AAV

AAV Group ·HNX ·2026Q1

▲ Slightly positive

Operating efficiency is improving Net margin −5.67%, +2.05pp YoY
Price
6,900
Latest close
03 Jun 2026
P/E -22.62x
P/B 0.64x
EPS -305
BVPS 10,833
ROE -2.9%
ROA -1.8%
Profit Margin -5.9%
Asset Turnover 0.31x
Equity Mult. 1.58x

TTM · Applied to: EPS, ROE, ROA, Net Margin, Asset Turnover, Debt/Equity

What Is Changing

On a TTM 2026Q1 basis, AAV is improving on both revenue and margins, though the magnitude is still moderate — profit is at an all-time high. However, most of the profit comes from non-core sources — this needs careful evaluation before concluding on growth quality.

TTM REVENUE
VND 370bn
+281.1%YoY
NET MARGIN
−5.67%
+2.0ppYoY
TTM NET PROFIT
−VND 21bn
−179.9%YoY
Non-core income / PBT
220.2%
Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2'23
Revenue 112.0 113.7 69.5 75.3 59.9 35.0 0.6 1.7 1.2 4.0 0.5 0.4
Growth -2% +64% -8% +26% +71% +5781% -64% +39% -70% +721% +8%
Net Income 2.5 -56.8 33.5 -0.3 0.7 -6.5 -1.9 0.2 -3.3 -4.8 -4.0 -4.9
Net Margin 2.25% -49.92% 48.23% -0.35% 1.12% -18.52% -318.72% 12.70% -278.47% -121.11% -826.43% -1092.31%

Drivers of AAV's profit

TTM

Net profit attributable to parent declined vs last year, mainly due to weaker other profit. Supporting and offsetting drivers:

Financial income ↑ 31.6bn
Gross profit ↑ 11.1bn
Other profit ↓ 45.8bn
Administrative expenses ↑ 6.8bn
Selling expenses ↑ 2.2bn
Minority interests ↑ 1.9bn
TTM

Net profit attributable to parent increased vs prior quarter, mainly helped by higher gross profit. Supporting and offsetting drivers:

Gross profit ↑ 3.1bn
Selling expenses ↑ 0.6bn
Financial income ↓ 0.5bn
Minority interests ↑ 0.3bn

Financial Highlights

Detailed analysis of each financial dimension

ROE = Profit Margin × Asset Turnover × Equity Multiplier

2025Q1 -1.0% = -7.7% × 0.11 × 1.20
2026Q1 -2.8% = -5.7% × 0.31 × 1.58

ROE edged down from -1.0% to -2.8% — the components are broadly offsetting.

Net margin: -5.7% +2.0pp Asset turnover: 0.31x +0.20x Leverage: 1.58x +0.39x

Is the profit sustainable?

Margins improved (+2.0pp), but earnings still rely significantly on non-core sources — warrants closer scrutiny.

very positive positive stable watch under pressure

What is driving the margin?

Net margin expanded to -5.67%, rising 2.0pp. The main driver is SG&A / Revenue fell 8.4pp and Gross margin rose 0.5pp, moving in line with the stronger net margin (in addition, Net financial result / Revenue rose 5.2pp added support while Other profit / Revenue fell 12.1pp remained a drag).

Margin improves from both core operations and non-core items — the core foundation is positive, but the sustainability of non-core contributions needs monitoring.

Profitability trend

Net Margin -5.67% +2.0pp
Gross Margin 3.86% +0.5pp
SG&A / Revenue 6.32% −8.4pp
Non-core / Revenue -3.20% −6.9pp

TTM YoY · 2025Q1 -> 2026Q1

Watchpoints

Other income share remains high

Even though contribution decreased by 6.9pp, other income still accounts for 220.2% of PBT — earnings durability should be monitored in coming periods.

Is capital being used efficiently?

Capital efficiency for residential developers should be read alongside project cycles and handover timing — ROIC fluctuates with handover cycles.

Is capital being deployed efficiently?

Track how much operating profit the business generates on invested capital.

