Analysis of business results & financial statements · Quý 2/2022
▼▼ Declining sharply
Trailing net profit reached 0.2bn, fell 0.2bn compared with the same period last year. Key positives came from higher financial income, better other profit, and lower finance costs. Offsetting pressure came mainly from higher administrative expenses, lower gross profit, and higher tax. Detailed impact is shown below:
See what is changing ↓- P/E
- —
- P/B
- —
- EPS
- -4
- BVPS
- 11,411
- ROE
- -0.0%
- ROA
- -0.0%
- Market price
- —
The current picture
What Is Changing
On a TTM 2022Q2 basis, SSN posted a very sharp profit drop versus the same period, showing that pressure has clearly fed through to the bottom line. More notably, most of the profit comes from non-core sources — this needs careful evaluation before concluding on growth quality.
Profit bridge
Vs last year · TTM
- Financial income
- Other profit
- Finance costs
- Other
- Administrative expenses
- Gross profit
- Tax
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 2/2022
| Metric | Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | Q1'21 | Q4'20 | Q3'20 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.2 | 2.8 | 3.9 | 3.4 | 4.9 | 4.0 | 4.6 | 4.4 |
| LNST | 0.1 | 0.0 | -0.4 | 0.2 | 0.0 | 0.2 | -0.4 | 0.2 |
| Net margin | 1.17% | 0.76% | -11.41% | 4.96% | 1.00% | 4.69% | -8.24% | 3.69% |
Revenue
7bnNet income
0bnNet margin
1.17%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 are under pressure while earnings still rely significantly on non-core sources.
Revenue Growth
●Is growth real and durable?
Trailing-12-month revenue declined 3.3% year on year — not from a single spike: quarterly growth stepped up from −24% to +47%.
1 of the last 4 quarters grew year on year.
- Revenue TTM
- 17bn −3.3%
- Latest quarter YoY
- +47% accelerating
What is driving the margin?
▼Net margin narrowed to −1.02%, falling 1.1pp. The main pressure comes from SG&A / Revenue rose 63.1pp and Gross margin fell 17.6pp (with additional support from Net financial result / Revenue rose 18.0pp and Other profit / Revenue rose 9.0pp).
Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.
- Net Margin
- −1.02% −1.1pp
- Gross Margin
- 31.03% −17.6pp
- SG&A / Revenue
- 5.03% +63.1pp
- Non-core / Revenue
- 25.83% +26.9pp
TTM YoY · 2021Q2 -> 2022Q2
Financial result accounts for 13587.2% of PBT and lifted net margin by 26.9pp — separate the operating contribution from this source.
Cash Flow
▼▼Is profit converting into cash?
Operating cash flow reached -6.4bn against investing cash flow of 7.5bn (annual cash-flow figures for 2021).
Post-investment cash flow was positive +1.1bn. Financing cash flow was negative +1.2bn.
CFO / net income was 58,50 lần.
After spending 0.0bn on fixed-asset investment, the business generated trailing free cash flow of −10.3bn.
Earnings Quality
▼How much income is non-core?
Non-core income reaches 13,587.2% of pre-tax profit — core earnings are thinner than the headline.
Within that, net financial result at +10,818.2%, other profit at +2,769.0% of PBT.
- Non-core / PBT
- 13,587.2% high
- Net financial / PBT
- 10,818.2%
- Other profit / PBT
- 2,769.0%
Is capital being used efficiently?
Evaluate capital, asset, and working-capital efficiency.
Is capital being deployed efficiently?
●ROIC stands at 0.11%, broadly flat versus the same period. That translates to 0.11 in after-tax operating profit for every 100 units of operating capital. NOPAT margin rose 1.4pp, but capital turnover broadly stable, with invested capital holding roughly steady — the two factors are offsetting each other, keeping overall ROIC nearly unchanged.
Overall ROIC is flat while internal components are moving — watch which side becomes dominant in coming periods.
ROIC is currently 0.11% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Working Capital Efficiency
●Track receivable, inventory, and payable turns to judge working-capital efficiency.
Track DSO, DIO, DPO components to evaluate working capital turnover efficiency.
CCC stands at 2502.0 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DuPont
What drives ROE?
ROE is broadly flat at −0.0% — the components are offsetting one another.
Is financial risk significant?
Leverage is safe but FCF is negative at 10.3bn due to capex of 0.0bn — an investment choice, not an urgent risk.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at −0.00x and interest coverage only at 1.66x.
At present, short-term debt accounts for 0.0% of total debt, cash equals 3028.3% of debt, and total debt stands at 0.0bn.
- Net Debt / Equity
- −0.00x −0.00x
- Interest Coverage
- 1.66x −1.54x
- Cash / Debt
- 3028.3% +2997.2pp
- Short-term Debt / Total Debt
- 0.0% −93.9pp
TTM YoY · 2021Q2 -> 2022Q2
Interest coverage is 1.66x, leaving limited room to absorb financing costs.
Balance Sheet
●Balance sheet is exceptionally sound — liabilities at 1.40x equity, with a net cash position equivalent to 0.00x equity.
None
Over the last 12 months, working capital absorbed 1.0bn of cash, mainly because of lower payables. Part of that drag was offset by lower receivables and lower inventories.
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 0.1%. The next watchpoint is the earnings mix, when non-core contribution is 10818.2%.
- Watchpoint: cash flow is currently keeping pace with accounting earnings, with CFO / net income at 58.50x. Even so, net financial result still accounts for 10818.2% of PBT, so the earnings mix still needs monitoring.
- Key risk: Capital efficiency remains weak.
What to verify next
Questions for the next period
Whether revenue stabilizes after a −3,3% YoY decline or keeps falling.
Whether margins hold around the current -1.02% level or narrow again.
Whether operating cash flow holds its -6.4bn (cumulative for 2021) level in upcoming periods or weakens.
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Its weight and influence across the assets held for investment.
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