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iShareInvest Research

HOSE · Quý 2/2026

PPC

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

▲ Showing improvement

Trailing net profit reached 277.4bn, rose 46.2bn compared with the same period last year. Key positives came from higher gross profit and lower administrative expenses. Offsetting pressure came mainly from lower financial income, higher tax, and weaker other profit. Detailed impact is shown below:

See what is changing ↓
P/E
—
P/B
0.61x
EPS
—
BVPS
14,120
ROE
6.1%
ROA
4.8%
Market price
8,660
20 Oct 2026

What Is Changing

On a TTM 2026Q2 basis, PPC is improving on both growth and profitability, painting a notably more positive picture versus the same period — profit is at an all-time high. However, a significant portion of profit is supported by non-core sources, making the picture not entirely clear.

Profit bridge

Vs last year · TTM

  1. Gross profit
  2. Administrative expenses
  3. Financial income
  4. Tax
  5. Other profit
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
Revenue2,858.01,798.21,592.71,496.71,940.21,536.11,750.31,465.5
LNST70.395.7125.7-14.36.152.3178.2-5.3
Net margin2.46%5.32%7.89%-0.95%0.31%3.41%10.18%-0.36%

Revenue

2,858bn

Net income

70bn

Net margin

2.46%

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 improved (+0.1pp), but earnings still rely significantly on non-core sources — warrants closer scrutiny.

Revenue Growth

▲▲

Is growth real and durable?

Trailing-12-month revenue grew 15.7% year on year — not from a single spike: quarterly growth stepped up from +2% to +47%.

3 of the last 4 quarters grew year on year.

Revenue TTM
7,746bn
+15.7%
Latest quarter YoY
+47%
accelerating

What is driving the margin?

●

Net margin stands at 3.58%, 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
3.58%
+0.1pp
Gross Margin
3.47%
+1.6pp
SG&A / Revenue
1.42%
−0.6pp
Non-core / Revenue
1.95%
−1.7pp

TTM YoY · 2025Q2 -> 2026Q2

Financial result share remains high

Even though contribution decreased by 1.7pp, financial result still accounts for 48.7% of PBT — earnings durability should be monitored in coming periods.

Cash Flow

▼

Is profit converting into cash?

With leverage safe, cash flow shows the self-funding capacity. Operating cash flow reached 467.0bn against investing cash flow of 127.3bn (annual cash-flow figures for 2025).

Post-investment cash flow was positive +594.2bn. Financing cash flow was negative +224.3bn.

CFO / net income was 0,13 lần.

After spending +17.6bn on fixed-asset investment, the business generated trailing free cash flow of +18.3bn.

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 48.7% of pre-tax profit — core earnings are thinner than the headline.

Within that, net financial result at +48.7%, other profit at +0.1% of PBT.

Non-core / PBT
48.7%
high
Net financial / PBT
48.7%
Other profit / PBT
0.1%
02

Is capital being used efficiently?

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

Is capital being deployed efficiently?

●

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

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 25.9 days versus the same period last year. The main moves came from DIO fell 6.8 days, DSO fell 22.2 days, and DPO fell 3.1 days.

Improvement comes mainly from faster receivables collection — reflects the quality of receivables management.

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 3.6% +0.1pp
Asset turnover 1.34x +0.21x
Financial leverage 1.27x -0.03x
ROE 6.1% +1.0pp

ROE rose from 5.1% to 6.1% — mainly driven by asset turnover, despite leverage moving in the opposite direction.

03

Is financial risk significant?

Financial risk is low — the company has net cash and CFO reached 467.0bn.

Leverage & Liquidity

▲

Leverage looks fairly comfortable, with net debt / equity at −0.00x and interest coverage at 123.94x.

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

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
−0.00x
Interest Coverage
123.94x
−36.10x
Cash / Debt
None
Short-term Debt / Total Debt
None

TTM YoY · 2025Q2 -> 2026Q2

Balance Sheet

▼

Balance sheet is exceptionally sound — liabilities at 0.17x equity, with a net cash position equivalent to 0.00x equity.

Inventory ended the period at 725.5bn, roughly 13.8% of total assets.

Over the last 12 months, working capital absorbed 103.4bn 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 brightening signals, but the improvement is still early and not yet thick enough to read as a confirmed trend. The brighter spot is balance-sheet flexibility, with net cash/equity at about −0.00x. Even so, earnings quality still needs closer monitoring because net financial result remains elevated.

  • Improvement: the balance sheet remains flexible, with a net cash position equivalent to 0.00x of equity.
  • Watchpoint: the earnings mix still needs monitoring, with net financial result still accounting for 48.7% of PBT and CFO / net income currently at 0.13x.

Questions for the next period

  1. Whether revenue sustains its +15,7% YoY pace or begins to slow.

  2. Whether margins hold around the current 3.58% level or narrow again.

  3. Whether operating cash flow holds its 467.0bn (cumulative for 2025) level in upcoming periods or weakens.

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