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JY Gas (HKSE:01407) Beneish M-Score : -0.18 (As of Jun. 18, 2024)


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What is JY Gas 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 -0.18 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:01407' s Beneish M-Score Range Over the Past 10 Years
Min: -2.11   Med: -1.24   Max: -0.18
Current: -0.18

During the past 5 years, the highest Beneish M-Score of JY Gas was -0.18. The lowest was -2.11. And the median was -1.24.

JY Gas Beneish M-Score Historical Data

The historical data trend for JY Gas'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.

JY Gas Beneish M-Score Chart

JY Gas Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - -2.11 -1.24 -0.18

JY Gas Semi-Annual Data
Dec19 Dec20 Dec21 Jun22 Dec22 Jun23 Dec23
Beneish M-Score Get a 7-Day Free Trial -2.11 - -1.24 - -0.18

Competitive Comparison of JY Gas's Beneish M-Score

For the Utilities - Regulated Gas subindustry, JY Gas'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.

JY Gas's Beneish M-Score Distribution in the Utilities - Regulated Industry

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

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


JY Gas 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 JY Gas 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 * 3.8133+0.528 * 1.3159+0.404 * 0.8195+0.892 * 0.8311+0.115 * 0.9229
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9103+4.679 * -0.043805-0.327 * 1.1122
=-0.18

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was HK$140.9 Mil.
Revenue was HK$441.3 Mil.
Gross Profit was HK$71.0 Mil.
Total Current Assets was HK$330.8 Mil.
Total Assets was HK$600.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$156.2 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$12.9 Mil.
Selling, General, & Admin. Expense(SGA) was HK$28.7 Mil.
Total Current Liabilities was HK$258.4 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.1 Mil.
Net Income was HK$26.8 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$53.2 Mil.
 Total Receivables was HK$44.4 Mil.
Revenue was HK$531.0 Mil.
Gross Profit was HK$112.4 Mil.
Total Current Assets was HK$276.9 Mil.
Total Assets was HK$559.9 Mil.
Property, Plant and Equipment(Net PPE) was HK$153.6 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$11.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$38.0 Mil.
Total Current Liabilities was HK$216.1 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.2 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)
=(140.855 / 441.327) / (44.445 / 531.032)
=0.319162 / 0.083696
=3.8133

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)
=(112.415 / 531.032) / (70.998 / 441.327)
=0.211692 / 0.160874
=1.3159

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 - (330.81 + 156.236) / 600.799) / (1 - (276.92 + 153.615) / 559.892)
=0.189336 / 0.231039
=0.8195

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
=441.327 / 531.032
=0.8311

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))
=(11.602 / (11.602 + 153.615)) / (12.867 / (12.867 + 156.236))
=0.070223 / 0.07609
=0.9229

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)
=(28.731 / 441.327) / (37.976 / 531.032)
=0.065101 / 0.071514
=0.9103

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)
=((2.071 + 258.419) / 600.799) / ((2.19 + 216.068) / 559.892)
=0.433573 / 0.389822
=1.1122

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
=(26.839 - 0 - 53.157) / 600.799
=-0.043805

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.

JY Gas has a M-score of -0.18 signals that the company is likely to be a manipulator.

JY Gas (HKSE:01407) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » JY Gas Ltd (HKSE:01407) » Definitions » Beneish M-Score
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HKSE:00681 HKSE:01265 HKSE:01940 HKSE:09908 HKSE:06661 XMAD:NTGY ASX:APA ATO MIL:SRG HKSE:00003 NI TSE:9531 BOM:532155 HKSE:02688 TSE:9532 BOM:542066 XKLS:6033 HKSE:01193 NFE HKSE:00384
Traded in Other Exchanges
N/A
Address
No. 2568 Shi’an Road (West), 3rd Floor, Jiaoyun Group Building, Gaomi City, Weifang Municipality, Shandong Provinc, Weifang, CHN
Website
http://www.gmjytrq.com
JY Gas Ltd is a natural gas operator in Gaomi City, Weifang Municipality of Shandong Province. The company derives revenue from the sale of natural gas. Natural gas which it sells includes pipeline natural gas, compressed natural gas and liquefied natural gas. The sale of pipelined natural gas is its principal business.
Executives
Luan Xiaolong 2201 Interest of corporation controlled by you
Zhou Zhan 2202 Interest of your spouse
Lxl Phoenix Limited 2101 Beneficial owner
Cui Shuhua 2202 Interest of your spouse
Llj Phoenix Limited 2101 Beneficial owner
Luan Linjiang 2201 Interest of corporation controlled by you
Sdjy Holding Limited 2201 Interest of corporation controlled by you
Segm Holding Limited 2101 Beneficial owner

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