Zhuguang Holdings Group Co (HKSE:01176) Beneish M-Score : -3.31 (As of May. 21, 2024)

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What is Zhuguang Holdings Group Co 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 -3.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Zhuguang Holdings Group Co's Beneish M-Score or its related term are showing as below:

HKSE:01176' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31 Med: -1.43 Max: 28.33
Current: -3.31

During the past 13 years, the highest Beneish M-Score of Zhuguang Holdings Group Co was 28.33. The lowest was -3.31. And the median was -1.43.

Zhuguang Holdings Group Co Beneish M-Score Historical Data

The historical data trend for Zhuguang Holdings Group Co'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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Zhuguang Holdings Group Co Beneish M-Score Chart

Zhuguang Holdings Group Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.02

-1.48

-1.37

-2.92

-3.31

Zhuguang Holdings Group Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.37	-	-2.92	-	-3.31

Competitive Comparison of Zhuguang Holdings Group Co's Beneish M-Score

For the Real Estate Services subindustry, Zhuguang Holdings Group Co'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.

Zhuguang Holdings Group Co's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Zhuguang Holdings Group Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Zhuguang Holdings Group Co's Beneish M-Score falls into.

Zhuguang Holdings Group Co 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 Zhuguang Holdings Group Co 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 * 0.2408

0.528 * 0.9808

0.404 * 2.2341

0.892 * 0.7223

0.115 * 1.132

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1489

4.679 * -0.076287

0.327 * 1.0252

-3.31

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$2,189 Mil.
Revenue was HK$2,051 Mil.
Gross Profit was HK$1,448 Mil.
Total Current Assets was HK$16,123 Mil.
Total Assets was HK$35,882 Mil.
Property, Plant and Equipment(Net PPE) was HK$14 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$21 Mil.
Selling, General, & Admin. Expense(SGA) was HK$414 Mil.
Total Current Liabilities was HK$21,585 Mil.
Long-Term Debt & Capital Lease Obligation was HK$5,337 Mil.
Net Income was HK$-871 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$1,866 Mil.

Total Receivables was HK$12,581 Mil.
Revenue was HK$2,839 Mil.
Gross Profit was HK$1,967 Mil.
Total Current Assets was HK$27,955 Mil.
Total Assets was HK$37,119 Mil.
Property, Plant and Equipment(Net PPE) was HK$22 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$45 Mil.
Selling, General, & Admin. Expense(SGA) was HK$499 Mil.
Total Current Liabilities was HK$18,227 Mil.
Long-Term Debt & Capital Lease Obligation was HK$8,938 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)
	=	(2188.674 / 2050.576)	/	(12581.304 / 2838.843)
	=	1.067346	/	4.431842
	=	0.2408

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)
	=	(1966.695 / 2838.843)	/	(1448.422 / 2050.576)
	=	0.69278	/	0.706349
	=	0.9808

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 - (16123.18 + 14.215) / 35882.1)	/	(1 - (27955.201 + 21.53) / 37119.082)
	=	0.550266	/	0.246298
	=	2.2341

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
	=	2050.576	/	2838.843
	=	0.7223

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))
	=	(44.85 / (44.85 + 21.53))	/	(21.046 / (21.046 + 14.215))
	=	0.675655	/	0.596863
	=	1.132

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)
	=	(413.749 / 2050.576)	/	(498.576 / 2838.843)
	=	0.201772	/	0.175626
	=	1.1489

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)
	=	((5336.587 + 21584.565) / 35882.1)	/	((8938.044 + 18226.652) / 37119.082)
	=	0.750267	/	0.731826
	=	1.0252

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
	=	(-871.01 - 0	-	1866.344)	/	35882.1
	=	-0.076287

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.

Zhuguang Holdings Group Co has a M-score of -3.31 suggests that the company is unlikely to be a manipulator.

Zhuguang Holdings Group Co Beneish M-Score Related Terms

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Zhuguang Holdings Group Co (HKSE:01176) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Zhuguang Holdings Group Co Ltd (HKSE:01176) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

8 Finance Street, Room 5702-5703, 57th Floor, Two International Finance Centre, Central, Hong Kong, HKG

Website

http://www.zhuguang.com.hk

Zhuguang Holdings Group Co Ltd engages in property development, property investment, project management, and other property development related services in the People's Republic of China. The company's core investment projects take place in tier-one and tier-two cities in China. The group's key projects include Zhuguang Yujing Scenic Garden, Pearl Yijing, Pearl Tianhu Yujing Garden, Zhuguang Financial Town One, Pearl Xincheng Yujing, and many others. The sale of properties from the Property Development Segment are responsible for most of the company's revenue. The company earns its revenue in both Hong Kong and Mainland China.

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