Huaneng Power International (HKSE:00902) Beneish M-Score : -3.17 (As of Apr. 25, 2024)

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What is Huaneng Power International 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 -3.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Huaneng Power International's Beneish M-Score or its related term are showing as below:

HKSE:00902' s Beneish M-Score Range Over the Past 10 Years
Min: -43.31 Med: -2.72 Max: 1.23
Current: -3.17

During the past 13 years, the highest Beneish M-Score of Huaneng Power International was 1.23. The lowest was -43.31. And the median was -2.72.

Huaneng Power International Beneish M-Score Historical Data

The historical data trend for Huaneng Power International'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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Huaneng Power International Beneish M-Score Chart

Huaneng Power International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.89

-2.85

-43.31

-3.39

-3.14

Huaneng Power International Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-3.69	-3.41	-3.37	-3.14	-3.17

Competitive Comparison of Huaneng Power International's Beneish M-Score

For the Utilities - Independent Power Producers subindustry, Huaneng Power International'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.

Huaneng Power International's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Huaneng Power International's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Huaneng Power International's Beneish M-Score falls into.

Huaneng Power International 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 Huaneng Power International 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 * 1.0215

0.528 * 0.3457

0.404 * 0.9289

0.892 * 0.9876

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1743

4.679 * -0.074572

0.327 * 0.9475

-3.21

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was HK$54,689 Mil.
Revenue was 71008.143 + 68990.082 + 70036.37 + 66461.277 = HK$276,496 Mil.
Gross Profit was 11413.486 + 6800.955 + 10121.738 + 9395.249 = HK$37,731 Mil.
Total Current Assets was HK$101,779 Mil.
Total Assets was HK$592,495 Mil.
Property, Plant and Equipment(Net PPE) was HK$408,383 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,803 Mil.
Total Current Liabilities was HK$188,317 Mil.
Long-Term Debt & Capital Lease Obligation was HK$202,364 Mil.
Net Income was 4992.791 + -4504.245 + 6710.133 + 4438.563 = HK$11,637 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was 13190.501 + 12947.163 + 21347.16 + 8336.037 = HK$55,821 Mil.

Total Receivables was HK$54,207 Mil.
Revenue was 74341.478 + 70098.421 + 75014.884 + 60507.315 = HK$279,962 Mil.
Gross Profit was 7492.883 + 3176.279 + 2686.392 + -149.869 = HK$13,206 Mil.
Total Current Assets was HK$102,529 Mil.
Total Assets was HK$578,606 Mil.
Property, Plant and Equipment(Net PPE) was HK$389,517 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,555 Mil.
Total Current Liabilities was HK$167,542 Mil.
Long-Term Debt & Capital Lease Obligation was HK$235,137 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)
	=	(54689.404 / 276495.872)	/	(54206.989 / 279962.098)
	=	0.197795	/	0.193623
	=	1.0215

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)
	=	(13205.685 / 279962.098)	/	(37731.428 / 276495.872)
	=	0.04717	/	0.136463
	=	0.3457

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 - (101778.724 + 408383.081) / 592495.293)	/	(1 - (102529.065 + 389516.69) / 578606.243)
	=	0.138961	/	0.149602
	=	0.9289

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
	=	276495.872	/	279962.098
	=	0.9876

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 + 389516.69))	/	(0 / (0 + 408383.081))
	=	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)
	=	(1803.113 / 276495.872)	/	(1554.579 / 279962.098)
	=	0.006521	/	0.005553
	=	1.1743

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)
	=	((202364.412 + 188317.131) / 592495.293)	/	((235137.356 + 167542.4) / 578606.243)
	=	0.659383	/	0.695948
	=	0.9475

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
	=	(11637.242 - 0	-	55820.861)	/	592495.293
	=	-0.074572

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.

Huaneng Power International has a M-score of -3.21 suggests that the company is unlikely to be a manipulator.

Huaneng Power International Beneish M-Score Related Terms

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Huaneng Power International (HKSE:00902) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Huaneng Power International Inc (HKSE:00902) » Definitions » Beneish M-Score

Traded in Other Exchanges

HUNGF:USA HUP1:Germany HUP1:Germany 600011:China

Address

No. 6 Fuxingmennei Street, Huaneng Building, Xicheng District, Beijing, CHN, 100031

Website

https://www.hpi.com.cn

Huaneng Power International Inc is an independent power producer. It develops, constructs, and operates power plants in Chinese provinces, as well as a wholly-owned power company in Singapore. The reportable segments of the Group are the PRC power segment, the overseas segment and all other segments. It derives the majority of its revenue from the PRC power segment.

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