Analysis of business results & financial statements · Quý 1/2026
▲▲ Improving positively
Trailing net profit reached 20.0bn, rose 54.6bn compared with the same period last year. Key positives came from better other profit and higher gross profit. Detailed impact is shown below:
See what is changing ↓- P/E
- -1,567.53x
- P/B
- 2,028.48x
- EPS
- -574
- BVPS
- 444
- ROE
- -78.7%
- ROA
- -35.9%
- Market price
- 900,000 16 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 basis, HHG posted a sharp profit increase versus the same period, suggesting a clear improvement from a low base — margins have been compressing consistently over multiple periods. The point still to be proven is whether this new profit level can hold once the low-base effect fades.
Profit bridge
Vs last year · TTM
- Other profit
- Gross profit
- Other
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 | 3.7 | 5.0 | 5.3 | 5.6 | 6.5 | 7.9 | 9.0 | 11.4 |
| LNST | -3.2 | -5.0 | -5.8 | -6.0 | -50.7 | -7.0 | -8.0 | -8.9 |
| Net margin | -86.05% | -101.37% | -109.56% | -107.00% | -783.23% | -88.70% | -89.29% | -78.05% |
Revenue
4bnNet income
-3bnNet margin
-86.05%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 improving and earnings quality is solid — a durable foundation for ROE.
What is driving the margin?
▲▲Net margin expanded to −102.26%, rising 112.4pp. Despite pressure from Gross margin fell 10.7pp and SG&A / Revenue rose 7.0pp, the offset came from Other profit / Revenue rose 122.1pp and Net financial result / Revenue rose 8.1pp.
Most of the margin increase comes from non-core items — core operations have not kept pace, this is a margin expansion to watch carefully.
- Net Margin
- −102.26% +112.4pp
- Gross Margin
- −69.86% −10.7pp
- SG&A / Revenue
- 36.67% +7.0pp
TTM YoY · 2025Q1 -> 2026Q1
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 −49.76%, losing 21.4pp. That translates to −49.76 in after-tax operating profit for every 100 units of operating capital. The main pressure came from capital turnover rose 0.18x — capital is being absorbed faster than revenue is being generated; while invested capital contracted by 73bn.
Pressure came from the margin side — core operations are weakening, not just a temporary asset-management issue.
ROIC is currently −49.76% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Balance Sheet
▼ROIC declined — the balance sheet shows how capital is being deployed. Leverage is elevated, requiring monitoring — liabilities at 1.75x equity, net debt at 1.58x equity.
None
Over the last 12 months, working capital absorbed 1.7bn of cash, mainly because of higher inventories and lower payables. Part of that drag was offset by lower receivables.
Working Capital Efficiency
▲▲Working capital is being managed more efficiently, supporting overall capital efficiency. Cash conversion cycle improved by 20.6 days versus the same period last year. The main moves came from DIO fell 4.2 days, DSO rose 7.1 days, and DPO rose 23.5 days.
Extended payment timing is the main driver — consider whether this trades off supplier relationships.
DSO increased by +7.1 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE rose from −102.3% to −78.7% — all three components improved.
Is financial risk significant?
High leverage combined with negative operating cash flow — this area needs close monitoring.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 1.58x and interest coverage only at −67.59x.
At present, short-term debt accounts for 10.8% of total debt, cash equals 1.1% of debt, and total debt stands at 24.8bn.
Net debt / equity stands at 1.58x, increasing balance-sheet pressure.
Interest coverage is −67.59x, leaving limited room to absorb financing costs.
- Net Debt / Equity
- 1.58x +1.45x
- Interest Coverage
- −67.59x −49.91x
- Cash / Debt
- 1.1% −43.3pp
- Short-term Debt / Total Debt
- 10.8% −89.2pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
●High leverage combined with cash flow below reveals the actual liquidity pressure. Operating cash flow reached -23.0bn in 2025, against investing cash flow of 61.3bn.
Post-investment cash flow was positive +38.3bn. Financing cash flow was negative +38.3bn.
CFO / net income was 0,62 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.
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 capital efficiency remains weak remaining the main constraint, with ROIC at −49.8%. The next watchpoint is effective tax rate looks unusual, with effective tax rate at 0.2%. The main offsetting support comes from operating efficiency, with net margin improving 112.4 pp.
- Improvement: operating efficiency is getting better, with trailing-12M net margin at -102.26% after expanding 112.4pp versus the same period last year.
- Watchpoint: the effective tax rate looks unusual, so current net profit may not fully reflect underlying earnings quality.
- Key risk: Capital efficiency remains weak.
What to verify next
Questions for the next period
Ability to stabilize revenue after a −43,7% YoY decline.
Ability to hold margins around the current -102.26% level.
Cash-flow quality, with operating cash flow currently at -23.0bn in 2025.
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