Core Economy Investment Group (HKSE:00339) Beneish M-Score : 0.00 (As of Jun. 10, 2024)

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What is Core Economy Investment Group Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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.

The historical rank and industry rank for Core Economy Investment Group's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Core Economy Investment Group was 6.35. The lowest was 6.35. And the median was 6.35.

Core Economy Investment 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 Core Economy Investment 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

* 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 (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$0.00 Mil.
Revenue was HK$0.80 Mil.
Gross Profit was HK$0.80 Mil.
Total Current Assets was HK$0.00 Mil.
Total Assets was HK$14.00 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.17 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.39 Mil.
Selling, General, & Admin. Expense(SGA) was HK$8.35 Mil.
Total Current Liabilities was HK$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was HK$3.03 Mil.
Net Income was HK$-7.36 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$1.07 Mil.

Total Receivables was HK$0.00 Mil.
Revenue was HK$-3.59 Mil.
Gross Profit was HK$-3.59 Mil.
Total Current Assets was HK$0.00 Mil.
Total Assets was HK$14.03 Mil.
Property, Plant and Equipment(Net PPE) was HK$1.56 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.39 Mil.
Selling, General, & Admin. Expense(SGA) was HK$8.21 Mil.
Total Current Liabilities was HK$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was HK$4.33 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)
	=	(0 / 0.802)	/	(0 / -3.585)
	=	0	/
	=

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)
	=	(-3.585 / -3.585)	/	(0.802 / 0.802)
	=		/	1
	=

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 - (0 + 0.167) / 14.001)	/	(1 - (0 + 1.556) / 14.026)
	=	0.988072	/	0.889063
	=

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
	=	0.802	/	-3.585
	=

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))
	=	(1.389 / (1.389 + 1.556))	/	(1.389 / (1.389 + 0.167))
	=	0.471647	/	0.892674
	=

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)
	=	(8.348 / 0.802)	/	(8.213 / -3.585)
	=	10.408978	/
	=

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)
	=	((3.026 + 0) / 14.001)	/	((4.33 + 0) / 14.026)
	=	0.216127	/	0.308712
	=

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
	=	(-7.361 - 0	-	1.067)	/	14.001
	=	-0.601957

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.

Core Economy Investment Group Beneish M-Score Related Terms

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Core Economy Investment Group (HKSE:00339) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Core Economy Investment Group Ltd (HKSE:00339) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

25 Harbour Road, 18 Floor, Harbour Centre, Room 1805, Wanchai, Hong Kong, HKG

Website

https://www.ceig.hk

Core Economy Investment Group Ltd is an investment company. It is engaged in the investment and trading of listed and unlisted equity securities. The investment objective of the company is to achieve earnings in the form of capital appreciation as well as income from interest and dividends mainly through investment in a diversified portfolio of listed and unlisted companies, in Hong Kong or China, or any other countries where such investment is considered profitable. The group's turnover is majorly derived from its investments in listed equity securities. The business activities of the company are carried out in Hong Kong.

Executives

Yang Zhicheng	2101 Beneficial owner
Zhong Jin Ke Ji Shi Ye You Xian Gong Si	2101 Beneficial owner
Zhu Wen Juan	2101 Beneficial owner
Huan Yu Shi Ji Kong Gu Ji Tuan You Xian Gong Si	2101 Beneficial owner
Hk Jin Tai Feng Group Limited	2101 Beneficial owner
Liu Sihan	2101 Beneficial owner
Sun Bo	2101 Beneficial owner
Zhong Bai Ke Ji Shi Ye Fa Zhan You Xian Gong Si	2201 Interest of corporation controlled by you
Liu Li	2201 Interest of corporation controlled by you
Wan Shi Xing Da Kong Gu Ji Tuan You Xian Gong Si	2101 Beneficial owner
Cheng Yun Hang	2101 Beneficial owner
Zhongmei Energy International Limited	2101 Beneficial owner
He Nan Sheng Ren Min Zheng Fu	2201 Interest of corporation controlled by you
He Yu	2101 Beneficial owner
Sun Oxford Co., Limited	2101 Beneficial owner