Tian Cheng Holdings (HKSE:02110) Beneish M-Score : -2.33 (As of Apr. 16, 2025)

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What is Tian Cheng 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 -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:02110' s Beneish M-Score Range Over the Past 10 Years
Min: -5.01 Med: -3.67 Max: -2.33
Current: -2.33

During the past 8 years, the highest Beneish M-Score of Tian Cheng Holdings was -2.33. The lowest was -5.01. And the median was -3.67.

Tian Cheng Holdings Beneish M-Score Historical Data

The historical data trend for Tian Cheng 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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Tian Cheng Holdings Beneish M-Score Chart

Tian Cheng Holdings Annual Data

Trend

May17

May18

May19

May20

May21

May22

May23

May24

Beneish M-Score

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-5.01

-2.33

Tian Cheng Holdings Semi-Annual Data
	May17	May18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23	May24	Nov24
Beneish M-Score	Get a 7-Day Free Trial									-	-5.01	-	-2.33	-

Competitive Comparison of Tian Cheng Holdings's Beneish M-Score

For the Engineering & Construction subindustry, Tian Cheng 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.

Tian Cheng Holdings's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Tian Cheng Holdings's Beneish M-Score distribution charts can be found below:

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

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Tian Cheng 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 Tian Cheng 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 * 1.3697

0.528 * 2.2064

0.404 * 0.8119

0.892 * 1.1278

0.115 * 0.7501

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0105

4.679 * -0.14847

0.327 * 1.4383

-2.33

This Year (May24) TTM:

Last Year (May23) TTM:

Total Receivables was HK$42.7 Mil.
Revenue was HK$223.3 Mil.
Gross Profit was HK$-31.9 Mil.
Total Current Assets was HK$75.9 Mil.
Total Assets was HK$117.5 Mil.
Property, Plant and Equipment(Net PPE) was HK$41.0 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$14.3 Mil.
Selling, General, & Admin. Expense(SGA) was HK$16.5 Mil.
Total Current Liabilities was HK$36.8 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2.4 Mil.
Net Income was HK$-44.1 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-26.7 Mil.

Total Receivables was HK$27.6 Mil.
Revenue was HK$198.0 Mil.
Gross Profit was HK$-62.3 Mil.
Total Current Assets was HK$80.7 Mil.
Total Assets was HK$146.6 Mil.
Property, Plant and Equipment(Net PPE) was HK$65.0 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$15.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$14.5 Mil.
Total Current Liabilities was HK$29.7 Mil.
Long-Term Debt & Capital Lease Obligation was HK$4.3 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)
	=	(42.703 / 223.331)	/	(27.645 / 198.025)
	=	0.191209	/	0.139604
	=	1.3697

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)
	=	(-62.337 / 198.025)	/	(-31.864 / 223.331)
	=	-0.314794	/	-0.142676
	=	2.2064

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 - (75.866 + 40.978) / 117.465)	/	(1 - (80.675 + 65.012) / 146.642)
	=	0.005287	/	0.006512
	=	0.8119

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
	=	223.331	/	198.025
	=	1.1278

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))
	=	(15.608 / (15.608 + 65.012))	/	(14.257 / (14.257 + 40.978))
	=	0.1936	/	0.258115
	=	0.7501

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)
	=	(16.469 / 223.331)	/	(14.451 / 198.025)
	=	0.073743	/	0.072976
	=	1.0105

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)
	=	((2.393 + 36.816) / 117.465)	/	((4.293 + 29.738) / 146.642)
	=	0.333793	/	0.232069
	=	1.4383

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
	=	(-44.136 - 0	-	-26.696)	/	117.465
	=	-0.14847

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.

Tian Cheng Holdings has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.

Tian Cheng Holdings Beneish M-Score Related Terms

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Tian Cheng Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Tian Cheng Holdings Ltd (HKSE:02110) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

68 Mody Road, Rooms 506-507A, Empire Centre, Tsim Sha Tsui, Kowloon, Hong Kong, HKG

Website

https://www.tianchengholdings.com.cn

Tian Cheng Holdings Ltd formerly Yue Kan Holdings Ltd is a marine construction works subcontractor. The company's operating segments includes Marine construction works; Other civil engineering works; health and wellness services and Vessel chartering services. It generates maximum revenue from the Marine construction works segment. Geographically, it derives revenue from Hong Kong.

Executives

Ouyang Chengguo	2101 Beneficial owner
Yue Hang Investment Limited	2101 Beneficial owner
Heung Che Kan	2201 Interest of corporation controlled by you
Mok Man Yee Lisa	2202 Interest of your spouse

Tian Cheng Holdings Headlines

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