Analysis of business results & financial statements · Quý 4/2024
▲ Showing improvement
Trailing net profit reached 0.2bn, rose 6.5bn compared with the same period last year. Key positives came from lower administrative expenses, lower finance costs, and higher gross profit. Detailed impact is shown below:
See what is changing ↓- P/E
- —
- P/B
- —
- EPS
- -43
- BVPS
- -1,295
- ROE
- 5.0%
- ROA
- -0.4%
- Market price
- —
The current picture
What Is Changing
On a TTM 2024Q4 basis, DZM posted a sharp profit increase versus the same period, suggesting a clear improvement from a low base — margins have been expanding consistently over multiple periods. However, most of the profit comes from non-core sources — this needs careful evaluation before concluding on growth quality.
Profit bridge
Vs last year · TTM
- Administrative expenses
- Finance costs
- Gross profit
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 4/2024
| Metric | Q4'24 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | Q2'23 | Q1'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 9.3 | 9.0 | 1.1 | 2.0 | 8.7 | 1.8 | 1.2 | 13.3 |
| LNST | 0.7 | 1.7 | -1.2 | -1.5 | -0.2 | -2.4 | -2.2 | -2.0 |
| Net margin | 8.01% | 18.80% | -106.31% | -74.35% | -2.42% | -134.72% | -182.66% | -14.67% |
Revenue
9bnNet income
1bnNet margin
8.01%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 improved (+26.0pp), but earnings still rely significantly on non-core sources — warrants closer scrutiny.
Revenue Growth
▼Is growth real and durable?
Trailing-12-month revenue declined 14.1% year on year — not from a single spike: quarterly growth stepped up from −85% to +7%.
2 of the last 4 quarters grew year on year.
- Revenue TTM
- 21bn −14.1%
- Latest quarter YoY
- +7% accelerating
What is driving the margin?
▲▲Net margin expanded to −1.08%, rising 26.0pp. The main driver is SG&A / Revenue fell 12.2pp and Gross margin rose 8.8pp, moving in line with the stronger net margin (in addition, Net financial result / Revenue rose 7.0pp added support while Other profit / Revenue fell 2.0pp remained a drag).
The improvement comes from core operations — this is a high-quality margin expansion.
- Net Margin
- −1.08% +26.0pp
- Gross Margin
- 23.61% +8.8pp
- SG&A / Revenue
- 21.61% −12.2pp
- Non-core / Revenue
- −3.08% +5.0pp
TTM YoY · 2023Q4 -> 2024Q4
Other income accounts for 285.4% of PBT and lifted net margin by 5.0pp — separate the operating contribution from this source.
Cash Flow
▼▼Is profit converting into cash?
Operating cash flow reached -2.4bn against investing cash flow of 0.4bn (annual cash-flow figures for 2024).
Post-investment cash flow was negative +2.0bn. Financing cash flow was positive +0.8bn.
CFO / net income was 10,43 lần.
After spending 0.0bn on fixed-asset investment, the business generated trailing free cash flow of −2.4bn.
Earnings Quality
▼How much income is non-core?
Non-core income reaches 285.4% of pre-tax profit — core earnings are thinner than the headline.
Within that, net financial result at +72.0%, other profit at +213.4% of PBT.
- Non-core / PBT
- 285.4% high
- Net financial / PBT
- 72.0%
- Other profit / PBT
- 213.4%
Is capital being used efficiently?
Return on capital rose, but cash cycle lengthened by 157.6 days — working capital needs watching.
Is capital being deployed efficiently?
▲▲ROIC expanded to 1.12%, rising 14.8pp. That translates to 1.12 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin rose 28.0pp and capital turnover rose 0.41x, with invested capital holding roughly steady — capital-return quality improved from both sides.
NOPAT margin led the improvement, but the ROIC level has not yet cleared typical cost of capital — margin needs to hold in coming periods rather than being a one-period rebound.
ROIC is currently 1.12% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Working Capital Efficiency
▼▼Cash conversion cycle lengthened by 157.6 days versus the same period last year. The main moves came from DIO rose 154.4 days, DSO rose 114.8 days, and DPO rose 111.6 days.
Working capital cycle lengthened mainly due to slower inventory turnover — more capital is being tied up in inventory.
CCC stands at 1122.3 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DSO increased by +114.8 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE rose from −38.5% to 5.0% — supported by net margin and asset turnover.
Is financial risk significant?
Leverage is safe but FCF is negative at 2.4bn due to capex of 0.0bn — an investment choice, not an urgent risk.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at −3.16x and interest coverage only at 1.19x.
At present, short-term debt accounts for 100.0% of total debt, cash equals 0.6% of debt, and total debt stands at 23.9bn.
- Net Debt / Equity
- −3.16x +15.91x
- Interest Coverage
- 1.19x +4.62x
- Cash / Debt
- 0.6% −3.6pp
- Short-term Debt / Total Debt
- 100.0% 0.0pp
TTM YoY · 2023Q4 -> 2024Q4
Interest coverage is 1.19x, leaving limited room to absorb financing costs.
Short-term debt accounts for 100.0% of total debt, raising near-term refinancing needs.
Balance Sheet
●The asset structure shows capital being allocated increasingly efficiently. Balance sheet is exceptionally sound — liabilities at -8.87x equity, with a net cash position equivalent to 3.16x equity.
Inventory ended the period at 32.1bn, roughly 54.2% of total assets.
Over the last 12 months, working capital absorbed 1.7bn of cash, mainly because of higher inventories. Part of that drag was offset by lower receivables and higher payables.
In summary
Research synthesis
What this reporting period is showing
The business is heading the right way, but the current picture is still at partial confirmation — not yet a fully clean case. The positive points have clearly improved, showing the operating base is better than before. The brighter spot is operating efficiency, with net margin improving 26.0 pp. Even so, earnings quality still needs closer monitoring because net financial result remains elevated. The main risk still sits in capital efficiency remains weak, with ROIC at 1.1%.
- Improvement: operating efficiency is getting better, with trailing-12M net margin at -1.08% after expanding 26.0pp versus the same period last year.
- Watchpoint: cash flow is currently keeping pace with accounting earnings, with CFO / net income at 10.43x. Even so, net financial result still accounts for 72.0% of PBT, so the earnings mix still needs monitoring.
- Key risk: Capital efficiency remains weak.
What to verify next
Questions for the next period
Whether revenue stabilizes after a −14,1% YoY decline or keeps falling.
Whether margins hold around the current -1.08% level or narrow again.
Whether operating cash flow holds its -2.4bn (cumulative for 2024) level in upcoming periods or weakens.
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