SH Group (Holdings) (HKSE:01637) Beneish M-Score: -4.15 (As of Jul. 04, 2026)

What is SH Group (Holdings) Beneish M-Score?

SH Group (Holdings) HKSE:01637 49 Beneish M-Score is -4.15 as of Jul. 04, 2026. GuruFocus rates HKSE:01637 with a GF Score™ of 49/100 and a GF Value™ of HK$0.10 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,700 Construction companies, SH Group (Holdings) ranks better than 95.71% 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 -4.15 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for SH Group (Holdings)'s Beneish M-Score or its related term are showing as below:

HKSE:01637' s Beneish M-Score Range Over the Past 10 Years
Min: -4.15 Med: -2.61 Max: 3.38
Current: -4.15

During the past 13 years, the highest Beneish M-Score of SH Group (Holdings) was 3.38. The lowest was -4.15. And the median was -2.61.

SH Group (Holdings) Beneish M-Score Related Terms

SH Group (Holdings) Beneish M-Score Historical Data

* Premium members only.

The historical data trend for SH Group (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.

SH Group (Holdings) Beneish M-Score Chart

SH Group (Holdings) Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Beneish M-Score

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-2.54

2.04

-1.66

-4.15

0.00

SH Group (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															-1.66	0.00	-4.15	0.00	0.00

HKSE:01637 vs PWR, FIX, EME: Beneish M-Score Comparison

For the Engineering & Construction subindustry, SH Group (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.

SH Group (Holdings) Beneish M-Score vs Construction Industry

For the Construction industry and Industrials sector, SH Group (Holdings)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where SH Group (Holdings)'s Beneish M-Score falls into.

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49GF Score

SH Group (Holdings) Ltd HKSE:01637

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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SH Group (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 SH Group (Holdings) 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 * 0.827

0.528 * 0.3431

0.404 * 1.2931

0.892 * 0.6945

0.115 * 0.8979

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4001

4.679 * -0.219907

0.327 * 0.7074

-4.15

This Year (Mar25) TTM:

Last Year (Mar24) TTM:

Total Receivables was HK$223.3 Mil.
Revenue was HK$608.5 Mil.
Gross Profit was HK$33.0 Mil.
Total Current Assets was HK$323.3 Mil.
Total Assets was HK$378.0 Mil.
Property, Plant and Equipment(Net PPE) was HK$17.0 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$3.5 Mil.
Selling, General, & Admin. Expense(SGA) was HK$26.4 Mil.
Total Current Liabilities was HK$143.3 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.
Net Income was HK$5.4 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$88.5 Mil.

Total Receivables was HK$388.8 Mil.
Revenue was HK$876.2 Mil.
Gross Profit was HK$16.3 Mil.
Total Current Assets was HK$437.5 Mil.
Total Assets was HK$495.4 Mil.
Property, Plant and Equipment(Net PPE) was HK$19.7 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$3.5 Mil.
Selling, General, & Admin. Expense(SGA) was HK$27.1 Mil.
Total Current Liabilities was HK$265.3 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.3 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)
	=	(223.309 / 608.49)	/	(388.795 / 876.177)
	=	0.366989	/	0.44374
	=	0.827

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)
	=	(16.289 / 876.177)	/	(32.97 / 608.49)
	=	0.018591	/	0.054183
	=	0.3431

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 - (323.31 + 17.023) / 378.042)	/	(1 - (437.493 + 19.737) / 495.448)
	=	0.099748	/	0.077138
	=	1.2931

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
	=	608.49	/	876.177
	=	0.6945

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))
	=	(3.52 / (3.52 + 19.737))	/	(3.451 / (3.451 + 17.023))
	=	0.151352	/	0.168555
	=	0.8979

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)
	=	(26.376 / 608.49)	/	(27.127 / 876.177)
	=	0.043347	/	0.030961
	=	1.4001

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)
	=	((0.047 + 143.31) / 378.042)	/	((0.272 + 265.316) / 495.448)
	=	0.379209	/	0.536056
	=	0.7074

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
	=	(5.388 - 0	-	88.522)	/	378.042
	=	-0.219907

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.

SH Group (Holdings) has a M-score of -4.15 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 -4.15 mean?

SH Group (Holdings) (HKSE:01637) has a Beneish M-Score of -4.15 as of Jul. 04, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on SH Group (Holdings) and its competitors. According to the industry distribution chart, SH Group (Holdings) ranks #73 out of 1700 companies in the Construction industry, placing it in the top 4.3%.

Is SH Group (Holdings)'s Beneish M-Score too high?

SH Group (Holdings)'s current Beneish M-Score is -4.15. Based on the distribution chart, SH Group (Holdings) ranks #73 out of 1700 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, SH Group (Holdings) has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does SH Group (Holdings)'s Beneish M-Score compare to PWR and FIX?

According to the Construction industry distribution chart, SH Group (Holdings) ranks #73 out of 1700 companies for Beneish M-Score. This places SH Group (Holdings) in the top 4% 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 SH Group (Holdings) and its competitors. SH Group (Holdings)'s current Beneish M-Score is -4.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is SH Group (Holdings) stock overvalued right now?

Based on GuruFocus' analysis, SH Group (Holdings) (HKSE:01637) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.10, compared to a current price of HK$0.40 — trading 295% above its estimated fair value. The current Beneish M-Score is -4.15. SH Group (Holdings)'s overall GF Score™ is 49/100 with 4 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 SH Group (Holdings) (HKSE:01637), the current Beneish M-Score is -4.15 as of Jul. 04, 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 SH Group (Holdings) (HKSE:01637) Overvalued in 2026?

Based on GuruFocus' analysis, SH Group (Holdings) stock appears to be overvalued. The current stock price of HK$0.40 is trading 295% above its estimated GF Value™ of HK$0.10. GuruFocus considers SH Group (Holdings) to be Significantly Overvalued.

Key valuation signals for HKSE:01637:

Beneish M-Score: -4.15
GF Value™: HK$0.10 vs. price of HK$0.40 (295% above fair value)
GF Score™: 49/100 with 4 warning signs

No single metric tells the full story. See the HKSE:01637 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

SH Group (Holdings) Business Description

Industry Industrials Construction

Comparable Companies HKSE:01408 HKSE:02221 HKSE:00385 HKSE:02663 HKSE:01582 HKSE:08601 HKSE:01547 HKSE:08040 HKSE:08460 HKSE:06080 PWR XPAR:DG FIX NSE:LT XKRX:028260 XAMS:FER XTER:HOT XMAD:ACS EME MTZ

Address No. 833, Cheung Sha Wan Road, Units 603-606, 6th Floor, Tower I, Cheung Sha Wan Plaza, Kowloon, Hong Kong, HKG

Website https://www.shunhingeng.com

SH Group (Holdings) Ltd is an investment company. The company is engaged in the provision of electrical and mechanical engineering services. Geographically, the company operates and derives revenue from Hong Kong. Its services include supply, installation, and maintenance of Mechanical Ventilation and Air-conditioning system (MVAC), Low Voltage Electrical system, and other Electrical and Mechanical systems including Fire Services system as well as Plumbing and Drainage system.

49GF Score

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

HK$0.40

Price

HK$0.10

GF Value

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