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Cheerwin Group (HKSE:06601) Beneish M-Score : -2.39 (As of May. 27, 2024)


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

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

HKSE:06601' s Beneish M-Score Range Over the Past 10 Years
Min: -3.94   Med: -2.39   Max: -1.76
Current: -2.39

During the past 7 years, the highest Beneish M-Score of Cheerwin Group was -1.76. The lowest was -3.94. And the median was -2.39.


Cheerwin Group Beneish M-Score Historical Data

The historical data trend for Cheerwin Group'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.

* Premium members only.

Cheerwin Group Beneish M-Score Chart

Cheerwin Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial -3.94 -2.81 -2.22 -1.76 -2.39

Cheerwin Group Semi-Annual Data
Dec17 Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -2.22 - -1.76 - -2.39

Competitive Comparison of Cheerwin Group's Beneish M-Score

For the Household & Personal Products subindustry, Cheerwin Group'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.


Cheerwin Group's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Cheerwin Group's Beneish M-Score distribution charts can be found below:

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



Cheerwin Group 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 Cheerwin Group 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 * 0.8135+0.528 * 0.935+0.404 * 2.0431+0.892 * 1.0938+0.115 * 0.9196
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8957+4.679 * -0.039597-0.327 * 1.107
=-2.39

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was HK$47 Mil.
Revenue was HK$1,767 Mil.
Gross Profit was HK$786 Mil.
Total Current Assets was HK$3,437 Mil.
Total Assets was HK$4,196 Mil.
Property, Plant and Equipment(Net PPE) was HK$209 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$39 Mil.
Selling, General, & Admin. Expense(SGA) was HK$592 Mil.
Total Current Liabilities was HK$949 Mil.
Long-Term Debt & Capital Lease Obligation was HK$18 Mil.
Net Income was HK$191 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$358 Mil.
Total Receivables was HK$53 Mil.
Revenue was HK$1,615 Mil.
Gross Profit was HK$672 Mil.
Total Current Assets was HK$3,529 Mil.
Total Assets was HK$3,996 Mil.
Property, Plant and Equipment(Net PPE) was HK$210 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$36 Mil.
Selling, General, & Admin. Expense(SGA) was HK$604 Mil.
Total Current Liabilities was HK$821 Mil.
Long-Term Debt & Capital Lease Obligation was HK$12 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)
=(47.186 / 1767.093) / (53.028 / 1615.482)
=0.026703 / 0.032825
=0.8135

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)
=(671.563 / 1615.482) / (785.615 / 1767.093)
=0.415704 / 0.44458
=0.935

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 - (3436.718 + 208.937) / 4195.894) / (1 - (3529.158 + 210.155) / 3995.783)
=0.131137 / 0.064185
=2.0431

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
=1767.093 / 1615.482
=1.0938

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))
=(35.853 / (35.853 + 210.155)) / (39.348 / (39.348 + 208.937))
=0.145739 / 0.158479
=0.9196

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)
=(592.119 / 1767.093) / (604.362 / 1615.482)
=0.335081 / 0.374106
=0.8957

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)
=((18.389 + 949.119) / 4195.894) / ((11.627 + 820.684) / 3995.783)
=0.230584 / 0.208297
=1.107

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
=(191.429 - 0 - 357.573) / 4195.894
=-0.039597

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.

Cheerwin Group has a M-score of -2.39 suggests that the company is unlikely to be a manipulator.


Cheerwin Group Beneish M-Score Related Terms

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Cheerwin Group (HKSE:06601) Business Description

Traded in Other Exchanges
N/A
Address
No. 2, Luju Road, Liwan District, Guangdong Province, Guangzhou, CHN, 510370
Cheerwin Group Ltd is an investment holding company. It is mainly manufacturing and trading of household insecticides and repellents, household cleaning, air care, personal care, pet care, and other products in China. company revenue is geographically derived from PRC.
Executives
Ubs Group Ag 2201 Interest of corporation controlled by you
Chen Kaichen
Chen Kaixuan
Li Ruohong
Ma Huizhen
Morgan Stanley & Co. International Plc 2105 Underwriter
Morgan Stanley International Holdings Inc. 2201 Interest of corporation controlled by you
Morgan Stanley International Limited 2201 Interest of corporation controlled by you
Morgan Stanley Investments (uk) 2201 Interest of corporation controlled by you
Chao Yun Huan Qiu You Xian Gong Si

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