Analysis of business results & financial statements · Quý 2/2026
▼▼ Declining sharply
Trailing net profit reached 18.0bn, fell 32.6bn compared with the same period last year. Offsetting pressure came mainly from lower gross profit and higher selling expenses. Detailed impact is shown below:
See what is changing ↓- P/E
- 5.83x
- P/B
- 0.41x
- EPS
- 3,552
- BVPS
- 50,800
- ROE
- 7.2%
- ROA
- 3.2%
- Market price
- 20,700 15 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q2 basis, KTS posted a very sharp profit drop versus the same period, showing that pressure has clearly fed through to the bottom line. More notably, operating cash flow is significantly negative relative to profit — this is pressure that needs close monitoring.
Profit bridge
Vs last year · TTM
- Gross profit
- Selling expenses
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 | 109.2 | 59.5 | 100.9 | 64.2 | 118.8 | 57.1 | 119.2 | 86.1 |
| LNST | 0.7 | 2.5 | 3.7 | 11.1 | 14.8 | 4.5 | 20.3 | 11.0 |
| Net margin | 0.65% | 4.19% | 3.64% | 17.35% | 12.47% | 7.83% | 17.03% | 12.84% |
Revenue
109bnNet income
1bnNet margin
0.65%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 12.4% year on year — not from a single spike: quarterly growth stepped up from −25% to −8%.
1 of the last 4 quarters grew year on year.
- Revenue TTM
- 334bn −12.4%
- Latest quarter YoY
- −8% accelerating
What is driving the margin?
▼▼Net margin fell to 5.39%, losing 7.9pp. The main pressure comes from Gross margin fell 6.0pp and SG&A / Revenue rose 2.0pp (in addition, Net financial result / Revenue rose 0.1pp added support while Other profit / Revenue fell 0.1pp remained a drag).
The pressure comes from core operations — this is a concerning type of decline, not a one-off movement.
- Net Margin
- 5.39% −7.9pp
- Gross Margin
- 15.97% −6.0pp
- SG&A / Revenue
- 5.04% +2.0pp
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 4.9bn against investing cash flow of -4.0bn (annual cash-flow figures for 2025).
Post-investment cash flow was positive +0.8bn. Financing cash flow was positive +8.7bn.
CFO / net income was −1,96 lần.
After spending +16.6bn on fixed-asset investment, the business generated trailing free cash flow of −51.9bn.
Earnings Quality
●How much income is non-core?
Non-core income makes up 13.0% of pre-tax profit — worth monitoring.
Within that, net financial result at −84.4%, other profit at +13.0% of PBT.
- Non-core / PBT
- 13.0% moderate
- Net financial / PBT
- −84.4%
- Other profit / PBT
- 13.0%
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 4.58%, losing 8.9pp. That translates to 4.58 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 7.8pp and capital turnover fell 0.22x, while invested capital rose by 52bn — 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 4.58% — 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 71.1 days versus the same period last year. The main moves came from DIO rose 91.0 days, DSO fell 17.7 days, and DPO rose 2.2 days.
Working capital cycle lengthened mainly due to slower inventory turnover — more capital is being tied up in inventory.
CCC stands at 245.7 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DIO increased by +91.0 days, suggesting more capital is being tied up in inventories.
DuPont
What drives ROE?
ROE fell from 22.8% to 7.2% — all three components weakened, with net margin being the main drag.
Is financial risk significant?
Leverage is safe but FCF is negative at 51.9bn due to capex of 16.6bn — an investment choice, not an urgent risk.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 0.79x and interest coverage only at 1.17x.
At present, short-term debt accounts for 95.5% of total debt, cash equals 16.1% of debt, and total debt stands at 242.3bn.
- Net Debt / Equity
- 0.79x +0.05x
- Interest Coverage
- 1.17x −1.39x
- Cash / Debt
- 16.1% −11.2pp
- Short-term Debt / Total Debt
- 95.5% +4.7pp
TTM YoY · 2025Q2 -> 2026Q2
Interest coverage is 1.17x, leaving limited room to absorb financing costs.
Short-term debt accounts for 95.5% of total debt, raising near-term refinancing needs.
Balance Sheet
●The balance sheet shows capital-allocation efficiency slipping. Capital structure is balanced — liabilities at 1.18x equity, net debt at 0.79x 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.
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 next item to monitor is effective tax rate looks unusual, with effective tax rate at 2.6%. The main risk still sits in core profitability, with net margin down 7.9 pp.
- 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 5.39% after a 7.9pp decline versus the same period last year.
What to verify next
Questions for the next period
Whether revenue stabilizes after a −12,4% YoY decline or keeps falling.
Whether margins hold around the current 5.39% level or narrow again.
Whether operating cash flow holds its 4.9bn (cumulative for 2025) level in upcoming periods or weakens.
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