Analysis of business results & financial statements · Quý 2/2026
▲ Showing improvement
Trailing net profit reached 311.1bn, rose 745.8bn compared with the same period last year. Key positives came from lower administrative expenses and better other profit. Detailed impact is shown below:
See what is changing ↓- P/E
- 2.29x
- P/B
- 0.68x
- EPS
- 4,227
- BVPS
- 14,243
- ROE
- 34.3%
- ROA
- 7.6%
- Market price
- 9,690 16 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q2 basis, SMC 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. However, most of the profit comes from non-core sources — this needs careful evaluation before concluding on growth quality.
Profit bridge
Vs last year · TTM
- Administrative expenses
- Other profit
- Other
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 | 1,309.1 | 1,072.5 | 1,638.1 | 1,571.2 | 1,953.1 | 1,846.8 | 2,176.9 | 2,276.5 |
| LNST | 24.8 | 17.2 | 343.9 | -77.8 | -43.3 | 0.1 | -293.5 | -82.4 |
| Net margin | 1.89% | 1.60% | 21.00% | -4.95% | -2.22% | 0.01% | -13.48% | -3.62% |
Revenue
1,309bnNet income
25bnNet margin
1.89%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 improved (+10.6pp), but earnings still rely significantly on non-core sources — warrants closer scrutiny.
Revenue Growth
▼▼Is growth real and durable?
Trailing-12-month revenue declined 32.3% year on year, with the quarterly pace steady around −33%.
0 of the last 4 quarters grew year on year.
- Revenue TTM
- 5,591bn −32.3%
- Latest quarter YoY
- −33% steady
What is driving the margin?
▲▲Net margin expanded to 5.51%, rising 10.6pp. The main driver is SG&A / Revenue fell 6.4pp and Gross margin rose 1.3pp, moving in line with the stronger net margin (in addition, Other profit / Revenue rose 3.6pp added support while Net financial result / Revenue fell 0.2pp remained a drag).
The improvement comes from core operations — this is a high-quality margin expansion.
- Net Margin
- 5.51% +10.6pp
- Gross Margin
- 1.23% +1.3pp
- SG&A / Revenue
- −2.21% −6.4pp
- Non-core / Revenue
- 2.97% +3.4pp
TTM YoY · 2025Q2 -> 2026Q2
Other income accounts for 81.4% of PBT and lifted net margin by 3.4pp — separate the operating contribution from this source.
Cash Flow
▲▲Is profit converting into cash?
High leverage combined with negative cash flow reveals the actual liquidity pressure. Operating cash flow reached -75.4bn against investing cash flow of 408.8bn (annual cash-flow figures for 2025).
Post-investment cash flow was positive +333.3bn. Financing cash flow was negative +341.3bn.
CFO / net income was 0,91 lần.
After spending +3.8bn on fixed-asset investment, the business generated trailing free cash flow of +277.8bn.
Earnings Quality
▼How much income is non-core?
Non-core income reaches 81.4% of pre-tax profit — core earnings are thinner than the headline.
Within that, net financial result at −35.1%, other profit at +81.4% of PBT.
- Non-core / PBT
- 81.4% high
- Net financial / PBT
- −35.1%
- Other profit / PBT
- 81.4%
Is capital being used efficiently?
Capital is being used more efficiently — ROIC rose and cash cycle shortened to 14.2 days.
Is capital being deployed efficiently?
▲▲ROIC expanded to 2.55%, rising 20.2pp. That translates to 2.55 in after-tax operating profit for every 100 units of operating capital. The main driver is NOPAT margin rose 7.6pp, with capital turnover fell 0.62x; while invested capital contracted by 378bn.
NOPAT margin led the improvement, but the ROIC level has not yet cleared typical cost of capital — margin needs to hold in coming periods rather than being a one-period rebound.
ROIC is currently 2.55% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Working Capital Efficiency
▲▲Working capital is being managed more efficiently, supporting overall capital efficiency. Cash conversion cycle improved by 25.2 days versus the same period last year. The main moves came from DIO rose 0.5 days, DSO fell 8.3 days, and DPO rose 17.4 days.
Extended payment timing is the main driver — consider whether this trades off supplier relationships.
DIO increased by +0.5 days, suggesting more capital is being tied up in inventories.
DuPont
What drives ROE?
ROE rose from −51.4% to 33.9% — supported by net margin.
Is financial risk significant?
Check leverage, liquidity, and cash-flow conversion.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 1.22x and interest coverage only at 0.45x.
At present, short-term debt accounts for 99.3% of total debt, cash equals 1.6% of debt, and total debt stands at 1,301.7bn.
- Net Debt / Equity
- 1.22x −1.58x
- Interest Coverage
- 0.45x +3.08x
- Cash / Debt
- 1.6% −6.0pp
- Short-term Debt / Total Debt
- 99.3% +7.0pp
TTM YoY · 2025Q2 -> 2026Q2
Net debt / equity stands at 1.22x, increasing balance-sheet pressure.
Interest coverage is 0.45x, leaving limited room to absorb financing costs.
Balance Sheet
▲The asset structure shows capital being allocated increasingly efficiently. Leverage is elevated, requiring monitoring — liabilities at 3.42x equity, net debt at 1.22x equity.
None
Over the last 12 months, working capital released 488.9bn of cash, mainly thanks to lower receivables and lower inventories. Pressure from lower payables only partly offset that benefit.
In summary
Research synthesis
What this reporting period is showing
The business is heading the right way, but the current picture is still at partial confirmation — not yet a fully clean case. The positive points have clearly improved, showing the operating base is better than before. The brighter spot is operating efficiency, with net margin improving 10.6 pp. The next item to monitor is the earnings mix, when non-core contribution is −35.1%. The main risk still sits in capital efficiency remains weak, with ROIC at 2.5%.
- Improvement: operating efficiency is getting better, with trailing-12M net margin at 5.51% after expanding 10.6pp versus the same period last year.
- Watchpoint: the earnings mix still needs monitoring, with net financial result still accounting for −35.1% of PBT and CFO / net income currently at 0.91x.
- Key risk: Capital efficiency remains weak.
What to verify next
Questions for the next period
Whether revenue stabilizes after a −32,3% YoY decline or keeps falling.
Whether margins hold around the current 5.51% level or narrow again.
Whether operating cash flow holds its -75.4bn (cumulative for 2025) level in upcoming periods or weakens.
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