Pokfulam Development Co (HKSE:00225) Beneish M-Score: -2.87 (As of Aug. 30, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:00225 Pokfulam Development Co Ltd HKSE:00225
65 GF Score
Price HK$5.15
GF Value HK$5.59
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is Pokfulam Development Co Beneish M-Score?

Pokfulam Development Co HKSE:00225 +0.68% 65 Beneish M-Score is -2.87 as of Aug. 30, 2026. GuruFocus rates HKSE:00225 with a GF Score™ of 65/100 and a GF Value™ of HK$5.59 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,680 Real Estate companies, Pokfulam Development Co ranks better than 79.46% on this metric.

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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:00225' s Beneish M-Score Range Over the Past 10 Years
Min: -3.32   Med: -2.55   Max: -2.05
Current: -2.87

During the past 13 years, the highest Beneish M-Score of Pokfulam Development Co was -2.05. The lowest was -3.32. And the median was -2.55.

Pokfulam Development Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Pokfulam Development 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.

Pokfulam Development Co Beneish M-Score Chart

Pokfulam Development Co Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.59 -2.50 -2.83 -3.32 -2.87

Pokfulam Development Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 0.00 -3.32 0.00 -2.87 0.00

HKSE:00225 vs CBRE, BEKE, JLL: Beneish M-Score Comparison

For the Real Estate Services subindustry, Pokfulam Development 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.

Pokfulam Development Co Beneish M-Score vs Real Estate Industry

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

* The bar in red indicates where Pokfulam Development Co's Beneish M-Score falls into.


HKSE:00225
65GF Score
Pokfulam Development Co Ltd HKSE:00225
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Pokfulam Development 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 Pokfulam Development 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 * 0.8314+0.528 * 1.057+0.404 * 1.0001+0.892 * 1.0382+0.115 * 1.0813
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.059114-0.327 * 1.0909
=-2.87

* 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 (Sep25) TTM:Last Year (Sep24) TTM:
Total Receivables was HK$9.7 Mil.
Revenue was HK$173.8 Mil.
Gross Profit was HK$66.6 Mil.
Total Current Assets was HK$165.7 Mil.
Total Assets was HK$4,887.1 Mil.
Property, Plant and Equipment(Net PPE) was HK$13.8 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.3 Mil.
Selling, General, & Admin. Expense(SGA) was HK$0.0 Mil.
Total Current Liabilities was HK$448.9 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.
Net Income was HK$-215.7 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$73.2 Mil.
 Total Receivables was HK$11.2 Mil.
Revenue was HK$167.4 Mil.
Gross Profit was HK$67.8 Mil.
Total Current Assets was HK$174.2 Mil.
Total Assets was HK$5,116.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$14.0 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.4 Mil.
Selling, General, & Admin. Expense(SGA) was HK$0.0 Mil.
Total Current Liabilities was HK$430.8 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 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)
=(9.696 / 173.787) / (11.234 / 167.398)
=0.055792 / 0.06711
=0.8314

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)
=(67.843 / 167.398) / (66.637 / 173.787)
=0.40528 / 0.383441
=1.057

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 - (165.7 + 13.789) / 4887.147) / (1 - (174.218 + 13.992) / 5116.834)
=0.963273 / 0.963217
=1.0001

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
=173.787 / 167.398
=1.0382

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))
=(1.434 / (1.434 + 13.992)) / (1.297 / (1.297 + 13.789))
=0.09296 / 0.085974
=1.0813

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)
=(0 / 173.787) / (0 / 167.398)
=0 / 0
=1

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 + 448.897) / 4887.147) / ((0 + 430.817) / 5116.834)
=0.091853 / 0.084196
=1.0909

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
=(-215.673 - 0 - 73.224) / 4887.147
=-0.059114

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.

Pokfulam Development Co has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.87 mean?
Pokfulam Development Co (HKSE:00225) has a Beneish M-Score of -2.87 as of Aug. 30, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Pokfulam Development Co and its competitors. According to the industry distribution chart, Pokfulam Development Co ranks #345 out of 1680 companies in the Real Estate industry, placing it in the top 20.5%.
Is Pokfulam Development Co's Beneish M-Score too high?
Pokfulam Development Co's current Beneish M-Score is -2.87. Based on the distribution chart, Pokfulam Development Co ranks #345 out of 1680 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Pokfulam Development Co has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pokfulam Development Co's Beneish M-Score compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Pokfulam Development Co ranks #345 out of 1680 companies for Beneish M-Score. This places Pokfulam Development Co in the top 21% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Real Estate company?
A good Beneish M-Score depends on the Real Estate industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Pokfulam Development Co and its competitors. Pokfulam Development Co's current Beneish M-Score is -2.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pokfulam Development Co stock overvalued right now?
Based on GuruFocus' analysis, Pokfulam Development Co (HKSE:00225) is currently considered Fairly Valued. The stock's GF Value™ is HK$5.59, compared to a current price of HK$5.15 — trading 7.9% below its estimated fair value. The current Beneish M-Score is -2.87. Pokfulam Development Co's overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Pokfulam Development Co (HKSE:00225), the current Beneish M-Score is -2.87 as of Aug. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Pokfulam Development Co (HKSE:00225) Overvalued in 2026?

Based on GuruFocus' analysis, Pokfulam Development Co stock appears to be undervalued. The current stock price of HK$5.15 is trading 7.9% below its estimated GF Value™ of HK$5.59. GuruFocus considers Pokfulam Development Co to be Fairly Valued.

Key valuation signals for HKSE:00225:

  • Beneish M-Score: -2.87
  • GF Value™: HK$5.59 vs. price of HK$5.15 (7.9% below fair value)
  • GF Score™: 65/100 with 4 warning signs

No single metric tells the full story. See the HKSE:00225 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Pokfulam Development Co Business Description

Address 93-107 Lockhart Road, 23rd Floor, Beverly House, Wanchai, Hong Kong, HKG
Pokfulam Development Co Ltd is a property investment and investment holding company. The company operates mainly in three business segments: Property Investment and Management segment is engaged in the letting and management of commercial industrial and residential properties; Trading of Goods segment is involved in the trading of visual and sound equipment, and home appliances; and Securities Investment segment deals in listed securities. The majority of its revenue is derived from Property Investment and Management. The company's portfolio includes residential developments as well as commercial and industrial buildings. All of its revenue is generated from Hong Kong.
65GF Score

Get the complete analysis for HKSE:00225

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$5.15
Price
HK$5.59
GF Value