Leadway Technology Investment Group (HKSE:02086) Beneish M-Score: -2.87 (As of Aug. 18, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:02086 Leadway Technology Investment Group Ltd HKSE:02086
43 GF Score
Price HK$0.50
GF Value HK$0.57
Valuation Modestly Undervalued
! 1 Warning Sign
View Full Analysis

What is Leadway Technology Investment Group Beneish M-Score?

Leadway Technology Investment Group HKSE:02086 -3.85% 43 Beneish M-Score is -2.87 as of Aug. 18, 2026. GuruFocus rates HKSE:02086 with a GF Score™ of 43/100 and a GF Value™ of HK$0.57 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,018 Business Services companies, Leadway Technology Investment Group ranks better than 74.07% 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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Leadway Technology Investment Group's Beneish M-Score or its related term are showing as below:

HKSE:02086' s Beneish M-Score Range Over the Past 10 Years
Min: -4.66   Med: -3.38   Max: -2
Current: -2.87

During the past 13 years, the highest Beneish M-Score of Leadway Technology Investment Group was -2.00. The lowest was -4.66. And the median was -3.38.

Leadway Technology Investment Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Leadway Technology Investment Group'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.

Leadway Technology Investment Group Beneish M-Score Chart

Leadway Technology Investment Group 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 -3.60 -2.00 -3.40 -2.04 -2.87

Leadway Technology Investment Group Semi-Annual Data
Jun16 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 -3.40 0.00 -2.04 0.00 -2.87

HKSE:02086 vs ALLE, MSA, ADT: Beneish M-Score Comparison

For the Security & Protection Services subindustry, Leadway Technology Investment Group'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.

Leadway Technology Investment Group Beneish M-Score vs Business Services Industry

For the Business Services industry and Industrials sector, Leadway Technology Investment Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Leadway Technology Investment Group's Beneish M-Score falls into.


HKSE:02086
43GF Score
Leadway Technology Investment Group Ltd HKSE:02086
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Leadway Technology Investment Group 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 Leadway Technology Investment Group 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 * 1.0456+0.528 * 0.8858+0.404 * 1.1904+0.892 * 0.9123+0.115 * 0.7777
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3668+4.679 * -0.076782-0.327 * 0.7508
=-2.87

* 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$16.64 Mil.
Revenue was HK$91.50 Mil.
Gross Profit was HK$53.99 Mil.
Total Current Assets was HK$65.21 Mil.
Total Assets was HK$78.14 Mil.
Property, Plant and Equipment(Net PPE) was HK$4.84 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$6.63 Mil.
Selling, General, & Admin. Expense(SGA) was HK$44.88 Mil.
Total Current Liabilities was HK$19.56 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.52 Mil.
Net Income was HK$-5.09 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$0.92 Mil.
 Total Receivables was HK$17.44 Mil.
Revenue was HK$100.29 Mil.
Gross Profit was HK$52.42 Mil.
Total Current Assets was HK$76.93 Mil.
Total Assets was HK$93.93 Mil.
Property, Plant and Equipment(Net PPE) was HK$8.84 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$7.22 Mil.
Selling, General, & Admin. Expense(SGA) was HK$35.99 Mil.
Total Current Liabilities was HK$29.07 Mil.
Long-Term Debt & Capital Lease Obligation was HK$3.10 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)
=(16.638 / 91.496) / (17.442 / 100.287)
=0.181844 / 0.173921
=1.0456

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)
=(52.424 / 100.287) / (53.992 / 91.496)
=0.52274 / 0.590102
=0.8858

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 - (65.212 + 4.84) / 78.143) / (1 - (76.925 + 8.837) / 93.932)
=0.103541 / 0.086978
=1.1904

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
=91.496 / 100.287
=0.9123

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))
=(7.217 / (7.217 + 8.837)) / (6.631 / (6.631 + 4.84))
=0.449545 / 0.578066
=0.7777

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)
=(44.881 / 91.496) / (35.992 / 100.287)
=0.490524 / 0.35889
=1.3668

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)
=((0.524 + 19.564) / 78.143) / ((3.095 + 29.066) / 93.932)
=0.257067 / 0.342386
=0.7508

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
=(-5.085 - 0 - 0.915) / 78.143
=-0.076782

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.

Leadway Technology Investment Group has a M-score of -2.87 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 -2.87 mean?
Leadway Technology Investment Group (HKSE:02086) has a Beneish M-Score of -2.87 as of Aug. 18, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Leadway Technology Investment Group and its competitors. According to the industry distribution chart, Leadway Technology Investment Group ranks #264 out of 1018 companies in the Business Services industry, placing it in the top 25.9%.
Is Leadway Technology Investment Group's Beneish M-Score too high?
Leadway Technology Investment Group's current Beneish M-Score is -2.87. Based on the distribution chart, Leadway Technology Investment Group ranks #264 out of 1018 companies in the Business Services industry, which is above the industry midpoint. Overall, Leadway Technology Investment Group has a GF Score™ of 43/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Leadway Technology Investment Group's Beneish M-Score compare to ALLE and MSA?
According to the Business Services industry distribution chart, Leadway Technology Investment Group ranks #264 out of 1018 companies for Beneish M-Score. This puts Leadway Technology Investment Group in the upper 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 Business Services company?
A good Beneish M-Score depends on the Business Services 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 Leadway Technology Investment Group and its competitors. Leadway Technology Investment Group's current Beneish M-Score is -2.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leadway Technology Investment Group stock overvalued right now?
Based on GuruFocus' analysis, Leadway Technology Investment Group (HKSE:02086) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.57, compared to a current price of HK$0.50 — trading 12.3% below its estimated fair value. The current Beneish M-Score is -2.87. Leadway Technology Investment Group's overall GF Score™ is 43/100 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 Leadway Technology Investment Group (HKSE:02086), the current Beneish M-Score is -2.87 as of Aug. 18, 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 Leadway Technology Investment Group (HKSE:02086) Overvalued in 2026?

Based on GuruFocus' analysis, Leadway Technology Investment Group stock appears to be undervalued. The current stock price of HK$0.50 is trading 12.3% below its estimated GF Value™ of HK$0.57. GuruFocus considers Leadway Technology Investment Group to be Modestly Undervalued.

Key valuation signals for HKSE:02086:

  • Beneish M-Score: -2.87
  • GF Value™: HK$0.57 vs. price of HK$0.50 (12.3% below fair value)
  • GF Score™: 43/100 with 1 warning sign

No single metric tells the full story. See the HKSE:02086 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Leadway Technology Investment Group Business Description

Address Manhattan Place, 23 Wang Tai Road, Units 4108-4110, 41st Floor, Kowloon Bay, Hong Kong, HKG
Leadway Technology Investment Group Ltd is an investment holding company. It is smart card reader supplier and is into the research and development of smart card operating systems and readers. It constantly offers a wide range of new products and promotes the application of smart cards in different areas. The principal activities of the Group are the development, sales and distribution of smart card products, software and hardware and the provision of smart card related services. The company has only one operating segment. The company has presence in Europe, Asia Pacific, The Americas, and Middle East and Africa. The company generates majority of revenue from Asia Pacific.
43GF Score

Get the complete analysis for HKSE:02086

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

HK$0.50
Price
HK$0.57
GF Value