TST

Dịch vụ Kỹ Thuật Viễn thông ·UPCOM ·2023Q2

▼▼ Declining sharply

Margins remain under pressure Net margin −5.35%, −2.89pp YoY
Price
7,800
Latest close
22 May 2026
P/E -14.26x
P/B 0.39x
EPS -547
BVPS 20,226
ROE 0.2%
ROA 0.1%
Profit Margin 0.3%
Asset Turnover 0.19x
Equity Mult. 2.55x

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

What Is Changing

On a TTM 2023Q2 basis, TST is declining on both revenue and margins simultaneously, showing pressure from multiple directions at once — margins have been compressing consistently over multiple periods. More notably, most of the profit comes from non-core sources — this needs careful evaluation before concluding on growth quality.

TTM REVENUE
VND 47bn
−48.7%YoY
NET MARGIN
−5.35%
−2.9ppYoY
TTM NET PROFIT
−VND 2bn
−11.3%YoY
Net financial result / PBT
75.0%
affects earnings quality
Metric Q2'23 Q1'23 Q4'22 Q3'22 Q2'22 Q1'22 Q4'21 Q3'21 Q2'21 Q1'21 Q4'20 Q3'20
Revenue 1.0 0.0 38.1 7.5 28.4 2.2 55.4 4.9 27.8 7.0 39.2 15.9
Growth — -100% +410% -74% +1182% -96% +1029% -82% +295% -82% +147% —
Net Income -0.7 -1.2 -0.5 -0.0 -3.7 -2.2 3.3 0.4 0.3 -3.3 1.7 1.7
Net Margin -72.94% — -1.29% -0.55% -12.98% -100.88% 5.97% 7.70% 1.02% -46.91% 4.42% 10.46%

Drivers of TST's profit

TTM

Net profit attributable to parent increased vs last year, mainly helped by lower minority interests. Supporting and offsetting drivers:

Minority interests ↓ 2.5bn
Other profit ↑ 1.8bn
Gross profit ↓ 7.3bn
Administrative expenses ↑ 3.3bn
Finance costs ↑ 1.8bn
Financial income ↓ 1.0bn
TTM

Net profit attributable to parent increased vs prior quarter, mainly helped by lower administrative expenses. Supporting and offsetting drivers:

Administrative expenses ↓ 3.6bn
Minority interests ↓ 1.7bn
Gross profit ↓ 1.0bn

Financial Highlights

Detailed analysis of each financial dimension

ROE = Profit Margin × Asset Turnover × Equity Multiplier

2022Q2 -2.2% = -2.5% × 0.34 × 2.65
2023Q2 -2.5% = -5.3% × 0.19 × 2.55

ROE is broadly flat at -2.5% — the components are offsetting one another.

Net margin: -5.3% -2.9pp Asset turnover: 0.19x -0.15x Leverage: 2.55x -0.09x

Is the profit sustainable?

Margins are under pressure while earnings still rely significantly on non-core sources.

very positive positive stable watch under pressure

What is driving the margin?

Net margin fell to -5.35%, losing 2.9pp. The main pressure comes from SG&A / Revenue rose 8.2pp and Gross margin fell 5.5pp (in addition, Other profit / Revenue rose 3.4pp added support while Net financial result / Revenue fell 4.6pp remained a drag).

Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.

Profitability trend

Net Margin -5.35% −2.9pp
Gross Margin 5.25% −5.5pp
SG&A / Revenue 9.11% +8.2pp
Non-core / Revenue -0.24% −1.2pp

TTM YoY · 2022Q2 -> 2023Q2

Watchpoints

Non-core sources share remains high

Even though contribution decreased by 1.2pp, non-core sources still accounts for 144.5% of PBT — earnings durability should be monitored in coming periods.

Is capital being used efficiently?

Capital efficiency for construction contractors should be read alongside project progress and receivables collection from developers — ROIC of -2.2% fluctuates with handover cycles.

Is capital being deployed efficiently?

ROIC narrowed to -2.20%, falling 1.0pp. That translates to -2.20 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 3.7pp and capital turnover fell 0.25x, with invested capital holding roughly steady — pressure came from both operational efficiency and asset efficiency.

For construction contractors, ROIC moves with backlog and project acceptance timing — this is a reference signal and should be read alongside working-capital cycles.

CAPITAL EFFICIENCY TREND

TTM YoY · 2022Q2 -> 2023Q2

ROIC -2.20% −1.0pp
NOPAT Margin -5.56% −3.7pp
Capital Turnover 0.40x −0.25x
Average Invested Capital 117.6bn −23.9bn

Balance Sheet

ROIC for construction contractors swings with project progress and handover cycles — the balance sheet below adds perspective. Capital structure is relatively light for construction contractors — liabilities at 1.83x equity, net debt at 0.07x equity.