For real estate developers, ROIC moves with project cycles — this is a reference signal, and the real assessment needs upcoming handover periods.

CAPITAL EFFICIENCY TREND

TTM YoY · 2025Q1 -> 2026Q1

ROIC
NOPAT Margin
Capital Turnover 0.38x +0.26x
Average Invested Capital 985.6bn +143.5bn

Balance Sheet

ROIC for residential developers swings with project cycles and handover timing — the balance sheet below adds perspective. Capital structure is notably light for the real estate sector — liabilities at 0.91x equity, net debt at 0.52x equity.

Over the last 12 months, working capital absorbed 392.8bn of cash, mainly because of higher receivables and higher inventories. Part of that drag was offset by higher payables.

Working Capital Drivers

TTM YoY · 2025Q1 -> 2026Q1

Receivables increased → lower CFO: −132.3bn
Inventories increased → lower CFO: −511.1bn
Payables increased → higher CFO: +250.5bn

Is financial risk significant?

Check leverage, liquidity, and cash-flow conversion.

Leverage & Liquidity

Leverage is balanced for now, with net debt / equity at 0.52x and interest coverage at 13.75x.

At present, short-term debt accounts for 28.2% of total debt, cash equals 3.1% of debt, and total debt stands at 398.1bn.

Leverage for residential developers should be read alongside project cycles, development inventory, and handover timing.

Watchpoints

Cash buffer is thin relative to debt

Cash / debt stands at 3.1%, leaving limited liquidity buffer to monitor.

Leverage and liquidity trend

Net Debt / Equity 0.52x +0.42x
Interest Coverage 13.75x +26.66x
Cash / Debt 3.1% −26.5pp
Short-term Debt / Total Debt 28.2% −71.6pp
CFO / NI 20.12x +35.08x

TTM YoY · 2025Q1 -> 2026Q1

Cash Flow

Operating cash flow reached -525.2bn in 2025, against investing cash flow of 244.9bn.

Post-investment cash flow was negative +280.4bn. Financing cash flow was positive +285.2bn.

CFO / net income was 20.12x.

Track how much investment can be funded internally from operating cash flow.

For residential developers, FCF and CFO swing with project cycles — negative during investment phases and positive at handover — not representative of single-year efficiency.

Cash Conversion

TTM Cash Conversion · 2025Q1 -> 2026Q1

CFO TTM 440.1bn −536.9bn
Cash Capex
FCF TTM

Investment Takeaway

The business is showing brightening signals, but the improvement is still early and not yet thick enough to read as a confirmed trend. The brighter spot is operating efficiency, with net margin improving 2.0 pp. The next item to monitor is the earnings mix, when non-core contribution is -163.6%. The main risk still sits in leverage and liquidity, with interest coverage at 13.75x.

Improvement: operating efficiency is getting better, with trailing-12M net margin at -5.67% after expanding 2.0pp versus the same period last year.

Watchpoint: cash flow is currently keeping pace with accounting earnings, with CFO / net income at 20.12x. Even so, net financial result still accounts for -163.6% of PBT, so the earnings mix still needs monitoring.

Key risk: leverage and liquidity remain a pressure point, with net debt / equity at 0.52x and a thin cash buffer.

Statement Data

Item 2025 2024 2023 2022 2021
Net Revenue
318.4 38.5 73.1 496.5 500.8
Cost of Goods Sold
307.2 38.6 69.9 456.5 0.0
Gross Profit
11.2 -0.1 3.2 39.9 51.0
Financial Expenses
1.9 0.3 5.3 6.7 -3.3
Selling Expenses
4.1 0.7 1.2 0.0 -0.5
General and Administrative Expenses
17.5 16.1 17.7 28.3 -12.7
Operating Profit
23.7 -13.1 -17.9 6.9 39.1
Profit Before Tax
-22.4 -13.5 -17.1 6.9 38.4
Net Income
-21.0 -15.8 -17.3 3.5 30.0
Profit Attributable to Parent
-21.5 -15.7 -16.9 1.5 25.0
Earnings per Share
-311.00 -227.00 -252.00 22.00 484.00

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