Hung Thinh Incons JSC

Hung Thinh Incons JSC maintains a debt-to-equity ratio of 1.36, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is characterized by a current ratio of 1.2, suggesting it has sufficient short-term assets to cover its short-term liabilities, though with limited buffer. Free cash flow stands at 16,584,130,730 VND, which is positive but modest in the context of its total assets of 729,446,319,765 VND.

Profitability metrics reveal a return on equity (ROE) of 0.68% and a return on assets (ROA) of 0.14%, both of which are below the industry median for construction and engineering firms. The company's net income of 10,267,824,530 VND is supported by an operating income of 13,346,116,250 VND, but the low ROE suggests inefficiencies in capital utilization or weak equity returns.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. The company's total revenue of 463,096,089,690 VND is derived from construction and engineering services, with no material revenue from other business lines.

Looking ahead, the company is projected to see a 29.3% increase in revenue to 6,163,724,691,000 VND in the current fiscal year. This growth is driven by increased demand in the construction sector and the company's expansion into new infrastructure projects. However, the company's operating cash flow remains negative at -44,898,773,720 VND, which could constrain its ability to fund operations without external financing.

The company faces moderate liquidity risk due to its negative net cash position after accounting for total debt. While dilution risk is currently low, the company's reliance on long-term debt (205,017,665,1410 VND) could increase the risk of future equity dilution if additional financing is required. No recent dilutive events have been disclosed, and the company's shares outstanding remain unchanged at 89,116,411.

Recent filings and transcripts indicate the company is focused on expanding its infrastructure projects and improving operational efficiency. The company has not disclosed any material legal or regulatory issues in the latest filings, and its management has expressed confidence in meeting its financial targets for the current fiscal year.

Revenue grew at a 16.0% CAGR over four years, indicating historical top-line expansion capability.

Net income CAGR of 8.3% over four years suggests long-term profitability growth despite recent volatility.

Free cash flow remained positive at 47.2 billion VND in FY-1, demonstrating continued cash generation.

Debt-to-equity ratio of 1.36 sits in the bottom quartile, indicating excessive leverage compared to peers.

High credit risk flag suggests significant potential for financial distress or default given current leverage levels.

Revenue VND 630.69B, −44,7% YoY; Operating income −21,1% YoY.

• ▍Revenue VND 630.69B, −44,7% YoY
• ▍Operating income −21,1% YoY
• ▍Net income −27,2% YoY
• ▍Free cash flow −21,3% YoY
• ▍Net margin 2.9%