Lee & Man Chemical Co (HKSE:00746) Beneish M-Score: -2.75 (As of Aug. 13, 2026)

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HKSE:00746 Lee & Man Chemical Co Ltd HKSE:00746
71 GF Score
Price HK$4.70
GF Value HK$3.92
Valuation Modestly Overvalued
! 3 Warning Signs
View Full Analysis

What is Lee & Man Chemical Co Beneish M-Score?

Lee & Man Chemical Co HKSE:00746 -2.69% 71 Beneish M-Score is -2.75 as of Aug. 13, 2026. GuruFocus rates HKSE:00746 with a GF Score™ of 71/100 and a GF Value™ of HK$3.92 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,527 Chemicals companies, Lee & Man Chemical Co ranks better than 72.36% 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 -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Lee & Man Chemical Co's Beneish M-Score or its related term are showing as below:

HKSE:00746' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06   Med: -2.63   Max: -1.98
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Lee & Man Chemical Co was -1.98. The lowest was -3.06. And the median was -2.63.

Lee & Man Chemical Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Lee & Man Chemical 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.

Lee & Man Chemical Co Beneish M-Score Chart

Lee & Man Chemical Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.14 -2.55 -1.98 -2.78 -2.75

Lee & Man Chemical Co Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
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 -2.78 0.00 -2.75 0.00

HKSE:00746 vs DOW: Beneish M-Score Comparison

For the Chemicals subindustry, Lee & Man Chemical 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.

Lee & Man Chemical Co Beneish M-Score vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Lee & Man Chemical Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Lee & Man Chemical Co's Beneish M-Score falls into.


HKSE:00746
71GF Score
Lee & Man Chemical Co Ltd HKSE:00746
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lee & Man Chemical 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 Lee & Man Chemical 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 * 1.1697+0.528 * 0.8544+0.404 * 0.9416+0.892 * 0.9504+0.115 * 0.9823
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0046+4.679 * -0.0575-0.327 * 1.0368
=-2.75

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was HK$426 Mil.
Revenue was HK$3,755 Mil.
Gross Profit was HK$1,295 Mil.
Total Current Assets was HK$1,261 Mil.
Total Assets was HK$7,721 Mil.
Property, Plant and Equipment(Net PPE) was HK$6,016 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$90 Mil.
Selling, General, & Admin. Expense(SGA) was HK$456 Mil.
Total Current Liabilities was HK$1,015 Mil.
Long-Term Debt & Capital Lease Obligation was HK$330 Mil.
Net Income was HK$558 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$1,002 Mil.
 Total Receivables was HK$383 Mil.
Revenue was HK$3,951 Mil.
Gross Profit was HK$1,164 Mil.
Total Current Assets was HK$1,387 Mil.
Total Assets was HK$7,196 Mil.
Property, Plant and Equipment(Net PPE) was HK$5,370 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$79 Mil.
Selling, General, & Admin. Expense(SGA) was HK$478 Mil.
Total Current Liabilities was HK$1,146 Mil.
Long-Term Debt & Capital Lease Obligation was HK$63 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)
=(426.237 / 3754.768) / (383.428 / 3950.833)
=0.113519 / 0.09705
=1.1697

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)
=(1164.044 / 3950.833) / (1294.789 / 3754.768)
=0.294633 / 0.344839
=0.8544

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 - (1261.314 + 6016.26) / 7721.025) / (1 - (1387.41 + 5370.091) / 7196.443)
=0.057434 / 0.060994
=0.9416

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
=3754.768 / 3950.833
=0.9504

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))
=(79.092 / (79.092 + 5370.091)) / (90.222 / (90.222 + 6016.26))
=0.014514 / 0.014775
=0.9823

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)
=(456.109 / 3754.768) / (477.739 / 3950.833)
=0.121475 / 0.120921
=1.0046

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)
=((330.015 + 1014.887) / 7721.025) / ((62.819 + 1146.176) / 7196.443)
=0.174187 / 0.167999
=1.0368

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
=(558.258 - 0 - 1002.216) / 7721.025
=-0.0575

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.

Lee & Man Chemical Co has a M-score of -2.75 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 -2.75 mean?
Lee & Man Chemical Co (HKSE:00746) has a Beneish M-Score of -2.75 as of Aug. 13, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lee & Man Chemical Co and its competitors. According to the industry distribution chart, Lee & Man Chemical Co ranks #422 out of 1527 companies in the Chemicals industry, placing it in the top 27.6%.
Is Lee & Man Chemical Co's Beneish M-Score too high?
Lee & Man Chemical Co's current Beneish M-Score is -2.75. Based on the distribution chart, Lee & Man Chemical Co ranks #422 out of 1527 companies in the Chemicals industry, which is above the industry midpoint. Overall, Lee & Man Chemical Co has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lee & Man Chemical Co's Beneish M-Score compare to DOW?
According to the Chemicals industry distribution chart, Lee & Man Chemical Co ranks #422 out of 1527 companies for Beneish M-Score. This puts Lee & Man Chemical Co in the upper half of its industry. 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 Chemicals company?
A good Beneish M-Score depends on the Chemicals 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 Lee & Man Chemical Co and its competitors. Lee & Man Chemical Co's current Beneish M-Score is -2.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lee & Man Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Lee & Man Chemical Co (HKSE:00746) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$3.92, compared to a current price of HK$4.70 — trading 19.9% above its estimated fair value. The current Beneish M-Score is -2.75. Lee & Man Chemical Co's overall GF Score™ is 71/100 with 3 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 Lee & Man Chemical Co (HKSE:00746), the current Beneish M-Score is -2.75 as of Aug. 13, 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 Lee & Man Chemical Co (HKSE:00746) Overvalued in 2026?

Based on GuruFocus' analysis, Lee & Man Chemical Co stock appears to be overvalued. The current stock price of HK$4.70 is trading 19.9% above its estimated GF Value™ of HK$3.92. GuruFocus considers Lee & Man Chemical Co to be Modestly Overvalued.

Key valuation signals for HKSE:00746:

  • Beneish M-Score: -2.75
  • GF Value™: HK$3.92 vs. price of HK$4.70 (19.9% above fair value)
  • GF Score™: 71/100 with 3 warning signs

No single metric tells the full story. See the HKSE:00746 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Lee & Man Chemical Co Business Description

Address 169 Electric Road, Unit B, 35th Floor, Lee & Man Commercial Center, North Point, Hong Kong, HKG
Lee & Man Chemical Co Ltd is an investment holding company. The company is engaged in the manufacture and sale of chemical products. Its products include Polymers, Basic Chemicals, Food / Water Additives, Paper Additives, and Lithium Ion Battery Additives. Its segment includes the Chemical segment manufacture and sale of chemical products; and the Property segment engaged in the development and sale of properties, properties held for rental, and supply of related property services. It generates the majority of its revenue from the Chemical segment. Its operations of the two segments are both located in the PRC. Its revenue of the Group's from external customers is derived from the PRC.
71GF Score

Get the complete analysis for HKSE:00746

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

HK$4.70
Price
HK$3.92
GF Value