Zhengye International Holdings Co (HKSE:03363) Beneish M-Score : -2.86 (As of Apr. 23, 2025)

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What is Zhengye International Holdings Co 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 -2.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:03363' s Beneish M-Score Range Over the Past 10 Years
Min: -3.09 Med: -2.69 Max: -1.61
Current: -2.86

During the past 13 years, the highest Beneish M-Score of Zhengye International Holdings Co was -1.61. The lowest was -3.09. And the median was -2.69.

Zhengye International Holdings Co Beneish M-Score Historical Data

The historical data trend for Zhengye International Holdings 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.

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Zhengye International Holdings Co Beneish M-Score Chart

Zhengye International Holdings Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-1.72

-1.61

-2.67

-2.86

Zhengye International Holdings Co Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.67	-	-2.86	-	-

Competitive Comparison of Zhengye International Holdings Co's Beneish M-Score

For the Paper & Paper Products subindustry, Zhengye International Holdings 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.

Zhengye International Holdings Co's Beneish M-Score Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Zhengye International Holdings Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Zhengye International Holdings Co's Beneish M-Score falls into.

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Zhengye International Holdings 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 Zhengye International Holdings Co 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 * 1.3382

0.528 * 1.0039

0.404 * 1.141

0.892 * 0.7769

0.115 * 1.038

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2696

4.679 * -0.105382

0.327 * 1.0497

-2.86

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$924 Mil.
Revenue was HK$2,615 Mil.
Gross Profit was HK$295 Mil.
Total Current Assets was HK$1,529 Mil.
Total Assets was HK$3,273 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,728 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$134 Mil.
Selling, General, & Admin. Expense(SGA) was HK$246 Mil.
Total Current Liabilities was HK$1,467 Mil.
Long-Term Debt & Capital Lease Obligation was HK$265 Mil.
Net Income was HK$-19 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$326 Mil.

Total Receivables was HK$889 Mil.
Revenue was HK$3,366 Mil.
Gross Profit was HK$382 Mil.
Total Current Assets was HK$1,558 Mil.
Total Assets was HK$3,332 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,759 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$142 Mil.
Selling, General, & Admin. Expense(SGA) was HK$250 Mil.
Total Current Liabilities was HK$1,446 Mil.
Long-Term Debt & Capital Lease Obligation was HK$234 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)
	=	(923.984 / 2614.697)	/	(888.825 / 3365.73)
	=	0.353381	/	0.264081
	=	1.3382

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)
	=	(381.615 / 3365.73)	/	(295.316 / 2614.697)
	=	0.113383	/	0.112945
	=	1.0039

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 - (1528.58 + 1728.289) / 3273.076)	/	(1 - (1558.054 + 1759.384) / 3331.9)
	=	0.004952	/	0.00434
	=	1.141

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
	=	2614.697	/	3365.73
	=	0.7769

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))
	=	(141.779 / (141.779 + 1759.384))	/	(133.777 / (133.777 + 1728.289))
	=	0.074575	/	0.071843
	=	1.038

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)
	=	(246.435 / 2614.697)	/	(249.854 / 3365.73)
	=	0.09425	/	0.074235
	=	1.2696

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)
	=	((265.304 + 1466.63) / 3273.076)	/	((233.596 + 1446.012) / 3331.9)
	=	0.529146	/	0.504099
	=	1.0497

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
	=	(-19.199 - 0	-	325.725)	/	3273.076
	=	-0.105382

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.

Zhengye International Holdings Co has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.

Zhengye International Holdings Co Beneish M-Score Related Terms

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Zhengye International Holdings Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Zhengye International Holdings Co Ltd (HKSE:03363) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

28 Boai No.6 Road, 20th Floor, Building 2, Ocean Plaza, Eastern District, Guangdong, Zhongshan, CHN

Website

http://www.zhengye-cn.com

Zhengye International Holdings Co Ltd is an investment holding company. The company, along with its subsidiaries, is principally engaged in the manufacturing and sale of paper, paperboard and paper-based packaging products. Operating Segments of the company are 1) Packaging paper segment produces and sells corrugated medium paper and craft paper. 2) Paper-based packaging products segment produces and sells craft cartons, color-printed cartons, honeycomb paper products and color box packaging. It operates in PRC.

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