Analysis of business results & financial statements · Quý 3/2024
▼▼ Declining sharply
Trailing net profit reached 284.5bn, fell 144.2bn compared with the same period last year. Offsetting pressure came mainly from lower gross profit, higher administrative expenses, higher finance costs, and lower financial income. Detailed impact is shown below:
See what is changing ↓- P/E
- —
- P/B
- —
- EPS
- -14,803
- BVPS
- -1,833
- ROE
- -143.7%
- ROA
- -17.4%
- Market price
- —
The current picture
What Is Changing
On a TTM 2024Q3 basis, DAG posted a very sharp profit drop versus the same period, showing that pressure has clearly fed through to the bottom line — margins have been compressing consistently over multiple periods. More notably, a significant portion of profit is supported by non-core sources, further affecting earnings quality.
Profit bridge
Vs last year · TTM
- Other
- Gross profit
- Administrative expenses
- Finance costs
- Financial income
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 3/2024
| Metric | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | Q2'23 | Q1'23 | Q4'22 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 0.0 | 55.3 | 30.3 | 30.7 | 213.8 | 400.4 | 558.8 | 480.9 |
| LNST | -180.5 | -66.6 | -15.1 | -22.3 | -16.2 | -102.7 | -21.4 | 0.1 |
| Net margin | — | -120.36% | -49.61% | -72.84% | -7.59% | -25.66% | -3.83% | 0.01% |
Revenue
0bnNet income
-181bnNet margin
-120.36%Inside the statements
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.
Is the profit sustainable?
Margins are under pressure while earnings still rely significantly on non-core sources.
Revenue Growth
▼▼Is growth real and durable?
Trailing-12-month revenue declined 93.0% year on year — but the quarterly pace is slowing (−94% → −100%).
0 of the last 4 quarters grew year on year.
- Revenue TTM
- 116bn −93.0%
- Latest quarter YoY
- −100% slowing
What is driving the margin?
▼▼Net margin fell to −244.56%, losing 236.1pp. The main pressure comes from SG&A / Revenue rose 114.6pp and Gross margin fell 36.3pp (with lingering pressure from Net financial result / Revenue fell 85.1pp).
Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.
- Net Margin
- −244.56% −236.1pp
- Gross Margin
- −32.74% −36.3pp
- SG&A / Revenue
- 122.37% +114.6pp
- Non-core / Revenue
- −89.45% −85.2pp
TTM YoY · 2023Q3 -> 2024Q3
Even though contribution decreased by 85.2pp, financial result still accounts for 36.6% of PBT — earnings durability should be monitored in coming periods.
Cash Flow
▼▼Is profit converting into cash?
High leverage combined with negative cash flow reveals the actual liquidity pressure. Operating cash flow reached -15.1bn against investing cash flow of 182.6bn (annual cash-flow figures for 2023).
Post-investment cash flow was positive +167.5bn. Financing cash flow was negative +167.5bn.
CFO / net income was 1,31 lần.
After spending 0.0bn on fixed-asset investment, the business generated trailing free cash flow of −371.9bn.
Earnings Quality
▼How much income is non-core?
Non-core income reaches 36.6% of pre-tax profit — core earnings are thinner than the headline.
Within that, net financial result at +36.5%, other profit at +0.1% of PBT.
- Non-core / PBT
- 36.6% high
- Net financial / PBT
- 36.5%
- Other profit / PBT
- 0.1%
Is capital being used efficiently?
Capital efficiency is declining — check whether the drag is from margins or turnover.
Is capital being deployed efficiently?
▼▼ROIC fell to −20.64%, losing 13.2pp. That translates to −20.64 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 236.1pp and capital turnover fell 0.83x, while invested capital contracted by 425bn — pressure came from both operational efficiency and asset efficiency.
Pressure came from the margin side — core operations are weakening, not just a temporary asset-management issue.
ROIC is currently −20.64% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Working Capital Efficiency
▼▼Rising inventory is showing up in a longer cash cycle. Cash conversion cycle lengthened by 2723.5 days versus the same period last year. The main moves came from DIO rose 1893.1 days, DSO rose 931.9 days, and DPO rose 101.5 days.
Working capital cycle lengthened mainly due to slower inventory turnover — more capital is being tied up in inventory.
CCC stands at 2984.3 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DSO increased by +931.9 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE fell from −23.4% to −143.7% — dragged by net margin and asset turnover.
Is financial risk significant?
Leverage is safe but FCF is negative at 371.9bn due to capex of 0.0bn — an investment choice, not an urgent risk.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at −9.93x and interest coverage only at −2.72x.
At present, short-term debt accounts for 66.8% of total debt, cash equals 0.4% of debt, and total debt stands at 1,102.1bn.
- Net Debt / Equity
- −9.93x −12.42x
- Interest Coverage
- −2.72x −1.11x
- Cash / Debt
- 0.4% −0.2pp
- Short-term Debt / Total Debt
- 66.8% −4.9pp
TTM YoY · 2023Q3 -> 2024Q3
Interest coverage is −2.72x, leaving limited room to absorb financing costs.
Short-term debt accounts for 66.8% of total debt, raising near-term refinancing needs.
Balance Sheet
▼▼The balance sheet shows capital-allocation efficiency slipping. Leverage is very high, with clear pressure on the capital structure — liabilities at 16.99x equity, with a net cash position equivalent to 9.93x equity.
Inventory ended the period at 557.6bn, roughly 38.7% of total assets.
Over the last 12 months, working capital absorbed 137.3bn of cash, mainly because of higher receivables and lower payables. Part of that drag was offset by lower inventories.
In summary
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. Even so, earnings quality still needs closer monitoring because net financial result remains elevated. The main risk still sits in core profitability, with net margin down 236.1 pp.
- Watchpoint: cash flow is currently keeping pace with accounting earnings, with CFO / net income at 1.31x. Even so, net financial result still accounts for 36.5% of PBT, so the earnings mix still needs monitoring.
- Key risk: profitability remains under pressure, with trailing-12M net margin at -244.56% after a 236.1pp decline versus the same period last year.
What to verify next
Questions for the next period
Whether revenue stabilizes after a −93,0% YoY decline or keeps falling.
Whether margins hold around the current -244.56% level or narrow again.
Whether operating cash flow holds its -15.1bn (cumulative for 2023) level in upcoming periods or weakens.
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