Analysis of business results & financial statements · Quý 2/2026
● Maintaining
Trailing net profit reached 539.6bn, rose 81.1bn compared with the same period last year. Key positives came from lower selling expenses and better other profit. Offsetting pressure came mainly from lower gross profit, lower financial income, higher administrative expenses, and higher tax. Detailed impact is shown below:
See what is changing ↓- P/E
- 11.97x
- P/B
- 0.56x
- EPS
- 869
- BVPS
- 18,486
- ROE
- 4.7%
- ROA
- 2.6%
- Market price
- 10,400 16 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q2 basis, HSG has not moved the needle on revenue, but profitability has edged up slightly — margins have been expanding consistently over multiple periods. Notably, operating cash flow is significantly negative relative to profit — this needs monitoring in coming periods.
Profit bridge
Vs last year · TTM
- Selling expenses
- Other profit
- Gross profit
- Financial income
- Administrative expenses
- Tax
- Other
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 | 8,967.1 | 8,383.1 | 8,356.6 | 9,509.2 | 8,451.9 | 10,221.7 | 10,108.7 | 10,840.4 |
| LNST | 118.7 | 62.4 | 84.7 | 273.8 | 205.4 | 165.5 | -185.9 | 273.4 |
| Net margin | 1.32% | 0.74% | 1.01% | 2.88% | 2.43% | 1.62% | -1.84% | 2.52% |
Revenue
8,967bnNet income
119bnNet margin
1.32%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?
Accounting profit is positive but operating cash flow has not caught up — needs more time to confirm.
Revenue Growth
▼Is growth real and durable?
Trailing-12-month revenue declined 11.1% year on year — not from a single spike: quarterly growth stepped up from −12% to +6%.
1 of the last 4 quarters grew year on year.
- Revenue TTM
- 35,216bn −11.1%
- Latest quarter YoY
- +6% accelerating
What is driving the margin?
●Net margin edged up to 1.53%, rising 0.4pp. The main driver is Gross margin rose 0.7pp and SG&A / Revenue fell 0.1pp, moving in line with the stronger net margin (in addition, Other profit / Revenue rose 0.1pp added support while Net financial result / Revenue fell 0.4pp remained a drag).
The improvement comes from core operations — this is a high-quality margin expansion.
- Net Margin
- 1.53% +0.4pp
- Gross Margin
- 12.00% +0.7pp
- SG&A / Revenue
- 9.99% −0.1pp
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 3,685.2bn against investing cash flow of -2,616.7bn (annual cash-flow figures for 2025).
Post-investment cash flow was positive +1,068.5bn. Financing cash flow was negative +1,242.4bn.
CFO / net income was −0,99 lần.
After spending +3,416.5bn on fixed-asset investment, the business generated trailing free cash flow of −3,951.4bn.
Earnings Quality
●How much income is non-core?
Non-core income makes up 12.2% of pre-tax profit — worth monitoring.
Within that, net financial result at −20.0%, other profit at +12.2% of PBT.
- Non-core / PBT
- 12.2% moderate
- Net financial / PBT
- −20.0%
- Other profit / PBT
- 12.2%
Is capital being used efficiently?
Evaluate capital, asset, and working-capital efficiency.
Is capital being deployed efficiently?
●ROIC stands at 2.85%, broadly flat versus the same period. That translates to 2.85 in after-tax operating profit for every 100 units of operating capital. NOPAT margin rose 0.3pp, but capital turnover fell 0.40x, while invested capital rose by 915bn — the two factors are offsetting each other, keeping overall ROIC nearly unchanged.
Overall ROIC is flat while internal components are moving — watch which side becomes dominant in coming periods.
ROIC is currently 2.85% — 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 9.0 days versus the same period last year. The main moves came from DIO rose 3.8 days, DSO rose 1.4 days, and DPO fell 3.8 days.
All 3 drivers are deteriorating — working capital is becoming more deeply tied up in the operating cycle.
CCC stands at 106.1 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DSO increased by +1.4 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE rose from 4.1% to 4.7% — mainly driven by net margin, despite asset turnover moving in the opposite direction.
Is financial risk significant?
Leverage is safe but FCF is negative at 3,951.4bn due to capex of 3,416.5bn — an investment choice, not an urgent risk.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 0.64x and interest coverage only at 1.83x.
At present, short-term debt accounts for 100.0% of total debt, cash equals 11.6% of debt, and total debt stands at 8,267.5bn.
- Net Debt / Equity
- 0.64x +0.36x
- Interest Coverage
- 1.83x +0.21x
- Cash / Debt
- 11.6% +0.6pp
- Short-term Debt / Total Debt
- 100.0% 0.0pp
TTM YoY · 2025Q2 -> 2026Q2
Interest coverage is 1.83x, leaving limited room to absorb financing costs.
Short-term debt accounts for 100.0% of total debt, raising near-term refinancing needs.
Balance Sheet
▼Capital structure is balanced — liabilities at 0.67x equity, net debt at 0.64x equity.
Inventory ended the period at 8,203.7bn, roughly 43.3% of total assets.
Over the last 12 months, working capital absorbed 1,915.1bn of cash, mainly because of higher receivables and higher inventories. Part of that drag was offset by higher payables.
In summary
Research synthesis
What this reporting period is showing
The business is balanced but not yet fully stable — some components are moving the right way while others still need monitoring. This is a state to keep watching, with not enough signal to tilt the thesis either way. The brighter spot is earnings conversion is confirmed, with CFO/NI at −0.99x. The main risk still sits in capital efficiency remains weak, with ROIC at 2.8%.
- Improvement: earnings conversion looks more confirmed, with CFO / net income at −0.99x.
- Key risk: Capital efficiency remains weak.
What to verify next
Questions for the next period
Whether revenue stabilizes after a −11,1% YoY decline or keeps falling.
Whether margins hold around the current 1.53% level or narrow again.
Whether operating cash flow holds its 3,685.2bn (cumulative for 2025) level in upcoming periods or weakens.
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