Central China Securities Co (HKSE:01375) Beneish M-Score: -2.14 (As of Aug. 05, 2026)

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HKSE:01375 Central China Securities Co Ltd HKSE:01375
61 GF Score
Price HK$1.78
GF Value HK$2.09
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Central China Securities Co Beneish M-Score?

Central China Securities Co HKSE:01375 +1.14% 61 Beneish M-Score is -2.14 as of Aug. 05, 2026. GuruFocus rates HKSE:01375 with a GF Score™ of 61/100 and a GF Value™ of HK$2.09 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 703 Capital Markets companies, Central China Securities Co ranks worse than 51.21% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.14 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Central China Securities Co's Beneish M-Score or its related term are showing as below:

HKSE:01375' s Beneish M-Score Range Over the Past 10 Years
Min: -10.56   Med: -2.55   Max: -0.15
Current: -2.14

During the past 13 years, the highest Beneish M-Score of Central China Securities Co was -0.15. The lowest was -10.56. And the median was -2.55.

HKSE:01375
61GF Score
Central China Securities Co Ltd HKSE:01375
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Central China Securities Co 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 Central China Securities Co 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 * 1+0.528 * 1+0.404 * 1.0008+0.892 * 1.9729+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7648+4.679 * -0.108452-0.327 * 0.9551
=-2.06

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was HK$0 Mil.
Revenue was 584.92 + 570.12 + 548.845 + 543.6 = HK$2,247 Mil.
Gross Profit was 584.92 + 570.12 + 548.845 + 543.6 = HK$2,247 Mil.
Total Current Assets was HK$0 Mil.
Total Assets was HK$67,149 Mil.
Property, Plant and Equipment(Net PPE) was HK$671 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$313 Mil.
Total Current Liabilities was HK$0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$14,429 Mil.
Net Income was 191.523 + 73.315 + 141.132 + 171.987 = HK$578 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was 1007.955 + 2080.879 + 5321.202 + -549.696 = HK$7,860 Mil.
 Total Receivables was HK$0 Mil.
Revenue was 390.835 + 32.064 + 81.113 + 635.139 = HK$1,139 Mil.
Gross Profit was 390.835 + 32.064 + 81.113 + 635.139 = HK$1,139 Mil.
Total Current Assets was HK$0 Mil.
Total Assets was HK$53,697 Mil.
Property, Plant and Equipment(Net PPE) was HK$576 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$207 Mil.
Total Current Liabilities was HK$0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$12,081 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)
=(0 / 2247.485) / (0 / 1139.151)
=0 / 0
=1

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)
=(1139.151 / 1139.151) / (2247.485 / 2247.485)
=1 / 1
=1

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 - (0 + 670.848) / 67148.578) / (1 - (0 + 576.377) / 53697.326)
=0.990009 / 0.989266
=1.0008

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
=2247.485 / 1139.151
=1.9729

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 + 576.377)) / (0 / (0 + 670.848))
=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)
=(313.017 / 2247.485) / (207.437 / 1139.151)
=0.139274 / 0.182098
=0.7648

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)
=((14428.986 + 0) / 67148.578) / ((12080.841 + 0) / 53697.326)
=0.214881 / 0.22498
=0.9551

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
=(577.957 - 0 - 7860.34) / 67148.578
=-0.108452

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.

Central China Securities Co has a M-score of -2.06 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.14 mean?
Central China Securities Co (HKSE:01375) has a Beneish M-Score of -2.14 as of Aug. 05, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Central China Securities Co and its competitors. According to the industry distribution chart, Central China Securities Co ranks #360 out of 703 companies in the Capital Markets industry, placing it in the top 51.2%.
Is Central China Securities Co's Beneish M-Score too high?
Central China Securities Co's current Beneish M-Score is -2.14. Based on the distribution chart, Central China Securities Co ranks #360 out of 703 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Central China Securities Co has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Central China Securities Co's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, Central China Securities Co ranks #360 out of 703 companies for Beneish M-Score. This places Central China Securities Co in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Capital Markets company?
A good Beneish M-Score depends on the Capital Markets industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Central China Securities Co and its competitors. Central China Securities Co's current Beneish M-Score is -2.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central China Securities Co stock overvalued right now?
Based on GuruFocus' analysis, Central China Securities Co (HKSE:01375) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$2.09, compared to a current price of HK$1.78 — trading 15.1% below its estimated fair value. The current Beneish M-Score is -2.14. Central China Securities Co's overall GF Score™ is 61/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Central China Securities Co (HKSE:01375), the current Beneish M-Score is -2.14 as of Aug. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Central China Securities Co (HKSE:01375) Overvalued in 2026?

Based on GuruFocus' analysis, Central China Securities Co stock appears to be undervalued. The current stock price of HK$1.78 is trading 15.1% below its estimated GF Value™ of HK$2.09. GuruFocus considers Central China Securities Co to be Modestly Undervalued.

Key valuation signals for HKSE:01375:

  • Beneish M-Score: -2.14
  • GF Value™: HK$2.09 vs. price of HK$1.78 (15.1% below fair value)
  • GF Score™: 61/100 with 3 warning signs

No single metric tells the full story. See the HKSE:01375 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Central China Securities Co Business Description

Other Exchanges 21C:Germany601375:China
Address No. 248 Queen’s Road East, 40th Floor, Dah Sing Financial Centre, Wanchai, Hong Kong, HKG
Central China Securities Co Ltd is a securities firm in Henan with a full-service business platform and strategic presence in China. Its reporting segments are mainly divided into: wealth management business segment, proprietary business segment, investment banking business segment, credit business segment, investment management business segment, futures business segment, overseas business segment, headquarters, and other business segment.
61GF Score

Get the complete analysis for HKSE:01375

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$1.78
Price
HK$2.09
GF Value