UPCOM:ITS

• Beneish M-Score = -1.6 (measures likelihood of earnings manipulation using eight ratios). Although the US cutoff is -1.78, this company sits at the 77th percentile among Vietnamese peers (higher = more aggressive accounting) and the M-Score rose by +0.61 year-over-year, indicating a notable upward shift in the modelled aggressive-accounting signal.
• Cash-conversion (operating cash flow / net profit, three-year) = -25.27 (measures how well reported profits convert into cash). Ranked in the 2nd percentile among Vietnamese non-financials, meaning profits have not been turning into operating cash over the period.
• TATA (total accruals) = 0.1843 (measures accrual intensity of earnings). A positive and material TATA suggests earnings include substantial accruals rather than cash-based profit recognition.
• Altman Z-Score = 1.01 (measures distance-to-distress/bankruptcy). This level places the company in the model’s distress zone, indicating financial stress per the Altman formula.
• Earnings-Quality overall = 37.2/100 with Cash conversion = 0.0/100 and Revenue quality = 0.0/100 (measures multiple aspects of earnings sustainability). Very low sub-scores for cash conversion and revenue quality raise concerns about the sustainability and cash backing of reported profits.
• Receivables outside the trade cycle = 21.5% of total assets (measures non-trade receivables such as prepayments, loans receivable and long-term receivables). At the 91st percentile among Vietnamese peers, this is a high proportion and can reflect significant related-party advances, prepayments or financial receivables that are not normal trade receivables.

• Receivables-quality score = 100.0/100 (measures the behaviour and composition of receivables). This suggests reported trade receivables exhibit characteristics consistent with good quality under the applied tests.
• DSRI = 0.8483 (days sales receivables index, one Beneish input measuring receivables relative to sales). A DSRI below 1 indicates receivables are not growing faster than sales, which reduces a common manipulation signal.
• SGAI = 0.9365 and DEPI = 0.9491 (selling/general/admin and depreciation indices in the Beneish model). Both below 1 indicate selling/administrative expense growth and depreciation patterns are not unusually high relative to sales, which can be neutral-to-positive for manipulation detection.
• Piotroski F-Score = 5/9 (measures simple fundamentals: profitability, leverage/liquidity, and operating efficiency). A middle score indicates mixed but not uniformly poor fundamental signals.

Ownership is concentrated: two private institutions hold 35.7% and 24.0%, and a large state-related industrial group (Tập đoàn Công nghiệp Than - Khoáng sản Việt Nam) holds 18.0%. No director-deal registrations were provided. The concentrated institutional and state-group ownership suggests potential for related-party transactions and group-related flows common in Vietnamese corporate groups.

• Compare FY2025 schedules for 'Receivables and other amounts due' (note or schedule) to the trade-receivables line to identify the composition of the 21.5% non-trade receivables of total assets (prepayments, loans to related parties, long-term receivables).
• Reconcile the cash-flow statement’s 'Net cash from operating activities' for FY2023–FY2025 against reported net profit in each year to substantiate the three-year cash-conversion metric of -25.27.
• Inspect the related-party transactions note and the 'Prepayments to suppliers' line for FY2025 to see whether material prepayments or intra-group balances explain high receivables-outside-the-trade-cycle.
• Check the auditor’s report and any disclosure on going-concern or post-balance-sheet events, given the Altman Z-Score of 1.01 (distress-zone) and accumulated losses tests showing no statutory accumulated loss in the published statements.