Lianlian DigiTech Co (HKSE:02598) Beneish M-Score: -1.95 (As of Jul. 08, 2026)


HKSE:02598 Lianlian DigiTech Co Ltd HKSE:02598
39 GF Score
Price HK$4.21
! 3 Warning Signs
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What is Lianlian DigiTech Co Beneish M-Score?

Lianlian DigiTech Co HKSE:02598 +0.24% 39 Beneish M-Score is -1.95 as of Jul. 08, 2026. GuruFocus rates HKSE:02598 with a GF Score™ of 39/100. The stock has 3 warning signs investors should review. Among 2,625 Software companies, Lianlian DigiTech Co ranks worse than 77.87% 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 -1.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:02598' s Beneish M-Score Range Over the Past 10 Years
Min: -3.24   Med: -2.08   Max: 3.72
Current: -1.95

During the past 6 years, the highest Beneish M-Score of Lianlian DigiTech Co was 3.72. The lowest was -3.24. And the median was -2.08.

Lianlian DigiTech Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Lianlian DigiTech Co'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.

Lianlian DigiTech Co Beneish M-Score Chart

Lianlian DigiTech Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial 0.00 3.72 -3.24 -2.20 -1.95

Lianlian DigiTech Co Semi-Annual Data
Dec20 Dec21 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Beneish M-Score Get a 7-Day Free Trial Premium Member Only -3.24 0.00 -2.20 0.00 -1.95

HKSE:02598 vs MSFT, ORCL, PLTR: Beneish M-Score Comparison

For the Software - Infrastructure subindustry, Lianlian DigiTech Co'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.

Lianlian DigiTech Co Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Lianlian DigiTech Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Lianlian DigiTech Co's Beneish M-Score falls into.


HKSE:02598
39GF Score
Lianlian DigiTech Co Ltd HKSE:02598
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Lianlian DigiTech Co 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 Lianlian DigiTech Co 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 * 0.8567+0.528 * 1.0303+0.404 * 0.9625+0.892 * 1.3643+0.115 * 0.8351
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8586+4.679 * 0.067622-0.327 * 0.9474
=-1.95

* 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$120 Mil.
Revenue was HK$1,915 Mil.
Gross Profit was HK$965 Mil.
Total Current Assets was HK$23,975 Mil.
Total Assets was HK$25,344 Mil.
Property, Plant and Equipment(Net PPE) was HK$147 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$44 Mil.
Selling, General, & Admin. Expense(SGA) was HK$988 Mil.
Total Current Liabilities was HK$21,796 Mil.
Long-Term Debt & Capital Lease Obligation was HK$153 Mil.
Net Income was HK$1,838 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$124 Mil.
 Total Receivables was HK$103 Mil.
Revenue was HK$1,404 Mil.
Gross Profit was HK$729 Mil.
Total Current Assets was HK$14,589 Mil.
Total Assets was HK$15,523 Mil.
Property, Plant and Equipment(Net PPE) was HK$156 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$37 Mil.
Selling, General, & Admin. Expense(SGA) was HK$844 Mil.
Total Current Liabilities was HK$14,028 Mil.
Long-Term Debt & Capital Lease Obligation was HK$162 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)
=(120.412 / 1915.374) / (103.018 / 1403.945)
=0.062866 / 0.073378
=0.8567

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)
=(728.709 / 1403.945) / (964.923 / 1915.374)
=0.519044 / 0.503778
=1.0303

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 - (23974.91 + 146.91) / 25344.288) / (1 - (14588.919 + 155.897) / 15522.689)
=0.048234 / 0.050112
=0.9625

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
=1915.374 / 1403.945
=1.3643

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))
=(37.206 / (37.206 + 155.897)) / (44.062 / (44.062 + 146.91))
=0.192674 / 0.230725
=0.8351

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)
=(988.231 / 1915.374) / (843.67 / 1403.945)
=0.515947 / 0.600928
=0.8586

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)
=((152.797 + 21796.037) / 25344.288) / ((161.658 + 14028.419) / 15522.689)
=0.866027 / 0.914151
=0.9474

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
=(1837.991 - 0 - 124.157) / 25344.288
=0.067622

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.

Lianlian DigiTech Co has a M-score of -1.95 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 -1.95 mean?
Lianlian DigiTech Co (HKSE:02598) has a Beneish M-Score of -1.95 as of Jul. 08, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lianlian DigiTech Co and its competitors. According to the industry distribution chart, Lianlian DigiTech Co ranks #2044 out of 2625 companies in the Software industry, placing it in the top 77.9%.
Is Lianlian DigiTech Co's Beneish M-Score too high?
Lianlian DigiTech Co's current Beneish M-Score is -1.95. Based on the distribution chart, Lianlian DigiTech Co ranks #2044 out of 2625 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Lianlian DigiTech Co has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Lianlian DigiTech Co's Beneish M-Score compare to MSFT and ORCL?
According to the Software industry distribution chart, Lianlian DigiTech Co ranks #2044 out of 2625 companies for Beneish M-Score. This places Lianlian DigiTech Co in the lower 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 Software company?
A good Beneish M-Score depends on the Software 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 Lianlian DigiTech Co and its competitors. Lianlian DigiTech Co's current Beneish M-Score is -1.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianlian DigiTech Co stock overvalued right now?
Lianlian DigiTech Co (HKSE:02598) has a current Beneish M-Score of -1.95. The current Beneish M-Score is -1.95. Lianlian DigiTech Co's overall GF Score™ is 39/100 with 3 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 Lianlian DigiTech Co (HKSE:02598), the current Beneish M-Score is -1.95 as of Jul. 08, 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.

Lianlian DigiTech Co Business Description

Address 79 Yueda Lane, B3, 12th Floor, Building 1, Binjiang District, Zhejiang Province, Hangzhou, CHN
Lianlian DigiTech Co Ltd and its subsidiaries are engaged in the provision of digital payment services and value-added services across the world. Digital payment services encompass international and domestic payments and include various products such as pay-in, payout, acquiring, foreign exchange, virtual bank card, and payment aggregation services. By integrating AI-driven intelligence across its end-to-end service chain, the Group works to optimize transaction risk management and improve customer service. The Group's reportable segments are: Global payment, Domestic payment, Value-added services, and Others. Maximum revenue is derived from the Global payment segment, which helps merchants who sell their goods on e-commerce platforms globally and regionally to repatriate their funds.
39GF Score

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

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