WS-SK Target Group (HKSE:08427) Beneish M-Score : -2.58 (As of Apr. 08, 2025)

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What is WS-SK Target 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 -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:08427' s Beneish M-Score Range Over the Past 10 Years
Min: -3.45 Med: -2.58 Max: 0.43
Current: -2.58

During the past 10 years, the highest Beneish M-Score of WS-SK Target Group was 0.43. The lowest was -3.45. And the median was -2.58.

WS-SK Target Group Beneish M-Score Historical Data

The historical data trend for WS-SK Target 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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WS-SK Target Group Beneish M-Score Chart

WS-SK Target Group Annual Data

Trend

May15

May16

May17

May18

May19

May20

May21

May22

May23

May24

Beneish M-Score

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-3.32

-2.97

-2.52

0.43

-2.58

WS-SK Target Group Quarterly Data
	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	May24	Nov24
Beneish M-Score	Get a 7-Day Free Trial															0.43	-	-	-2.58	-

Competitive Comparison of WS-SK Target Group's Beneish M-Score

For the Building Materials subindustry, WS-SK Target 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.

WS-SK Target Group's Beneish M-Score Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, WS-SK Target Group's Beneish M-Score distribution charts can be found below:

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

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WS-SK Target 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 WS-SK Target 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 * 1.001

0.528 * 0.819

0.404 * 1.0356

0.892 * 0.9657

0.115 * 0.893

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3074

4.679 * 0.010855

0.327 * 0.9268

-2.58

This Year (May24) TTM:

Last Year (May23) TTM:

Total Receivables was HK$19.62 Mil.
Revenue was HK$50.82 Mil.
Gross Profit was HK$14.18 Mil.
Total Current Assets was HK$70.57 Mil.
Total Assets was HK$83.83 Mil.
Property, Plant and Equipment(Net PPE) was HK$6.94 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$2.08 Mil.
Selling, General, & Admin. Expense(SGA) was HK$12.15 Mil.
Total Current Liabilities was HK$23.55 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 Mil.
Net Income was HK$0.18 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-0.73 Mil.

Total Receivables was HK$20.30 Mil.
Revenue was HK$52.63 Mil.
Gross Profit was HK$12.02 Mil.
Total Current Assets was HK$73.10 Mil.
Total Assets was HK$87.99 Mil.
Property, Plant and Equipment(Net PPE) was HK$8.48 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$2.20 Mil.
Selling, General, & Admin. Expense(SGA) was HK$9.62 Mil.
Total Current Liabilities was HK$20.27 Mil.
Long-Term Debt & Capital Lease Obligation was HK$6.39 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)
	=	(19.618 / 50.824)	/	(20.295 / 52.629)
	=	0.385999	/	0.385624
	=	1.001

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)
	=	(12.024 / 52.629)	/	(14.178 / 50.824)
	=	0.228467	/	0.278963
	=	0.819

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 - (70.57 + 6.943) / 83.832)	/	(1 - (73.1 + 8.483) / 87.987)
	=	0.075377	/	0.072783
	=	1.0356

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
	=	50.824	/	52.629
	=	0.9657

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))
	=	(2.201 / (2.201 + 8.483))	/	(2.082 / (2.082 + 6.943))
	=	0.206009	/	0.230693
	=	0.893

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)
	=	(12.147 / 50.824)	/	(9.621 / 52.629)
	=	0.239001	/	0.182808
	=	1.3074

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)
	=	((0 + 23.546) / 83.832)	/	((6.393 + 20.271) / 87.987)
	=	0.280871	/	0.303045
	=	0.9268

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
	=	(0.179 - 0	-	-0.731)	/	83.832
	=	0.010855

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.

WS-SK Target Group has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.

WS-SK Target Group Beneish M-Score Related Terms

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WS-SK Target Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » WS-SK Target Group Ltd (HKSE:08427) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 18, Jalan LP 2A/2, Taman Lestari Perdana, Darul Ehsan, Seri Kembangan, SGR, MYS, 43300

Website

https://www.sktargetgroup.com

WS-SK Target Group Ltd formerly, SK Target Group Ltd is an investment holding company. The principal activities of the company are manufacturing and trading of precast concrete junction boxes, trading of accessories and pipes and provision of mobile crane rental and ancillary services in Malaysia, sourcing service of materials in Hong Kong. The company has two segments: Manufacturing and trading which involves manufacturing and trading of precast concrete junction boxes; and Other building materials and services which involves trading of accessories and pipes and provision of mobile crane rental and ancillary services; Geographically, it derives a majority of revenue from Malaysia.

Executives

Cheng Lai Wah Christina	2202 Interest of your spouse
Greater Elite Holdings Limited	2101 Beneficial owner
Law Fung Yuen Paul	2201 Interest of corporation controlled by you
Woon Sow Sum	2202 Interest of your spouse
Loh Swee Keong	2201 Interest of corporation controlled by you
Merchant World Investments Limited	2101 Beneficial owner
Lei Meng Fong	2101 Beneficial owner
Cheng Chek Kay	2101 Beneficial owner
Choy Sheung Ki Gary	2101 Beneficial owner

WS-SK Target Group Headlines

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