Inventory ended the period at 58.8bn, roughly 28.8% of total assets.

Over the last 12 months, working capital released 18.4bn of cash, mainly thanks to lower receivables and lower inventories. Pressure from lower payables only partly offset that benefit.

Working Capital Drivers

TTM YoY · 2022Q2 -> 2023Q2

Receivables decreased → higher CFO: +6.8bn
Inventories decreased → higher CFO: +14.6bn
Payables decreased → lower CFO: −3.1bn

Working Capital Efficiency

The inventory build-up noted above is reflected in a longer cash cycle. Cash conversion cycle lengthened by 756.0 days versus the same period last year. The main moves came from DIO rose 123.5 days, DSO rose 422.7 days, and DPO fell 209.8 days.

All 3 drivers are deteriorating — working capital is becoming more deeply tied up in the operating cycle.

For construction contractors, DSO/DIO/DPO/CCC can be distorted by project progress, work-in-progress receivables, and milestone acceptance timing — these metrics should be read alongside developer payment cycles.

Watchpoints

Cash conversion cycle remains stretched

CCC stands at 544.3 days, suggesting that working capital remains tied up for a relatively long operating cycle.

Receivables collection is slowing

DSO increased by +422.7 days, pointing to slower receivables turnover.

Working Capital Efficiency

TTM YoY · 2022Q2 -> 2023Q2

Receivables 588.5 days +422.7 days
Inventory 619.9 days +123.5 days
Payables 664.1 days −209.8 days
Cash Conversion Cycle 544.3 days +756.0 days

Is financial risk significant?

Check leverage, liquidity, and cash-flow conversion.

Leverage & Liquidity

Leverage warrants monitoring, with net debt / equity at 0.07x and interest coverage only at -2.26x.

At present, short-term debt accounts for 100.0% of total debt, cash equals 20.1% of debt, and total debt stands at 8.8bn.

Leverage for construction contractors fluctuates with project working capital, performance guarantees, and progress receivables — should be read alongside receivables quality and developer payment cycles.

Watchpoints

Interest coverage is thin

Interest coverage is -2.26x, leaving limited room to absorb financing costs.

Short-term refinancing pressure is meaningful

Short-term debt accounts for 100.0% of total debt, raising near-term refinancing needs.

Leverage and liquidity trend

Net Debt / Equity 0.07x −0.24x
Interest Coverage -2.26x +4.59x
Cash / Debt 20.1% +18.3pp
Short-term Debt / Total Debt 100.0% 0.0pp
CFO / NI 65.04x +73.59x

TTM YoY · 2022Q2 -> 2023Q2

Cash Flow

Operating cash flow reached -6.2bn in 2023, against investing cash flow of 21.4bn.

Post-investment cash flow was positive +15.2bn. Financing cash flow was negative +14.2bn.

CFO / net income was 65.04x.

After spending 0.0bn on fixed-asset investment, the business generated trailing free cash flow of +10.4bn.

For construction contractors, FCF swings sharply with project progress and payment cycles — should be read alongside backlog and receivables quality.

Cash Conversion

TTM Cash Conversion · 2022Q2 -> 2023Q2

CFO TTM 10.4bn −7.4bn
Cash Capex 0.0bn 0.0bn
FCF TTM +10.4bn −7.4bn

Investment Takeaway

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 margins remain under pressure remaining the main constraint, with net margin down 2.9 pp. The next watchpoint is the earnings mix, when non-core contribution is 75.0%.

Watchpoint: cash flow is currently keeping pace with accounting earnings, with CFO / net income at 65.04x. Even so, net financial result still accounts for 75.0% of PBT, so the earnings mix still needs monitoring.

Key risk: profitability remains under pressure, with trailing-12M net margin at -5.35% after a 2.9pp decline versus the same period last year.

Statement Data

Item 2023 2022 2021 2020
Net Revenue
10.4 51.4 95.1 93.5
Cost of Goods Sold
7.4 48.9 0.0 0.0
Gross Profit
2.9 2.5 11.7 13.5
Financial Expenses
0.9 6.0 -2.2 -3.5
Selling Expenses
0.0 0.1 -0.2 -0.7
General and Administrative Expenses
7.5 22.6 -8.9 -9.2
Operating Profit
-5.5 -26.1 1.4 1.8
Profit Before Tax
-5.3 -27.7 0.7 1.2
Net Income
-5.7 -27.8 0.7 1.2
Profit Attributable to Parent
-5.7 -27.8 1.0 1.1
Earnings per Share
-1,193.31 -5,790.00 214.00 230.00

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