UPCOM:HSV

• Beneish M-Score 2.1921 (98th percentile among Vietnamese peers): the absolute score exceeds the US -1.78 cutoff and the peer percentile is high; the M-Score components driving this include a very high AQI of 10.0000 and an SGI of 1.7592.
• Year-over-year M-Score change +3.33: the M-Score has moved sharply this year, which is notable even though M-Scores have low year-to-year correlation.
• Earnings-quality — Cash conversion 0.0/100 and 3-year cash conversion ratio -5.75 (5th percentile): operating cash flow has not converted reported profits into cash over three years (operating cash flow / net profit = -5.75).
• Earnings-quality — Revenue quality 13.1/100 and TATA 0.0621: revenue quality is low and total accruals (TATA) are non-trivial, suggesting reliance on noncash items and possible recognition timing effects.
• Receivables outside the trade cycle 13.7% of total assets (86th percentile): a sizeable portion of assets are prepayments/loans/long-term receivables rather than trade receivables, which can obscure cash flows and create related-party or working-capital complexity.
• Piotroski F-Score 3/9: weak score on fundamentals (profitability, leverage/liquidity, operating efficiency signals are limited).

• Receivables quality 100.0/100: the model rates the trade-receivables-related quality measures highly despite the high share of receivables outside the trade cycle.
• Accruals quality 75.2/100 and TATA 0.0621: accruals quality is relatively strong and total accruals are modest in absolute terms (TATA = 0.0621), which reduces some concern that earnings are heavily accrual-driven.
• Altman Z-Score 3.15: places the company in the safe zone for bankruptcy distance under the Altman framework.

Ownership is concentrated among individuals: the five largest shareholders are Nguyễn Văn Quân 10.5%, Lê Thị Hằng 9.4%, Nguyễn Hồng Tảo 8.7%, and two others at 4.9% each. Director-deal registrations show 3 purchase registrations (2,400,000 shares total, 3 traders, 2 of the registrations without a volume) and 0 sale registrations between 2025-10-30 and 2026-10-30; these are declarations of intent filed with the exchange, not executed trades.

• Compare the FY2025 note(s) on 'Receivables and prepayments' to quantify the 13.7% of total assets labelled as receivables outside the trade cycle and identify counterparties and related-party disclosures.
• Reconcile the consolidated statement of cash flows with the income statement to verify the 3-year cash conversion figure (operating cash flow / net profit = -5.75) and inspect major noncash items in the cash-flow reconciliation.
• Review the 'Other receivables / Loans to related parties' schedules and the notes on related-party transactions to see the composition, maturity and terms of non-trade receivables.
• Examine the auditor’s report and the statutory notes regarding accumulated losses and parent-company profit to confirm that undistributed earnings are not negative and that the company reports 0 consecutive years of parent net loss up to FY2025.