Zhaoke Ophthalmology (HKSE:06622) Beneish M-Score: 1.13 (As of Sep. 04, 2026) — 414% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:06622 Zhaoke Ophthalmology Ltd HKSE:06622
47 GF Score
Price HK$2.53
GF Value HK$2.60
Valuation Fairly Valued
! 5 Warning Signs
View Full Analysis

What is Zhaoke Ophthalmology Beneish M-Score?

Zhaoke Ophthalmology HKSE:06622 +1.61% 47 Beneish M-Score is 1.13 as of Sep. 04, 2026, which is 414% above its 10-year median of 0.22. GuruFocus rates HKSE:06622 with a GF Score™ of 47/100 and a GF Value™ of HK$2.60 (Fairly Valued). The stock has 5 warning signs investors should review. Among 832 Biotechnology companies, Zhaoke Ophthalmology ranks worse than 85.7% 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.

Warning Sign:

Beneish M-Score 1.13 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:06622' s Beneish M-Score Range Over the Past 10 Years
Min: -0.69   Med: 0.22   Max: 1.13
Current: 1.13

During the past 7 years, the highest Beneish M-Score of Zhaoke Ophthalmology was 1.13. The lowest was -0.69. And the median was 0.22.

Zhaoke Ophthalmology Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Zhaoke Ophthalmology'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.

Zhaoke Ophthalmology Beneish M-Score Chart

Zhaoke Ophthalmology Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial 0.00 0.00 0.00 -0.69 1.13

Zhaoke Ophthalmology Semi-Annual Data
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 0.00 0.00 -0.69 0.00 1.13

HKSE:06622 vs VRTX, REGN, MRNA: Beneish M-Score Comparison

For the Biotechnology subindustry, Zhaoke Ophthalmology'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.

Zhaoke Ophthalmology Beneish M-Score vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Zhaoke Ophthalmology's Beneish M-Score distribution charts can be found below:

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


HKSE:06622
47GF Score
Zhaoke Ophthalmology Ltd HKSE:06622
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhaoke Ophthalmology 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 Zhaoke Ophthalmology 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 * 5.1781+0.528 * 1.4882+0.404 * 1.0754+0.892 * 0.4772+0.115 * 0.8771
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.611+4.679 * 0.026463-0.327 * 1.1899
=1.13

* 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$40.51 Mil.
Revenue was HK$35.32 Mil.
Gross Profit was HK$17.73 Mil.
Total Current Assets was HK$1,517.72 Mil.
Total Assets was HK$2,137.99 Mil.
Property, Plant and Equipment(Net PPE) was HK$196.45 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$57.80 Mil.
Selling, General, & Admin. Expense(SGA) was HK$40.72 Mil.
Total Current Liabilities was HK$362.80 Mil.
Long-Term Debt & Capital Lease Obligation was HK$10.39 Mil.
Net Income was HK$-230.87 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-287.45 Mil.
 Total Receivables was HK$16.39 Mil.
Revenue was HK$74.02 Mil.
Gross Profit was HK$55.30 Mil.
Total Current Assets was HK$1,724.20 Mil.
Total Assets was HK$2,395.34 Mil.
Property, Plant and Equipment(Net PPE) was HK$229.60 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$57.19 Mil.
Selling, General, & Admin. Expense(SGA) was HK$52.97 Mil.
Total Current Liabilities was HK$334.23 Mil.
Long-Term Debt & Capital Lease Obligation was HK$17.14 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)
=(40.507 / 35.322) / (16.392 / 74.015)
=1.146792 / 0.221469
=5.1781

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)
=(55.302 / 74.015) / (17.734 / 35.322)
=0.747173 / 0.502067
=1.4882

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 - (1517.722 + 196.447) / 2137.988) / (1 - (1724.196 + 229.603) / 2395.338)
=0.198233 / 0.184333
=1.0754

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
=35.322 / 74.015
=0.4772

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))
=(57.189 / (57.189 + 229.603)) / (57.801 / (57.801 + 196.447))
=0.199409 / 0.227341
=0.8771

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)
=(40.721 / 35.322) / (52.967 / 74.015)
=1.152851 / 0.715625
=1.611

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)
=((10.389 + 362.799) / 2137.988) / ((17.135 + 334.234) / 2395.338)
=0.174551 / 0.146689
=1.1899

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
=(-230.868 - 0 - -287.446) / 2137.988
=0.026463

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.

