BHCC Holding (HKSE:01552) Beneish M-Score : -3.32 (As of Apr. 28, 2024)

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What is BHCC Holding 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 -3.32 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01552' s Beneish M-Score Range Over the Past 10 Years
Min: -3.32 Med: -2.74 Max: -1.57
Current: -3.32

During the past 10 years, the highest Beneish M-Score of BHCC Holding was -1.57. The lowest was -3.32. And the median was -2.74.

BHCC Holding Beneish M-Score Historical Data

The historical data trend for BHCC Holding'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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BHCC Holding Beneish M-Score Chart

BHCC Holding Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.58

-2.75

-2.49

-3.32

BHCC Holding Semi-Annual Data
	Dec14	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													-2.49	-	-3.32	-	-

Competitive Comparison of BHCC Holding's Beneish M-Score

For the Engineering & Construction subindustry, BHCC Holding'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.

BHCC Holding's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, BHCC Holding's Beneish M-Score distribution charts can be found below:

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

BHCC Holding 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 BHCC Holding 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 * 0.8027

0.528 * -1.1821

0.404 * 0.8857

0.892 * 1.8065

0.115 * 0.9179

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4952

4.679 * -0.042889

0.327 * 1.1618

-3.32

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was HK$358 Mil.
Revenue was HK$1,182 Mil.
Gross Profit was HK$-33 Mil.
Total Current Assets was HK$531 Mil.
Total Assets was HK$705 Mil.
Property, Plant and Equipment(Net PPE) was HK$83 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$15 Mil.
Selling, General, & Admin. Expense(SGA) was HK$18 Mil.
Total Current Liabilities was HK$416 Mil.
Long-Term Debt & Capital Lease Obligation was HK$72 Mil.
Net Income was HK$-51 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$-20 Mil.

Total Receivables was HK$247 Mil.
Revenue was HK$655 Mil.
Gross Profit was HK$22 Mil.
Total Current Assets was HK$476 Mil.
Total Assets was HK$659 Mil.
Property, Plant and Equipment(Net PPE) was HK$86 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$14 Mil.
Selling, General, & Admin. Expense(SGA) was HK$20 Mil.
Total Current Liabilities was HK$308 Mil.
Long-Term Debt & Capital Lease Obligation was HK$85 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)
	=	(358.06 / 1182.462)	/	(246.915 / 654.552)
	=	0.302809	/	0.377227
	=	0.8027

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)
	=	(21.88 / 654.552)	/	(-33.438 / 1182.462)
	=	0.033427	/	-0.028278
	=	-1.1821

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 - (530.591 + 82.997) / 705.265)	/	(1 - (476.297 + 85.93) / 658.934)
	=	0.129989	/	0.146763
	=	0.8857

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
	=	1182.462	/	654.552
	=	1.8065

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))
	=	(13.837 / (13.837 + 85.93))	/	(14.773 / (14.773 + 82.997))
	=	0.138693	/	0.1511
	=	0.9179

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)
	=	(18.24 / 1182.462)	/	(20.387 / 654.552)
	=	0.015425	/	0.031146
	=	0.4952

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)
	=	((72.388 + 416.016) / 705.265)	/	((84.54 + 308.242) / 658.934)
	=	0.692511	/	0.596087
	=	1.1618

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
	=	(-50.647 - 0	-	-20.399)	/	705.265
	=	-0.042889

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.

BHCC Holding has a M-score of -3.32 suggests that the company is unlikely to be a manipulator.

BHCC Holding Beneish M-Score Related Terms

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BHCC Holding (HKSE:01552) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » BHCC Holding Ltd (HKSE:01552) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 1 Tampines North Drive 3, No. 08-01, BHCC Space, Singapore, SGP, 528499

Website

https://www.bhcc.com.sg

BHCC Holding Ltd is engaged as the main contractor in the provision of building and construction works in Singapore. It provides construction services for various types of buildings including educational institutions, and residential, commercial, and industrial buildings in both the public and private sectors. It operates in three segments: Building and construction works, Operation of temporary dormitories, and Property investment out of which the Building and construction works segment act as a key revenue driver for the firm.

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