Loc Troi Group JSC

Loc Troi Group JSC exhibits a highly leveraged capital structure, with a debt-to-equity ratio of 1.62, indicating significant reliance on debt financing. The company's liquidity position is constrained, as evidenced by a current ratio of 1.18 and negative free cash flow of -136.14 billion VND. The negative operating cash flow of -181.67 billion VND further highlights the company's cash flow challenges.

Profitability metrics are deeply negative, with a return on equity of -1.53% and a return on assets of -0.49%. These figures fall well below the industry norms for agricultural chemical producers, which typically require positive returns to sustain operations and reinvest in R&D and production capacity.

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 and regulatory risks, particularly in the volatile agricultural chemicals market.

Growth prospects appear muted, with the company reporting a net loss of 43.94 billion VND and an operating loss of 62.29 billion VND. The negative operating income and declining cash flow suggest operational inefficiencies or pricing pressures in the market.

The company's risk profile is elevated due to its negative net cash position after subtracting total debt. While dilution risk is currently assessed as low, the company's negative free cash flow and high debt levels could necessitate future equity issuance, potentially diluting existing shareholders.

Recent financial filings indicate a challenging operating environment, with the company failing to meet basic profitability thresholds. The absence of positive cash flow from operations and the reliance on debt financing suggest a need for operational restructuring or external capital.

Loc Troi Group generated 16.1 trillion VND in revenue for fiscal year 2024, demonstrating significant top-line scale.

The company achieved a best-in-class cash conversion ratio of 41.35%, significantly outperforming the agricultural chemicals cohort median.

Free cash flow increased by 115.6% year-over-year to 133.4 billion VND, indicating improved cash generation capabilities.

Gross profit reached 2.48 trillion VND in 2024, showing resilience in core production margins despite net income volatility.

Dilution risk is assessed as low, suggesting current capital structure stability regarding equity issuance pressures.

Net income plummeted to 16.9 billion VND in 2024, reflecting a severe collapse in profitability compared to prior years.

Long-term debt surged to 6.31 trillion VND in 2024, creating a high credit risk profile for the company.

The debt-to-equity ratio stands at 1.62, placing Loc Troi Group in the bottom quartile of its agricultural chemicals cohort.

Return on equity turned negative at -1.53%, ranking in the bottom quartile relative to peer agricultural chemical companies.

Revenue VND 3.06T; Operating income VND 282.86B.

• ▍Revenue VND 3.06T
• ▍Operating income VND 282.86B
• ▍Net margin 6.8%

Revenue VND 2.74T; Operating income VND 90.53B.

• ▍Revenue VND 2.74T
• ▍Operating income VND 90.53B
• ▍Net margin 2.3%

Revenue VND 3.55T; Operating income -VND 62.29B.

• ▍Revenue VND 3.55T
• ▍Operating income -VND 62.29B
• ▍Net margin -1.2%

Revenue VND 16.09T, +37,6% YoY; Operating income −77,5% YoY.

• ▍Revenue VND 16.09T, +37,6% YoY
• ▍Operating income −77,5% YoY
• ▍Net income −95,9% YoY
• ▍Free cash flow +21,1% YoY
• ▍Net margin 0.1%

Revenue VND 11.69T, +14,3% YoY; Operating income +14,9% YoY.

• ▍Revenue VND 11.69T, +14,3% YoY
• ▍Operating income +14,9% YoY
• ▍Net income −1,3% YoY
• ▍Free cash flow −50,4% YoY
• ▍Net margin 3.5%

Revenue VND 10.22T, +36,2% YoY; Operating income +4,5% YoY.

• ▍Revenue VND 10.22T, +36,2% YoY
• ▍Operating income +4,5% YoY
• ▍Net income +14,2% YoY
• ▍Free cash flow −29,1% YoY
• ▍Net margin 4.1%

Revenue VND 7.51T, −9,7% YoY; Operating income +2,5% YoY.

• ▍Revenue VND 7.51T, −9,7% YoY
• ▍Operating income +2,5% YoY
• ▍Net income +10,4% YoY
• ▍Free cash flow +8,8% YoY
• ▍Net margin 4.9%