Basic House New Life Group (HKSE:08360) Beneish M-Score : -1.34 (As of Jul. 18, 2025)

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What is Basic House New Life 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.

Warning Sign:

Beneish M-Score -1.34 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:08360' s Beneish M-Score Range Over the Past 10 Years
Min: -5.29 Med: -1.91 Max: 0.98
Current: -1.34

During the past 11 years, the highest Beneish M-Score of Basic House New Life Group was 0.98. The lowest was -5.29. And the median was -1.91.

Basic House New Life Group Beneish M-Score Historical Data

The historical data trend for Basic House New Life 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.

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Basic House New Life Group Beneish M-Score Chart

Basic House New Life Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-5.29

-3.91

-1.91

-4.80

-1.34

Basic House New Life Group Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Jun24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-	-	-4.80	-	-1.34

Competitive Comparison of Basic House New Life Group's Beneish M-Score

For the Engineering & Construction subindustry, Basic House New Life 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.

Basic House New Life Group's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Basic House New Life Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Basic House New Life Group's Beneish M-Score falls into.

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Basic House New Life 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 Basic House New Life Group 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 * 1.7657

0.528 * 0.823

0.404 * 2.0941

0.892 * 1.0291

0.115 * 1.0837

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.7817

4.679 * 0.041351

0.327 * 1.0375

-1.34

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was HK$20.45 Mil.
Revenue was HK$65.67 Mil.
Gross Profit was HK$19.08 Mil.
Total Current Assets was HK$89.80 Mil.
Total Assets was HK$100.17 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.45 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.90 Mil.
Selling, General, & Admin. Expense(SGA) was HK$10.27 Mil.
Total Current Liabilities was HK$58.33 Mil.
Long-Term Debt & Capital Lease Obligation was HK$46.18 Mil.
Net Income was HK$-11.26 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-15.40 Mil.

Total Receivables was HK$11.26 Mil.
Revenue was HK$63.81 Mil.
Gross Profit was HK$15.26 Mil.
Total Current Assets was HK$49.36 Mil.
Total Assets was HK$52.79 Mil.
Property, Plant and Equipment(Net PPE) was HK$0.94 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$2.43 Mil.
Selling, General, & Admin. Expense(SGA) was HK$5.60 Mil.
Total Current Liabilities was HK$26.20 Mil.
Long-Term Debt & Capital Lease Obligation was HK$26.89 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)
	=	(20.454 / 65.667)	/	(11.257 / 63.812)
	=	0.311481	/	0.176409
	=	1.7657

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)
	=	(15.262 / 63.812)	/	(19.084 / 65.667)
	=	0.239171	/	0.290618
	=	0.823

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 - (89.797 + 0.452) / 100.167)	/	(1 - (49.358 + 0.936) / 52.79)
	=	0.099015	/	0.047282
	=	2.0941

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
	=	65.667	/	63.812
	=	1.0291

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))
	=	(2.427 / (2.427 + 0.936))	/	(0.901 / (0.901 + 0.452))
	=	0.721677	/	0.665928
	=	1.0837

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)
	=	(10.273 / 65.667)	/	(5.603 / 63.812)
	=	0.156441	/	0.087805
	=	1.7817

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)
	=	((46.177 + 58.33) / 100.167)	/	((26.886 + 26.2) / 52.79)
	=	1.043328	/	1.005607
	=	1.0375

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
	=	(-11.262 - 0	-	-15.404)	/	100.167
	=	0.041351

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.

Basic House New Life Group has a M-score of -1.34 signals that the company is likely to be a manipulator.

Basic House New Life Group Beneish M-Score Related Terms

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Basic House New Life Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Basic House New Life Group Ltd (HKSE:08360) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

44-46 Hung To Road, Century Centre, Unit 204A, 2nd Floor, Kwun Tong, Hong Kong, HKG

Website

https://www.basicnewlife.com

Basic House New Life Group Ltd, formerly AL Group Ltd through its subsidiaries, is engaged in interior design and fit-out solutions in Hong Kong. It also provides overall project management solutions. Its services include pre-lease services, interior design & planning, project management, contracting, and customer service. Geographically, the firm generates a majority of its revenue from Hong Kong.

Executives

Lui Yu Kin	2101 Beneficial owner
Chan Hung Kai	2101 Beneficial owner
Space Financial Holdings Limited	2201 Interest of corporation controlled by you
Space Securities Limited	2105 Underwriter
Yeung Ching Yin	2101 Beneficial owner
Legend Investments International Limited	2101 Beneficial owner
Yau Chung Ping	2201 Interest of corporation controlled by you

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