Ningbo Changhong Polymer Scientific & Technical (SHSE:605008) Beneish M-Score : -1.03 (As of Apr. 16, 2025)

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What is Ningbo Changhong Polymer Scientific & Technical 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.

Warning Sign:

Beneish M-Score -1.03 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Ningbo Changhong Polymer Scientific & Technical's Beneish M-Score or its related term are showing as below:

SHSE:605008' s Beneish M-Score Range Over the Past 10 Years
Min: -2.71 Med: -1.82 Max: 0.06
Current: -1.03

During the past 9 years, the highest Beneish M-Score of Ningbo Changhong Polymer Scientific & Technical was 0.06. The lowest was -2.71. And the median was -1.82.

Ningbo Changhong Polymer Scientific & Technical Beneish M-Score Historical Data

The historical data trend for Ningbo Changhong Polymer Scientific & Technical'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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Ningbo Changhong Polymer Scientific & Technical Beneish M-Score Chart

Ningbo Changhong Polymer Scientific & Technical Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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0.06

-2.59

-1.82

-2.71

-1.03

Ningbo Changhong Polymer Scientific & Technical Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.71	-2.27	-2.59	-2.13	-1.03

Competitive Comparison of Ningbo Changhong Polymer Scientific & Technical's Beneish M-Score

For the Specialty Chemicals subindustry, Ningbo Changhong Polymer Scientific & Technical'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.

Ningbo Changhong Polymer Scientific & Technical's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ningbo Changhong Polymer Scientific & Technical's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ningbo Changhong Polymer Scientific & Technical's Beneish M-Score falls into.

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Ningbo Changhong Polymer Scientific & Technical 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 Ningbo Changhong Polymer Scientific & Technical 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 * 0.8053

0.528 * 1.2137

0.404 * 1.6578

0.892 * 2.5663

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.3369

4.679 * -0.049299

0.327 * 1.0934

-1.03

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was ¥738 Mil.
Revenue was 1100.957 + 947.459 + 814.145 + 771.102 = ¥3,634 Mil.
Gross Profit was 83.606 + 82.187 + 82.973 + 85.523 = ¥334 Mil.
Total Current Assets was ¥1,412 Mil.
Total Assets was ¥5,161 Mil.
Property, Plant and Equipment(Net PPE) was ¥3,200 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥21 Mil.
Total Current Liabilities was ¥2,334 Mil.
Long-Term Debt & Capital Lease Obligation was ¥686 Mil.
Net Income was -8.357 + 6.009 + 32.05 + 64.521 = ¥94 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 227.925 + 29.374 + 153.834 + -62.495 = ¥349 Mil.

Total Receivables was ¥357 Mil.
Revenue was 311.509 + 428.09 + 300.842 + 375.488 = ¥1,416 Mil.
Gross Profit was 18.475 + 53.301 + 12.701 + 73.626 = ¥158 Mil.
Total Current Assets was ¥1,522 Mil.
Total Assets was ¥4,698 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,875 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥24 Mil.
Total Current Liabilities was ¥2,000 Mil.
Long-Term Debt & Capital Lease Obligation was ¥515 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)
	=	(737.524 / 3633.663)	/	(356.871 / 1415.929)
	=	0.20297	/	0.25204
	=	0.8053

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)
	=	(158.103 / 1415.929)	/	(334.289 / 3633.663)
	=	0.11166	/	0.091998
	=	1.2137

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 - (1411.667 + 3200.273) / 5160.61)	/	(1 - (1522.407 + 2874.524) / 4698.233)
	=	0.106319	/	0.064131
	=	1.6578

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
	=	3633.663	/	1415.929
	=	2.5663

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 + 2874.524))	/	(0 / (0 + 3200.273))
	=	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)
	=	(21.139 / 3633.663)	/	(24.453 / 1415.929)
	=	0.005818	/	0.01727
	=	0.3369

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)
	=	((686.499 + 2333.649) / 5160.61)	/	((514.726 + 1999.971) / 4698.233)
	=	0.585231	/	0.535243
	=	1.0934

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
	=	(94.223 - 0	-	348.638)	/	5160.61
	=	-0.049299

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.

Ningbo Changhong Polymer Scientific & Technical has a M-score of -1.03 signals that the company is likely to be a manipulator.

Ningbo Changhong Polymer Scientific & Technical Beneish M-Score Related Terms

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Ningbo Changhong Polymer Scientific & Technical Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Ningbo Changhong Polymer Scientific & Technical Inc (SHSE:605008) » Definitions » Beneish M-Score

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Address

No. 108, Qijiashan Gangkou Road, Beilun District, Zhejiang Province, Ningbo, CHN, 315803

Website

http://www.changhongpolymer.com

Ningbo Changhong Polymer Scientific & Technical Inc is engaged in production and sales of styrene-based thermoplastic elastomers (TPES). The company's products include Sstyrene-butadiene-styrene (SBS) and Styrene-ethylene-butylene-styrene (SEBS). Its products are used in many industrial fields such as shoes materials, asphalt modification, plastic modification, adhesive agent, medicine, health products, waterproofing materials, and construction materials, environmental-friendly plastic runway and bicycle tyre.

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