Gemilang International (HKSE:06163) Beneish M-Score : -1.46 (As of May. 27, 2024)

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What is Gemilang International 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.

Warning Sign:

Beneish M-Score -1.46 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:06163' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1 Med: -2.36 Max: -1.28
Current: -1.46

During the past 11 years, the highest Beneish M-Score of Gemilang International was -1.28. The lowest was -3.10. And the median was -2.36.

Gemilang International Beneish M-Score Historical Data

The historical data trend for Gemilang International'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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Gemilang International Beneish M-Score Chart

Gemilang International Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Beneish M-Score

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-2.36

-1.77

-3.05

-2.77

-1.46

Gemilang International Semi-Annual Data
	Oct13	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
Beneish M-Score	Get a 7-Day Free Trial															-3.05	-	-2.77	-	-1.46

Competitive Comparison of Gemilang International's Beneish M-Score

For the Auto Parts subindustry, Gemilang International'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.

Gemilang International's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Gemilang International's Beneish M-Score distribution charts can be found below:

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

Gemilang International 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 Gemilang International 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 * 3.2145

0.528 * 1.1684

0.404 * 1.2384

0.892 * 0.5176

0.115 * 0.6963

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.7475

4.679 * -0.123094

0.327 * 1.0974

-1.46

This Year (Oct23) TTM:

Last Year (Oct22) TTM:

Total Receivables was HK$40.8 Mil.
Revenue was HK$111.6 Mil.
Gross Profit was HK$17.1 Mil.
Total Current Assets was HK$213.9 Mil.
Total Assets was HK$267.2 Mil.
Property, Plant and Equipment(Net PPE) was HK$46.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$3.0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$35.2 Mil.
Total Current Liabilities was HK$159.0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.6 Mil.
Net Income was HK$-21.8 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$11.1 Mil.

Total Receivables was HK$24.5 Mil.
Revenue was HK$215.7 Mil.
Gross Profit was HK$38.6 Mil.
Total Current Assets was HK$193.2 Mil.
Total Assets was HK$278.6 Mil.
Property, Plant and Equipment(Net PPE) was HK$79.6 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$3.5 Mil.
Selling, General, & Admin. Expense(SGA) was HK$38.9 Mil.
Total Current Liabilities was HK$126.6 Mil.
Long-Term Debt & Capital Lease Obligation was HK$25.0 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)
	=	(40.837 / 111.618)	/	(24.546 / 215.665)
	=	0.365864	/	0.113815
	=	3.2145

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)
	=	(38.597 / 215.665)	/	(17.097 / 111.618)
	=	0.178967	/	0.153174
	=	1.1684

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 - (213.925 + 46.392) / 267.226)	/	(1 - (193.168 + 79.644) / 278.629)
	=	0.025855	/	0.020877
	=	1.2384

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
	=	111.618	/	215.665
	=	0.5176

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))
	=	(3.54 / (3.54 + 79.644))	/	(3.02 / (3.02 + 46.392))
	=	0.042556	/	0.061119
	=	0.6963

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)
	=	(35.156 / 111.618)	/	(38.872 / 215.665)
	=	0.314967	/	0.180243
	=	1.7475

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)
	=	((0.626 + 159.019) / 267.226)	/	((25.041 + 126.641) / 278.629)
	=	0.597416	/	0.544387
	=	1.0974

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
	=	(-21.807 - 0	-	11.087)	/	267.226
	=	-0.123094

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.

Gemilang International has a M-score of -1.46 signals that the company is likely to be a manipulator.

Gemilang International Beneish M-Score Related Terms

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Gemilang International (HKSE:06163) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Gemilang International Ltd (HKSE:06163) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ptd 42326, Jalan Seelong, Mukim Senai, Senai, JHR, MYS, 81400

Website

https://www.gml.com.my

Gemilang International Ltd designs and manufactures bus bodies and assembles buses. The Group divides its target markets into two segments, namely core markets which comprise Singapore and Malaysia, and developing markets which comprise all other markets to where the Group exports its products to, including Australia, Hong Kong, the USA and Uzbekistan. The Group's buses, comprising city buses and coaches in aluminium, mainly serve public and private bus transportation operators in its target markets. The Group's products mainly include single deck, double deck and articulated city buses, as well as single deck, double deck and high deck coaches. It derives a majority of revenue from Singapore.

Executives

Low Poh Teng	2202 Interest of your spouse
Pang Chong Yong	2101 Beneficial owner
Kan Suk Ping	2101 Beneficial owner
Golden Castle Investments Limited	2101 Beneficial owner
Gold-face Finance Limited	2106 Person having a security interest in shares
Upbest Group Limited	2201 Interest of corporation controlled by you

Gemilang International (HKSE:06163) Headlines

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