Analysis of business results & financial statements · Quý 2/2026
▼▼ Declining sharply
Trailing net profit reached 159.9bn, fell 196.1bn compared with the same period last year. Key positives came from lower tax. Offsetting pressure came mainly from lower gross profit and weaker other profit. Detailed impact is shown below:
See what is changing ↓- P/E
- 23.43x
- P/B
- 1.10x
- EPS
- 794
- BVPS
- 16,840
- ROE
- 5.2%
- ROA
- 1.9%
- Market price
- 18,600 20 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q2 basis, SZC posted a very sharp profit drop versus the same period, showing that pressure has clearly fed through to the bottom line — profit is near a multi-period low. The key watch now is how long the business needs to stabilize its profit base.
Profit bridge
Vs last year · TTM
- Tax
- Gross profit
- Other profit
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 | 132.3 | 101.9 | 379.4 | 86.5 | 217.8 | 414.2 | 229.8 | 164.8 |
| LNST | 18.9 | 17.1 | 103.0 | 20.8 | 94.9 | 126.3 | 75.2 | 59.6 |
| Net margin | 14.32% | 16.82% | 27.15% | 24.08% | 43.58% | 30.50% | 32.72% | 36.17% |
Revenue
132bnNet income
19bnNet margin
14.32%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 narrowed but earnings quality remains clean — pressure is mainly operational.
Revenue Growth
▼▼Is growth real and durable?
Trailing-12-month revenue declined 31.8% year on year — not from a single spike: quarterly growth stepped up from −48% to −39%.
1 of the last 4 quarters grew year on year.
- Revenue TTM
- 700bn −31.8%
- Latest quarter YoY
- −39% accelerating
What is driving the margin?
▼▼Net margin fell to 22.84%, losing 11.8pp. The main pressure comes from Gross margin fell 3.4pp (with lingering pressure from Other profit / Revenue fell 5.7pp and Net financial result / Revenue fell 1.8pp).
Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.
- Net Margin
- 22.84% −11.8pp
- Gross Margin
- 46.07% −3.4pp
- SG&A / Revenue
- 10.30% +1.6pp
TTM YoY · 2025Q2 -> 2026Q2
Cash Flow
▲Is profit converting into cash?
With leverage safe, cash flow shows the self-funding capacity. Operating cash flow reached 236.0bn against investing cash flow of -488.8bn (annual cash-flow figures for 2025).
Post-investment cash flow was negative +252.8bn. Financing cash flow was negative +35.3bn.
CFO / net income was 3,34 lần.
After spending +500.8bn on fixed-asset investment, the business generated trailing free cash flow of +33.5bn.
FCF and CFO in this industry should be read alongside investment cycles and business model specifics.
Earnings Quality
●How much income is non-core?
Non-core income makes up 19.1% of pre-tax profit — worth monitoring.
Within that, net financial result at +0.8%, other profit at +18.3% of PBT.
- Non-core / PBT
- 19.1% moderate
- Net financial / PBT
- 0.8%
- Other profit / PBT
- 18.3%
Is capital being used efficiently?
Capital efficiency should be read in industry context — ROIC of 3.6% may fluctuate with business specifics.
Is capital being deployed efficiently?
▼ROIC fell to 3.65%, losing 4.1pp. That translates to 3.65 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 8.5pp and capital turnover fell 0.08x, while invested capital rose by 439bn — pressure came from both operational efficiency and asset efficiency.
Industry characteristics make ROIC cyclical — this is a reference signal and should be read with the business context.
Working Capital Efficiency
▼Cash conversion cycle lengthened by 512.1 days versus the same period last year. The main moves came from DIO rose 552.4 days, DSO rose 12.1 days, and DPO rose 52.4 days.
Working capital cycle lengthened mainly due to slower inventory turnover — more capital is being tied up in inventory.
Working capital metrics in this industry should be read alongside business model specifics — DSO/DIO/DPO/CCC can be distorted by operational factors not reflected in raw numbers.
CCC stands at 1614.6 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DSO increased by +12.1 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE fell from 11.7% to 5.2% — net margin weakened the most, though leverage still provided support.
Is financial risk significant?
Financial risk is low — leverage is safe, both CFO and FCF are positive.
Leverage & Liquidity
●Leverage is balanced for now, with net debt / equity at 0.67x and interest coverage at 8.85x.
At present, short-term debt accounts for 22.3% of total debt, cash equals 18.9% of debt, and total debt stands at 2,508.6bn.
Leverage should be read alongside project structure, regulated assets, or industry-specific capital recovery.
- Net Debt / Equity
- 0.67x +0.08x
- Interest Coverage
- 8.85x −6.44x
- Cash / Debt
- 18.9% +2.9pp
- Short-term Debt / Total Debt
- 22.3% +3.8pp
TTM YoY · 2025Q2 -> 2026Q2
Cash / debt stands at 18.9%, leaving limited liquidity buffer to monitor.
Balance Sheet
●ROIC should be read with industry context. Capital structure is relatively light for the real estate sector — liabilities at 1.55x equity, net debt at 0.67x equity.
Unearned revenue 827.0bn (as of 2026Q2, 9.77% of total assets) — land-lease cash already collected, waiting to be amortised into revenue; ≈ 1.2 years of current revenue already banked. For a collect-upfront park amortising over 30-50 years, accounting profit typically UNDERSTATES true cash health — the cash arrived long ago; accounting recognises it gradually. Over the last four quarters, operating cash flow was 534.2bn vs net profit 159.9bn — 3.34x. Up 153.76% YoY — the future-amortisation reserve is thickening.
Unearned revenue (ST + LT): 827.0bn
Share of total assets: 9.77%
Years of revenue banked: 1.2
CFO / NPAT (TTM): 3.34x
Development inventory ended the period at 1,892.7bn, about 23.2% of total assets — reflecting projects in progress awaiting handover.
Over the last 12 months, working capital released 0.0bn of cash.
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 margins remain under pressure remaining the main constraint, with net margin down 11.8 pp. The next watchpoint is the earnings mix, when non-core contribution is 18.3%.
- Watchpoint: cash flow is currently keeping pace with accounting earnings, with CFO / net income at 3.34x. Even so, net financial result still accounts for 18.3% of PBT, so the earnings mix still needs monitoring.
- Key risk: profitability remains under pressure, with trailing-12M net margin at 22.84% after a 11.8pp decline versus the same period last year.
What to verify next
Questions for the next period
Whether revenue stabilizes after a −31,8% YoY decline or keeps falling.
Whether margins hold around the current 22.84% level or narrow again.
Whether operating cash flow holds its 236.0bn (cumulative for 2025) level in upcoming periods or weakens.
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