Reach New Holdings (HKSE:08471) Beneish M-Score: 0.00 (As of Sep. 01, 2026)

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HKSE:08471 Reach New Holdings Ltd HKSE:08471
58 GF Score
Price HK$0.27
GF Value HK$3.07
Valuation Possible Value Trap
! 6 Warning Signs
View Full Analysis

What is Reach New Holdings Beneish M-Score?

Reach New Holdings HKSE:08471 58 Beneish M-Score is 0.00 as of Sep. 01, 2026. GuruFocus rates HKSE:08471 with a GF Score™ of 58/100 and a GF Value™ of HK$3.07 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,003 Manufacturing - Apparel & Accessories companies, Reach New Holdings ranks worse than 99700.8% 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.

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

During the past 11 years, the highest Beneish M-Score of Reach New Holdings was 3.91. The lowest was -4.06. And the median was -2.82.

Reach New Holdings Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Reach New 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.

Reach New Holdings Beneish M-Score Chart

Reach New Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.82 -4.06 -3.75 0.00 0.00

Reach New Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.75 0.00 0.00 0.00 0.00

Reach New Holdings Beneish M-Score Competitor Comparison

For the Textile Manufacturing subindustry, Reach New 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.

Reach New Holdings Beneish M-Score vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Reach New Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Reach New Holdings's Beneish M-Score falls into.


HKSE:08471
58GF Score
Reach New Holdings Ltd HKSE:08471
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Reach New 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 Reach New Holdings 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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$27.93 Mil.
Revenue was HK$88.79 Mil.
Gross Profit was HK$22.11 Mil.
Total Current Assets was HK$54.36 Mil.
Total Assets was HK$70.59 Mil.
Property, Plant and Equipment(Net PPE) was HK$3.41 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0.76 Mil.
Selling, General, & Admin. Expense(SGA) was HK$36.60 Mil.
Total Current Liabilities was HK$25.34 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1.21 Mil.
Net Income was HK$-15.35 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-9.92 Mil.
 Total Receivables was HK$21.83 Mil.
Revenue was HK$97.91 Mil.
Gross Profit was HK$27.23 Mil.
Total Current Assets was HK$52.82 Mil.
Total Assets was HK$55.26 Mil.
Property, Plant and Equipment(Net PPE) was HK$2.44 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$1.02 Mil.
Selling, General, & Admin. Expense(SGA) was HK$36.18 Mil.
Total Current Liabilities was HK$16.49 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1.55 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)
=(27.926 / 88.793) / (21.834 / 97.912)
=0.314507 / 0.222996
=

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)
=(27.225 / 97.912) / (22.112 / 88.793)
=0.278056 / 0.249029
=

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 - (54.359 + 3.414) / 70.588) / (1 - (52.82 + 2.436) / 55.256)
=0.181546 / 0
=

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
=88.793 / 97.912
=

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))
=(1.015 / (1.015 + 2.436)) / (0.756 / (0.756 + 3.414))
=0.294118 / 0.181295
=

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)
=(36.601 / 88.793) / (36.177 / 97.912)
=0.412206 / 0.369485
=

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)
=((1.214 + 25.339) / 70.588) / ((1.546 + 16.493) / 55.256)
=0.376169 / 0.326462
=

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
=(-15.347 - 0 - -9.919) / 70.588
=-0.076897

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.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 0.00 mean?
Reach New Holdings (HKSE:08471) has a Beneish M-Score of 0.00 as of Sep. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Reach New Holdings and its competitors. According to the industry distribution chart, Reach New Holdings ranks #999999 out of 1003 companies in the Manufacturing - Apparel & Accessories industry.
Is Reach New Holdings' Beneish M-Score too high?
Reach New Holdings' current Beneish M-Score is 0.00. Based on the distribution chart, Reach New Holdings ranks #999999 out of 1003 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Reach New Holdings has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Reach New Holdings' Beneish M-Score compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Reach New Holdings ranks #999999 out of 1003 companies for Beneish M-Score. This places Reach New Holdings 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 Manufacturing - Apparel & Accessories company?
A good Beneish M-Score depends on the Manufacturing - Apparel & Accessories 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 Reach New Holdings and its competitors. Reach New Holdings's current Beneish M-Score is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reach New Holdings stock overvalued right now?
Based on GuruFocus' analysis, Reach New Holdings (HKSE:08471) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.07, compared to a current price of HK$0.27 — trading 91.2% below its estimated fair value. The current Beneish M-Score is 0.00. Reach New Holdings' overall GF Score™ is 58/100 with 6 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 Reach New Holdings (HKSE:08471), the current Beneish M-Score is 0.00 as of Sep. 01, 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 Reach New Holdings (HKSE:08471) Overvalued in 2026?

Based on GuruFocus' analysis, Reach New Holdings stock appears to be undervalued. The current stock price of HK$0.27 is trading 91.2% below its estimated GF Value™ of HK$3.07. GuruFocus considers Reach New Holdings to be Possible Value Trap.

Key valuation signals for HKSE:08471:

  • Beneish M-Score: 0.00
  • GF Value™: HK$3.07 vs. price of HK$0.27 (91.2% below fair value)
  • GF Score™: 58/100 with 6 warning signs

No single metric tells the full story. See the HKSE:08471 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Reach New Holdings Business Description

Address 1 Science Museum Road, Room 2502, 25th Floor, South Tower, Concordia Plaza, Tsim Sha Tsui East, Kowloon, Hong Kong, HKG
Reach New Holdings Ltd is a labelling solution provider and a one-stop garment accessories manufacturer and supplier based in China. The company is mainly engaged in the production of three types of products, which are Printed products such as hangtags, price tags, and stickers; Woven labels such as woven brand labels, woven size labels, and badges; and Printed labels such as printed brand labels, printed size labels, and care content labels. The group's operations are located in the PRC.
58GF Score

Get the complete analysis for HKSE:08471

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

HK$0.27
Price
HK$3.07
GF Value