Analysis of business results & financial statements · Quý 1/2026
▼ Under pressure
Trailing net profit reached 32.1bn, fell 2.8bn compared with the same period last year. Key positives came from lower finance costs, lower administrative expenses, and higher financial income. Offsetting pressure came mainly from lower gross profit, higher selling expenses, and weaker other profit. Detailed impact is shown below:
See what is changing ↓- P/E
- 3.27x
- P/B
- 0.41x
- EPS
- 6,336
- BVPS
- 50,956
- ROE
- 13.1%
- ROA
- 6.2%
- Market price
- 20,700 15 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 basis, KTS is declining across multiple metrics versus the same period, suggesting current pressure is not coming from just one side — the growth momentum has held across consecutive periods. What remains unclear is whether the business can stabilize before this trend deepens.
Profit bridge
Vs last year · TTM
- Finance costs
- Administrative expenses
- Financial income
- Gross profit
- Selling 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 | 59.5 | 100.9 | 64.2 | 118.8 | 57.1 | 119.2 | 86.1 | 58.3 |
| LNST | 2.5 | 3.7 | 11.1 | 14.8 | 4.5 | 20.3 | 11.0 | -0.9 |
| Net margin | 4.19% | 3.64% | 17.35% | 12.47% | 7.83% | 17.03% | 12.84% | -1.51% |
Revenue
59bnNet income
2bnNet margin
4.19%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 9.35%, losing 1.5pp. The main pressure comes from Gross margin fell 3.1pp and SG&A / Revenue rose 0.9pp (in addition, Net financial result / Revenue rose 2.7pp added support while Other profit / Revenue fell 0.1pp remained a drag).
Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.
- Net Margin
- 9.35% −1.5pp
- Gross Margin
- 19.45% −3.1pp
- SG&A / Revenue
- 4.69% +0.9pp
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 narrowed to 7.20%, falling 1.1pp. That translates to 7.20 in after-tax operating profit for every 100 units of operating capital. The main pressure came from NOPAT margin narrowed 1.4pp, outweighing the movement in capital turnover; with invested capital holding roughly steady.
Pressure came from the margin side — core operations are weakening, not just a temporary asset-management issue.
Balance Sheet
●ROIC declined — the balance sheet shows how capital is being deployed. Capital structure is balanced — liabilities at 1.18x equity, net debt at 0.93x equity.
Inventory ended the period at 252.3bn, roughly 45.3% of total assets.
Over the last 12 months, working capital released 0.0bn of cash.
Working Capital Efficiency
▼Cash conversion cycle lengthened by 19.5 days versus the same period last year. The main moves came from DIO rose 105.7 days, DSO fell 85.5 days, and DPO rose 0.7 days.
Working capital cycle lengthened mainly due to slower inventory turnover — more capital is being tied up in inventory.
CCC stands at 291.9 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DIO increased by +105.7 days, suggesting more capital is being tied up in inventories.
DuPont
What drives ROE?
ROE fell from 16.1% to 13.1% — all three components weakened, with net margin being the main drag.
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 0.93x and interest coverage only at 1.94x.
At present, short-term debt accounts for 95.0% of total debt, cash equals 1.8% of debt, and total debt stands at 244.9bn.
Interest coverage is 1.94x, leaving limited room to absorb financing costs.
Short-term debt accounts for 95.0% of total debt, raising near-term refinancing needs.
- Net Debt / Equity
- 0.93x −0.09x
- Interest Coverage
- 1.94x +0.46x
- Cash / Debt
- 1.8% +0.5pp
- Short-term Debt / Total Debt
- 95.0% +5.6pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
▲▲With safe leverage noted above, cash flow below shows the self-funding capacity. Operating cash flow reached 4.9bn in 2025, against investing cash flow of -4.0bn.
Post-investment cash flow was positive +0.8bn. Financing cash flow was positive +8.7bn.
CFO / net income was 0,45 lần.
After spending +3.9bn on fixed-asset investment, the business generated trailing free cash flow of +10.6bn.
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 cash generation. The next item to monitor is effective tax rate looks unusual, with effective tax rate at 2.1%. The main risk still sits in core profitability, with net margin down 1.5 pp.
- Improvement: cash generation is recovering, with trailing-12M FCF improving by 12.4bn 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: profitability remains under pressure, with trailing-12M net margin at 9.35% after a 1.5pp decline versus the same period last year.
What to verify next
Questions for the next period
Durability of revenue growth after the current +7,1% YoY pace.
Ability to hold margins around the current 9.35% level.
Cash-flow quality, with operating cash flow currently at 4.9bn in 2025.
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