Analysis of business results & financial statements · Quý 1/2026
▲ Slightly positive
Trailing net profit reached 221.9bn, rose 696.9bn compared with the same period last year. Key positives came from better other profit and lower administrative expenses. Detailed impact is shown below:
See what is changing ↓- P/E
- 3.21x
- P/B
- 0.70x
- EPS
- 3,015
- BVPS
- 13,906
- ROE
- 24.2%
- ROA
- 4.9%
- Market price
- 9,690 16 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 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. 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.
Profit bridge
Vs last year · TTM
- Other profit
- Administrative expenses
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 1/2026
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,072.5 | 1,638.1 | 1,571.2 | 1,953.1 | 1,846.8 | 2,176.9 | 2,276.5 | 2,239.9 |
| LNST | 17.2 | 343.9 | -77.8 | -43.3 | 0.1 | -293.5 | -82.4 | -114.1 |
| Net margin | 1.60% | 21.00% | -4.95% | -2.22% | 0.01% | -13.48% | -3.62% | -5.09% |
Revenue
1,073bnNet income
17bnNet margin
1.60%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?
Accounting profit is positive but operating cash flow has not caught up — needs more time to confirm.
What is driving the margin?
▲▲Net margin expanded to 3.85%, rising 9.6pp. Core operating signals are improving as SG&A / Revenue fell 3.9pp are enough to offset pressure from Gross margin fell 0.0pp (in addition, Other profit / Revenue rose 6.7pp added support while Net financial result / Revenue fell 0.5pp remained a drag).
Margin improves from both core operations and non-core items — the core foundation is positive, but the sustainability of non-core contributions needs monitoring.
- Net Margin
- 3.85% +9.6pp
- Gross Margin
- −0.28% −0.0pp
- SG&A / Revenue
- −0.23% −3.9pp
- Non-core / Revenue
- 4.87% +6.2pp
TTM YoY · 2025Q1 -> 2026Q1
Other income accounts for 148.8% of PBT and lifted net margin by 6.2pp — separate the operating contribution from this source.
Is capital being used efficiently?
Capital is being used more efficiently — ROIC rose and cash cycle shortened to 27.5 days.
Is capital being deployed efficiently?
▲▲ROIC expanded to −4.05%, rising 12.2pp. That translates to −4.05 in after-tax operating profit for every 100 units of operating capital. The main driver is NOPAT margin rose 4.2pp, with capital turnover fell 0.49x; while invested capital contracted by 331bn.
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 −4.05% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Balance Sheet
●ROIC is improving — the asset structure below shows how capital is being allocated. Leverage is elevated, requiring monitoring — liabilities at 3.42x equity, net debt at 1.69x equity.
None
Over the last 12 months, working capital absorbed 197.5bn of cash, mainly because of lower payables. Part of that drag was offset by lower receivables and lower inventories.
Working Capital Efficiency
▲▲Working capital is being managed more efficiently, supporting overall capital efficiency. Cash conversion cycle improved by 21.0 days versus the same period last year. The main moves came from DIO rose 1.9 days, DSO fell 6.0 days, and DPO rose 16.9 days.
Extended payment timing is the main driver — consider whether this trades off supplier relationships.
DIO increased by +1.9 days, suggesting more capital is being tied up in inventories.
DuPont
What drives ROE?
ROE rose from −54.8% to 26.2% — supported by net margin.
Is financial risk significant?
High leverage combined with negative operating cash flow — this area needs close monitoring.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 1.69x and interest coverage only at −0.82x.
At present, short-term debt accounts for 98.0% of total debt, cash equals 1.9% of debt, and total debt stands at 1,770.8bn.
Net debt / equity stands at 1.69x, increasing balance-sheet pressure.
Interest coverage is −0.82x, leaving limited room to absorb financing costs.
- Net Debt / Equity
- 1.69x −1.03x
- Interest Coverage
- −0.82x +1.65x
- Cash / Debt
- 1.9% −4.8pp
- Short-term Debt / Total Debt
- 98.0% +7.0pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
▼▼High leverage combined with cash flow below reveals the actual liquidity pressure. Operating cash flow reached -75.4bn in 2025, against investing cash flow of 408.8bn.
Post-investment cash flow was positive +333.3bn. Financing cash flow was negative +341.3bn.
CFO / net income was −1,95 lần.
After spending +1.4bn on fixed-asset investment, the business generated trailing free cash flow of −433.7bn.
In summary
Research synthesis
What this reporting period is showing
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 capital efficiency remains weak remaining the main constraint, with ROIC at −4.1%. The next watchpoint is the earnings mix, when non-core contribution is −51.2%. The main offsetting support comes from operating efficiency, with net margin improving 9.6 pp.
- Improvement: operating efficiency is getting better, with trailing-12M net margin at 3.85% after expanding 9.6pp versus the same period last year.
- Watchpoint: the earnings mix still needs monitoring, with net financial result still accounting for −51.2% of PBT and CFO / net income currently at −1.95x.
- Key risk: Capital efficiency remains weak.
What to verify next
Questions for the next period
Ability to stabilize revenue after a −27,0% YoY decline.
Ability to hold margins around the current 3.85% level.
Cash-flow quality, with operating cash flow currently at -75.4bn in 2025.
From one stock to the whole portfolio
Where does this stock stand
among the rest of your investments?
Each stock is only one part of the wider picture. Looking at investments side by side makes their contribution, risks and opportunities across the portfolio clearer.
How much does this stock
contribute to the portfolio?
Its weight and influence across the assets held for investment.
Is the portfolio
well balanced?
How holdings, sectors and asset groups are distributed in relation to overall risk.
What other opportunities
or risks may be present?
What becomes visible only when investments are viewed together rather than one ticker at a time.