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Khoon Group (HKSE:00924) Beneish M-Score : -2.23 (As of Jan. 18, 2025)


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What is Khoon Group 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 -2.23 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:00924' s Beneish M-Score Range Over the Past 10 Years
Min: -2.23   Med: -1.73   Max: -0.07
Current: -2.23

During the past 9 years, the highest Beneish M-Score of Khoon Group was -0.07. The lowest was -2.23. And the median was -1.73.


Khoon Group Beneish M-Score Historical Data

The historical data trend for Khoon Group'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.

* Premium members only.

Khoon Group Beneish M-Score Chart

Khoon Group Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -1.54 -1.73 -1.84 -1.81 -2.23

Khoon Group Semi-Annual Data
Jun16 Jun17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -1.84 - -1.81 - -2.23

Competitive Comparison of Khoon Group's Beneish M-Score

For the Engineering & Construction subindustry, Khoon Group'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.


Khoon Group's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Khoon Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Khoon Group's Beneish M-Score falls into.



Khoon 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 Khoon Group 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 * 0.8046+0.528 * 0.5763+0.404 * 0.9742+0.892 * 1.3638+0.115 * 1.7431
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9174+4.679 * 0.05831-0.327 * 1.1089
=-2.23

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was HK$252.0 Mil.
Revenue was HK$401.6 Mil.
Gross Profit was HK$34.0 Mil.
Total Current Assets was HK$297.6 Mil.
Total Assets was HK$302.9 Mil.
Property, Plant and Equipment(Net PPE) was HK$4.7 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.8 Mil.
Selling, General, & Admin. Expense(SGA) was HK$25.5 Mil.
Total Current Liabilities was HK$91.9 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.1 Mil.
Net Income was HK$-0.1 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-17.7 Mil.
Total Receivables was HK$229.7 Mil.
Revenue was HK$294.5 Mil.
Gross Profit was HK$14.4 Mil.
Total Current Assets was HK$291.6 Mil.
Total Assets was HK$294.0 Mil.
Property, Plant and Equipment(Net PPE) was HK$1.9 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.8 Mil.
Selling, General, & Admin. Expense(SGA) was HK$20.4 Mil.
Total Current Liabilities was HK$82.0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.2 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)
=(252.027 / 401.605) / (229.666 / 294.468)
=0.627549 / 0.779935
=0.8046

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)
=(14.384 / 294.468) / (34.038 / 401.605)
=0.048847 / 0.084755
=0.5763

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 - (297.637 + 4.732) / 302.918) / (1 - (291.628 + 1.874) / 294.049)
=0.001812 / 0.00186
=0.9742

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
=401.605 / 294.468
=1.3638

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))
=(1.751 / (1.751 + 1.874)) / (1.814 / (1.814 + 4.732))
=0.483034 / 0.277116
=1.7431

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)
=(25.515 / 401.605) / (20.394 / 294.468)
=0.063533 / 0.069257
=0.9174

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)
=((2.051 + 91.857) / 302.918) / ((0.209 + 81.996) / 294.049)
=0.310011 / 0.279562
=1.1089

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
=(-0.052 - 0 - -17.715) / 302.918
=0.05831

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.

Khoon Group has a M-score of -2.23 suggests that the company is unlikely to be a manipulator.


Khoon Group Beneish M-Score Related Terms

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Khoon Group Business Description

Traded in Other Exchanges
N/A
Address
Ang Mo Kio Avenue 5, Block 5000, No. 04-01 Techplace II, Singapore, SGP, 569870
Khoon Group Ltd is a mechanical and electrical service provider specializing in providing electrical engineering solutions. The electrical engineering services are widely required in new building developments, redevelopment, and upgrading projects, which involve residential, commercial, and industrial buildings. Under electrical engineering, the company provides services like customization and installation of transmission and distribution systems, lighting systems, air-conditioning and mechanical ventilation systems, underground cable piping systems, and others. Geographically, all of the company's revenue is derived from Singapore.
Executives
Chen Zhi 2201 Interest of corporation controlled by you
Southern Heritage Limited 2101 Beneficial owner
Ang Jui Khoon 2201 Interest of corporation controlled by you
Ang Kok Kwang 2103 Interests held jointly with another person
Chong Sze Yen Josephine 2202 Interest of your spouse
Pan Moi Kia 2202 Interest of your spouse
Lead Development Investment Limited 2101 Beneficial owner
Lead Development Investment Limited 2101 Beneficial owner

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