Xinchen China Power Holdings (HKSE:01148) Beneish M-Score : -0.35 (As of May. 17, 2024)

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What is Xinchen China Power 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.

Warning Sign:

Beneish M-Score -0.35 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:01148' s Beneish M-Score Range Over the Past 10 Years
Min: -4.1 Med: -2.49 Max: -0.35
Current: -0.35

During the past 13 years, the highest Beneish M-Score of Xinchen China Power Holdings was -0.35. The lowest was -4.10. And the median was -2.49.

Xinchen China Power Holdings Beneish M-Score Historical Data

The historical data trend for Xinchen China Power 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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Xinchen China Power Holdings Beneish M-Score Chart

Xinchen China Power Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.65

-4.10

-3.12

-1.14

-0.35

Xinchen China Power 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															-3.12	-	-1.14	-	-0.35

Competitive Comparison of Xinchen China Power Holdings's Beneish M-Score

For the Auto Parts subindustry, Xinchen China Power 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.

Xinchen China Power Holdings's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Xinchen China Power Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Xinchen China Power Holdings's Beneish M-Score falls into.

Xinchen China Power 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 Xinchen China Power 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 * 0.9409

0.528 * 1.8817

0.404 * 0.7555

0.892 * 3.1656

0.115 * 0.657

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.284

4.679 * -0.032038

0.327 * 1.1571

-0.35

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$2,587 Mil.
Revenue was HK$5,842 Mil.
Gross Profit was HK$192 Mil.
Total Current Assets was HK$3,295 Mil.
Total Assets was HK$6,017 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,672 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$290 Mil.
Selling, General, & Admin. Expense(SGA) was HK$157 Mil.
Total Current Liabilities was HK$3,618 Mil.
Long-Term Debt & Capital Lease Obligation was HK$505 Mil.
Net Income was HK$45 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$238 Mil.

Total Receivables was HK$869 Mil.
Revenue was HK$1,845 Mil.
Gross Profit was HK$114 Mil.
Total Current Assets was HK$1,662 Mil.
Total Assets was HK$4,641 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,907 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$205 Mil.
Selling, General, & Admin. Expense(SGA) was HK$174 Mil.
Total Current Liabilities was HK$2,028 Mil.
Long-Term Debt & Capital Lease Obligation was HK$721 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)
	=	(2587.26 / 5841.687)	/	(868.623 / 1845.35)
	=	0.442896	/	0.470709
	=	0.9409

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)
	=	(114.343 / 1845.35)	/	(192.359 / 5841.687)
	=	0.061963	/	0.032929
	=	1.8817

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 - (3294.979 + 1671.781) / 6016.99)	/	(1 - (1661.771 + 1907.109) / 4641.213)
	=	0.174544	/	0.231046
	=	0.7555

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
	=	5841.687	/	1845.35
	=	3.1656

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))
	=	(205.232 / (205.232 + 1907.109))	/	(290.155 / (290.155 + 1671.781))
	=	0.097159	/	0.147892
	=	0.657

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)
	=	(156.881 / 5841.687)	/	(174.49 / 1845.35)
	=	0.026855	/	0.094557
	=	0.284

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)
	=	((505.361 + 3618.399) / 6016.99)	/	((721.419 + 2027.58) / 4641.213)
	=	0.685353	/	0.592302
	=	1.1571

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
	=	(44.923 - 0	-	237.695)	/	6016.99
	=	-0.032038

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.

Xinchen China Power Holdings has a M-score of -0.35 signals that the company is likely to be a manipulator.

Xinchen China Power Holdings Beneish M-Score Related Terms

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Xinchen China Power Holdings (HKSE:01148) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Xinchen China Power Holdings Ltd (HKSE:01148) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

4XI:Germany

Address

8 Connaught Road Central, Suites 1602-05, Chater House, Hong Kong, HKG

Website

http://www.xinchenpower.com

Xinchen China Power Holdings Ltd is an investment holding company engaged in the automotive sector. The company is principally involved in the development, manufacture, and sale of automotive engines and engine parts and components for passenger vehicles and light-duty commercial vehicles. The group operates with three business segment which includes Gasoline Engines, Diesel Engines, and Engine Components. Its product includes 1TZS, Crankshaft, link, CE12, DK4, and others. The business activity of the company functions in China.

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