Analysis of business results & financial statements · Quý 1/2026
● Maintaining
Trailing net profit reached 161.5bn, rose 7.3bn compared with the same period last year. Key positives came from higher gross profit, lower deferred tax, lower selling expenses, and higher financial income. Offsetting pressure came mainly from higher tax, higher finance costs, weaker other profit, and higher administrative expenses. Detailed impact is shown below:
See what is changing ↓- P/E
- 5.66x
- P/B
- 1.06x
- EPS
- 4,753
- BVPS
- 25,491
- ROE
- 21.1%
- ROA
- 7.2%
- Market price
- 26,900 20 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 basis, THG posted slightly higher revenue but margins narrowed — the two forces offset each other, leaving the overall picture largely unchanged — the growth momentum has held across consecutive periods. What remains unclear is which side will dominate in coming periods.
Profit bridge
Vs last year · TTM
- Gross profit
- Deferred tax
- Selling expenses
- Financial income
- Tax
- Finance costs
- Other profit
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 | 447.0 | 707.3 | 566.5 | 624.8 | 514.4 | 618.0 | 548.3 | 376.1 |
| LNST | 32.1 | 44.5 | 46.2 | 41.5 | 31.9 | 55.6 | 51.4 | 18.4 |
| Net margin | 7.19% | 6.29% | 8.16% | 6.65% | 6.20% | 8.99% | 9.38% | 4.88% |
Revenue
447bnNet income
32bnNet margin
7.19%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.
What is driving the margin?
▼Net margin narrowed to 7.01%, falling 0.6pp. The main pressure is Gross margin fell 2.1pp, outweighing the improvement in SG&A / Revenue fell 1.9pp (with lingering pressure from Net financial result / Revenue fell 0.3pp and Other profit / Revenue fell 0.1pp).
The pressure comes from non-core items while core operations hold their rhythm — margin has a basis to recover once this factor passes.
- Net Margin
- 7.01% −0.6pp
- Gross Margin
- 21.67% −2.1pp
- SG&A / Revenue
- 12.17% −1.9pp
TTM YoY · 2025Q1 -> 2026Q1
Is capital being used efficiently?
Evaluate capital, asset, and working-capital efficiency.
Is capital being deployed efficiently?
▼ROIC narrowed to 14.79%, falling 0.4pp. That translates to 14.79 in after-tax operating profit for every 100 units of operating capital. Although capital turnover rose 0.10x, NOPAT margin narrowed 0.6pp still pulled ROIC lower, while invested capital rose by 88bn.
Pressure came from the margin side — core operations are weakening, not just a temporary asset-management issue.
Balance Sheet
●Capital structure is balanced — liabilities at 2.05x equity, net debt at 0.52x equity.
Inventory ended the period at 832.0bn, roughly 34.4% of total assets.
Over the last 12 months, working capital released 65.1bn of cash, mainly thanks to lower receivables and lower inventories. Pressure from lower payables only partly offset that benefit.
Working Capital Efficiency
▲Working capital is being managed more efficiently, supporting overall capital efficiency. Cash conversion cycle improved by 18.0 days versus the same period last year. The main moves came from DIO fell 16.0 days, DSO fell 5.9 days, and DPO fell 4.0 days.
Improvement comes mainly from faster inventory turnover — watch whether this trend persists in coming periods.
CCC stands at 126.4 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DuPont
What drives ROE?
ROE fell from 22.2% to 21.5% — net margin weakened the most, though asset turnover and leverage still provided support.
Is financial risk significant?
Leverage is safe but FCF is negative at 36.9bn due to capex of 282.0bn — an investment choice, not an urgent risk.
Leverage & Liquidity
●Leverage is balanced for now, with net debt / equity at 0.52x and interest coverage at 7.51x.
At present, short-term debt accounts for 44.3% of total debt, cash equals 36.3% of debt, and total debt stands at 645.4bn.
- Net Debt / Equity
- 0.52x +0.14x
- Interest Coverage
- 7.51x −3.80x
- Cash / Debt
- 36.3% −5.9pp
- Short-term Debt / Total Debt
- 44.3% −4.1pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
▼▼With safe leverage noted above, cash flow below shows the self-funding capacity. Operating cash flow reached 353.2bn in 2025, against investing cash flow of -296.0bn.
Post-investment cash flow was positive +57.2bn. Financing cash flow was positive +25.6bn.
CFO / net income was 1,52 lần.
After spending +282.0bn on fixed-asset investment, the business generated trailing free cash flow of −36.9bn.
In summary
Research synthesis
What this reporting period is showing
The business is balanced but not yet fully stable — some components are moving the right way while others still need monitoring. This is a state to keep watching, with not enough signal to tilt the thesis either way. The brighter spot is earnings conversion is confirmed, with CFO/NI at 1.52x. The main risk still sits in working capital is tied up too long in the operating cycle, with CCC extended to 126 days.
- Improvement: earnings conversion looks more confirmed, with CFO / net income at 1.52x.
- Key risk: working capital remains tied up for too long, with cash cycle at 126.4 days.
What to verify next
Questions for the next period
Durability of revenue growth after the current +14,0% YoY pace.
Ability to hold margins around the current 7.01% level.
Cash-flow quality, with operating cash flow currently at 353.2bn 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.