Huadian Power International (HKSE:01071) Beneish M-Score : -3.14 (As of May. 24, 2024)

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What is Huadian 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 -3.14 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01071' s Beneish M-Score Range Over the Past 10 Years
Min: -10.68 Med: -2.86 Max: -1.78
Current: -3.14

During the past 13 years, the highest Beneish M-Score of Huadian Power International was -1.78. The lowest was -10.68. And the median was -2.86.

Huadian Power International Beneish M-Score Historical Data

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

Huadian Power International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.80

-3.02

-4.11

-10.68

-3.08

Huadian 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															-7.04	-5.32	-3.96	-3.08	-3.14

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

For the Utilities - Regulated Electric subindustry, Huadian 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.

Huadian Power International's Beneish M-Score Distribution in the Utilities - Regulated Industry

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

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

Huadian 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 Huadian 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 * 0.8742

0.528 * 0.1576

0.404 * 1.0525

0.892 * 1.0093

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.97

4.679 * -0.044529

0.327 * 0.9048

-3.18

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was HK$14,527 Mil.
Revenue was 33623.153 + 28931.56 + 33549.37 + 30047.467 = HK$126,152 Mil.
Gross Profit was 2824.652 + 1369.949 + 3282.847 + 2035.191 = HK$9,513 Mil.
Total Current Assets was HK$30,284 Mil.
Total Assets was HK$240,599 Mil.
Property, Plant and Equipment(Net PPE) was HK$149,145 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,861 Mil.
Total Current Liabilities was HK$70,703 Mil.
Long-Term Debt & Capital Lease Obligation was HK$69,180 Mil.
Net Income was 2022.925 + 25.839 + 2055.95 + 1583.635 = HK$5,688 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was 4746.538 + 1861.794 + 8394.642 + 1398.958 = HK$16,402 Mil.

Total Receivables was HK$16,465 Mil.
Revenue was 36423.289 + 30606.939 + 33664.989 + 24298.442 = HK$124,994 Mil.
Gross Profit was 1545.551 + -1564.454 + 1199.393 + 305.222 = HK$1,486 Mil.
Total Current Assets was HK$33,876 Mil.
Total Assets was HK$254,185 Mil.
Property, Plant and Equipment(Net PPE) was HK$158,910 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,901 Mil.
Total Current Liabilities was HK$57,909 Mil.
Long-Term Debt & Capital Lease Obligation was HK$105,426 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)
	=	(14527.102 / 126151.55)	/	(16465.43 / 124993.659)
	=	0.115156	/	0.13173
	=	0.8742

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)
	=	(1485.712 / 124993.659)	/	(9512.639 / 126151.55)
	=	0.011886	/	0.075406
	=	0.1576

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 - (30284.362 + 149145.212) / 240599.377)	/	(1 - (33876.171 + 158910.128) / 254185.202)
	=	0.254239	/	0.241552
	=	1.0525

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
	=	126151.55	/	124993.659
	=	1.0093

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 + 158910.128))	/	(0 / (0 + 149145.212))
	=	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)
	=	(1860.967 / 126151.55)	/	(1901.047 / 124993.659)
	=	0.014752	/	0.015209
	=	0.97

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)
	=	((69180.471 + 70703.103) / 240599.377)	/	((105426.405 + 57908.656) / 254185.202)
	=	0.581396	/	0.642583
	=	0.9048

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
	=	(5688.349 - 0	-	16401.932)	/	240599.377
	=	-0.044529

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.

Huadian Power International has a M-score of -3.18 suggests that the company is unlikely to be a manipulator.

Huadian Power International Beneish M-Score Related Terms

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Huadian Power International (HKSE:01071) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Huadian Power International Corp Ltd (HKSE:01071) » Definitions » Beneish M-Score

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Traded in Other Exchanges

SHX:Germany 600027:China

Address

No. 2 Xuanwumennei Street, Xicheng District, Beijing, CHN, 100031

Website

https://www.hdpi.com.cn

Huadian Power International Corp Ltd is engaged in the generation of electricity and heat, sales of coal and other relevant businesses in the PRC.

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