MES

Cơ điện Công trình ·UPCOM ·2026Q1

▲ Slightly positive

Operating efficiency is improving Net margin 27.16%, +51.54pp YoY
Price
—
Latest close
P/E —
P/B —
EPS 40
BVPS 8,773
ROE 0.5%
ROA 0.4%
Profit Margin 27.2%
Asset Turnover 0.02x
Equity Mult. 1.03x

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

What Is Changing

On a TTM 2026Q1 basis, MES posted a sharp profit increase versus the same period, suggesting a clear improvement from a low base — this marks a reversal from the difficult phase before. 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 3bn
−20.3%YoY
NET MARGIN
27.16%
+51.5ppYoY
TTM NET PROFIT
VND 1bn
+188.8%YoY
Net financial result / PBT
781.1%
affects earnings quality
Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2'23
Revenue 1.2 0.6 0.4 0.5 0.5 1.6 0.5 0.9 0.4 3.8 0.4 1.0
Growth +91% +35% -14% +10% -70% +232% -45% +98% -89% +857% -60% —
Net Income -0.0 0.7 -0.3 0.3 -0.5 -0.2 -0.1 0.0 -0.5 -7.4 -0.5 -0.1
Net Margin -2.14% 123.31% -62.29% 57.55% -111.63% -12.30% -30.06% 3.86% -102.97% -192.83% -133.54% -11.51%

Drivers of MES's profit

TTM

Net profit attributable to parent increased vs last year, mainly helped by higher financial income. Supporting and offsetting drivers:

Financial income ↑ 4.3bn
Administrative expenses ↑ 2.3bn
Selling expenses ↑ 0.2bn
TTM

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

Administrative expenses ↓ 0.3bn
Financial income ↑ 0.2bn

Financial Highlights

Detailed analysis of each financial dimension

ROE = Profit Margin × Asset Turnover × Equity Multiplier

2025Q1 -0.5% = -24.4% × 0.02 × 1.03
2026Q1 0.5% = 27.2% × 0.02 × 1.03

ROE rose from -0.5% to 0.5% — mainly driven by net margin, despite asset turnover and leverage moving in the opposite direction.

Net margin: 27.2% +51.5pp Asset turnover: 0.02x -0.00x Leverage: 1.03x -0.00x

Is the profit sustainable?

Accounting profit is positive but operating cash flow has not caught up — needs more time to confirm.

very positive positive stable watch under pressure

What is driving the margin?

Net margin expanded to 27.16%, rising 51.5pp. Core operating signals are improving as Gross margin rose 4.8pp are enough to offset pressure from SG&A / Revenue rose 117.0pp (with additional support from Net financial result / Revenue rose 170.0pp).

Margin improves from both core operations and non-core items — the core foundation is positive, but the sustainability of non-core contributions needs monitoring.

Profitability trend

Net Margin 27.16% +51.5pp
Gross Margin 31.33% +4.8pp
SG&A / Revenue 217.22% +117.0pp
Non-core / Revenue 212.12% +170.0pp

TTM YoY · 2025Q1 -> 2026Q1

Watchpoints

Financial result is supporting margin

Financial result accounts for 781.1% of PBT and lifted net margin by 170.0pp — separate the operating contribution from this source.

Is capital being used efficiently?

Evaluate capital, asset, and working-capital efficiency.

Balance Sheet

Capital structure is notably light for construction contractors — liabilities at 0.03x equity, with a net cash position equivalent to 0.00x equity.

Over the last 12 months, working capital absorbed 1.5bn of cash, mainly because of higher receivables and higher inventories. Part of that drag was offset by higher payables.

Working Capital Drivers

TTM YoY · 2025Q1 -> 2026Q1

Receivables increased → lower CFO: −1.6bn
Inventories increased → lower CFO: −0.0bn
Payables increased → higher CFO: +0.0bn

Working Capital Efficiency

Cash conversion cycle lengthened by 309.0 days versus the same period last year. The main moves came from DIO rose 137.7 days, DSO rose 237.3 days, and DPO rose 66.0 days.

Working capital cycle lengthened mainly due to slower receivables collection — receivables quality needs monitoring.

For construction contractors, DSO/DIO/DPO/CCC can be distorted by project progress, work-in-progress receivables, and milestone acceptance timing — these metrics should be read alongside developer payment cycles.

Watchpoints

Cash conversion cycle remains stretched

CCC stands at 1151.5 days, suggesting that working capital remains tied up for a relatively long operating cycle.

Receivables collection is slowing

DSO increased by +237.3 days, pointing to slower receivables turnover.

Working Capital Efficiency

TTM YoY · 2025Q1 -> 2026Q1

Receivables 1058.4 days +237.3 days
Inventory 610.7 days +137.7 days
Payables 517.6 days +66.0 days
Cash Conversion Cycle 1151.5 days +309.0 days

Is financial risk significant?

Check leverage, liquidity, and cash-flow conversion.

Leverage & Liquidity

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

Debt maturity and the cash buffer remain the two key areas to monitor.

Leverage for construction contractors fluctuates with project working capital, performance guarantees, and progress receivables — should be read alongside receivables quality and developer payment cycles.

Leverage and liquidity trend

Net Debt / Equity -0.00x —
Interest Coverage — —
Cash / Debt — —
Short-term Debt / Total Debt — —
CFO / NI -4.09x −8.19x

TTM YoY · 2025Q1 -> 2026Q1

Cash Flow

Operating cash flow reached -2.8bn in 2025, against investing cash flow of 2.9bn.

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

CFO / net income was -4.09x.

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

For construction contractors, FCF swings sharply with project progress and payment cycles — should be read alongside backlog and receivables quality.

Cash Conversion

TTM Cash Conversion · 2025Q1 -> 2026Q1

CFO TTM 3.0bn +0.4bn
Cash Capex — —
FCF TTM — —

Investment Takeaway

The business is showing brightening signals, but the improvement is still early and not yet thick enough to read as a confirmed trend. The brighter spot is operating efficiency, with net margin improving 51.5 pp. Even so, earnings quality still needs closer monitoring because net financial result remains elevated.

Improvement: operating efficiency is getting better, with trailing-12M net margin at 27.16% after expanding 51.5pp versus the same period last year.

Watchpoint: the earnings mix still needs monitoring, with net financial result still accounting for 781.1% of PBT and CFO / net income currently at -4.09x.

Statement Data

Item 2025 2024 2023 2022 2021
Net Revenue
2.0 3.4 6.0 2.2 0.9
Cost of Goods Sold
1.2 2.5 5.1 2.6 0.0
Gross Profit
0.8 0.9 0.9 -0.3 0.3
Financial Expenses
0.4 0.0 0.0 0.0 -0.0
Selling Expenses
0.4 0.2 0.4 0.1 -0.0
General and Administrative Expenses
5.4 3.1 9.5 1.8 -0.4
Operating Profit
0.2 -1.0 -8.0 0.1 0.1
Profit Before Tax
0.2 -0.8 -8.0 -0.1 0.0
Net Income
0.2 -0.8 -8.0 -0.1 0.0
Profit Attributable to Parent
0.2 -0.8 -8.0 -0.1 0.0
Earnings per Share
13.00 -41.00 -432.00 -4.00 2.00

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