Analysis of business results & financial statements · Quý 2/2026
▼▼ Declining sharply
Trailing net profit reached 16.0bn, fell 11.1bn compared with the same period last year. Key positives came from higher gross profit and lower tax. Offsetting pressure came mainly from higher selling expenses, higher administrative expenses, and higher finance costs. Detailed impact is shown below:
See what is changing ↓- P/E
- 21.39x
- P/B
- 0.71x
- EPS
- 360
- BVPS
- 10,893
- ROE
- 3.3%
- ROA
- 2.0%
- Market price
- 7,700 16 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q2 basis, HNM is going through a period of clear decline across multiple metrics at once — margins have been compressing consistently over multiple periods. What still needs to be determined is whether the business can find a stabilization point in the near term, or whether current pressure has not yet run its course.
Profit bridge
Vs last year · TTM
- Gross profit
- Tax
- Selling expenses
- Administrative expenses
- Finance costs
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 2/2026
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 195.8 | 189.6 | 206.6 | 152.9 | 182.4 | 192.2 | 187.6 | 216.1 |
| LNST | 7.8 | 3.7 | 2.8 | 1.6 | 5.0 | 8.1 | 6.0 | 8.1 |
| Net margin | 3.99% | 1.97% | 1.37% | 1.05% | 2.74% | 4.20% | 3.19% | 3.73% |
Revenue
196bnNet income
8bnNet margin
3.99%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.
Revenue Growth
●Is growth real and durable?
Trailing-12-month revenue declined 4.3% year on year — not from a single spike: quarterly growth stepped up from −29% to +7%.
2 of the last 4 quarters grew year on year.
- Revenue TTM
- 745bn −4.3%
- Latest quarter YoY
- +7% accelerating
What is driving the margin?
▼Net margin narrowed to 2.15%, falling 1.3pp. The main pressure is SG&A / Revenue rose 4.7pp, outweighing the improvement in Gross margin rose 4.0pp (with lingering pressure from Net financial result / Revenue fell 0.9pp and Other profit / Revenue fell 0.1pp).
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
- 2.15% −1.3pp
- Gross Margin
- 18.88% +4.0pp
- SG&A / Revenue
- 15.16% +4.7pp
TTM YoY · 2025Q2 -> 2026Q2
Cash Flow
▼Is profit converting into cash?
With leverage safe, cash flow shows the self-funding capacity. Operating cash flow reached 29.5bn against investing cash flow of -130.2bn (annual cash-flow figures for 2025).
Post-investment cash flow was negative +100.7bn. Financing cash flow was positive +194.0bn.
CFO / net income was 4,71 lần.
After spending +164.4bn on fixed-asset investment, the business generated trailing free cash flow of −89.0bn.
Earnings Quality
●How much income is non-core?
Non-core income makes up 17.3% of pre-tax profit — worth monitoring.
Within that, net financial result at −54.9%, other profit at +17.3% of PBT.
- Non-core / PBT
- 17.3% moderate
- Net financial / PBT
- −54.9%
- Other profit / PBT
- 17.3%
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 2.14%, losing 2.3pp. That translates to 2.14 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 1.3pp and capital turnover fell 0.26x, while invested capital rose by 86bn — pressure came from both operational efficiency and asset efficiency.
Both margin and turnover weakened — this is a broad-based decline, and cyclical versus structural components need to be separated.
ROIC is currently 2.14% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Working Capital Efficiency
▲Working capital is being managed more efficiently, supporting overall capital efficiency. Cash conversion cycle improved by 3.5 days versus the same period last year. The main moves came from DIO rose 13.4 days, DSO rose 7.3 days, and DPO rose 24.2 days.
Extended payment timing is the main driver — consider whether this trades off supplier relationships.
CCC stands at 144.9 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DSO increased by +7.3 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE fell from 5.7% to 3.3% — net margin weakened the most, though leverage still provided support.
Is financial risk significant?
Leverage is safe but FCF is negative at 89.0bn due to capex of 164.4bn — an investment choice, not an urgent risk.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 0.44x and interest coverage only at 1.12x.
At present, short-term debt accounts for 49.5% of total debt, cash equals 11.7% of debt, and total debt stands at 242.9bn.
- Net Debt / Equity
- 0.44x +0.35x
- Interest Coverage
- 1.12x −2.36x
- Cash / Debt
- 11.7% −40.6pp
- Short-term Debt / Total Debt
- 49.5%
TTM YoY · 2025Q2 -> 2026Q2
Interest coverage is 1.12x, leaving limited room to absorb financing costs.
Cash / debt stands at 11.7%, leaving limited liquidity buffer to monitor.
Balance Sheet
●The balance sheet shows capital-allocation efficiency slipping. Capital structure is conservative with low leverage — liabilities at 0.86x equity, net debt at 0.44x equity.
Inventory ended the period at 294.7bn, roughly 33.6% of total assets.
Over the last 12 months, working capital released 38.6bn of cash, mainly thanks to higher payables. Pressure from higher receivables and higher inventories only partly offset that benefit.
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 2.1%. The next watchpoint is the earnings mix, when non-core contribution is 17.3%.
- Watchpoint: cash flow is currently keeping pace with accounting earnings, with CFO / net income at 4.71x. Even so, net financial result still accounts for 17.3% 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 −4,3% YoY decline or keeps falling.
Whether margins hold around the current 2.15% level or narrow again.
Whether operating cash flow holds its 29.5bn (cumulative for 2025) level in upcoming periods or weakens.
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