Diwang Industrial Holdings (HKSE:01950) Beneish M-Score : 0.29 (As of Apr. 02, 2025)

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What is Diwang Industrial 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.

Warning Sign:

Beneish M-Score 0.29 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:01950' s Beneish M-Score Range Over the Past 10 Years
Min: -2.35 Med: -2.15 Max: 0.29
Current: 0.29

During the past 8 years, the highest Beneish M-Score of Diwang Industrial Holdings was 0.29. The lowest was -2.35. And the median was -2.15.

Diwang Industrial Holdings Beneish M-Score Historical Data

The historical data trend for Diwang 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.

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Diwang Industrial Holdings Beneish M-Score Chart

Diwang Industrial Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.13

-2.23

-1.84

-2.16

0.29

Diwang Industrial Holdings Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial									-	-2.16	-	0.29	-

Competitive Comparison of Diwang Industrial Holdings's Beneish M-Score

For the Specialty Chemicals subindustry, Diwang 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.

Diwang Industrial Holdings's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Diwang Industrial Holdings's Beneish M-Score distribution charts can be found below:

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

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Diwang 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 Diwang Industrial 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 * 2.2892

0.528 * 0.9444

0.404 * 0.9987

0.892 * 1.1145

0.115 * 0.9513

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.6132

4.679 * 0.319646

0.327 * 0.6052

0.29

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$413.0 Mil.
Revenue was HK$624.1 Mil.
Gross Profit was HK$255.3 Mil.
Total Current Assets was HK$600.1 Mil.
Total Assets was HK$806.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$152.6 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$11.2 Mil.
Selling, General, & Admin. Expense(SGA) was HK$216.8 Mil.
Total Current Liabilities was HK$104.5 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.
Net Income was HK$21.3 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-236.6 Mil.

Total Receivables was HK$161.9 Mil.
Revenue was HK$560.0 Mil.
Gross Profit was HK$216.3 Mil.
Total Current Assets was HK$343.9 Mil.
Total Assets was HK$498.5 Mil.
Property, Plant and Equipment(Net PPE) was HK$121.2 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$8.4 Mil.
Selling, General, & Admin. Expense(SGA) was HK$120.6 Mil.
Total Current Liabilities was HK$106.7 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 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)
	=	(412.957 / 624.08)	/	(161.857 / 559.962)
	=	0.661705	/	0.28905
	=	2.2892

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)
	=	(216.305 / 559.962)	/	(255.269 / 624.08)
	=	0.386285	/	0.409032
	=	0.9444

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 - (600.088 + 152.612) / 806.761)	/	(1 - (343.86 + 121.171) / 498.477)
	=	0.06701	/	0.067096
	=	0.9987

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
	=	624.08	/	559.962
	=	1.1145

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))
	=	(8.41 / (8.41 + 121.171))	/	(11.174 / (11.174 + 152.612))
	=	0.064901	/	0.068223
	=	0.9513

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)
	=	(216.843 / 624.08)	/	(120.605 / 559.962)
	=	0.34746	/	0.215381
	=	1.6132

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 + 104.546) / 806.761)	/	((0 + 106.741) / 498.477)
	=	0.129587	/	0.214134
	=	0.6052

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
	=	(21.275 - 0	-	-236.603)	/	806.761
	=	0.319646

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.

Diwang Industrial Holdings has a M-score of 0.29 signals that the company is likely to be a manipulator.

Diwang Industrial Holdings Beneish M-Score Related Terms

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Diwang Industrial Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Diwang Industrial Holdings Ltd (HKSE:01950) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.2, Jiangshan Road, Meicheng Town, Jiande County, Zhejiang Province, Hangzhou, CHN

Website

http://www.slkj.cn

Diwang Industrial Holdings Ltd, formerly Sunlight Technology Holdings Ltd, is an investment holding company mainly engaged in the faux leather chemicals business. The Company's business includes research and development, manufacturing and sale of coating agents and synthetic resins. The Company provides a wide range of faux leather chemical products, including colorants, namely, color paste and color chips, finishes, additives, and synthetic resins, for the manufacturing of polyurethane (PU) leather and polyvinyl chloride (PVC) leather. The Company distributes its products within the domestic market and to overseas markets.

Executives

Zheng Xiuyue	2101 Beneficial owner
Wong Waiyip
Cai Jianming	2201 Interest of corporation controlled by you
Chen Hua	2201 Interest of corporation controlled by you
Chen Yong	2201 Interest of corporation controlled by you
He Zhangcai	2201 Interest of corporation controlled by you
Li Xiangyu	2201 Interest of corporation controlled by you
Lilian Global Investment Limited	2101 Beneficial owner
Liu Jing	2201 Interest of corporation controlled by you
Sunlight Global Investment Limited	2101 Beneficial owner
Zhao Xuesheng	2201 Interest of corporation controlled by you
Zhu Jianqin	2201 Interest of corporation controlled by you

Diwang Industrial Holdings Headlines

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