UPCOM:ILC

• Beneish M-Score = -1.6554 (76th percentile vs Vietnamese peers). The -1.78 US cutoff is not directly decisive in Vietnam; the 76th percentile and the YoY increase of +0.39 indicate the company scores more toward aggressive accounting relative to peers and has drifted upward this year.
• DSRI = 1.3099 (days-sales-receivable index). A DSRI >1 implies receivables (or revenue recognition relative to sales) are growing faster than sales, consistent with collection or revenue-recognition pressure.
• TATA = 0.1577 (total accruals to total assets). Positive TATA of 0.1577 shows accruals are a material source of profit, which aligns with the low cash-conversion figure.
• Earnings-Quality = 13.1/100 with component scores: accruals quality 44.6/100, cash conversion 0.0/100, receivables quality 0.0/100, margin quality 0.0/100. These component zeros indicate very poor convertibility of reported profits into cash, weak receivables quality and margin sustainability.
• Three-year cash conversion (OCF / net profit) = -0.41 (17th percentile). Negative and low percentile means reported profits are not being converted into operating cash flow relative to Vietnamese peers.
• Piotroski F-Score = 3/9. This indicates relatively weak fundamental accounting and performance metrics across profitability, leverage/liquidity and operating efficiency.
• LVGI = 1.1984 (leverage growth index). LVGI >1 signals leverage has increased, which may amplify accounting risk if profits are accrual-based.

• AQI = 0.5569 (asset quality index less than 1). A lower AQI can indicate no recent large write-offs of long-lived assets relative to prior period asset base.
• SGI = 1.1100 (sales growth index ~11% growth). Some top-line growth exists, which can provide operating scale if sustainable.
• DEPI = 0.1289 (depreciation index well below 1). A DEPI much less than 1 suggests depreciation expense has not fallen sharply relative to prior period, i.e., there is no immediate sign of aggressive slowing of depreciation.
• No accumulated losses; owner’s equity (excluding minorities) is positive and the parent has reported 0 years of net loss up to FY2025—these are balance-sheet stability signals relative to firms with recurring statutory losses.

Ownership is concentrated: one individual, Trịnh Thị Nga, holds 25.0%, and a related institutional owner (Tran Maritime Holdings) holds 11.8%; four individuals together hold the bulk of free float. Director-deal registrations (not executed trades) show 0 sale registrations and 2 purchase registrations totaling 650,000 shares (net registered volume +10.69% of shares outstanding), indicating insiders have registered to buy during the 2025-10-30 to 2026-10-30 window.

• Compare FY2025 accounts receivable and the receivables aging note with sales to validate the DSRI (1.3099) and the receivables-quality score; inspect whether significant receivables are long-dated or outside the normal trade cycle.
• Reconcile operating cash flow and profit in the cash-flow statement and the notes to confirm the three-year cash-conversion ratio (-0.41) and identify the main non-cash accrual drivers (movement in payables, inventory, provisions, related-party receivables).
• Examine the related-party disclosures, prepayments and loans schedules to verify the 1.1% of total assets classified as 'receivables outside the trade cycle' and to see counterparty names, terms and repayment history.
• Review the notes on depreciation, fixed-assets additions and disposals to assess the DEPI (0.1289) explanation and the composition of asset-base changes that underpin the AQI (0.5569).