Prosperous Industrial (Holdings) (HKSE:01731) Beneish M-Score: -2.20 (As of Aug. 21, 2026)

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HKSE:01731 Prosperous Industrial (Holdings) Ltd HKSE:01731
59 GF Score
Price HK$0.77
GF Value HK$0.80
Valuation Fairly Valued
! 1 Warning Sign
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What is Prosperous Industrial (Holdings) Beneish M-Score?

Prosperous Industrial (Holdings) HKSE:01731 +1.99% 59 Beneish M-Score is -2.20 as of Aug. 21, 2026. GuruFocus rates HKSE:01731 with a GF Score™ of 59/100 and a GF Value™ of HK$0.80 (Fairly Valued). The stock has 1 warning sign investors should review. Among 995 Manufacturing - Apparel & Accessories companies, Prosperous Industrial (Holdings) ranks worse than 69.45% 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 -2.2 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01731' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78   Med: -2.43   Max: -1.81
Current: -2.2

During the past 11 years, the highest Beneish M-Score of Prosperous Industrial (Holdings) was -1.81. The lowest was -2.78. And the median was -2.43.

Prosperous Industrial (Holdings) Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Prosperous Industrial (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.

Prosperous Industrial (Holdings) Beneish M-Score Chart

Prosperous Industrial (Holdings) Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.81 -2.07 -2.52 -2.43 -2.20

Prosperous Industrial (Holdings) Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 -2.52 0.00 -2.43 0.00 -2.20

HKSE:01731 vs NKE, DECK, ONON: Beneish M-Score Comparison

For the Footwear & Accessories subindustry, Prosperous Industrial (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.

Prosperous Industrial (Holdings) Beneish M-Score vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Prosperous Industrial (Holdings)'s Beneish M-Score distribution charts can be found below:

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


HKSE:01731
59GF Score
Prosperous Industrial (Holdings) Ltd HKSE:01731
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Prosperous Industrial (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 Prosperous Industrial (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 * 1.113+0.528 * 1.0246+0.404 * 1.4031+0.892 * 0.981+0.115 * 1.1511
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0445+4.679 * -0.000492-0.327 * 0.9571
=-2.20

* 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$521 Mil.
Revenue was HK$1,858 Mil.
Gross Profit was HK$452 Mil.
Total Current Assets was HK$1,485 Mil.
Total Assets was HK$1,896 Mil.
Property, Plant and Equipment(Net PPE) was HK$196 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$42 Mil.
Selling, General, & Admin. Expense(SGA) was HK$251 Mil.
Total Current Liabilities was HK$355 Mil.
Long-Term Debt & Capital Lease Obligation was HK$43 Mil.
Net Income was HK$191 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$192 Mil.
 Total Receivables was HK$477 Mil.
Revenue was HK$1,894 Mil.
Gross Profit was HK$472 Mil.
Total Current Assets was HK$1,400 Mil.
Total Assets was HK$1,714 Mil.
Property, Plant and Equipment(Net PPE) was HK$176 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$45 Mil.
Selling, General, & Admin. Expense(SGA) was HK$245 Mil.
Total Current Liabilities was HK$365 Mil.
Long-Term Debt & Capital Lease Obligation was HK$11 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)
=(520.536 / 1857.674) / (476.735 / 1893.694)
=0.280208 / 0.251749
=1.113

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)
=(472.265 / 1893.694) / (452.15 / 1857.674)
=0.249388 / 0.243396
=1.0246

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 - (1485.433 + 196.387) / 1896.095) / (1 - (1400.362 + 176.021) / 1714.47)
=0.113009 / 0.080542
=1.4031

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
=1857.674 / 1893.694
=0.981

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))
=(45.062 / (45.062 + 176.021)) / (42.258 / (42.258 + 196.387))
=0.203824 / 0.177075
=1.1511

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)
=(250.767 / 1857.674) / (244.73 / 1893.694)
=0.13499 / 0.129234
=1.0445

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)
=((42.647 + 355.015) / 1896.095) / ((10.751 + 364.922) / 1714.47)
=0.209727 / 0.219119
=0.9571

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
=(190.98 - 0 - 191.913) / 1896.095
=-0.000492

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.

Prosperous Industrial (Holdings) has a M-score of -2.20 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 -2.20 mean?
Prosperous Industrial (Holdings) (HKSE:01731) has a Beneish M-Score of -2.20 as of Aug. 21, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Prosperous Industrial (Holdings) and its competitors. According to the industry distribution chart, Prosperous Industrial (Holdings) ranks #691 out of 995 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 69.4%.
Is Prosperous Industrial (Holdings)'s Beneish M-Score too high?
Prosperous Industrial (Holdings)'s current Beneish M-Score is -2.20. Based on the distribution chart, Prosperous Industrial (Holdings) ranks #691 out of 995 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Prosperous Industrial (Holdings) has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Prosperous Industrial (Holdings)'s Beneish M-Score compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Prosperous Industrial (Holdings) ranks #691 out of 995 companies for Beneish M-Score. This places Prosperous Industrial (Holdings) 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 Manufacturing - Apparel & Accessories company?
A good Beneish M-Score depends on the Manufacturing - Apparel & Accessories 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 Prosperous Industrial (Holdings) and its competitors. Prosperous Industrial (Holdings)'s current Beneish M-Score is -2.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prosperous Industrial (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Prosperous Industrial (Holdings) (HKSE:01731) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.80, compared to a current price of HK$0.77 — trading 3.8% below its estimated fair value. The current Beneish M-Score is -2.20. Prosperous Industrial (Holdings)'s overall GF Score™ is 59/100 with 1 warning sign 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 Prosperous Industrial (Holdings) (HKSE:01731), the current Beneish M-Score is -2.20 as of Aug. 21, 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 Prosperous Industrial (Holdings) (HKSE:01731) Overvalued in 2026?

Based on GuruFocus' analysis, Prosperous Industrial (Holdings) stock appears to be undervalued. The current stock price of HK$0.77 is trading 3.8% below its estimated GF Value™ of HK$0.80. GuruFocus considers Prosperous Industrial (Holdings) to be Fairly Valued.

Key valuation signals for HKSE:01731:

  • Beneish M-Score: -2.20
  • GF Value™: HK$0.80 vs. price of HK$0.77 (3.8% below fair value)
  • GF Score™: 59/100 with 1 warning sign

No single metric tells the full story. See the HKSE:01731 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Prosperous Industrial (Holdings) Business Description

Address 71-75 Container Port Road, Unit 1-2, 1st Floor, Join-In Hang Sing Centre, Kwai Chung, New Territories, Hong Kong, HKG
Prosperous Industrial (Holdings) Ltd is an investment holding company principally engaged in the manufacturing and sale of sports bags, handbags, and luggage bags. The company's products are categorized as outdoor and sporting bags, including day packs and overnight backpacks, which are designed with larger volumes; functional bags such as camera backpacks with multiple pockets and waterproof hydration backpacks; fashion and casual bags, as well as other bags and packs. Geographically, the company generates revenue from the United States of America, Belgium, Japan, the Chinese Mainland, the Netherlands, Italy, and other countries. The company generates the majority of its revenue from the United States of America.
59GF Score

Get the complete analysis for HKSE:01731

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

HK$0.77
Price
HK$0.80
GF Value