China Treasures New Materials Group (HKSE:02439) Beneish M-Score: -3.09 (As of Jul. 09, 2026)


HKSE:02439 China Treasures New Materials Group Ltd HKSE:02439
64 GF Score
Price HK$0.34
GF Value HK$0.20
Valuation Significantly Overvalued
! 9 Warning Signs
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What is China Treasures New Materials Group Beneish M-Score?

China Treasures New Materials Group HKSE:02439 -1.45% 64 Beneish M-Score is -3.09 as of Jul. 09, 2026. GuruFocus rates HKSE:02439 with a GF Score™ of 64/100 and a GF Value™ of HK$0.20 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,525 Chemicals companies, China Treasures New Materials Group ranks better than 87.87% 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 -3.09 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for China Treasures New Materials Group's Beneish M-Score or its related term are showing as below:

HKSE:02439' s Beneish M-Score Range Over the Past 10 Years
Min: -3.97   Med: -2.63   Max: -2.55
Current: -3.09

During the past 7 years, the highest Beneish M-Score of China Treasures New Materials Group was -2.55. The lowest was -3.97. And the median was -2.63.

China Treasures New Materials Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for China Treasures New Materials 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.

China Treasures New Materials Group Beneish M-Score Chart

China Treasures New Materials Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial -3.97 -2.63 -2.55 -2.61 -3.09

China Treasures New Materials Group Semi-Annual Data
Dec19 Dec20 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 -2.55 0.00 -2.61 0.00 -3.09

HKSE:02439 vs LIN, SHW, ECL: Beneish M-Score Comparison

For the Specialty Chemicals subindustry, China Treasures New Materials 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.

China Treasures New Materials Group Beneish M-Score vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, China Treasures New Materials Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China Treasures New Materials Group's Beneish M-Score falls into.


HKSE:02439
64GF Score
China Treasures New Materials Group Ltd HKSE:02439
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Treasures New Materials 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 China Treasures New Materials 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 * 0.8941+0.528 * 1.0256+0.404 * 0.3117+0.892 * 0.6435+0.115 * 5.5549
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.1947+4.679 * 0.001661-0.327 * 1.7954
=-3.09

* 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$71.6 Mil.
Revenue was HK$280.0 Mil.
Gross Profit was HK$108.6 Mil.
Total Current Assets was HK$183.2 Mil.
Total Assets was HK$983.7 Mil.
Property, Plant and Equipment(Net PPE) was HK$800.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$15.1 Mil.
Selling, General, & Admin. Expense(SGA) was HK$71.2 Mil.
Total Current Liabilities was HK$123.5 Mil.
Long-Term Debt & Capital Lease Obligation was HK$204.9 Mil.
Net Income was HK$32.2 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$30.5 Mil.
 Total Receivables was HK$124.4 Mil.
Revenue was HK$435.1 Mil.
Gross Profit was HK$173.0 Mil.
Total Current Assets was HK$606.6 Mil.
Total Assets was HK$737.3 Mil.
Property, Plant and Equipment(Net PPE) was HK$130.5 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$15.0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$50.4 Mil.
Total Current Liabilities was HK$135.7 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1.4 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)
=(71.553 / 279.961) / (124.36 / 435.071)
=0.255582 / 0.285838
=0.8941

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)
=(173.003 / 435.071) / (108.551 / 279.961)
=0.397643 / 0.387736
=1.0256

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 - (183.242 + 800.413) / 983.726) / (1 - (606.643 + 130.526) / 737.339)
=7.2E-5 / 0.000231
=0.3117

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
=279.961 / 435.071
=0.6435

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))
=(14.95 / (14.95 + 130.526)) / (15.087 / (15.087 + 800.413))
=0.102766 / 0.0185
=5.5549

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)
=(71.207 / 279.961) / (50.421 / 435.071)
=0.254346 / 0.115891
=2.1947

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)
=((204.879 + 123.466) / 983.726) / ((1.373 + 135.701) / 737.339)
=0.333777 / 0.185904
=1.7954

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
=(32.163 - 0 - 30.529) / 983.726
=0.001661

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.

China Treasures New Materials Group has a M-score of -3.09 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 -3.09 mean?
China Treasures New Materials Group (HKSE:02439) has a Beneish M-Score of -3.09 as of Jul. 09, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Treasures New Materials Group and its competitors. According to the industry distribution chart, China Treasures New Materials Group ranks #185 out of 1525 companies in the Chemicals industry, placing it in the top 12.1%.
Is China Treasures New Materials Group's Beneish M-Score too high?
China Treasures New Materials Group's current Beneish M-Score is -3.09. Based on the distribution chart, China Treasures New Materials Group ranks #185 out of 1525 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, China Treasures New Materials Group has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Treasures New Materials Group's Beneish M-Score compare to LIN and SHW?
According to the Chemicals industry distribution chart, China Treasures New Materials Group ranks #185 out of 1525 companies for Beneish M-Score. This places China Treasures New Materials Group in the top 12% of its industry — outperforming the majority of peers. 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 Chemicals company?
A good Beneish M-Score depends on the Chemicals 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 China Treasures New Materials Group and its competitors. China Treasures New Materials Group's current Beneish M-Score is -3.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Treasures New Materials Group stock overvalued right now?
Based on GuruFocus' analysis, China Treasures New Materials Group (HKSE:02439) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.20, compared to a current price of HK$0.34 — trading 70% above its estimated fair value. The current Beneish M-Score is -3.09. China Treasures New Materials Group's overall GF Score™ is 64/100 with 9 warning signs 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 China Treasures New Materials Group (HKSE:02439), the current Beneish M-Score is -3.09 as of Jul. 09, 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 China Treasures New Materials Group (HKSE:02439) Overvalued in 2026?

Based on GuruFocus' analysis, China Treasures New Materials Group stock appears to be overvalued. The current stock price of HK$0.34 is trading 70% above its estimated GF Value™ of HK$0.20. GuruFocus considers China Treasures New Materials Group to be Significantly Overvalued.

Key valuation signals for HKSE:02439:

  • Beneish M-Score: -3.09
  • GF Value™: HK$0.20 vs. price of HK$0.34 (70% above fair value)
  • GF Score™: 64/100 with 9 warning signs

No single metric tells the full story. See the HKSE:02439 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

China Treasures New Materials Group Business Description

Address No. 3, Jing\'Er Road, Jiutai Economic Development Zone, Kalun Industrial South Region, Jilin Province, Changchun, CHN
China Treasures New Materials Group Ltd mainly engages in developing and manufacturing biodegradable plastic products in Northeast China. Its biodegradable plastic products mainly come in biodegradable roll bags. The Group provides biodegradable plastic products, including biodegradable masterbatches that can be used to produce biodegradable plastic products. It has two reportable and operating segments: development and manufacture of biodegradable plastic products, and development and manufacture of non-biodegradable automobile plastic parts. The Group generates the majority of its revenue from the development and manufacture of biodegradable plastic products. Geographically, it generates maximum revenue from the People's Republic of China (PRC).
64GF Score

Get the complete analysis for HKSE:02439

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

HK$0.34
Price
HK$0.20
GF Value