Zhaoke Ophthalmology has a M-score of 1.13 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 1.13 mean?
Zhaoke Ophthalmology (HKSE:06622) has a Beneish M-Score of 1.13 as of Sep. 04, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Zhaoke Ophthalmology and its competitors. This is 414% above median its historical median of 0.22. According to the industry distribution chart, Zhaoke Ophthalmology ranks #713 out of 832 companies in the Biotechnology industry, placing it in the top 85.7%.
Is Zhaoke Ophthalmology's Beneish M-Score too high?
Zhaoke Ophthalmology's current Beneish M-Score of 1.13 is 414% above median its 10-year median of 0.22. Based on the distribution chart, Zhaoke Ophthalmology ranks #713 out of 832 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Zhaoke Ophthalmology has a GF Score™ of 47/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zhaoke Ophthalmology's Beneish M-Score compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Zhaoke Ophthalmology ranks #713 out of 832 companies for Beneish M-Score. This places Zhaoke Ophthalmology in the lower 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 Biotechnology company?
A good Beneish M-Score depends on the Biotechnology 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 Zhaoke Ophthalmology and its competitors. Zhaoke Ophthalmology's current Beneish M-Score is 1.13, which is 414% above median its own 10-year median of 0.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhaoke Ophthalmology stock overvalued right now?
Based on GuruFocus' analysis, Zhaoke Ophthalmology (HKSE:06622) is currently considered Fairly Valued. The stock's GF Value™ is HK$2.60, compared to a current price of HK$2.53 — trading 2.7% below its estimated fair value. The current Beneish M-Score is 1.13, which is 414% above median its 10-year median of 0.22. Zhaoke Ophthalmology's overall GF Score™ is 47/100 with 5 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 Zhaoke Ophthalmology (HKSE:06622), the current Beneish M-Score is 1.13 as of Sep. 04, 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 Zhaoke Ophthalmology (HKSE:06622) Overvalued in 2026?

Based on GuruFocus' analysis, Zhaoke Ophthalmology stock appears to be undervalued. The current stock price of HK$2.53 is trading 2.7% below its estimated GF Value™ of HK$2.60. GuruFocus considers Zhaoke Ophthalmology to be Fairly Valued.

Key valuation signals for HKSE:06622:

  • Beneish M-Score: 1.13 (414% above median its 10-year median of 0.22)
  • GF Value™: HK$2.60 vs. price of HK$2.53 (2.7% below fair value)
  • GF Score™: 47/100 with 5 warning signs

No single metric tells the full story. See the HKSE:06622 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Zhaoke Ophthalmology Business Description

Other Exchanges 9FX:Germany
Address No. 1 Meide 3rd Road, Pearl River Industrial Park, Nansha District, Guangdong Province, Guangzhou, CHN
Zhaoke Ophthalmology Ltd is an ophthalmic pharmaceutical company dedicated to the research, development, manufacture and commercialization of therapies that address unmet medical needs. The company has three flagship drug assets progressing towards potential market approval: NVK002 for myopia, CsA Ophthalmic Gel for DED and TAB014 for wAMD; and two drug assets in the clinical stage BRIMOCHOL PF for presbyopia and ZKY001 for corneal epithelial defects. Geographically the company operates in Hong Kong, Chinese Mainland, South Korea, and Others, of which it generates maximum revenue from Chinese Mainland.
47GF Score

Get the complete analysis for HKSE:06622

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

HK$2.53
Price
HK$2.60
GF Value