Hong Kong ChaoShang Group (HKSE:02322) Beneish M-Score : -3.19 (As of Oct. 09, 2024)

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What is Hong Kong ChaoShang Group Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Hong Kong ChaoShang Group's Beneish M-Score or its related term are showing as below:

HKSE:02322' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -1.99 Max: 2.5
Current: -3.19

During the past 13 years, the highest Beneish M-Score of Hong Kong ChaoShang Group was 2.50. The lowest was -3.19. And the median was -1.99.

Hong Kong ChaoShang Group Beneish M-Score Historical Data

The historical data trend for Hong Kong ChaoShang Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Hong Kong ChaoShang Group Beneish M-Score Chart

Hong Kong ChaoShang Group Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.07

-2.60

-1.84

-1.99

-3.19

Hong Kong ChaoShang Group Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-1.84	-	-1.99	-	-3.19

Competitive Comparison of Hong Kong ChaoShang Group's Beneish M-Score

For the Conglomerates subindustry, Hong Kong ChaoShang Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Hong Kong ChaoShang Group's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Hong Kong ChaoShang Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hong Kong ChaoShang Group's Beneish M-Score falls into.

Hong Kong ChaoShang Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Hong Kong ChaoShang Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2054

0.528 * 0.7332

0.404 * 0.912

0.892 * 0.7287

0.115 * 0.8198

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2758

4.679 * -0.114568

0.327 * 0.637

-3.19

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was HK$383.4 Mil.
Revenue was HK$145.0 Mil.
Gross Profit was HK$32.7 Mil.
Total Current Assets was HK$563.4 Mil.
Total Assets was HK$767.6 Mil.
Property, Plant and Equipment(Net PPE) was HK$39.8 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$13.1 Mil.
Selling, General, & Admin. Expense(SGA) was HK$55.5 Mil.
Total Current Liabilities was HK$42.5 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.
Net Income was HK$-87.4 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$0.5 Mil.

Total Receivables was HK$436.5 Mil.
Revenue was HK$198.9 Mil.
Gross Profit was HK$32.9 Mil.
Total Current Assets was HK$647.4 Mil.
Total Assets was HK$916.1 Mil.
Property, Plant and Equipment(Net PPE) was HK$53.6 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$13.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$59.7 Mil.
Total Current Liabilities was HK$69.4 Mil.
Long-Term Debt & Capital Lease Obligation was HK$10.3 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(383.405 / 144.95)	/	(436.523 / 198.924)
	=	2.645085	/	2.194421
	=	1.2054

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(32.868 / 198.924)	/	(32.667 / 144.95)
	=	0.165229	/	0.225367
	=	0.7332

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (563.378 + 39.845) / 767.563)	/	(1 - (647.411 + 53.631) / 916.102)
	=	0.214106	/	0.234756
	=	0.912

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	144.95	/	198.924
	=	0.7287

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(13.649 / (13.649 + 53.631))	/	(13.103 / (13.103 + 39.845))
	=	0.202869	/	0.247469
	=	0.8198

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(55.497 / 144.95)	/	(59.697 / 198.924)
	=	0.38287	/	0.3001
	=	1.2758

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 42.524) / 767.563)	/	((10.318 + 69.352) / 916.102)
	=	0.055401	/	0.086966
	=	0.637

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-87.432 - 0	-	0.506)	/	767.563
	=	-0.114568

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Hong Kong ChaoShang Group has a M-score of -3.19 suggests that the company is unlikely to be a manipulator.

Hong Kong ChaoShang Group Beneish M-Score Related Terms

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Hong Kong ChaoShang Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Hong Kong ChaoShang Group Ltd (HKSE:02322) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

26 Harbour Road, Suite 2202, 22nd Floor, China Resources Building, Wanchai, Hong Kong, HKG

Website

http://www.chaoshang.hk

Hong Kong ChaoShang Group Ltd is an investment holding company. It is engaged in Trading, Money lending & factoring segment, Finance leasing, and Finance Services. The trading segment is a key revenue driver, involved in the trading of goods in the PRC and Hong Kong. Money lending includes the provision of loan and factoring financing in Hong Kong and the PRC whereas, the finance leasing segment is engaged in the provision of finance leasing and sale-leaseback in the PRC. The financial services segment engaged in the provision of securities dealing broking, placing, underwriting, margin financing, and asset management services in Hong Kong. Geographically, it generates the majority of its revenue from the PRC.

Executives

Lau Hoi Kit	2101 Beneficial owner
Superb Smart Limited	2101 Beneficial owner
Zheng Juhua	2201 Interest of corporation controlled by you

Hong Kong ChaoShang Group Headlines

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