New China Life Insurance Co (SHSE:601336) Beneish M-Score: -2.48 (As of Jul. 01, 2026)


SHSE:601336 New China Life Insurance Co Ltd SHSE:601336
62 GF Score
Price ¥64.34
GF Value ¥47.18
Valuation Significantly Overvalued
! 3 Warning Signs
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What is New China Life Insurance Co Beneish M-Score?

New China Life Insurance Co SHSE:601336 -1.59% 62 Beneish M-Score is -2.48 as of Jul. 01, 2026. GuruFocus rates SHSE:601336 with a GF Score™ of 62/100 and a GF Value™ of ¥47.18 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 401 Insurance companies, New China Life Insurance Co ranks worse than 51.37% 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 -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for New China Life Insurance Co's Beneish M-Score or its related term are showing as below:

SHSE:601336' s Beneish M-Score Range Over the Past 10 Years
Min: -5.94   Med: -2.48   Max: -2.01
Current: -2.48

During the past 13 years, the highest Beneish M-Score of New China Life Insurance Co was -2.01. The lowest was -5.94. And the median was -2.48.

SHSE:601336
62GF Score
New China Life Insurance Co Ltd SHSE:601336
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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New China Life Insurance 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 New China Life Insurance 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 * 1.0238+0.528 * 1+0.404 * 1.0013+0.892 * 1.036+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8816+4.679 * -0.041677-0.327 * 0.6323
=-2.48

* 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 ¥4,405 Mil.
Revenue was 20613 + 18971 + 65514 + 35217 = ¥140,315 Mil.
Gross Profit was 20613 + 18971 + 65514 + 35217 = ¥140,315 Mil.
Total Current Assets was ¥0 Mil.
Total Assets was ¥1,853,653 Mil.
Property, Plant and Equipment(Net PPE) was ¥17,458 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥2,804 Mil.
Total Current Liabilities was ¥0 Mil.
Long-Term Debt & Capital Lease Obligation was ¥20,923 Mil.
Net Income was 6501 + 3427 + 18058 + 8917 = ¥36,903 Mil.
Non Operating Income was 83 + 107 + 163 + 165 = ¥518 Mil.
Cash Flow from Operations was 36311 + 20742 + 31455 + 25131 = ¥113,639 Mil.
 Total Receivables was ¥4,153 Mil.
Revenue was 32278 + 24478 + 50307 + 28379 = ¥135,442 Mil.
Gross Profit was 32278 + 24478 + 50307 + 28379 = ¥135,442 Mil.
Total Current Assets was ¥0 Mil.
Total Assets was ¥1,753,416 Mil.
Property, Plant and Equipment(Net PPE) was ¥18,749 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥3,070 Mil.
Total Current Liabilities was ¥0 Mil.
Long-Term Debt & Capital Lease Obligation was ¥31,298 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)
=(4405 / 140315) / (4153 / 135442)
=0.031394 / 0.030663
=1.0238

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)
=(135442 / 135442) / (140315 / 140315)
=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 + 17458) / 1853653) / (1 - (0 + 18749) / 1753416)
=0.990582 / 0.989307
=1.0013

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
=140315 / 135442
=1.036

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 + 18749)) / (0 / (0 + 17458))
=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)
=(2804 / 140315) / (3070 / 135442)
=0.019984 / 0.022667
=0.8816

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)
=((20923 + 0) / 1853653) / ((31298 + 0) / 1753416)
=0.011287 / 0.01785
=0.6323

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
=(36903 - 518 - 113639) / 1853653
=-0.041677

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.

New China Life Insurance Co has a M-score of -2.48 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 -2.48 mean?
New China Life Insurance Co (SHSE:601336) has a Beneish M-Score of -2.48 as of Jul. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on New China Life Insurance Co and its competitors. According to the industry distribution chart, New China Life Insurance Co ranks #206 out of 401 companies in the Insurance industry, placing it in the top 51.4%.
Is New China Life Insurance Co's Beneish M-Score too high?
New China Life Insurance Co's current Beneish M-Score is -2.48. Based on the distribution chart, New China Life Insurance Co ranks #206 out of 401 companies in the Insurance industry, which is below the industry midpoint. Overall, New China Life Insurance Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does New China Life Insurance Co's Beneish M-Score compare to AFL and MET?
According to the Insurance industry distribution chart, New China Life Insurance Co ranks #206 out of 401 companies for Beneish M-Score. This places New China Life Insurance Co 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 an Insurance company?
A good Beneish M-Score depends on the Insurance 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 New China Life Insurance Co and its competitors. New China Life Insurance Co's current Beneish M-Score is -2.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New China Life Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, New China Life Insurance Co (SHSE:601336) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥47.18, compared to a current price of ¥64.34 — trading 36.4% above its estimated fair value. The current Beneish M-Score is -2.48. New China Life Insurance 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 New China Life Insurance Co (SHSE:601336), the current Beneish M-Score is -2.48 as of Jul. 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 New China Life Insurance Co (SHSE:601336) Overvalued in 2026?

Based on GuruFocus' analysis, New China Life Insurance Co stock appears to be overvalued. The current stock price of ¥64.34 is trading 36.4% above its estimated GF Value™ of ¥47.18. GuruFocus considers New China Life Insurance Co to be Significantly Overvalued.

Key valuation signals for SHSE:601336:

  • Beneish M-Score: -2.48
  • GF Value™: ¥47.18 vs. price of ¥64.34 (36.4% above fair value)
  • GF Score™: 62/100 with 3 warning signs

No single metric tells the full story. See the SHSE:601336 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

New China Life Insurance Co Business Description

Address A12 Jianguomenwai Avenue, New China Insurance Tower, Chaoyang District, Beijing, CHN, 100022
New China Life Insurance Co Ltd is headquartered in Beijing and was established in 1996 by a combination of state-owned enterprises and private firms. It is currently the fourth-largest life insurer in China based on total assets. New China Life offers a wide range of life insurance products and services to both individual and institutional customers through its extensive distribution networks and diverse marketing channels. Additionally, it manages and invests insurance funds through its subsidiaries, including its Asset Management Company and Asset Management Company (Hong Kong).
62GF Score

Get the complete analysis for SHSE:601336

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

¥64.34
Price
¥47.18
GF Value