Hong Seng Consolidated Bhd (XKLS:0041) Beneish M-Score : 6.71 (As of Jun. 06, 2024)

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What is Hong Seng Consolidated Bhd 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.

Warning Sign:

Beneish M-Score 6.71 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Hong Seng Consolidated Bhd's Beneish M-Score or its related term are showing as below:

XKLS:0041' s Beneish M-Score Range Over the Past 10 Years
Min: -3.55 Med: -2.44 Max: 6.71
Current: 6.71

During the past 13 years, the highest Beneish M-Score of Hong Seng Consolidated Bhd was 6.71. The lowest was -3.55. And the median was -2.44.

Hong Seng Consolidated Bhd Beneish M-Score Historical Data

The historical data trend for Hong Seng Consolidated Bhd'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 Seng Consolidated Bhd Beneish M-Score Chart

Hong Seng Consolidated Bhd Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Mar19

Mar20

Sep22

Dec23

Beneish M-Score

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-2.64

-3.55

3.22

6.71

Hong Seng Consolidated Bhd Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															3.22	-0.55	21.11	19.39	6.71

Competitive Comparison of Hong Seng Consolidated Bhd's Beneish M-Score

For the Conglomerates subindustry, Hong Seng Consolidated Bhd'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 Seng Consolidated Bhd's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Hong Seng Consolidated Bhd's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hong Seng Consolidated Bhd's Beneish M-Score falls into.

Hong Seng Consolidated Bhd 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 Seng Consolidated Bhd 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 * 12.7638

0.528 * -0.2652

0.404 * 4.212

0.892 * 0.0609

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 9.5414

4.679 * 0.018926

0.327 * 1.1263

6.71

This Year (Dec23) TTM:

Last Year (Sep22) TTM:

Total Receivables was RM130.53 Mil.
Revenue was 4.652 + 3.798 + 3.627 + 0 = RM12.08 Mil.
Gross Profit was -6.083 + -6.984 + -6.024 + 0 = RM-19.09 Mil.
Total Current Assets was RM182.65 Mil.
Total Assets was RM405.05 Mil.
Property, Plant and Equipment(Net PPE) was RM143.63 Mil.
Depreciation, Depletion and Amortization(DDA) was RM0.00 Mil.
Selling, General, & Admin. Expense(SGA) was RM14.44 Mil.
Total Current Liabilities was RM18.70 Mil.
Long-Term Debt & Capital Lease Obligation was RM23.43 Mil.
Net Income was -9.05 + -6.596 + -9.176 + 0 = RM-24.82 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = RM0.00 Mil.
Cash Flow from Operations was 0 + -21.251 + -7.191 + -4.046 = RM-32.49 Mil.

Total Receivables was RM168.00 Mil.
Revenue was -1.705 + 6.634 + 117.61 + 75.86 = RM198.40 Mil.
Gross Profit was -21.55 + 1.719 + 60.102 + 42.897 = RM83.17 Mil.
Total Current Assets was RM280.31 Mil.
Total Assets was RM431.94 Mil.
Property, Plant and Equipment(Net PPE) was RM131.69 Mil.
Depreciation, Depletion and Amortization(DDA) was RM0.00 Mil.
Selling, General, & Admin. Expense(SGA) was RM24.86 Mil.
Total Current Liabilities was RM27.01 Mil.
Long-Term Debt & Capital Lease Obligation was RM12.88 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)
	=	(130.529 / 12.077)	/	(167.999 / 198.399)
	=	10.808065	/	0.846773
	=	12.7638

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)
	=	(83.168 / 198.399)	/	(-19.091 / 12.077)
	=	0.419196	/	-1.580773
	=	-0.2652

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 - (182.65 + 143.631) / 405.049)	/	(1 - (280.306 + 131.691) / 431.939)
	=	0.194465	/	0.046169
	=	4.212

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
	=	12.077	/	198.399
	=	0.0609

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 + 131.691))	/	(0 / (0 + 143.631))
	=	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)
	=	(14.44 / 12.077)	/	(24.862 / 198.399)
	=	1.195661	/	0.125313
	=	9.5414

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)
	=	((23.43 + 18.699) / 405.049)	/	((12.878 + 27.011) / 431.939)
	=	0.10401	/	0.092349
	=	1.1263

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
	=	(-24.822 - 0	-	-32.488)	/	405.049
	=	0.018926

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 Seng Consolidated Bhd has a M-score of 6.71 signals that the company is likely to be a manipulator.

Hong Seng Consolidated Bhd Beneish M-Score Related Terms

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Hong Seng Consolidated Bhd (XKLS:0041) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Hong Seng Consolidated Bhd (XKLS:0041) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

0041PA.PFD:Malaysia

Address

C-01-3, Block C Plaza Glomac, No 6, Jalan SS7/19, Kelana Jaya, Petaling Jaya, SGR, MYS, 47301

Website

https://www.hongseng.com.my

Hong Seng Consolidated Bhd is operating as an investment holding company. The company operates in five operating segments. The healthcare segment consists of a medical diagnostic and research laboratory and wholesale of pharmaceutical and medical goods; the Financial services include Moneylending; the Gloves segment consists of Manufacturing and trading of rubber gloves; The Search and advertising segment includes Developer and provider of online presence and advertising solutions and operator of search platforms; publishing business directory journals, and database marketing; The others segment includes, Investment holding, development and provision of software solutions companies, and the others. The majority of the revenue is derived from the healthcare segment.

Hong Seng Consolidated Bhd (XKLS:0041) Headlines

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