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iShareInvest Research

HNX · Quý 2/2026

ARM

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Analysis of business results & financial statements · Quý 2/2026

▲▲ Improving positively

Trailing net profit reached 8.4bn, rose 3.1bn compared with the same period last year. Key positives came from higher gross profit. Offsetting pressure came mainly from higher selling expenses, higher administrative expenses, higher finance costs, and higher tax. Detailed impact is shown below:

See what is changing ↓
P/E
17.26x
P/B
3.48x
EPS
2,711
BVPS
13,448
ROE
20.4%
ROA
3.8%
Market price
46,800
16 Mar 2026

What Is Changing

On a TTM 2026Q2 basis, ARM is growing strongly on the back of scale expansion, while margins have only improved slightly — profit is at an all-time high. However, operating cash flow is significantly negative relative to profit — this needs monitoring in coming periods.

Profit bridge

Vs last year · TTM

  1. Gross profit
  2. Selling expenses
  3. Administrative expenses
  4. Finance costs
  5. Tax
Unit: VND bn. Green bars support profit; red bars reduce profit.

A single data point, or a trajectory?

Latest eight quarters · Quý 2/2026

MetricQ2'26Q1'26Q4'25Q3'25Q2'25Q1'25Q4'24Q3'24
Revenue150.578.282.587.773.550.5124.960.2
LNST3.61.91.41.51.71.31.11.2
Net margin2.41%2.46%1.70%1.68%2.36%2.61%0.89%1.97%

Revenue

151bn

Net income

4bn

Net margin

2.41%

A closer look at what is happening inside the business

A company's statements are read with the questions that fit its type of business.

01

Is the profit sustainable?

Accounting profit is positive but operating cash flow has not caught up — needs more time to confirm.

Revenue Growth

▲▲

Is growth real and durable?

Trailing-12-month revenue grew 29.0% year on year — not from a single spike: quarterly growth stepped up from +46% to +105%.

3 of the last 4 quarters grew year on year.

Revenue TTM
399bn
+29.0%
Latest quarter YoY
+105%
accelerating

What is driving the margin?

●

Net margin edged up to 2.11%, rising 0.4pp. Core operating signals are improving as SG&A / Revenue fell 1.1pp are enough to offset pressure from Gross margin fell 0.1pp (with lingering pressure from Net financial result / Revenue fell 0.4pp).

Margin improves from both core operations and non-core items — the core foundation is positive, but the sustainability of non-core contributions needs monitoring.

Net Margin
2.11%
+0.4pp
Gross Margin
11.80%
−0.1pp
SG&A / Revenue
8.39%
−1.1pp

TTM YoY · 2025Q2 -> 2026Q2

Cash Flow

●

Is profit converting into cash?

High leverage combined with negative cash flow reveals the actual liquidity pressure. Operating cash flow reached -4.4bn against investing cash flow of 1.3bn (annual cash-flow figures for 2025).

Post-investment cash flow was negative +3.0bn. Financing cash flow was negative +14.1bn.

CFO / net income was −4,94 lần.

Track how much investment can be funded internally from operating cash flow.

Cash capex or FCF data is incomplete, so the cash-conversion view is only partial.

Earnings Quality

▲

How much income is non-core?

About 100% of pre-tax profit comes from core operations.

Within that, net financial result at −24.7%, other profit at +0.1% of PBT.

Non-core / PBT
0.1%
low
Net financial / PBT
−24.7%
Other profit / PBT
0.1%
02

Is capital being used efficiently?

Evaluate capital, asset, and working-capital efficiency.

Is capital being deployed efficiently?

●

ROIC stands at 10.53%, broadly flat versus the same period. That translates to 10.53 in after-tax operating profit for every 100 units of operating capital. NOPAT margin rose 0.4pp, but capital turnover fell 1.18x, with invested capital holding roughly steady — the two factors are offsetting each other, keeping overall ROIC nearly unchanged.

Overall ROIC is flat while internal components are moving — watch which side becomes dominant in coming periods.

Working Capital Efficiency

▼

Cash conversion cycle lengthened by 12.0 days versus the same period last year. The main moves came from DIO rose 5.9 days, DSO rose 17.3 days, and DPO rose 11.2 days.

Working capital cycle lengthened mainly due to slower receivables collection — receivables quality needs monitoring.

Cash conversion cycle is lengthening

CCC is up by +12.0 days, indicating weaker working-capital turnover versus the prior year.

Receivables collection is slowing

DSO increased by +17.3 days, pointing to slower receivables turnover.

DuPont

What drives ROE?

Net margin 2.1% +0.4pp
Asset turnover 1.79x -0.25x
Financial leverage 5.39x +1.46x
ROE 20.4% +6.5pp

ROE rose from 13.9% to 20.4% — driven by leverage and net margin together, despite asset turnover moving in the opposite direction.

03

Is financial risk significant?

Check leverage, liquidity, and cash-flow conversion.

Leverage & Liquidity

▼▼

Leverage warrants monitoring, with net debt / equity at 1.47x and interest coverage only at 2.60x.

At present, short-term debt accounts for 100.0% of total debt, cash equals 18.3% of debt, and total debt stands at 75.3bn.

Net Debt / Equity
1.47x
+1.07x
Interest Coverage
2.60x
+0.34x
Cash / Debt
18.3%
−28.7pp
Short-term Debt / Total Debt
100.0%
0.0pp

TTM YoY · 2025Q2 -> 2026Q2

Net leverage is elevated

Net debt / equity stands at 1.47x, increasing balance-sheet pressure.

Short-term refinancing pressure is meaningful

Short-term debt accounts for 100.0% of total debt, raising near-term refinancing needs.

Balance Sheet

▼▼

Leverage is very high, with clear pressure on the capital structure — liabilities at 4.70x equity, net debt at 1.47x equity.

None

Over the last 12 months, working capital absorbed 32.7bn of cash, mainly because of higher receivables and higher inventories. Part of that drag was offset by higher payables.

Research synthesis

What this reporting period is showing

The business is showing a few weaker signals, but the current magnitude is not yet clear enough to conclude that this is a broader weakening phase. The brighter spot is earnings conversion is confirmed, with CFO/NI at −4.94x. The next item to monitor is cash generation still needs confirmation. The main risk still sits in leverage and liquidity, with interest coverage at 2.60x.

  • Improvement: earnings conversion looks more confirmed, with CFO / net income at −4.94x.
  • Watchpoint: Cash generation still needs confirmation.
  • Key risk: leverage and liquidity remain a pressure point, with net debt / equity at 1.47x and a thin cash buffer.

Questions for the next period

  1. Whether revenue sustains its +29,0% YoY pace or begins to slow.

  2. Whether margins hold around the current 2.11% level or narrow again.

  3. Whether operating cash flow holds its -4.4bn (cumulative for 2025) level in upcoming periods or weakens.

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