Mainland Headwear Holdings (HKSE:01100) Beneish M-Score : -3.27 (As of May. 14, 2024)

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What is Mainland Headwear 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 -3.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01100' s Beneish M-Score Range Over the Past 10 Years
Min: -3.27 Med: -2.52 Max: -1.94
Current: -3.27

During the past 13 years, the highest Beneish M-Score of Mainland Headwear Holdings was -1.94. The lowest was -3.27. And the median was -2.52.

Mainland Headwear Holdings Beneish M-Score Historical Data

The historical data trend for Mainland Headwear 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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Mainland Headwear Holdings Beneish M-Score Chart

Mainland Headwear Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.42

-2.66

-2.14

-2.55

-3.27

Mainland Headwear Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.14	-	-2.55	-	-3.27

Competitive Comparison of Mainland Headwear Holdings's Beneish M-Score

For the Footwear & Accessories subindustry, Mainland Headwear 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.

Mainland Headwear Holdings's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Mainland Headwear Holdings's Beneish M-Score falls into.

Mainland Headwear 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 Mainland Headwear 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 * 0.9753

0.528 * 1.0128

0.404 * 1.015

0.892 * 0.757

0.115 * 1.0975

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.26

4.679 * -0.129485

0.327 * 0.7571

-3.27

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$321 Mil.
Revenue was HK$1,419 Mil.
Gross Profit was HK$476 Mil.
Total Current Assets was HK$1,062 Mil.
Total Assets was HK$1,787 Mil.
Property, Plant and Equipment(Net PPE) was HK$602 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$87 Mil.
Selling, General, & Admin. Expense(SGA) was HK$358 Mil.
Total Current Liabilities was HK$549 Mil.
Long-Term Debt & Capital Lease Obligation was HK$48 Mil.
Net Income was HK$118 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$349 Mil.

Total Receivables was HK$435 Mil.
Revenue was HK$1,874 Mil.
Gross Profit was HK$637 Mil.
Total Current Assets was HK$1,261 Mil.
Total Assets was HK$1,958 Mil.
Property, Plant and Equipment(Net PPE) was HK$564 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$90 Mil.
Selling, General, & Admin. Expense(SGA) was HK$376 Mil.
Total Current Liabilities was HK$796 Mil.
Long-Term Debt & Capital Lease Obligation was HK$69 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)
	=	(321.399 / 1418.994)	/	(435.287 / 1874.424)
	=	0.226498	/	0.232224
	=	0.9753

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)
	=	(637.296 / 1874.424)	/	(476.364 / 1418.994)
	=	0.339996	/	0.335705
	=	1.0128

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 - (1061.581 + 601.874) / 1786.603)	/	(1 - (1261.223 + 564.105) / 1958.314)
	=	0.068929	/	0.067908
	=	1.015

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
	=	1418.994	/	1874.424
	=	0.757

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))
	=	(90.252 / (90.252 + 564.105))	/	(86.51 / (86.51 + 601.874))
	=	0.137925	/	0.125671
	=	1.0975

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)
	=	(358.328 / 1418.994)	/	(375.662 / 1874.424)
	=	0.252523	/	0.200415
	=	1.26

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)
	=	((48.372 + 549) / 1786.603)	/	((69.134 + 795.694) / 1958.314)
	=	0.334362	/	0.441619
	=	0.7571

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
	=	(117.949 - 0	-	349.288)	/	1786.603
	=	-0.129485

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.

Mainland Headwear Holdings has a M-score of -3.27 suggests that the company is unlikely to be a manipulator.

Mainland Headwear Holdings Beneish M-Score Related Terms

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Mainland Headwear Holdings (HKSE:01100) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Mainland Headwear Holdings Ltd (HKSE:01100) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

18 Sheung Yuet Road, Rooms 2301–2305, 23rd Floor, FTLife Tower, Kowloon Bay, Kowloon, Hong Kong, HKG

Website

http://www.mainland.com.hk

Mainland Headwear Holdings Ltd is an investment holding company. The group is mainly engaged in the design, manufacture, and retail of quality casual headwear. The firm operates in two segments including Manufacturing and Trading. In the Manufacturing segment, it manufactures headwear products for sale to its Trading and Retail Business as well as to external customers. The trading segment includes trading and distribution of headwear, apparel, small leather goods, bags and accessories. The firm sells its products in overseas countries with the US as the main market, followed by the European market. The key revenue is derived from the Manufacturing segment.

Mainland Headwear Holdings (HKSE:01100) Headlines

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