Nanhua Futures Co (HKSE:02691) Beneish M-Score: -2.39 (As of Aug. 09, 2026)

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HKSE:02691 Nanhua Futures Co Ltd HKSE:02691
39 GF Score
Price HK$6.93
GF Value HK$1.16
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Nanhua Futures Co Beneish M-Score?

Nanhua Futures Co HKSE:02691 +1.91% 39 Beneish M-Score is -2.39 as of Aug. 09, 2026. GuruFocus rates HKSE:02691 with a GF Score™ of 39/100 and a GF Value™ of HK$1.16 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 704 Capital Markets companies, Nanhua Futures Co ranks better than 61.93% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.39 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:02691' s Beneish M-Score Range Over the Past 10 Years
Min: -4.89   Med: -3.19   Max: 2.93
Current: -2.39

During the past 13 years, the highest Beneish M-Score of Nanhua Futures Co was 2.93. The lowest was -4.89. And the median was -3.19.

HKSE:02691
39GF Score
Nanhua Futures Co Ltd HKSE:02691
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Nanhua Futures 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 Nanhua Futures 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 * 1+0.528 * 1+0.404 * 1.0032+0.892 * 2.7019+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.439+4.679 * -0.291555-0.327 * 0.6583
=-2.12

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was HK$0 Mil.
Revenue was 492.259 + 494.221 + -174.896 + 908.152 = HK$1,720 Mil.
Gross Profit was 492.259 + 494.221 + -174.896 + 908.152 = HK$1,720 Mil.
Total Current Assets was HK$0 Mil.
Total Assets was HK$88,716 Mil.
Property, Plant and Equipment(Net PPE) was HK$300 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$330 Mil.
Total Current Liabilities was HK$0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1,434 Mil.
Net Income was 232.533 + 148.934 + 131.351 + 159.056 = HK$672 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was 6039.031 + -297.963 + 13527.54 + 7268.933 = HK$26,538 Mil.
 Total Receivables was HK$0 Mil.
Revenue was 288.755 + 351.378 + -1774.967 + 1771.316 = HK$636 Mil.
Gross Profit was 288.755 + 351.378 + -1774.967 + 1771.316 = HK$636 Mil.
Total Current Assets was HK$0 Mil.
Total Assets was HK$42,115 Mil.
Property, Plant and Equipment(Net PPE) was HK$278 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$278 Mil.
Total Current Liabilities was HK$0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1,034 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)
=(0 / 1719.736) / (0 / 636.482)
=0 / 0
=1

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)
=(636.482 / 636.482) / (1719.736 / 1719.736)
=1 / 1
=1

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 - (0 + 300.433) / 88716.235) / (1 - (0 + 277.781) / 42115.327)
=0.996614 / 0.993404
=1.0032

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
=1719.736 / 636.482
=2.7019

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))
=(0 / (0 + 277.781)) / (0 / (0 + 300.433))
=0 / 0
=1

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)
=(329.94 / 1719.736) / (278.145 / 636.482)
=0.191855 / 0.437004
=0.439

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)
=((1434.178 + 0) / 88716.235) / ((1034.32 + 0) / 42115.327)
=0.016166 / 0.024559
=0.6583

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
=(671.874 - 0 - 26537.541) / 88716.235
=-0.291555

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.

Nanhua Futures Co has a M-score of -2.12 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 -2.39 mean?
Nanhua Futures Co (HKSE:02691) has a Beneish M-Score of -2.39 as of Aug. 09, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Nanhua Futures Co and its competitors. According to the industry distribution chart, Nanhua Futures Co ranks #268 out of 704 companies in the Capital Markets industry, placing it in the top 38.1%.
Is Nanhua Futures Co's Beneish M-Score too high?
Nanhua Futures Co's current Beneish M-Score is -2.39. Based on the distribution chart, Nanhua Futures Co ranks #268 out of 704 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Nanhua Futures Co has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nanhua Futures Co's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, Nanhua Futures Co ranks #268 out of 704 companies for Beneish M-Score. This puts Nanhua Futures Co 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 Capital Markets company?
A good Beneish M-Score depends on the Capital Markets 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 Nanhua Futures Co and its competitors. Nanhua Futures Co's current Beneish M-Score is -2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanhua Futures Co stock overvalued right now?
Based on GuruFocus' analysis, Nanhua Futures Co (HKSE:02691) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.16, compared to a current price of HK$6.93 — trading 497.4% above its estimated fair value. The current Beneish M-Score is -2.39. Nanhua Futures Co's overall GF Score™ is 39/100 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 Nanhua Futures Co (HKSE:02691), the current Beneish M-Score is -2.39 as of Aug. 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 Nanhua Futures Co (HKSE:02691) Overvalued in 2026?

Based on GuruFocus' analysis, Nanhua Futures Co stock appears to be overvalued. The current stock price of HK$6.93 is trading 497.4% above its estimated GF Value™ of HK$1.16. GuruFocus considers Nanhua Futures Co to be Significantly Overvalued.

Key valuation signals for HKSE:02691:

  • Beneish M-Score: -2.39
  • GF Value™: HK$1.16 vs. price of HK$6.93 (497.4% above fair value)
  • GF Score™: 39/100 with 1 warning sign

No single metric tells the full story. See the HKSE:02691 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nanhua Futures Co Business Description

Other Exchanges 603093:China
Address Hengdian Building, Room 301, Room 401, Room 501, Room 701, Room 901, Room 1001, Room 1101, Room 1201, Shangcheng District, Hangzhou, CHN, 310000
Nanhua Futures Co Ltd is a China based company engaged in the various financial activities. The company is mainly engaged in commodity futures brokerage, financial futures brokerage, futures investment consulting, asset management business, and securities investment fund sales agency business.
39GF Score

Get the complete analysis for HKSE:02691

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

HK$6.93
Price
HK$1.16
GF Value