Analysis of business results & financial statements · Quý 1/2026
▼▼ Declining sharply
Trailing net profit reached 16.7bn, fell 80.5bn compared with the same period last year. Offsetting pressure came mainly from lower financial income and lower gross profit. Detailed impact is shown below:
See what is changing ↓- P/E
- —
- P/B
- —
- EPS
- -836
- BVPS
- 9,572
- ROE
- -8.4%
- ROA
- -6.7%
- Market price
- —
The current picture
What Is Changing
On a TTM 2026Q1 basis, HGT posted a very sharp profit drop versus the same period, showing that pressure has clearly fed through to the bottom line — profit momentum has been slowing across consecutive periods. The key watch now is how long the business needs to stabilize its profit base.
Profit bridge
Vs last year · TTM
- Financial income
- Gross profit
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 1/2026
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 14.0 | 8.1 | 6.9 | 10.2 | 13.3 | 13.9 | 15.0 | 15.5 |
| LNST | 5.0 | -16.8 | -4.7 | -0.3 | 1.8 | -9.2 | 74.8 | -3.6 |
| Net margin | 35.80% | -207.65% | -67.55% | -2.56% | 13.78% | -66.18% | 498.32% | -23.43% |
Revenue
14bnNet income
5bnNet margin
35.80%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 narrowed but earnings quality remains clean — pressure is mainly operational.
What is driving the margin?
▼▼Net margin fell to −42.60%, losing 153.4pp. The main pressure comes from SG&A / Revenue rose 35.1pp and Gross margin fell 10.1pp (with lingering pressure from Net financial result / Revenue fell 110.7pp).
The pressure comes from non-core items while core operations hold their rhythm — margin has a basis to recover once this factor passes.
- Net Margin
- −42.60% −153.4pp
- Gross Margin
- 12.67% −10.1pp
- SG&A / Revenue
- 73.08% +35.1pp
TTM YoY · 2025Q1 -> 2026Q1
Is capital being used efficiently?
Capital efficiency should be read in industry context — ROIC may fluctuate with business specifics.
Is capital being deployed efficiently?
●Track how much operating profit the business generates on invested capital.
Industry characteristics make ROIC cyclical — this is a reference signal and should be read with the business context.
Balance Sheet
▼ROIC above should be read with industry context — the balance sheet below adds perspective. Balance sheet is exceptionally sound — liabilities at 0.36x equity, with a net cash position equivalent to 0.23x equity.
None
Over the last 12 months, working capital absorbed 6.1bn of cash, mainly because of higher receivables and higher inventories.
Working Capital Efficiency
▼▼Cash conversion cycle lengthened by 38.0 days versus the same period last year. The main moves came from DIO rose 1.6 days, DSO rose 40.3 days, and DPO rose 3.8 days.
Working capital cycle lengthened mainly due to slower receivables collection — receivables quality needs monitoring.
CCC is up by +38.0 days, indicating weaker working-capital turnover versus the prior year.
DSO increased by +40.3 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE fell from 36.4% to −8.4% — all three components weakened.
Is financial risk significant?
Leverage is safe but FCF is negative at 49.8bn due to capex of 33.7bn — an investment choice, not an urgent risk.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at −0.23x and interest coverage only at −5.16x.
At present, short-term debt accounts for 16.9% of total debt, cash equals 600.0% of debt, and total debt stands at 8.9bn.
Interest coverage is −5.16x, leaving limited room to absorb financing costs.
- Net Debt / Equity
- −0.23x −0.02x
- Interest Coverage
- −5.16x −16.63x
- Cash / Debt
- 600.0% +90.5pp
- Short-term Debt / Total Debt
- 16.9% +3.1pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
▼▼Operating cash flow reached -9.5bn in 2025, against investing cash flow of 20.1bn.
Post-investment cash flow was positive +10.5bn. Financing cash flow was negative +2.0bn.
CFO / net income was 0,96 lần.
After spending +33.7bn on fixed-asset investment, the business generated trailing free cash flow of −49.8bn.
In summary
Research synthesis
What this reporting period is showing
The business is under real pressure, but the current picture has not turned broadly adverse. A notable area has clearly weakened, making the near-term outlook hard to call bright; even so, other parts of the business are still holding up, with margins remain under pressure remaining the main constraint, with net margin down 153.4 pp. The next watchpoint is earnings conversion quality, with CFO/NI at 0.96x.
- Watchpoint: earnings conversion still needs confirmation, with CFO / net income at 0.96x while net financial result still accounts for −42.8% of PBT.
- Key risk: profitability remains under pressure, with trailing-12M net margin at -42.60% after a 153.4pp decline versus the same period last year.
What to verify next
Questions for the next period
Ability to stabilize revenue after a −31,9% YoY decline.
Ability to hold margins around the current -42.60% level.
Cash-flow quality, with operating cash flow currently at -9.5bn in 2025.
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