Wing Lee Development Construction Holdings (HKSE:09639) Beneish M-Score : -2.14 (As of Apr. 15, 2025)

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What is Wing Lee Development Construction 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 -2.14 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Wing Lee Development Construction Holdings's Beneish M-Score or its related term are showing as below:

HKSE:09639' s Beneish M-Score Range Over the Past 10 Years
Min: -2.14 Med: -2.14 Max: -2.14
Current: -2.14

During the past 3 years, the highest Beneish M-Score of Wing Lee Development Construction Holdings was -2.14. The lowest was -2.14. And the median was -2.14.

Wing Lee Development Construction Holdings Beneish M-Score Historical Data

The historical data trend for Wing Lee Development Construction 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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Wing Lee Development Construction Holdings Beneish M-Score Chart

Wing Lee Development Construction Holdings Annual Data

Trend

Mar22

Mar23

Mar24

Beneish M-Score

-2.14

Wing Lee Development Construction Holdings Semi-Annual Data
	Mar22	Mar23	Sep23	Mar24	Sep24
Beneish M-Score	-	-	-	-2.14	-

Competitive Comparison of Wing Lee Development Construction Holdings's Beneish M-Score

For the Engineering & Construction subindustry, Wing Lee Development Construction 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.

Wing Lee Development Construction Holdings's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Wing Lee Development Construction Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Wing Lee Development Construction Holdings's Beneish M-Score falls into.

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Wing Lee Development Construction 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 Wing Lee Development Construction 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 * 0.8537

0.528 * 0.9047

0.404 * 0.773

0.892 * 1.4565

0.115 * 1.6152

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6627

4.679 * 0.020548

0.327 * 1.0363

-2.14

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was HK$245.2 Mil.
Revenue was HK$526.1 Mil.
Gross Profit was HK$121.6 Mil.
Total Current Assets was HK$273.0 Mil.
Total Assets was HK$365.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$88.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$13.8 Mil.
Selling, General, & Admin. Expense(SGA) was HK$11.6 Mil.
Total Current Liabilities was HK$186.9 Mil.
Long-Term Debt & Capital Lease Obligation was HK$8.8 Mil.
Net Income was HK$76.9 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$69.4 Mil.

Total Receivables was HK$197.2 Mil.
Revenue was HK$361.2 Mil.
Gross Profit was HK$75.5 Mil.
Total Current Assets was HK$202.6 Mil.
Total Assets was HK$258.4 Mil.
Property, Plant and Equipment(Net PPE) was HK$51.7 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$14.5 Mil.
Selling, General, & Admin. Expense(SGA) was HK$12.1 Mil.
Total Current Liabilities was HK$124.9 Mil.
Long-Term Debt & Capital Lease Obligation was HK$8.5 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)
	=	(245.185 / 526.099)	/	(197.176 / 361.207)
	=	0.466043	/	0.545881
	=	0.8537

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)
	=	(75.533 / 361.207)	/	(121.607 / 526.099)
	=	0.209113	/	0.231149
	=	0.9047

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 - (273.015 + 88.374) / 365.777)	/	(1 - (202.646 + 51.729) / 258.385)
	=	0.011996	/	0.015519
	=	0.773

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
	=	526.099	/	361.207
	=	1.4565

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))
	=	(14.468 / (14.468 + 51.729))	/	(13.83 / (13.83 + 88.374))
	=	0.21856	/	0.135318
	=	1.6152

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)
	=	(11.634 / 526.099)	/	(12.053 / 361.207)
	=	0.022114	/	0.033369
	=	0.6627

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)
	=	((8.772 + 186.945) / 365.777)	/	((8.537 + 124.881) / 258.385)
	=	0.535072	/	0.516354
	=	1.0363

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
	=	(76.907 - 0	-	69.391)	/	365.777
	=	0.020548

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.

Wing Lee Development Construction Holdings has a M-score of -2.14 suggests that the company is unlikely to be a manipulator.

Wing Lee Development Construction Holdings Beneish M-Score Related Terms

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Wing Lee Development Construction Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Wing Lee Development Construction Holdings Ltd (HKSE:09639) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 3 Hoi Shing Road, Room A6, 16th Floor, TML Tower, Tsuen Wan, Hong Kong, HKG

Website

https://www.winglee.com.hk

Wing Lee Development Construction Holdings Ltd is an established contractor in Hong Kong engaged in civil and electrical cable engineering and solar PV system works. Its civil engineering works specialize in site formation works and road and drainage works, and its electrical cable engineering works specialize in cable trenching, laying and jointing works. For solar PV system works, the company specializes in the design, installation and maintenance works of solar PV systems. The majority of revenue is derived from civil engineering works.

Executives

Chan Lo Man	2201 Interest of corporation controlled by you
Chen Caiyun	2202 Interest of your spouse
Lam Yan Ki Maggie	2202 Interest of your spouse
Liu Ying	2202 Interest of your spouse
Rong Li Lv Se Fa Zhan You Xian Gong Si	2101 Beneficial owner
Yiu Wang Lee	2201 Interest of corporation controlled by you
Yiu Wang Lung	2201 Interest of corporation controlled by you

Wing Lee Development Construction Holdings Headlines

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