LO5

Lilama 5 ·UPCOM ·2025Q4

▼▼ Declining sharply

Margins remain under pressure Net margin −17.79%, −5.63pp YoY
Price
600,000
Latest close
29 May 2026
P/E -578.52x
P/B -25.21x
EPS -1,037
BVPS -23,802
ROE 4.5%
ROA -1.9%
Profit Margin -17.8%
Asset Turnover 0.10x
Equity Mult. -2.39x

TTM · Applied to: EPS, ROE, ROA, Net Margin, Asset Turnover, Debt/Equity

What Is Changing

On a TTM 2025Q4 basis, LO5 is under pressure on both revenue and margins simultaneously — profit is at an all-time high. More notably, profit relies heavily on non-core sources while operating cash flow is negative — these two factors together suggest earnings quality needs cautious evaluation.

TTM REVENUE
VND 30bn
−60.6%YoY
NET MARGIN
−17.79%
−5.6ppYoY
TTM NET PROFIT
−VND 5bn
+42.4%YoY
Non-core income / PBT
87.4%
Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 Q4'22
Revenue 8.3 3.2 12.9 5.6 29.2 15.4 7.5 24.1 9.0 7.3 7.2 26.6
Growth +155% -75% +130% -81% +90% +104% -69% +168% +23% +1% -73% —
Net Income -1.6 -1.5 -1.1 -1.1 -4.4 -1.5 -1.3 -2.0 -2.3 -7.2 -6.9 -12.4
Net Margin -19.49% -46.78% -8.91% -18.91% -15.14% -9.70% -17.27% -8.51% -25.63% -98.43% -96.33% -46.44%

Drivers of LO5's profit

TTM

Net profit attributable to parent increased vs last year, mainly helped by lower administrative expenses. Supporting and offsetting drivers:

Administrative expenses ↓ 2.9bn
Other profit ↑ 2.5bn
Gross profit ↓ 1.5bn
TTM

Net profit attributable to parent increased vs prior quarter, mainly helped by lower administrative expenses. Supporting and offsetting drivers:

Administrative expenses ↓ 2.7bn
Other profit ↑ 2.6bn
Gross profit ↓ 2.6bn

Financial Highlights

Detailed analysis of each financial dimension

ROE = Profit Margin × Asset Turnover × Equity Multiplier

2024Q4 8.2% = -12.2% × 0.26 × -2.63
2025Q4 4.5% = -17.8% × 0.10 × -2.39

ROE fell from 8.2% to 4.5% — asset turnover weakened the most, though leverage still provided support.

Net margin: -17.8% -5.6pp Asset turnover: 0.10x -0.15x Leverage: -2.39x +0.24x

Is the profit sustainable?

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

very positive positive stable watch under pressure

What is driving the margin?

Net margin fell to -17.79%, losing 5.6pp. The main pressure is SG&A / Revenue rose 5.7pp, outweighing the improvement in Gross margin rose 6.2pp (with lingering pressure from Other profit / Revenue fell 6.1pp and Net financial result / Revenue fell 0.0pp).

The pressure comes from non-core items while core operations hold their rhythm — margin has a basis to recover once this factor passes.

Profitability trend

Net Margin -17.79% −5.6pp
Gross Margin 13.47% +6.2pp
SG&A / Revenue 15.71% +5.7pp
Non-core / Revenue -15.55% −6.1pp

TTM YoY · 2024Q4 -> 2025Q4

Watchpoints

Other income share remains high

Even though contribution decreased by 6.1pp, other income still accounts for 87.4% of PBT — earnings durability should be monitored in coming periods.

Is capital being used efficiently?

Capital efficiency should be read in industry context — ROIC may fluctuate with business specifics.

Is capital being deployed efficiently?

Track how much operating profit the business generates on invested capital.

Industry characteristics make ROIC cyclical — this is a reference signal and should be read with the business context.

CAPITAL EFFICIENCY TREND

TTM YoY · 2024Q4 -> 2025Q4

ROIC — —
NOPAT Margin — —
Capital Turnover 0.30x −0.41x
Average Invested Capital 101.8bn −6.7bn

Balance Sheet

ROIC above should be read with industry context — the balance sheet below adds perspective. Balance sheet is exceptionally sound — liabilities at -3.29x equity, with a net cash position equivalent to 1.81x equity.

Inventory ended the period at 162.6bn, roughly 57.8% of total assets.

Over the last 12 months, working capital released 0.6bn of cash, mainly thanks to lower receivables and lower inventories. Pressure from lower payables only partly offset that benefit.

