Zhongtai Futures Co (HKSE:01461) Beneish M-Score: -1.79 (As of Aug. 06, 2026)

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HKSE:01461 Zhongtai Futures Co Ltd HKSE:01461
39 GF Score
Price HK$0.67
GF Value HK$0.18
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Zhongtai Futures Co Beneish M-Score?

Zhongtai Futures Co HKSE:01461 39 Beneish M-Score is -1.79 as of Aug. 06, 2026. GuruFocus rates HKSE:01461 with a GF Score™ of 39/100 and a GF Value™ of HK$0.18 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 703 Capital Markets companies, Zhongtai Futures Co ranks worse than 63.02% 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 -1.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01461' s Beneish M-Score Range Over the Past 10 Years
Min: -4.28   Med: -2.93   Max: 0.25
Current: -1.79

During the past 12 years, the highest Beneish M-Score of Zhongtai Futures Co was 0.25. The lowest was -4.28. And the median was -2.93.

HKSE:01461
39GF Score
Zhongtai Futures Co Ltd HKSE:01461
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhongtai Futures 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 Zhongtai Futures 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 * 0.9997+0.892 * 1.2071+0.115 * 1.291
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.725+4.679 * 0.051548-0.327 * 0.4367
=-1.79

* 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 (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was HK$0.0 Mil.
Revenue was HK$760.1 Mil.
Gross Profit was HK$760.1 Mil.
Total Current Assets was HK$0.0 Mil.
Total Assets was HK$49,932.3 Mil.
Property, Plant and Equipment(Net PPE) was HK$118.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$34.1 Mil.
Selling, General, & Admin. Expense(SGA) was HK$203.6 Mil.
Total Current Liabilities was HK$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$95.1 Mil.
Net Income was HK$94.5 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-2,479.4 Mil.
 Total Receivables was HK$0.0 Mil.
Revenue was HK$629.7 Mil.
Gross Profit was HK$629.7 Mil.
Total Current Assets was HK$0.0 Mil.
Total Assets was HK$36,041.6 Mil.
Property, Plant and Equipment(Net PPE) was HK$74.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$30.2 Mil.
Selling, General, & Admin. Expense(SGA) was HK$232.7 Mil.
Total Current Liabilities was HK$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$157.1 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 / 760.102) / (0 / 629.681)
=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)
=(629.681 / 629.681) / (760.102 / 760.102)
=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 + 118.403) / 49932.258) / (1 - (0 + 74.373) / 36041.555)
=0.997629 / 0.997936
=0.9997

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
=760.102 / 629.681
=1.2071

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))
=(30.193 / (30.193 + 74.373)) / (34.113 / (34.113 + 118.403))
=0.288746 / 0.223668
=1.291

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)
=(203.607 / 760.102) / (232.655 / 629.681)
=0.267868 / 0.369481
=0.725

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)
=((95.077 + 0) / 49932.258) / ((157.124 + 0) / 36041.555)
=0.001904 / 0.00436
=0.4367

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
=(94.498 - 0 - -2479.435) / 49932.258
=0.051548

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.

Zhongtai Futures Co has a M-score of -1.79 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 -1.79 mean?
Zhongtai Futures Co (HKSE:01461) has a Beneish M-Score of -1.79 as of Aug. 06, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Zhongtai Futures Co and its competitors. According to the industry distribution chart, Zhongtai Futures Co ranks #443 out of 703 companies in the Capital Markets industry, placing it in the top 63%.
Is Zhongtai Futures Co's Beneish M-Score too high?
Zhongtai Futures Co's current Beneish M-Score is -1.79. Based on the distribution chart, Zhongtai Futures Co ranks #443 out of 703 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Zhongtai Futures Co has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhongtai Futures Co's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, Zhongtai Futures Co ranks #443 out of 703 companies for Beneish M-Score. This places Zhongtai Futures 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 Zhongtai Futures Co and its competitors. Zhongtai Futures Co's current Beneish M-Score is -1.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongtai Futures Co stock overvalued right now?
Based on GuruFocus' analysis, Zhongtai Futures Co (HKSE:01461) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.18, compared to a current price of HK$0.67 — trading 272.2% above its estimated fair value. The current Beneish M-Score is -1.79. Zhongtai Futures Co's overall GF Score™ is 39/100 with 2 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 Zhongtai Futures Co (HKSE:01461), the current Beneish M-Score is -1.79 as of Aug. 06, 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 Zhongtai Futures Co (HKSE:01461) Overvalued in 2026?

Based on GuruFocus' analysis, Zhongtai Futures Co stock appears to be overvalued. The current stock price of HK$0.67 is trading 272.2% above its estimated GF Value™ of HK$0.18. GuruFocus considers Zhongtai Futures Co to be Significantly Overvalued.

Key valuation signals for HKSE:01461:

  • Beneish M-Score: -1.79
  • GF Value™: HK$0.18 vs. price of HK$0.67 (272.2% above fair value)
  • GF Score™: 39/100 with 2 warning signs

No single metric tells the full story. See the HKSE:01461 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Zhongtai Futures Co Business Description

Address No. 7000 Jingshi Road, 17-19 Floor, Rooms 1611-1612 of 16 Floor, Building No. 3, Area 5, Hanyu Financial Business Center, Shunhua Road Subdistrict, High-Tech Zone, Shandong Province, Jinan, CHN, 250101
Zhongtai Futures Co Ltd is mainly engaged in financial futures brokerage; commodity futures brokerage; consulting in futures investments; asset management; basis trading; warehouse receipt services; cooperative hedging; market making; over-the-counter derivatives business; information technology consulting services, and other business activities permitted by the CSRC. The Group's reportable segments are mainly classified into brokerage business segment, risk management business segment, and asset management segment, depending on the type of business. The company generates majority of income from Brokerage business segment.
39GF Score

Get the complete analysis for HKSE:01461

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

HK$0.67
Price
HK$0.18
GF Value