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Hangzhou Zhongheng Electric Co (SZSE:002364) Beneish M-Score : -3.20 (As of Oct. 31, 2024)


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What is Hangzhou Zhongheng Electric 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 -3.2 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Hangzhou Zhongheng Electric Co's Beneish M-Score or its related term are showing as below:

SZSE:002364' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2   Med: -2.38   Max: -0.14
Current: -3.2

During the past 13 years, the highest Beneish M-Score of Hangzhou Zhongheng Electric Co was -0.14. The lowest was -3.20. And the median was -2.38.


Hangzhou Zhongheng Electric Co Beneish M-Score Historical Data

The historical data trend for Hangzhou Zhongheng Electric 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.

* Premium members only.

Hangzhou Zhongheng Electric Co Beneish M-Score Chart

Hangzhou Zhongheng Electric Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.24 -2.19 -2.37 -2.77 -2.99

Hangzhou Zhongheng Electric Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.69 -2.99 -2.93 -3.18 -3.20

Competitive Comparison of Hangzhou Zhongheng Electric Co's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Hangzhou Zhongheng Electric 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.


Hangzhou Zhongheng Electric Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hangzhou Zhongheng Electric Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hangzhou Zhongheng Electric Co's Beneish M-Score falls into.



Hangzhou Zhongheng Electric 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 Hangzhou Zhongheng Electric Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8066+0.528 * 0.8175+0.404 * 0.6688+0.892 * 1.1217+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8505+4.679 * -0.093277-0.327 * 1.0339
=-3.20

* 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.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was ¥912 Mil.
Revenue was 399.138 + 430.35 + 349.487 + 577.283 = ¥1,756 Mil.
Gross Profit was 114.086 + 125.994 + 70.581 + 148.625 = ¥459 Mil.
Total Current Assets was ¥2,537 Mil.
Total Assets was ¥3,403 Mil.
Property, Plant and Equipment(Net PPE) was ¥390 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥89 Mil.
Total Current Liabilities was ¥1,010 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1 Mil.
Net Income was 17.966 + 57.007 + 11.009 + 9.02 = ¥95 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 73.199 + 61.396 + 55.616 + 222.183 = ¥412 Mil.
Total Receivables was ¥1,008 Mil.
Revenue was 323.184 + 385.956 + 269.017 + 587.52 = ¥1,566 Mil.
Gross Profit was 101.047 + 88.641 + 70.797 + 74.241 = ¥335 Mil.
Total Current Assets was ¥2,237 Mil.
Total Assets was ¥3,225 Mil.
Property, Plant and Equipment(Net PPE) was ¥314 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥93 Mil.
Total Current Liabilities was ¥924 Mil.
Long-Term Debt & Capital Lease Obligation was ¥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)
=(911.682 / 1756.258) / (1007.661 / 1565.677)
=0.519105 / 0.643594
=0.8066

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)
=(334.726 / 1565.677) / (459.286 / 1756.258)
=0.21379 / 0.261514
=0.8175

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 - (2537.232 + 389.688) / 3402.674) / (1 - (2236.815 + 313.728) / 3224.716)
=0.139818 / 0.209064
=0.6688

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
=1756.258 / 1565.677
=1.1217

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))
=(0 / (0 + 313.728)) / (0 / (0 + 389.688))
=0 / 0
=1

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)
=(88.978 / 1756.258) / (93.261 / 1565.677)
=0.050663 / 0.059566
=0.8505

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)
=((1.242 + 1009.546) / 3402.674) / ((2.623 + 923.91) / 3224.716)
=0.297057 / 0.287322
=1.0339

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
=(95.002 - 0 - 412.394) / 3402.674
=-0.093277

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.

Hangzhou Zhongheng Electric Co has a M-score of -3.20 suggests that the company is unlikely to be a manipulator.


Hangzhou Zhongheng Electric Co Beneish M-Score Related Terms

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Hangzhou Zhongheng Electric Co Business Description

Traded in Other Exchanges
N/A
Address
No. 69 Dongxin Avenue, High-tech Zone, Zhongheng Building, Zhijiang Science and Technology Industrial Park, Binjiang District, Hangzhou, CHN, 310053
Hangzhou Zhongheng Electric Co Ltd is a China-based provider of electric power informatization software and consulting services. It offers high-frequency switching power systems for the telecommunication, electricity generation, and railway industries. The business segments of the company are Power informatization and Power electronics manufacturing. The products of the company are offered in the categories of power information, electronic manufacturing and energy internet. Its products include power IoT monitoring products, power production lean management products, relay protection setting calculation system, electric vehicle charging station equipment, high-voltage DC power system, energy internet products, and others.
Executives
Zhou Qing Jie Director
Zhu Guo Ding Secretary, Director
Zhao Da Chun Directors, executives
Sun Dan Directors, executives
Xu Zeng Xin Executives
Zhang Yong Hao Director
Xu Yi Jun Directors, executives
Huang Jing Jing Supervisors
Chen Zhi Yun Directors, Directors, and Executives
Song Yu Kun Securities Affairs Representative
Liao Li Rong Executives
Qian Tao Director

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