Zhongtai Securities Co (SHSE:600918) Beneish M-Score: -2.61 (As of Jul. 26, 2026)

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SHSE:600918 Zhongtai Securities Co Ltd SHSE:600918
62 GF Score
Price ¥5.51
GF Value ¥6.87
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Zhongtai Securities Co Beneish M-Score?

Zhongtai Securities Co SHSE:600918 -2.65% 62 Beneish M-Score is -2.61 as of Jul. 26, 2026. GuruFocus rates SHSE:600918 with a GF Score™ of 62/100 and a GF Value™ of ¥6.87 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 704 Capital Markets companies, Zhongtai Securities Co ranks better than 71.59% 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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Zhongtai Securities Co's Beneish M-Score or its related term are showing as below:

SHSE:600918' s Beneish M-Score Range Over the Past 10 Years
Min: -3.81   Med: -2.47   Max: 8.43
Current: -2.61

During the past 13 years, the highest Beneish M-Score of Zhongtai Securities Co was 8.43. The lowest was -3.81. And the median was -2.47.

SHSE:600918
62GF Score
Zhongtai Securities Co Ltd SHSE:600918
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Zhongtai Securities 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 Zhongtai Securities 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 * 1.0058+0.892 * 1.2346+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9968+4.679 * -0.079622-0.327 * 0.9048
=-2.61

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ¥0 Mil.
Revenue was 3097.697 + 2362.977 + 3767.662 + 2775.718 = ¥12,004 Mil.
Gross Profit was 3097.697 + 2362.977 + 3767.662 + 2775.718 = ¥12,004 Mil.
Total Current Assets was ¥0 Mil.
Total Assets was ¥268,693 Mil.
Property, Plant and Equipment(Net PPE) was ¥5,216 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥2,714 Mil.
Total Current Liabilities was ¥0 Mil.
Long-Term Debt & Capital Lease Obligation was ¥63,342 Mil.
Net Income was 468.99 + 134.777 + 588.643 + 341.441 = ¥1,534 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 4921.043 + 6771.856 + 766.979 + 10467.851 = ¥22,928 Mil.
 Total Receivables was ¥0 Mil.
Revenue was 2476.086 + 2276.395 + 2312.766 + 2657.52 = ¥9,723 Mil.
Gross Profit was 2476.086 + 2276.395 + 2312.766 + 2657.52 = ¥9,723 Mil.
Total Current Assets was ¥0 Mil.
Total Assets was ¥213,987 Mil.
Property, Plant and Equipment(Net PPE) was ¥5,361 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥2,205 Mil.
Total Current Liabilities was ¥0 Mil.
Long-Term Debt & Capital Lease Obligation was ¥55,751 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 / 12004.054) / (0 / 9722.767)
=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)
=(9722.767 / 9722.767) / (12004.054 / 12004.054)
=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 + 5215.708) / 268692.598) / (1 - (0 + 5361.305) / 213986.624)
=0.980589 / 0.974946
=1.0058

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
=12004.054 / 9722.767
=1.2346

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))
=(0 / (0 + 5361.305)) / (0 / (0 + 5215.708))
=0 / 0
=1

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)
=(2713.927 / 12004.054) / (2205.314 / 9722.767)
=0.226084 / 0.22682
=0.9968

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)
=((63341.9 + 0) / 268692.598) / ((55750.649 + 0) / 213986.624)
=0.235741 / 0.260533
=0.9048

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
=(1533.851 - 0 - 22927.729) / 268692.598
=-0.079622

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.

Zhongtai Securities Co has a M-score of -2.61 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 -2.61 mean?
Zhongtai Securities Co (SHSE:600918) has a Beneish M-Score of -2.61 as of Jul. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Zhongtai Securities Co and its competitors. According to the industry distribution chart, Zhongtai Securities Co ranks #200 out of 704 companies in the Capital Markets industry, placing it in the top 28.4%.
Is Zhongtai Securities Co's Beneish M-Score too high?
Zhongtai Securities Co's current Beneish M-Score is -2.61. Based on the distribution chart, Zhongtai Securities Co ranks #200 out of 704 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Zhongtai Securities Co has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongtai Securities Co's Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, Zhongtai Securities Co ranks #200 out of 704 companies for Beneish M-Score. This puts Zhongtai Securities Co in the upper 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 Capital Markets company?
A good Beneish M-Score depends on the Capital Markets 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 Zhongtai Securities Co and its competitors. Zhongtai Securities Co's current Beneish M-Score is -2.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongtai Securities Co stock overvalued right now?
Based on GuruFocus' analysis, Zhongtai Securities Co (SHSE:600918) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥6.87, compared to a current price of ¥5.51 — trading 19.8% below its estimated fair value. The current Beneish M-Score is -2.61. Zhongtai Securities Co's overall GF Score™ is 62/100 with 3 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 Zhongtai Securities Co (SHSE:600918), the current Beneish M-Score is -2.61 as of Jul. 26, 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 Zhongtai Securities Co (SHSE:600918) Overvalued in 2026?

Based on GuruFocus' analysis, Zhongtai Securities Co stock appears to be undervalued. The current stock price of ¥5.51 is trading 19.8% below its estimated GF Value™ of ¥6.87. GuruFocus considers Zhongtai Securities Co to be Modestly Undervalued.

Key valuation signals for SHSE:600918:

  • Beneish M-Score: -2.61
  • GF Value™: ¥6.87 vs. price of ¥5.51 (19.8% below fair value)
  • GF Score™: 62/100 with 3 warning signs

No single metric tells the full story. See the SHSE:600918 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Zhongtai Securities Co Business Description

Address No. 86, Jingqi Road, Shizhong District, Shandong Province, Jinan, CHN, 250001
Zhongtai Securities Co Ltd is a China-based company mainly engaged in wealth management business. The company operates through eight segments: Asset management business segment, Credit business segment, Futures business segment, International business segment, Investment banking segment, Investment business segment, Wealth management business segment, and Others. It generates the majority of its revenue from the Wealth management business segment. The wealth management business mainly provides securities brokerage services, investment advisory services, product allocation services, and comprehensive financial services.
62GF Score

Get the complete analysis for SHSE:600918

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

¥5.51
Price
¥6.87
GF Value