Dragon Rise Group Holdings (HKSE:06829) Beneish M-Score : -2.61 (As of Apr. 10, 2025)

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What is Dragon Rise Group Holdings 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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:06829' s Beneish M-Score Range Over the Past 10 Years
Min: -4.59 Med: -2.46 Max: 1.17
Current: -2.61

During the past 10 years, the highest Beneish M-Score of Dragon Rise Group Holdings was 1.17. The lowest was -4.59. And the median was -2.46.

Dragon Rise Group Holdings Beneish M-Score Historical Data

The historical data trend for Dragon Rise Group 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.

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Dragon Rise Group Holdings Beneish M-Score Chart

Dragon Rise Group Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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1.17

-3.21

-4.59

-1.96

-2.61

Dragon Rise Group Holdings Semi-Annual Data
	Mar15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Beneish M-Score	Get a 7-Day Free Trial														-	-1.96	-	-2.61	-

Competitive Comparison of Dragon Rise Group Holdings's Beneish M-Score

For the Engineering & Construction subindustry, Dragon Rise Group 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.

Dragon Rise Group Holdings's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Dragon Rise Group Holdings's Beneish M-Score distribution charts can be found below:

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

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Dragon Rise Group 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 Dragon Rise Group Holdings 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 * 1.245

0.528 * 0.7376

0.404 * 0.7762

0.892 * 1.2031

0.115 * 0.83

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0477

4.679 * 0.043986

0.327 * 2.4996

-2.61

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was HK$258 Mil.
Revenue was HK$946 Mil.
Gross Profit was HK$39 Mil.
Total Current Assets was HK$393 Mil.
Total Assets was HK$419 Mil.
Property, Plant and Equipment(Net PPE) was HK$22 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$18 Mil.
Selling, General, & Admin. Expense(SGA) was HK$28 Mil.
Total Current Liabilities was HK$147 Mil.
Long-Term Debt & Capital Lease Obligation was HK$3 Mil.
Net Income was HK$4 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$-14 Mil.

Total Receivables was HK$172 Mil.
Revenue was HK$786 Mil.
Gross Profit was HK$24 Mil.
Total Current Assets was HK$268 Mil.
Total Assets was HK$308 Mil.
Property, Plant and Equipment(Net PPE) was HK$35 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$22 Mil.
Selling, General, & Admin. Expense(SGA) was HK$22 Mil.
Total Current Liabilities was HK$43 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1 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)
	=	(257.535 / 945.852)	/	(171.937 / 786.209)
	=	0.272278	/	0.218691
	=	1.245

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)
	=	(24.195 / 786.209)	/	(39.463 / 945.852)
	=	0.030774	/	0.041722
	=	0.7376

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 - (392.558 + 21.712) / 419.18)	/	(1 - (268.198 + 35.179) / 308.025)
	=	0.011713	/	0.01509
	=	0.7762

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
	=	945.852	/	786.209
	=	1.2031

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))
	=	(21.678 / (21.678 + 35.179))	/	(18.449 / (18.449 + 21.712))
	=	0.381272	/	0.459376
	=	0.83

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)
	=	(27.759 / 945.852)	/	(22.023 / 786.209)
	=	0.029348	/	0.028012
	=	1.0477

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)
	=	((2.521 + 147.033) / 419.18)	/	((0.618 + 43.348) / 308.025)
	=	0.356778	/	0.142735
	=	2.4996

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
	=	(4.188 - 0	-	-14.25)	/	419.18
	=	0.043986

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.

Dragon Rise Group Holdings has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.

Dragon Rise Group Holdings Beneish M-Score Related Terms

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Dragon Rise Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Dragon Rise Group Holdings Ltd (HKSE:06829) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Science Museum Road, Unit 09, 28th Floor, North Tower, Concordia Plaza, Tsim Sha Tsui, Kowloon, Hong Kong, HKG

Website

http://www.kitkee.com.hk

Dragon Rise Group Holdings Ltd is an investment holding company. It is a subcontractor for foundation engineering services. Geographically, it derives revenue from Hong Kong. The company principally provides excavation and lateral support works, pile cap construction works, and the disposal of excavated materials from piling and ancillary services, including dismantling of shoring, site formation, steel fixing and site clearance, in Hong Kong.

Executives

Fame Circle Limited	2101 Beneficial owner
Yip Lai Ping	2202 Interest of your spouse
Yip Yuk Kit	2201 Interest of corporation controlled by you

Dragon Rise Group Holdings Headlines

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