Zuoli Kechuang Micro-finance Co (HKSE:06866) Beneish M-Score: -2.78 (As of Sep. 08, 2026)

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HKSE:06866 Zuoli Kechuang Micro-finance Co Ltd HKSE:06866
34 GF Score
Price HK$0.29
GF Value HK$0.24
Valuation Modestly Overvalued
! 1 Warning Sign
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What is Zuoli Kechuang Micro-finance Co Beneish M-Score?

Zuoli Kechuang Micro-finance Co HKSE:06866 34 Beneish M-Score is -2.78 as of Sep. 08, 2026. GuruFocus rates HKSE:06866 with a GF Score™ of 34/100 and a GF Value™ of HK$0.24 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 489 Credit Services companies, Zuoli Kechuang Micro-finance Co ranks better than 80.37% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Zuoli Kechuang Micro-finance Co's Beneish M-Score or its related term are showing as below:

HKSE:06866' s Beneish M-Score Range Over the Past 10 Years
Min: -3   Med: -2.57   Max: -1.9
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Zuoli Kechuang Micro-finance Co was -1.90. The lowest was -3.00. And the median was -2.57.

HKSE:06866
34GF Score
Zuoli Kechuang Micro-finance Co Ltd HKSE:06866
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Zuoli Kechuang Micro-finance Co 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 Zuoli Kechuang Micro-finance Co 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+0.528 * 1+0.404 * 1.0032+0.892 * 0.8541+0.115 * 0.6363
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.13+4.679 * -0.028882-0.327 * 0.9055
=-2.78

* 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$0.0 Mil.
Revenue was HK$160.2 Mil.
Gross Profit was HK$160.2 Mil.
Total Current Assets was HK$0.0 Mil.
Total Assets was HK$2,825.7 Mil.
Property, Plant and Equipment(Net PPE) was HK$10.0 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$5.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$23.9 Mil.
Total Current Liabilities was HK$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$486.4 Mil.
Net Income was HK$66.8 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$148.4 Mil.
 Total Receivables was HK$0.0 Mil.
Revenue was HK$187.6 Mil.
Gross Profit was HK$187.6 Mil.
Total Current Assets was HK$0.0 Mil.
Total Assets was HK$2,753.0 Mil.
Property, Plant and Equipment(Net PPE) was HK$18.6 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$5.5 Mil.
Selling, General, & Admin. Expense(SGA) was HK$24.7 Mil.
Total Current Liabilities was HK$0.0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$523.3 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)
=(0 / 160.212) / (0 / 187.573)
=0 / 0
=1

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)
=(187.573 / 187.573) / (160.212 / 160.212)
=1 / 1
=1

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 - (0 + 10.044) / 2825.65) / (1 - (0 + 18.601) / 2753.013)
=0.996445 / 0.993243
=1.0032

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
=160.212 / 187.573
=0.8541

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))
=(5.51 / (5.51 + 18.601)) / (5.629 / (5.629 + 10.044))
=0.228526 / 0.359153
=0.6363

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)
=(23.883 / 160.212) / (24.744 / 187.573)
=0.149071 / 0.131917
=1.13

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)
=((486.377 + 0) / 2825.65) / ((523.302 + 0) / 2753.013)
=0.172129 / 0.190083
=0.9055

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
=(66.772 - 0 - 148.382) / 2825.65
=-0.028882

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.

Zuoli Kechuang Micro-finance Co has a M-score of -2.78 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 -2.78 mean?
Zuoli Kechuang Micro-finance Co (HKSE:06866) has a Beneish M-Score of -2.78 as of Sep. 08, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Zuoli Kechuang Micro-finance Co and its competitors. According to the industry distribution chart, Zuoli Kechuang Micro-finance Co ranks #96 out of 489 companies in the Credit Services industry, placing it in the top 19.6%.
Is Zuoli Kechuang Micro-finance Co's Beneish M-Score too high?
Zuoli Kechuang Micro-finance Co's current Beneish M-Score is -2.78. Based on the distribution chart, Zuoli Kechuang Micro-finance Co ranks #96 out of 489 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Zuoli Kechuang Micro-finance Co has a GF Score™ of 34/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zuoli Kechuang Micro-finance Co's Beneish M-Score compare to V and MA?
According to the Credit Services industry distribution chart, Zuoli Kechuang Micro-finance Co ranks #96 out of 489 companies for Beneish M-Score. This places Zuoli Kechuang Micro-finance Co in the top 20% 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 Credit Services company?
A good Beneish M-Score depends on the Credit Services 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 Zuoli Kechuang Micro-finance Co and its competitors. Zuoli Kechuang Micro-finance Co's current Beneish M-Score is -2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zuoli Kechuang Micro-finance Co stock overvalued right now?
Based on GuruFocus' analysis, Zuoli Kechuang Micro-finance Co (HKSE:06866) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.29 — trading 18.8% above its estimated fair value. The current Beneish M-Score is -2.78. Zuoli Kechuang Micro-finance Co's overall GF Score™ is 34/100 with 1 warning sign 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 Zuoli Kechuang Micro-finance Co (HKSE:06866), the current Beneish M-Score is -2.78 as of Sep. 08, 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 Zuoli Kechuang Micro-finance Co (HKSE:06866) Overvalued in 2026?

Based on GuruFocus' analysis, Zuoli Kechuang Micro-finance Co stock appears to be overvalued. The current stock price of HK$0.29 is trading 18.8% above its estimated GF Value™ of HK$0.24. GuruFocus considers Zuoli Kechuang Micro-finance Co to be Modestly Overvalued.

Key valuation signals for HKSE:06866:

  • Beneish M-Score: -2.78
  • GF Value™: HK$0.24 vs. price of HK$0.29 (18.8% above fair value)
  • GF Score™: 34/100 with 1 warning sign

No single metric tells the full story. See the HKSE:06866 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Zuoli Kechuang Micro-finance Co Business Description

Address No. 399 Deqing Avenue, Wukang Road, Deqing County, Zhejiang Province, Huzhou, CHN, 313200
Zuoli Kechuang Micro-finance Co Ltd is engaged in providing unsecured loans, guaranteed loans, collateralized loans, pledged loans, agriculture loans, individual business loans, other individual loans and loans for agricultural businesses, customers engaged in rural development activities, and/or customers residing in rural areas, SMEs and microenterprises in various industries, as well as online retailers in the businesses of lifestyle products, agricultural products, cultural supplies, and industrial products. The company generates revenue in the form of interest.
34GF Score

Get the complete analysis for HKSE:06866

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

HK$0.29
Price
HK$0.24
GF Value