CGN New Energy Holdings Co (HKSE:01811) Beneish M-Score : -2.81 (As of Jun. 08, 2024)

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What is CGN New Energy Holdings Co 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 -2.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for CGN New Energy Holdings Co's Beneish M-Score or its related term are showing as below:

HKSE:01811' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03 Med: -2.55 Max: -1.59
Current: -2.81

During the past 11 years, the highest Beneish M-Score of CGN New Energy Holdings Co was -1.59. The lowest was -3.03. And the median was -2.55.

CGN New Energy Holdings Co Beneish M-Score Historical Data

The historical data trend for CGN New Energy Holdings Co'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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CGN New Energy Holdings Co Beneish M-Score Chart

CGN New Energy Holdings Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.71

-1.99

-2.07

-2.55

-2.81

CGN New Energy Holdings Co Semi-Annual Data
	Jun14	Dec14	Jun15	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															-2.07	-	-2.55	-	-2.81

Competitive Comparison of CGN New Energy Holdings Co's Beneish M-Score

For the Utilities - Independent Power Producers subindustry, CGN New Energy Holdings Co'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.

CGN New Energy Holdings Co's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, CGN New Energy Holdings Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where CGN New Energy Holdings Co's Beneish M-Score falls into.

CGN New Energy Holdings 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 CGN New Energy Holdings Co 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 * 1.1562

0.528 * 0.8864

0.404 * 0.8906

0.892 * 0.9053

0.115 * 0.9981

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.342

4.679 * -0.049564

0.327 * 0.9714

-2.81

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$8,956 Mil.
Revenue was HK$17,127 Mil.
Gross Profit was HK$9,138 Mil.
Total Current Assets was HK$13,808 Mil.
Total Assets was HK$65,213 Mil.
Property, Plant and Equipment(Net PPE) was HK$48,133 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$2,749 Mil.
Selling, General, & Admin. Expense(SGA) was HK$101 Mil.
Total Current Liabilities was HK$15,640 Mil.
Long-Term Debt & Capital Lease Obligation was HK$35,860 Mil.
Net Income was HK$2,091 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$5,323 Mil.

Total Receivables was HK$8,556 Mil.
Revenue was HK$18,919 Mil.
Gross Profit was HK$8,947 Mil.
Total Current Assets was HK$14,737 Mil.
Total Assets was HK$64,961 Mil.
Property, Plant and Equipment(Net PPE) was HK$46,564 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$2,655 Mil.
Selling, General, & Admin. Expense(SGA) was HK$83 Mil.
Total Current Liabilities was HK$19,210 Mil.
Long-Term Debt & Capital Lease Obligation was HK$33,602 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)
	=	(8955.779 / 17126.712)	/	(8556.365 / 18918.958)
	=	0.522913	/	0.452264
	=	1.1562

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)
	=	(8947.223 / 18918.958)	/	(9137.638 / 17126.712)
	=	0.472924	/	0.533531
	=	0.8864

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 - (13807.531 + 48133.055) / 65212.939)	/	(1 - (14737.077 + 46563.683) / 64960.856)
	=	0.05018	/	0.056343
	=	0.8906

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
	=	17126.712	/	18918.958
	=	0.9053

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))
	=	(2654.642 / (2654.642 + 46563.683))	/	(2749.464 / (2749.464 + 48133.055))
	=	0.053936	/	0.054036
	=	0.9981

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)
	=	(100.949 / 17126.712)	/	(83.086 / 18918.958)
	=	0.005894	/	0.004392
	=	1.342

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)
	=	((35860.259 + 15640.109) / 65212.939)	/	((33602.23 + 19210.093) / 64960.856)
	=	0.789726	/	0.812987
	=	0.9714

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
	=	(2090.566 - 0	-	5322.769)	/	65212.939
	=	-0.049564

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.

CGN New Energy Holdings Co has a M-score of -2.81 suggests that the company is unlikely to be a manipulator.

CGN New Energy Holdings Co Beneish M-Score Related Terms

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CGN New Energy Holdings Co (HKSE:01811) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » CGN New Energy Holdings Co Ltd (HKSE:01811) » Definitions » Beneish M-Score

Traded in Other Exchanges

C41:Germany

Address

25 Harbour Road, 15th Floor, Harbour Centre, Wanchai, Hong Kong, HKG

Website

http://www.cgnne.com

CGN New Energy Holdings Co Ltd together with its subsidiaries is engaged in the generation and supply of electricity and steam, the construction and operation of power stations, and other associated facilities in PRC and Korea. The company has three reportable segments; Power plants in the PRC include the Generation and supply of electricity, Power plants in Korea include the Generation and supply of electricity, and Management companies include the Provision of management services to power plants operated by CGN and its subsidiaries.

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