China Zheshang Bank Co (SHSE:601916) Beneish M-Score: -2.50 (As of Jun. 28, 2026)


SHSE:601916 China Zheshang Bank Co Ltd SHSE:601916
55 GF Score
Price ¥2.77
GF Value ¥3.12
Valuation Modestly Undervalued
! 5 Warning Signs
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What is China Zheshang Bank Co Beneish M-Score?

China Zheshang Bank Co SHSE:601916 -3.15% 55 Beneish M-Score is -2.50 as of Jun. 28, 2026. GuruFocus rates SHSE:601916 with a GF Score™ of 55/100 and a GF Value™ of ¥3.12 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,399 Banks companies, China Zheshang Bank Co ranks better than 70.05% 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 -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SHSE:601916' s Beneish M-Score Range Over the Past 10 Years
Min: -2.7   Med: -2.45   Max: -2.08
Current: -2.5

During the past 13 years, the highest Beneish M-Score of China Zheshang Bank Co was -2.08. The lowest was -2.70. And the median was -2.45.

SHSE:601916
55GF Score
China Zheshang Bank Co Ltd SHSE:601916
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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China Zheshang Bank 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 China Zheshang Bank 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 * 0.999+0.892 * 0.9164+0.115 * 0.9214
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1502+4.679 * 0.007375-0.327 * 0.9044
=-2.52

* 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 ¥0 Mil.
Revenue was ¥60,296 Mil.
Gross Profit was ¥60,296 Mil.
Total Current Assets was ¥0 Mil.
Total Assets was ¥3,481,092 Mil.
Property, Plant and Equipment(Net PPE) was ¥39,282 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥3,085 Mil.
Selling, General, & Admin. Expense(SGA) was ¥4,900 Mil.
Total Current Liabilities was ¥0 Mil.
Long-Term Debt & Capital Lease Obligation was ¥515,644 Mil.
Net Income was ¥12,931 Mil.
Gross Profit was ¥0 Mil.
Cash Flow from Operations was ¥-12,743 Mil.
 Total Receivables was ¥0 Mil.
Revenue was ¥65,798 Mil.
Gross Profit was ¥65,798 Mil.
Total Current Assets was ¥0 Mil.
Total Assets was ¥3,325,539 Mil.
Property, Plant and Equipment(Net PPE) was ¥34,373 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥2,472 Mil.
Selling, General, & Admin. Expense(SGA) was ¥4,649 Mil.
Total Current Liabilities was ¥0 Mil.
Long-Term Debt & Capital Lease Obligation was ¥544,664 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 / 60296) / (0 / 65798)
=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)
=(65798 / 65798) / (60296 / 60296)
=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 + 39282) / 3481092) / (1 - (0 + 34373) / 3325539)
=0.988716 / 0.989664
=0.999

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
=60296 / 65798
=0.9164

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))
=(2472 / (2472 + 34373)) / (3085 / (3085 + 39282))
=0.067092 / 0.072816
=0.9214

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)
=(4900 / 60296) / (4649 / 65798)
=0.081266 / 0.070656
=1.1502

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)
=((515644 + 0) / 3481092) / ((544664 + 0) / 3325539)
=0.148127 / 0.163782
=0.9044

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
=(12931 - 0 - -12743) / 3481092
=0.007375

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.

China Zheshang Bank Co has a M-score of -2.52 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 -2.50 mean?
China Zheshang Bank Co (SHSE:601916) has a Beneish M-Score of -2.50 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Zheshang Bank Co and its competitors. According to the industry distribution chart, China Zheshang Bank Co ranks #419 out of 1399 companies in the Banks industry, placing it in the top 29.9%.
Is China Zheshang Bank Co's Beneish M-Score too high?
China Zheshang Bank Co's current Beneish M-Score is -2.50. Based on the distribution chart, China Zheshang Bank Co ranks #419 out of 1399 companies in the Banks industry, which is above the industry midpoint. Overall, China Zheshang Bank Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Zheshang Bank Co's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, China Zheshang Bank Co ranks #419 out of 1399 companies for Beneish M-Score. This puts China Zheshang Bank 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 Banks company?
A good Beneish M-Score depends on the Banks 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 China Zheshang Bank Co and its competitors. China Zheshang Bank Co's current Beneish M-Score is -2.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Zheshang Bank Co stock overvalued right now?
Based on GuruFocus' analysis, China Zheshang Bank Co (SHSE:601916) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥3.12, compared to a current price of ¥2.77 — trading 11.2% below its estimated fair value. The current Beneish M-Score is -2.50. China Zheshang Bank Co's overall GF Score™ is 55/100 with 5 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 China Zheshang Bank Co (SHSE:601916), the current Beneish M-Score is -2.50 as of Jun. 28, 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 China Zheshang Bank Co (SHSE:601916) Overvalued in 2026?

Based on GuruFocus' analysis, China Zheshang Bank Co stock appears to be undervalued. The current stock price of ¥2.77 is trading 11.2% below its estimated GF Value™ of ¥3.12. GuruFocus considers China Zheshang Bank Co to be Modestly Undervalued.

Key valuation signals for SHSE:601916:

  • Beneish M-Score: -2.50
  • GF Value™: ¥3.12 vs. price of ¥2.77 (11.2% below fair value)
  • GF Score™: 55/100 with 5 warning signs

No single metric tells the full story. See the SHSE:601916 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

China Zheshang Bank Co Business Description

Other Exchanges 02016:Hong Kong6CZ:Germany
Address No. 1 Minxin Road, Shangcheng District, Zhejiang Province, Hangzhou, CHN, 310020
China Zheshang Bank Co Ltd the principal activities of the Bank include corporate and retail banking, treasury business, and other banking service. The company's business segments include Corporate banking; Retail banking; Treasury operations and other business. It generates maximum revenue from the Corporate banking segment. Geographically the company generates majority of revenue from Yangtze River Delta Region.
55GF Score

Get the complete analysis for SHSE:601916

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

¥2.77
Price
¥3.12
GF Value