Analysis of business results & financial statements · Quý 2/2026
▼▼ Declining sharply
Trailing net profit reached 148.8bn, fell 28.0bn compared with the same period last year. Key positives came from lower selling expenses, lower deferred tax, and lower administrative expenses. Offsetting pressure came mainly from lower gross profit and higher finance costs. Detailed impact is shown below:
See what is changing ↓- P/E
- 6.05x
- P/B
- 1.22x
- EPS
- 4,444
- BVPS
- 22,120
- ROE
- 19.6%
- ROA
- 6.6%
- Market price
- 26,900 20 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q2 basis, THG is going through a period of clear decline across multiple metrics at once — margins have been compressing consistently over multiple periods. What still needs to be determined is whether the business can find a stabilization point in the near term, or whether current pressure has not yet run its course.
Profit bridge
Vs last year · TTM
- Selling expenses
- Deferred tax
- Administrative expenses
- Gross profit
- Finance costs
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 | 555.6 | 447.0 | 707.3 | 566.5 | 624.8 | 514.4 | 618.0 | 548.3 |
| LNST | 28.5 | 32.1 | 44.5 | 46.2 | 41.5 | 31.9 | 55.6 | 51.4 |
| Net margin | 5.13% | 7.19% | 6.29% | 8.16% | 6.65% | 6.20% | 8.99% | 9.38% |
Revenue
556bnNet income
29bnNet margin
5.13%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 1.3% year on year — but the quarterly pace is slowing (+3% → −11%).
2 of the last 4 quarters grew year on year.
- Revenue TTM
- 2,276bn −1.3%
- Latest quarter YoY
- −11% slowing
What is driving the margin?
▼Net margin narrowed to 6.65%, falling 1.2pp. The main pressure is Gross margin fell 1.6pp, outweighing the improvement in SG&A / Revenue fell 0.6pp (with lingering pressure from Net financial result / Revenue fell 0.4pp and Other profit / Revenue fell 0.1pp).
Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.
- Net Margin
- 6.65% −1.2pp
- Gross Margin
- 21.76% −1.6pp
- SG&A / Revenue
- 12.75% −0.6pp
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 353.2bn against investing cash flow of -296.0bn (annual cash-flow figures for 2025).
Post-investment cash flow was positive +57.2bn. Financing cash flow was positive +25.6bn.
CFO / net income was 1,52 lần.
After spending +275.3bn on fixed-asset investment, the business generated trailing free cash flow of −48.9bn.
Earnings Quality
▲How much income is non-core?
About 100% of pre-tax profit comes from core operations.
Within that, net financial result at −11.4%, other profit at +0.0% of PBT.
- Non-core / PBT
- 0.0% low
- Net financial / PBT
- −11.4%
- Other profit / PBT
- 0.0%
Is capital being used efficiently?
Capital efficiency is declining — check whether the drag is from margins or turnover.
Is capital being deployed efficiently?
▼▼ROIC fell to 13.78%, losing 4.1pp. That translates to 13.78 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 1.1pp and capital turnover fell 0.23x, while invested capital rose by 97bn — pressure came from both operational efficiency and asset efficiency.
Both margin and turnover weakened — this is a broad-based decline, and cyclical versus structural components need to be separated.
Working Capital Efficiency
●Working capital is being managed more efficiently, supporting overall capital efficiency. Cash conversion cycle improved by 2.3 days versus the same period last year. The main moves came from DIO rose 8.5 days, DSO rose 0.9 days, and DPO rose 11.8 days.
Extended payment timing is the main driver — consider whether this trades off supplier relationships.
CCC stands at 122.9 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DSO increased by +0.9 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE fell from 26.0% to 20.0% — net margin weakened the most, though leverage still provided support.
Is financial risk significant?
Leverage is safe but FCF is negative at 48.9bn due to capex of 275.3bn — an investment choice, not an urgent risk.
Leverage & Liquidity
●Leverage is balanced for now, with net debt / equity at 0.53x and interest coverage at 6.54x.
At present, short-term debt accounts for 45.9% of total debt, cash equals 32.0% of debt, and total debt stands at 610.0bn.
- Net Debt / Equity
- 0.53x +0.18x
- Interest Coverage
- 6.54x −4.84x
- Cash / Debt
- 32.0% −16.2pp
- Short-term Debt / Total Debt
- 45.9% +3.4pp
TTM YoY · 2025Q2 -> 2026Q2
Balance Sheet
▼The balance sheet shows capital-allocation efficiency slipping. Capital structure is balanced — liabilities at 2.05x equity, net debt at 0.53x equity.
Inventory ended the period at 832.0bn, roughly 34.4% of total assets.
Over the last 12 months, working capital released 38.6bn of cash, mainly thanks to higher payables. Pressure from higher receivables and higher inventories only partly offset that benefit.
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 working capital is tied up too long in the operating cycle remaining the main constraint, with CCC extended to 123 days. The main offsetting support comes from earnings conversion is confirmed, with CFO/NI at 1.52x.
- 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 122.9 days.
What to verify next
Questions for the next period
Whether revenue stabilizes after a −1,3% YoY decline or keeps falling.
Whether margins hold around the current 6.65% level or narrow again.
Whether operating cash flow holds its 353.2bn (cumulative for 2025) level in upcoming periods or weakens.
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