Zero2IPO Holdings (HKSE:01945) Beneish M-Score : -2.80 (As of Jun. 22, 2024)

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What is Zero2IPO Holdings 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 -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Zero2IPO Holdings's Beneish M-Score or its related term are showing as below:

HKSE:01945' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05 Med: -2.62 Max: -1.27
Current: -2.8

During the past 7 years, the highest Beneish M-Score of Zero2IPO Holdings was -1.27. The lowest was -3.05. And the median was -2.62.

Zero2IPO Holdings Beneish M-Score Historical Data

The historical data trend for Zero2IPO 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.

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Zero2IPO Holdings Beneish M-Score Chart

Zero2IPO Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.62

-3.05

-1.95

-1.27

-2.80

Zero2IPO Holdings Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial							-1.95	-	-1.27	-	-2.80

Competitive Comparison of Zero2IPO Holdings's Beneish M-Score

For the Financial Conglomerates subindustry, Zero2IPO 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.

Zero2IPO Holdings's Beneish M-Score Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Zero2IPO Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Zero2IPO Holdings's Beneish M-Score falls into.

Zero2IPO 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 Zero2IPO 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 * 0.4242

0.528 * 1.1012

0.404 * 1.3137

0.892 * 1.0586

0.115 * 0.7785

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.161

4.679 * -0.006443

0.327 * 0.8206

-2.80

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$35.1 Mil.
Revenue was HK$260.8 Mil.
Gross Profit was HK$104.1 Mil.
Total Current Assets was HK$685.1 Mil.
Total Assets was HK$808.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$49.6 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$22.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$79.0 Mil.
Total Current Liabilities was HK$148.8 Mil.
Long-Term Debt & Capital Lease Obligation was HK$27.9 Mil.
Net Income was HK$17.6 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$22.8 Mil.

Total Receivables was HK$78.1 Mil.
Revenue was HK$246.4 Mil.
Gross Profit was HK$108.3 Mil.
Total Current Assets was HK$731.6 Mil.
Total Assets was HK$851.3 Mil.
Property, Plant and Equipment(Net PPE) was HK$60.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$19.4 Mil.
Selling, General, & Admin. Expense(SGA) was HK$64.2 Mil.
Total Current Liabilities was HK$190.8 Mil.
Long-Term Debt & Capital Lease Obligation was HK$35.9 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)
	=	(35.077 / 260.824)	/	(78.109 / 246.383)
	=	0.134485	/	0.317023
	=	0.4242

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)
	=	(108.308 / 246.383)	/	(104.123 / 260.824)
	=	0.439592	/	0.399208
	=	1.1012

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 - (685.118 + 49.635) / 808.792)	/	(1 - (731.565 + 60.398) / 851.281)
	=	0.091543	/	0.069681
	=	1.3137

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
	=	260.824	/	246.383
	=	1.0586

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))
	=	(19.419 / (19.419 + 60.398))	/	(22.565 / (22.565 + 49.635))
	=	0.243294	/	0.312535
	=	0.7785

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)
	=	(78.956 / 260.824)	/	(64.243 / 246.383)
	=	0.302718	/	0.260744
	=	1.161

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)
	=	((27.902 + 148.833) / 808.792)	/	((35.93 + 190.756) / 851.281)
	=	0.218517	/	0.266288
	=	0.8206

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
	=	(17.637 - 0	-	22.848)	/	808.792
	=	-0.006443

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.

Zero2IPO Holdings has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.

Zero2IPO Holdings Beneish M-Score Related Terms

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Zero2IPO Holdings (HKSE:01945) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Zero2IPO Holdings Inc (HKSE:01945) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

No.40 Xiaoyun Road, 10th Floor, Air China Century Building, Building No.1, Chaoyang District, Beijing, CHN, 100600

Website

http://www.zero2ipo.cn

Zero2IPO Holdings Inc is an integrated service platform for the equity investment industry. It provides data, marketing, consulting, and training services to participants in the equity investment industry. Its segment includes Data services that focus on providing information data and research reports; Marketing services that focus on providing information, industry exchanges, and brand promotion, and Investment Banking Services for the venture capital industry; Training services that focus on talent training in the venture capital industry and provide professional entrepreneurship and investment training services, and the majority of the revenue comes from the Marketing services.

Executives

Ni Zhengdong	2201 Interest of corporation controlled by you
Jq Brothers Ltd.	2101 Beneficial owner

Zero2IPO Holdings (HKSE:01945) Headlines

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