Analysis of business results & financial statements · Quý 1/2026
▼▼ Declining sharply
Trailing net profit reached 13.2bn, fell 18.4bn 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 finance costs, higher administrative expenses, and weaker other profit. Detailed impact is shown below:
See what is changing ↓- P/E
- 25.93x
- P/B
- 0.72x
- EPS
- 297
- BVPS
- 10,718
- ROE
- 2.7%
- ROA
- 1.7%
- Market price
- 7,700 16 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 basis, HNM 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. The key watch now is how long the business needs to stabilize its profit base.
Profit bridge
Vs last year · TTM
- Gross profit
- Tax
- Selling expenses
- Finance costs
- Administrative expenses
- Other 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 | 189.6 | 206.6 | 152.9 | 182.4 | 192.2 | 187.6 | 216.1 | 179.1 |
| LNST | 3.7 | 2.8 | 1.6 | 5.0 | 8.1 | 6.0 | 8.1 | 9.5 |
| Net margin | 1.97% | 1.37% | 1.05% | 2.74% | 4.20% | 3.19% | 3.73% | 5.29% |
Revenue
190bnNet income
4bnNet margin
1.97%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 1.80%, losing 2.3pp. The main pressure is SG&A / Revenue rose 3.1pp, outweighing the improvement in Gross margin rose 2.8pp (with lingering pressure from Net financial result / Revenue fell 1.8pp and Other profit / Revenue fell 0.8pp).
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
- 1.80% −2.3pp
- Gross Margin
- 17.76% +2.8pp
- SG&A / Revenue
- 13.59% +3.1pp
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 2.28%, losing 3.0pp. That translates to 2.28 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 1.6pp and capital turnover fell 0.29x, while invested capital rose by 83bn — 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 2.28% — 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. 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 absorbed 9.6bn of cash, mainly because of higher receivables. Part of that drag was offset by lower inventories and higher payables.
Working Capital Efficiency
▼The inventory build-up noted above is reflected in a longer cash cycle. Cash conversion cycle lengthened by 8.7 days versus the same period last year. The main moves came from DIO rose 19.0 days, DSO rose 6.1 days, and DPO rose 16.5 days.
Working capital cycle lengthened mainly due to slower inventory turnover — more capital is being tied up in inventory.
CCC stands at 156.8 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DSO increased by +6.1 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE fell from 6.7% to 2.7% — net margin weakened the most, though leverage still provided support.
Is financial risk significant?
Leverage is safe but FCF is negative at 131.2bn due to capex of 157.5bn — an investment choice, not an urgent risk.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 0.44x and interest coverage only at 1.18x.
At present, short-term debt accounts for 48.8% of total debt, cash equals 15.3% of debt, and total debt stands at 246.6bn.
Interest coverage is 1.18x, leaving limited room to absorb financing costs.
Cash / debt stands at 15.3%, leaving limited liquidity buffer to monitor.
- Net Debt / Equity
- 0.44x +0.42x
- Interest Coverage
- 1.18x −5.37x
- Cash / Debt
- 15.3% −41.9pp
- Short-term Debt / Total Debt
- 48.8% −51.2pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
▼With safe leverage noted above, cash flow below shows the self-funding capacity. Operating cash flow reached 29.5bn in 2025, against investing cash flow of -130.2bn.
Post-investment cash flow was negative +100.7bn. Financing cash flow was positive +194.0bn.
CFO / net income was 2,00 lần.
After spending +157.5bn on fixed-asset investment, the business generated trailing free cash flow of −131.2bn.
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. The brighter spot is earnings conversion is confirmed, with CFO/NI at 2.00x. The main risk still sits in core profitability, with net margin down 2.3 pp.
- Improvement: earnings conversion looks more confirmed, with CFO / net income at 2.00x.
- Key risk: profitability remains under pressure, with trailing-12M net margin at 1.80% after a 2.3pp decline versus the same period last year.
What to verify next
Questions for the next period
Ability to stabilize revenue after a −5,6% YoY decline.
Ability to hold margins around the current 1.80% level.
Cash-flow quality, with operating cash flow currently at 29.5bn in 2025.
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