRI deterioration and implies the cash and earnings origins warrant scrutiny.

• TATA (total accruals) = -0.0002: this measures accrual‑based earnings versus cash flows; a near‑zero value indicates low net accruals in the period, which supports the quality of reported profit from an accruals perspective.
• Accruals quality = 100/100 and Cash conversion (3‑year OCF / net profit) = 1.39 (60th percentile): accruals appear clean (perfect score) and operating cash flow has converted profits into cash at a reasonable multi‑year rate (1.39), with cash conversion scoring 80.2/100.
• DEPI (Depreciation Index) = 0.8464 and SGAI (SG&A Index) = 0.9301: DEPI <1 suggests depreciation policies or asset bases are not showing signs of accelerated depreciation pressure, and SGAI <1 shows SG&A did not grow faster than sales — both temper some manipulation concerns.
• Piotroski F‑Score = 6/9 and Altman Z‑Score = 2.61 (grey zone): fundamentals are neutral to moderately healthy (Piotroski 6), and the Z‑Score places the company in the grey zone for bankruptcy distance rather than immediate distress.

The largest shareholder is Tập đoàn Dệt May Việt Nam with 61.9% (institutional/state group control), indicating concentrated ownership and likely influence over strategic and reporting decisions; remaining shareholders are small (next largest individual 3.1%). This concentrated, group/state‑linked ownership is typical in Vietnam and can affect related‑party transactions and intra‑group balances.

• Compare the line items that make up ‘Other non‑current assets’ and 'Long‑term receivables' in the FY2025 balance sheet with the related‑party disclosures and the notes on capitalized costs to assess the components driving AQI = 3.0110.
• Reconcile the receivables and revenue schedules: check the notes that detail trade receivables, advances to customers/suppliers and intra‑group receivables to verify drivers of DSRI = 1.1332 and the receivables‑quality score (36.7/100).
• Match operating cash flow (cash flow statement, operating activities) to reported net profit across the last three years to verify the 3‑year cash conversion ratio = 1.39 and the accruals implied by TATA = -0.0002.
• Inspect the statutory audit and equity/retained earnings disclosures to confirm there are no accumulated losses and that the statutory loss tests (Decree 155/2020 Art.120(1)(e) as amended) were not met in FY2025, as reported.