Zhongzhi Pharmaceutical Holdings (HKSE:03737) Beneish M-Score: -2.87 (As of Sep. 02, 2026)

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HKSE:03737 Zhongzhi Pharmaceutical Holdings Ltd HKSE:03737
47 GF Score
Price HK$0.71
GF Value HK$0.89
Valuation Modestly Undervalued
! 7 Warning Signs
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What is Zhongzhi Pharmaceutical Holdings Beneish M-Score?

Zhongzhi Pharmaceutical Holdings HKSE:03737 47 Beneish M-Score is -2.87 as of Sep. 02, 2026. GuruFocus rates HKSE:03737 with a GF Score™ of 47/100 and a GF Value™ of HK$0.89 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 918 Drug Manufacturers companies, Zhongzhi Pharmaceutical Holdings ranks better than 77.78% 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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:03737' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9   Med: -2.44   Max: -1.74
Current: -2.87

During the past 12 years, the highest Beneish M-Score of Zhongzhi Pharmaceutical Holdings was -1.74. The lowest was -2.90. And the median was -2.44.

Zhongzhi Pharmaceutical Holdings Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Zhongzhi Pharmaceutical 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.

Zhongzhi Pharmaceutical Holdings Beneish M-Score Chart

Zhongzhi Pharmaceutical Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.66 -2.90 -2.15 -2.48 -2.87

Zhongzhi Pharmaceutical Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.15 0.00 -2.48 0.00 -2.87

HKSE:03737 vs ZTS: Beneish M-Score Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Zhongzhi Pharmaceutical 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.

Zhongzhi Pharmaceutical Holdings Beneish M-Score vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Zhongzhi Pharmaceutical Holdings's Beneish M-Score distribution charts can be found below:

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


HKSE:03737
47GF Score
Zhongzhi Pharmaceutical Holdings Ltd HKSE:03737
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhongzhi Pharmaceutical 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 Zhongzhi Pharmaceutical Holdings 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 * 1.2588+0.528 * 1.0686+0.404 * 0.7393+0.892 * 0.8117+0.115 * 0.998
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0411+4.679 * -0.088675-0.327 * 0.9165
=-2.87

* 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$515 Mil.
Revenue was HK$1,919 Mil.
Gross Profit was HK$1,045 Mil.
Total Current Assets was HK$1,100 Mil.
Total Assets was HK$2,023 Mil.
Property, Plant and Equipment(Net PPE) was HK$743 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$113 Mil.
Selling, General, & Admin. Expense(SGA) was HK$987 Mil.
Total Current Liabilities was HK$687 Mil.
Long-Term Debt & Capital Lease Obligation was HK$96 Mil.
Net Income was HK$19 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$199 Mil.
 Total Receivables was HK$504 Mil.
Revenue was HK$2,365 Mil.
Gross Profit was HK$1,376 Mil.
Total Current Assets was HK$1,083 Mil.
Total Assets was HK$2,122 Mil.
Property, Plant and Equipment(Net PPE) was HK$782 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$119 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,169 Mil.
Total Current Liabilities was HK$781 Mil.
Long-Term Debt & Capital Lease Obligation was HK$114 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)
=(515.091 / 1919.446) / (504.109 / 2364.662)
=0.268354 / 0.213184
=1.2588

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)
=(1375.596 / 2364.662) / (1044.946 / 1919.446)
=0.58173 / 0.5444
=1.0686

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 - (1099.601 + 742.857) / 2023.286) / (1 - (1082.748 + 782.371) / 2121.595)
=0.089373 / 0.120888
=0.7393

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
=1919.446 / 2364.662
=0.8117

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))
=(118.961 / (118.961 + 782.371)) / (113.213 / (113.213 + 742.857))
=0.131984 / 0.132247
=0.998

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)
=(987.474 / 1919.446) / (1168.548 / 2364.662)
=0.514458 / 0.494171
=1.0411

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)
=((95.741 + 686.628) / 2023.286) / ((114.074 + 781.07) / 2121.595)
=0.386682 / 0.42192
=0.9165

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
=(19.101 - 0 - 198.515) / 2023.286
=-0.088675

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.

Zhongzhi Pharmaceutical Holdings has a M-score of -2.87 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 -2.87 mean?
Zhongzhi Pharmaceutical Holdings (HKSE:03737) has a Beneish M-Score of -2.87 as of Sep. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Zhongzhi Pharmaceutical Holdings and its competitors. According to the industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #204 out of 918 companies in the Drug Manufacturers industry, placing it in the top 22.2%.
Is Zhongzhi Pharmaceutical Holdings' Beneish M-Score too high?
Zhongzhi Pharmaceutical Holdings' current Beneish M-Score is -2.87. Based on the distribution chart, Zhongzhi Pharmaceutical Holdings ranks #204 out of 918 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Zhongzhi Pharmaceutical Holdings has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongzhi Pharmaceutical Holdings' Beneish M-Score compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #204 out of 918 companies for Beneish M-Score. This places Zhongzhi Pharmaceutical Holdings in the top 22% 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 Drug Manufacturers company?
A good Beneish M-Score depends on the Drug Manufacturers 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 Zhongzhi Pharmaceutical Holdings and its competitors. Zhongzhi Pharmaceutical Holdings's current Beneish M-Score is -2.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongzhi Pharmaceutical Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings (HKSE:03737) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.89, compared to a current price of HK$0.71 — trading 20.2% below its estimated fair value. The current Beneish M-Score is -2.87. Zhongzhi Pharmaceutical Holdings' overall GF Score™ is 47/100 with 7 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737), the current Beneish M-Score is -2.87 as of Sep. 02, 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737) Overvalued in 2026?

Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings stock appears to be undervalued. The current stock price of HK$0.71 is trading 20.2% below its estimated GF Value™ of HK$0.89. GuruFocus considers Zhongzhi Pharmaceutical Holdings to be Modestly Undervalued.

Key valuation signals for HKSE:03737:

  • Beneish M-Score: -2.87
  • GF Value™: HK$0.89 vs. price of HK$0.71 (20.2% below fair value)
  • GF Score™: 47/100 with 7 warning signs

No single metric tells the full story. See the HKSE:03737 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Zhongzhi Pharmaceutical Holdings Business Description

Address No. 3 Kangtai Road South, Torch Development Zone, Guangdong Province, Zhongshan, CHN
Zhongzhi Pharmaceutical Holdings Ltd is an investment holding company principally engaged in the manufacture and sale of pharmaceutical products in the PRC. The Group is a large industrial and trading enterprise group featuring researching, producing, and selling traditional Chinese medicine preparations, prepared slices of Chinese crude drugs, and foods. Its products include Shenqi Koufuye, Yinhuang Jiaonang, Yinhuang Keli, and others. Its segments are the pharmaceutical manufacturing segment, which generates maximum revenue, is engaged in the research and development, manufacturing, and sale of Chinese patent medicines and decoction pieces consisting of traditional decoction pieces and modern decoction pieces, and the operation of the chain pharmacies segment.
47GF Score

Get the complete analysis for HKSE:03737

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

HK$0.71
Price
HK$0.89
GF Value