Analysis of business results & financial statements · Quý 1/2026
▲ Showing improvement
Trailing net profit reached 474.6bn, rose 413.6bn compared with the same period last year. Key positives came from higher financial income, higher gross profit, better other profit, and lower minority interests. Offsetting pressure came mainly from higher finance costs, higher selling expenses, higher tax, and higher administrative expenses. Detailed impact is shown below:
See what is changing ↓- P/E
- 2.12x
- P/B
- 0.49x
- EPS
- 7,445
- BVPS
- 32,438
- ROE
- 17.6%
- ROA
- 4.8%
- Market price
- 15,800 16 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 basis, SVC is improving on both growth and profitability, painting a notably more positive picture versus the same period — earnings have been recovering gradually over multiple periods. 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
- Financial income
- Gross profit
- Other profit
- Minority interests
- Finance costs
- Selling expenses
- Tax
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 | 6,445.2 | 8,654.6 | 8,217.1 | 6,641.8 | 5,547.5 | 8,720.7 | 6,776.4 | 5,264.7 |
| LNST | 33.6 | 16.3 | 344.5 | 115.9 | 31.8 | 65.5 | 25.4 | 68.5 |
| Net margin | 0.52% | 0.19% | 4.19% | 1.74% | 0.57% | 0.75% | 0.38% | 1.30% |
Revenue
6,445bnNet income
34bnNet margin
0.52%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 (+1.0pp), but earnings still rely significantly on non-core sources — warrants closer scrutiny.
What is driving the margin?
▲Net margin edged up to 1.70%, rising 1.0pp. Despite pressure from SG&A / Revenue rose 0.4pp and Gross margin fell 0.2pp, the offset came from Net financial result / Revenue rose 1.6pp and Other profit / Revenue rose 0.3pp.
Most of the margin increase comes from non-core items — core operations have not kept pace, this is a margin expansion to watch carefully.
- Net Margin
- 1.70% +1.0pp
- Gross Margin
- 6.93% −0.2pp
- SG&A / Revenue
- 6.60% +0.4pp
- Non-core / Revenue
- 1.83% +2.0pp
TTM YoY · 2025Q1 -> 2026Q1
Financial result accounts for 80.6% of PBT and lifted net margin by 2.0pp — separate the operating contribution from this source.
Is capital being used efficiently?
Evaluate capital, asset, and working-capital efficiency.
Is capital being deployed efficiently?
▲▲ROIC expanded to 6.11%, rising 3.2pp. That translates to 6.11 in after-tax operating profit for every 100 units of operating capital. The main driver is NOPAT margin rose 0.7pp, with capital turnover fell 0.12x; while invested capital rose by 966bn.
NOPAT margin is driving the improvement — ROIC has cleared the deposit-rate threshold but not yet the typical cost of equity level, and this momentum needs to hold as new invested capital is fully deployed.
Balance Sheet
▲ROIC is improving — the asset structure below shows how capital is being allocated. Leverage is elevated, requiring monitoring — liabilities at 2.63x equity, net debt at 1.31x equity.
Inventory ended the period at 1,721.9bn, roughly 16.6% of total assets.
Over the last 12 months, working capital released 255.1bn of cash, mainly thanks to lower receivables and higher payables. Pressure from higher inventories only partly offset that benefit.
Working Capital Efficiency
●Cash conversion cycle lengthened by 1.0 days versus the same period last year. The main moves came from DIO rose 0.4 days, DSO rose 3.6 days, and DPO rose 3.0 days.
Working capital cycle is flat — components are offsetting each other.
CCC is up by +1.0 days, indicating weaker working-capital turnover versus the prior year.
DSO increased by +3.6 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE rose from 7.5% to 18.9% — mainly driven by net margin, despite asset turnover moving in the opposite direction.
Is financial risk significant?
Leverage is safe but FCF is negative at 419.0bn due to capex of 593.4bn — an investment choice, not an urgent risk.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 1.31x and interest coverage only at 0.88x.
At present, short-term debt accounts for 57.5% of total debt, cash equals 13.9% of debt, and total debt stands at 4,616.1bn.
Net debt / equity stands at 1.31x, increasing balance-sheet pressure.
Interest coverage is 0.88x, leaving limited room to absorb financing costs.
- Net Debt / Equity
- 1.31x −0.37x
- Interest Coverage
- 0.88x −0.04x
- Cash / Debt
- 13.9% +3.1pp
- Short-term Debt / Total Debt
- 57.5% −12.7pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
▼▼High leverage combined with cash flow below reveals the actual liquidity pressure. Operating cash flow reached -232.4bn in 2025, against investing cash flow of -538.4bn.
Post-investment cash flow was negative +770.8bn. Financing cash flow was positive +729.1bn.
CFO / net income was 0,37 lần.
After spending +593.4bn on fixed-asset investment, the business generated trailing free cash flow of −419.0bn.
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 leverage and liquidity remaining the main constraint, with interest coverage at 0.88x. The next watchpoint is the earnings mix, when non-core contribution is 60.7%.
- Watchpoint: the earnings mix still needs monitoring, with net financial result still accounting for 60.7% of PBT and CFO / net income currently at 0.37x.
- Key risk: leverage and liquidity still require discipline, with interest coverage only at 0.88x.
What to verify next
Questions for the next period
Durability of revenue growth after the current +13,9% YoY pace.
Ability to hold margins around the current 1.70% level.
Cash-flow quality, with operating cash flow currently at -232.4bn in 2025.
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