Kwan On Holdings (HKSE:01559) Beneish M-Score: -9.69 (As of Jul. 06, 2026)


What is Kwan On Holdings Beneish M-Score?

Kwan On Holdings HKSE:01559 -2.04% Beneish M-Score is -9.69 as of Jul. 06, 2026. The stock has 3 warning signs investors should review. Among 1,700 Construction companies, Kwan On Holdings ranks better than 99.41% on this metric.

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 -9.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01559' s Beneish M-Score Range Over the Past 10 Years
Min: -9.69   Med: -2.16   Max: 0.93
Current: -9.69

During the past 13 years, the highest Beneish M-Score of Kwan On Holdings was 0.93. The lowest was -9.69. And the median was -2.16.

Kwan On Holdings Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Kwan On 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.

Kwan On Holdings Beneish M-Score Chart

Kwan On Holdings Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.15 -2.23 -3.56 -9.69 0.00

Kwan On Holdings Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.56 0.00 -9.69 0.00 0.00

HKSE:01559 vs PWR, FIX, EME: Beneish M-Score Comparison

For the Engineering & Construction subindustry, Kwan On 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.

Kwan On Holdings Beneish M-Score vs Construction Industry

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

* The bar in red indicates where Kwan On Holdings's Beneish M-Score falls into.


Kwan On 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 Kwan On Holdings 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 * 0.2992+0.528 * -6.9117+0.404 * 0+0.892 * 0.6572+0.115 * 1.3266
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2843+4.679 * -0.357227-0.327 * 0.9815
=-9.69

* 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 (Mar25) TTM:Last Year (Mar24) TTM:
Total Receivables was HK$83.7 Mil.
Revenue was HK$316.3 Mil.
Gross Profit was HK$3.8 Mil.
Total Current Assets was HK$172.3 Mil.
Total Assets was HK$196.0 Mil.
Property, Plant and Equipment(Net PPE) was HK$23.7 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$6.1 Mil.
Selling, General, & Admin. Expense(SGA) was HK$26.4 Mil.
Total Current Liabilities was HK$152.7 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.
Net Income was HK$-80.2 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-10.1 Mil.
 Total Receivables was HK$425.7 Mil.
Revenue was HK$481.3 Mil.
Gross Profit was HK$-39.8 Mil.
Total Current Assets was HK$593.8 Mil.
Total Assets was HK$650.7 Mil.
Property, Plant and Equipment(Net PPE) was HK$32.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$12.2 Mil.
Selling, General, & Admin. Expense(SGA) was HK$31.3 Mil.
Total Current Liabilities was HK$516.2 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.2 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)
=(83.702 / 316.272) / (425.731 / 481.271)
=0.264652 / 0.884597
=0.2992

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)
=(-39.797 / 481.271) / (3.784 / 316.272)
=-0.082691 / 0.011964
=-6.9117

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 - (172.344 + 23.702) / 196.046) / (1 - (593.764 + 32.393) / 650.736)
=0 / 0.037771
=0

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
=316.272 / 481.271
=0.6572

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))
=(12.176 / (12.176 + 32.393)) / (6.147 / (6.147 + 23.702))
=0.273194 / 0.205937
=1.3266

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)
=(26.444 / 316.272) / (31.332 / 481.271)
=0.083612 / 0.065103
=1.2843

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)
=((0 + 152.709) / 196.046) / ((0.234 + 516.204) / 650.736)
=0.778945 / 0.793621
=0.9815

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
=(-80.16 - 0 - -10.127) / 196.046
=-0.357227

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.

Kwan On Holdings has a M-score of -9.69 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 -9.69 mean?
Kwan On Holdings (HKSE:01559) has a Beneish M-Score of -9.69 as of Jul. 06, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Kwan On Holdings and its competitors. According to the industry distribution chart, Kwan On Holdings ranks #10 out of 1700 companies in the Construction industry, placing it in the top 0.59999999999999%.
Is Kwan On Holdings' Beneish M-Score too high?
Kwan On Holdings' current Beneish M-Score is -9.69. Based on the distribution chart, Kwan On Holdings ranks #10 out of 1700 companies in the Construction industry, which is in the top quartile — a strong position relative to peers.
How does Kwan On Holdings' Beneish M-Score compare to PWR and FIX?
According to the Construction industry distribution chart, Kwan On Holdings ranks #10 out of 1700 companies for Beneish M-Score. This places Kwan On Holdings in the top 1% of its industry — outperforming the majority of peers. 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 Construction company?
A good Beneish M-Score depends on the Construction 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 Kwan On Holdings and its competitors. Kwan On Holdings's current Beneish M-Score is -9.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwan On Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kwan On Holdings (HKSE:01559) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.05 — trading 4% below its estimated fair value. The current Beneish M-Score is -9.69. 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 Kwan On Holdings (HKSE:01559), the current Beneish M-Score is -9.69 as of Jul. 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.

Kwan On Holdings Business Description

Address 118 Connaught Road West, 34th Floor, Room 3401, Sai Ying Pun, Hong Kong, HKG
Kwan On Holdings Ltd is an investment holding company. Along with its subsidiaries, it operates in the following reportable segments: Construction, Property development, and Trading. The majority of its revenue is generated from the Construction segment, which is involved in the provision of construction and maintenance works on civil engineering contracts and building works contracts. The Trading segment is engaged in the trading of construction and chemical materials, and the Property development segment develops properties for the sale of residential units, commercial units, and car parking spaces. Geographically, the group generates maximum revenue from Malaysia, and the rest from Hong Kong, the PRC, and Cambodia.