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iShareInvest Research

HOSE · Quý 2/2026

KHP

Điện lực Khánh Hòa

Analysis of business results & financial statements · Quý 2/2026

▼ Slightly negative

Trailing net profit reached 36.4bn, rose 0.5bn compared with the same period last year. Key positives came from higher gross profit and lower finance costs. Offsetting pressure came mainly from higher administrative expenses, higher selling expenses, weaker other profit, and lower financial income. Detailed impact is shown below:

See what is changing ↓
P/E
15.70x
P/B
0.88x
EPS
602
BVPS
10,780
ROE
5.6%
ROA
1.5%
Market price
9,450
20 Oct 2026

What Is Changing

On a TTM 2026Q2 basis, KHP posted slightly higher revenue but margins narrowed — the two forces offset each other, leaving the overall picture largely unchanged — profit momentum has been slowing across consecutive periods. More notably, a significant portion of profit is supported by non-core sources, further affecting earnings quality.

Profit bridge

Vs last year · TTM

  1. Gross profit
  2. Finance costs
  3. Administrative expenses
  4. Selling expenses
  5. Other profit
  6. Financial income
Unit: VND bn. Green bars support profit; red bars reduce profit.

A single data point, or a trajectory?

Latest eight quarters · Quý 2/2026

MetricQ2'26Q1'26Q4'25Q3'25Q2'25Q1'25Q4'24Q3'24
Revenue2,460.71,752.81,798.42,307.32,128.01,508.51,683.71,978.5
LNST-0.81.9-76.1111.342.4-29.9-53.176.4
Net margin-0.03%0.11%-4.23%4.82%1.99%-1.98%-3.15%3.86%

Revenue

2,461bn

Net income

-1bn

Net margin

-0.03%

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.

01

Is the profit sustainable?

Margins are under pressure while earnings still rely significantly on non-core sources.

Revenue Growth

▲

Is growth real and durable?

Trailing-12-month revenue grew 14.0% year on year, with the quarterly pace steady around +16%.

4 of the last 4 quarters grew year on year.

Revenue TTM
8,319bn
+14.0%
Latest quarter YoY
+16%
steady

What is driving the margin?

●

Net margin stands at 0.44%, broadly flat versus the same period. Supportive factors and pressure points are offsetting one another.

Margin is nearly flat but the underlying components are moving — this is a transitional phase, more time is needed to see the real trend.

Net Margin
0.44%
−0.1pp
Gross Margin
3.11%
+0.2pp
SG&A / Revenue
2.37%
+0.2pp
Non-core / Revenue
−0.19%
+0.0pp

TTM YoY · 2025Q2 -> 2026Q2

Financial result is supporting margin

Margin support from financial result remains high (35.8% of PBT) — sustainability should be monitored.

Cash Flow

▼

Is profit converting into cash?

Leverage needs watching — cash flow shows the ability to service debt from operations. Operating cash flow reached 240.4bn against investing cash flow of -197.9bn (annual cash-flow figures for 2025).

Post-investment cash flow was positive +42.5bn. Financing cash flow was negative +146.1bn.

CFO / net income was 4,97 lần.

After spending +155.1bn on fixed-asset investment, the business generated trailing free cash flow of +25.7bn.

For utilities, high capex and long investment cycles are structural — short-term FCF volatility does not reflect long-term cash generation through regulated pricing.

Earnings Quality

▼

How much income is non-core?

Non-core income reaches 35.8% of pre-tax profit — core earnings are thinner than the headline.

Within that, net financial result at −71.2%, other profit at +35.8% of PBT.

Non-core / PBT
35.8%
high
Net financial / PBT
−71.2%
Other profit / PBT
35.8%
02

Is capital being used efficiently?

Capital efficiency for utilities should be read alongside regulated tariffs and long-cycle depreciation — ROIC of 1.7% reflects a large fixed-asset base.

Is capital being deployed efficiently?

●

ROIC currently stands at 1.74%. Track NOPAT margin and capital turnover to assess capital efficiency.

For utilities, ROIC reflects returns on a large fixed-asset base — this is a reference signal and should be read alongside regulated tariffs.

Working Capital Efficiency

▲

Working capital is being managed more efficiently, supporting overall capital efficiency. Cash conversion cycle improved by 4.8 days versus the same period last year. The main moves came from DIO fell 0.3 days, DSO fell 0.4 days, and DPO rose 4.1 days.

All 3 drivers (collection, inventory, payables) are improving — working capital turnover is strengthening across the board.

For utilities, working capital cycle reflects regulated pricing mechanics and long-term settlement contracts — DSO/DIO/DPO should be treated as contextual signals rather than pure efficiency indicators.

DuPont

What drives ROE?

Net margin 0.4% -0.1pp
Asset turnover 3.49x +0.33x
Financial leverage 3.65x +0.19x
ROE 5.6% +0.2pp

ROE is broadly flat at 5.6% — the components are offsetting one another.

03

Is financial risk significant?

Financial risk is low — leverage is safe, both CFO and FCF are positive.

Leverage & Liquidity

▼

Leverage warrants monitoring, with net debt / equity at 1.02x and interest coverage only at 0.55x.

At present, short-term debt accounts for 20.2% of total debt, cash equals 1.7% of debt, and total debt stands at 677.2bn.

Leverage for utilities reflects long-term capital needs for fixed assets and recovery through regulated pricing — elevated leverage is structural to the industry.

Net Debt / Equity
1.02x
−0.06x
Interest Coverage
0.55x
+0.13x
Cash / Debt
1.7%
−1.8pp
Short-term Debt / Total Debt
20.2%
−0.1pp

TTM YoY · 2025Q2 -> 2026Q2

Net leverage is elevated

Net debt / equity stands at 1.02x, increasing balance-sheet pressure.

Interest coverage is thin

Interest coverage is 0.55x, leaving limited room to absorb financing costs.

Balance Sheet

▼

ROIC for utilities reflects a large fixed-asset base and regulated tariffs. Leverage is elevated, requiring monitoring — liabilities at 2.10x equity, net debt at 1.02x equity.

None

Over the last 12 months, working capital absorbed 42.9bn of cash, mainly because of higher receivables and higher inventories. Part of that drag was offset by higher payables.

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 next item to monitor is the earnings mix, when non-core contribution is −71.2%. The main risk still sits in leverage and liquidity, with interest coverage at 0.55x.

  • Watchpoint: cash flow is currently keeping pace with accounting earnings, with CFO / net income at 4.97x. Even so, net financial result still accounts for −71.2% of PBT, so the earnings mix still needs monitoring.
  • Key risk: leverage and liquidity still require discipline, with interest coverage only at 0.55x.

Questions for the next period

  1. Whether revenue sustains its +14,0% YoY pace or begins to slow.

  2. Whether margins hold around the current 0.44% level or narrow again.

  3. Whether operating cash flow holds its 240.4bn (cumulative for 2025) level in upcoming periods or weakens.

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