Majestic Dragon AeroTech Holdings (HKSE:00918) Beneish M-Score : -2.82 (As of Apr. 09, 2025)

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What is Majestic Dragon AeroTech Holdings 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 -2.82 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Majestic Dragon AeroTech Holdings's Beneish M-Score or its related term are showing as below:

HKSE:00918' s Beneish M-Score Range Over the Past 10 Years
Min: -4.39 Med: -2.19 Max: 34.4
Current: -2.82

During the past 13 years, the highest Beneish M-Score of Majestic Dragon AeroTech Holdings was 34.40. The lowest was -4.39. And the median was -2.19.

Majestic Dragon AeroTech Holdings Beneish M-Score Historical Data

The historical data trend for Majestic Dragon AeroTech Holdings'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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Majestic Dragon AeroTech Holdings Beneish M-Score Chart

Majestic Dragon AeroTech Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-0.39

-1.74

-2.64

-2.14

-2.82

Majestic Dragon AeroTech Holdings Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.14	-	-2.82	-

Competitive Comparison of Majestic Dragon AeroTech Holdings's Beneish M-Score

For the Apparel Manufacturing subindustry, Majestic Dragon AeroTech Holdings'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.

Majestic Dragon AeroTech Holdings's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Majestic Dragon AeroTech Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Majestic Dragon AeroTech Holdings's Beneish M-Score falls into.

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Majestic Dragon AeroTech Holdings 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 Majestic Dragon AeroTech Holdings 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 * 0.5492

0.528 * 0.8131

0.404 * 1.7411

0.892 * 1.191

0.115 * 0.5811

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5364

4.679 * -0.05785

0.327 * 0.6629

-2.82

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was HK$117.6 Mil.
Revenue was HK$246.0 Mil.
Gross Profit was HK$55.3 Mil.
Total Current Assets was HK$213.0 Mil.
Total Assets was HK$407.9 Mil.
Property, Plant and Equipment(Net PPE) was HK$32.5 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$7.2 Mil.
Selling, General, & Admin. Expense(SGA) was HK$47.1 Mil.
Total Current Liabilities was HK$117.6 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.
Net Income was HK$-58.4 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-34.8 Mil.

Total Receivables was HK$179.8 Mil.
Revenue was HK$206.5 Mil.
Gross Profit was HK$37.8 Mil.
Total Current Assets was HK$348.0 Mil.
Total Assets was HK$492.6 Mil.
Property, Plant and Equipment(Net PPE) was HK$32.0 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$3.8 Mil.
Selling, General, & Admin. Expense(SGA) was HK$25.8 Mil.
Total Current Liabilities was HK$214.3 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)
	=	(117.585 / 245.978)	/	(179.77 / 206.538)
	=	0.478031	/	0.870397
	=	0.5492

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)
	=	(37.787 / 206.538)	/	(55.349 / 245.978)
	=	0.182954	/	0.225016
	=	0.8131

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 - (213.021 + 32.52) / 407.899)	/	(1 - (347.969 + 32.043) / 492.63)
	=	0.398035	/	0.228606
	=	1.7411

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
	=	245.978	/	206.538
	=	1.191

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))
	=	(3.784 / (3.784 + 32.043))	/	(7.224 / (7.224 + 32.52))
	=	0.105619	/	0.181763
	=	0.5811

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)
	=	(47.122 / 245.978)	/	(25.753 / 206.538)
	=	0.19157	/	0.124689
	=	1.5364

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 + 117.606) / 407.899)	/	((0 + 214.256) / 492.63)
	=	0.288321	/	0.434923
	=	0.6629

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
	=	(-58.364 - 0	-	-34.767)	/	407.899
	=	-0.05785

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.

Majestic Dragon AeroTech Holdings has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.

Majestic Dragon AeroTech Holdings Beneish M-Score Related Terms

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Majestic Dragon AeroTech Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Majestic Dragon AeroTech Holdings Ltd (HKSE:00918) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Hok Cheung Street, Unit 13, 5th Floor, Tower 1, Harbour Centre, Hung Hom, Kowloon, Hong Kong, HKG

Website

https://www.seiah.com

Majestic Dragon AeroTech Holdings Ltd along with its subsidiaries, is principally engaged in the wholesale of consumer products including timepieces and accessories, garment and sportswear products, property investment, and provision of marketing services. Its segment includes Wholesale business Watch, Wholesale business Garment, Property investment, and Unmanned aerial vehicles business. Maximum revenue is generated from the Unmanned aerial vehicles business that sells unmanned aerial vehicles and related parts for fire-fighting, logistics transportation, communication, and agricultural use. Geographically, it derives key revenue from the People's Republic of China followed by the Middle East, Hong Kong, Africa, and Taiwan.

Executives

Zhang Jinbing	2101 Beneficial owner
Always Profit Development Limited	2101 Beneficial owner
Golden Bold Holdings Limited	2101 Beneficial owner
Wang Yuelai	2201 Interest of corporation controlled by you
Chong Kin Group Holdings Ltd.	2106 Person having a security interest in shares
State Energy Hk Limited	2101 Beneficial owner
Shang Hai Zhong She Gu Quan Tou Zi Ji Jin You Xian Gong Si	2201 Interest of corporation controlled by you
Shang Hai Guo Ming Gu Quan Tou Zi Ji Jin Guan Li You Xian Gong Si	2201 Interest of corporation controlled by you
Liu Quan Hui	2201 Interest of corporation controlled by you
Guo Neng Shang Ye Ji Tuan You Xian Gong Si	2201 Interest of corporation controlled by you
Niu Fang	2201 Interest of corporation controlled by you
Hu Zhang Cui	2202 Interest of your spouse

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