Working Capital Drivers

TTM YoY · 2024Q4 -> 2025Q4

Receivables decreased → higher CFO: +0.8bn
Inventories decreased → higher CFO: +4.6bn
Payables decreased → lower CFO: −4.8bn

Working Capital Efficiency

The inventory build-up noted above is reflected in a longer cash cycle. Cash conversion cycle lengthened by 1417.2 days versus the same period last year. The main moves came from DIO rose 1453.8 days, DSO rose 554.7 days, and DPO rose 591.3 days.

Working capital cycle lengthened mainly due to slower inventory turnover — more capital is being tied up in inventory.

Watchpoints

Cash conversion cycle remains stretched

CCC stands at 2307.6 days, suggesting that working capital remains tied up for a relatively long operating cycle.

Receivables collection is slowing

DSO increased by +554.7 days, pointing to slower receivables turnover.

Working Capital Efficiency

TTM YoY · 2024Q4 -> 2025Q4

Receivables 929.5 days +554.7 days
Inventory 2316.8 days +1453.8 days
Payables 938.7 days +591.3 days
Cash Conversion Cycle 2307.6 days +1417.2 days

Is financial risk significant?

Financial risk is low — the company has net cash and CFO reached 0.0bn.

Leverage & Liquidity

Track net leverage, interest coverage, and the liquidity buffer on the balance sheet.

At present, short-term debt accounts for 100.0% of total debt, cash equals 0.3% of debt, and total debt stands at 222.2bn.

Watchpoints

Short-term refinancing pressure is meaningful

Short-term debt accounts for 100.0% of total debt, raising near-term refinancing needs.

Cash buffer is thin relative to debt

Cash / debt stands at 0.3%, leaving limited liquidity buffer to monitor.

Leverage and liquidity trend

Net Debt / Equity -1.81x +0.08x
Interest Coverage — —
Cash / Debt 0.3% +0.1pp
Short-term Debt / Total Debt 100.0% 0.0pp
CFO / NI -0.01x −0.06x

TTM YoY · 2024Q4 -> 2025Q4

Cash Flow

With safe leverage noted above, cash flow below shows the self-funding capacity. Operating cash flow reached 0.0bn in 2025, against investing cash flow of 0.0bn.

Post-investment cash flow was positive +0.0bn. Financing cash flow was positive +0.1bn.

CFO / net income was -0.01x.

Track how much investment can be funded internally from operating cash flow.

Cash capex or FCF data is incomplete, so the cash-conversion view is only partial.

Cash Conversion

TTM Cash Conversion · 2024Q4 -> 2025Q4

CFO TTM 0.0bn +0.5bn
Cash Capex — —
FCF TTM — —

Investment Takeaway

The business is under real pressure, but the current picture has not turned broadly adverse. A notable area has clearly weakened, making the near-term outlook hard to call bright; even so, other parts of the business are still holding up, with margins remain under pressure remaining the main constraint, with net margin down 5.6 pp. The next watchpoint is the earnings mix, when non-core contribution is -0.0%. The main offsetting support comes from balance-sheet flexibility, with net cash/equity at about -1.81x.

Improvement: the balance sheet remains flexible, with a net cash position equivalent to 1.81x of equity.

Watchpoint: the earnings mix still needs monitoring, with net financial result still accounting for -0.0% of PBT and CFO / net income currently at -0.01x.

Key risk: profitability remains under pressure, with trailing-12M net margin at -17.79% after a 5.6pp decline versus the same period last year.

Statement Data

Item 2025 2024 2023 2022 2021
Net Revenue
30.0 49.5 47.5 53.7 63.4
Cost of Goods Sold
26.0 45.7 56.4 53.4 0.0
Gross Profit
4.0 3.8 -8.9 0.3 -16.5
Financial Expenses
0.0 0.1 0.0 13.4 -20.5
Selling Expenses
— 0.0 0.0 0.0 0.0
General and Administrative Expenses
4.7 4.8 5.1 12.6 -5.9
Operating Profit
-0.7 -1.1 -14.0 -25.6 -42.8
Profit Before Tax
-5.4 -6.0 -18.6 -29.5 -47.5
Net Income
-5.4 -6.0 -18.6 -29.5 -47.5
Profit Attributable to Parent
-5.4 -6.0 -18.6 -29.5 -47.5
Earnings per Share
-1,044.00 -1,158.00 -3,606.00 -5,728.00 -9,228.67

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