Union Semiconductor (Hefei) Co (SHSE:688403) Beneish M-Score : -4.17 (As of Dec. 13, 2024)

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What is Union Semiconductor (Hefei) Co 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 -4.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Union Semiconductor (Hefei) Co's Beneish M-Score or its related term are showing as below:

SHSE:688403' s Beneish M-Score Range Over the Past 10 Years
Min: -4.17 Med: -1.86 Max: -0.91
Current: -4.17

During the past 6 years, the highest Beneish M-Score of Union Semiconductor (Hefei) Co was -0.91. The lowest was -4.17. And the median was -1.86.

Union Semiconductor (Hefei) Co Beneish M-Score Historical Data

The historical data trend for Union Semiconductor (Hefei) Co'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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Union Semiconductor (Hefei) Co Beneish M-Score Chart

Union Semiconductor (Hefei) Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.89

-1.86

Union Semiconductor (Hefei) Co Quarterly Data
	Dec18	Dec19	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial													-0.91	-1.86	-2.92	-3.82	-4.17

Competitive Comparison of Union Semiconductor (Hefei) Co's Beneish M-Score

For the Semiconductors subindustry, Union Semiconductor (Hefei) Co'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.

Union Semiconductor (Hefei) Co's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Union Semiconductor (Hefei) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Union Semiconductor (Hefei) Co's Beneish M-Score falls into.

Union Semiconductor (Hefei) 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 Union Semiconductor (Hefei) Co 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 * 0.9609

0.528 * 1.1238

0.404 * 0.3861

0.892 * 1.2429

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1488

4.679 * -0.062814

0.327 * 5.1899

-4.17

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ¥264 Mil.
Revenue was 396.421 + 358.35 + 315.302 + 342.962 = ¥1,413 Mil.
Gross Profit was 91.718 + 73.539 + 60.497 + 95.131 = ¥321 Mil.
Total Current Assets was ¥1,590 Mil.
Total Assets was ¥4,548 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,762 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥45 Mil.
Total Current Liabilities was ¥214 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,105 Mil.
Net Income was 41.165 + 33.348 + 26.328 + 53.91 = ¥155 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 88.634 + 88.665 + 115.101 + 148.001 = ¥440 Mil.

Total Receivables was ¥221 Mil.
Revenue was 338.147 + 315.807 + 241.378 + 241.526 = ¥1,137 Mil.
Gross Profit was 98.626 + 84.4 + 49.36 + 57.735 = ¥290 Mil.
Total Current Assets was ¥689 Mil.
Total Assets was ¥3,375 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,310 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥32 Mil.
Total Current Liabilities was ¥187 Mil.
Long-Term Debt & Capital Lease Obligation was ¥2 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)
	=	(264.424 / 1413.035)	/	(221.396 / 1136.858)
	=	0.187132	/	0.194744
	=	0.9609

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)
	=	(290.121 / 1136.858)	/	(320.885 / 1413.035)
	=	0.255195	/	0.227089
	=	1.1238

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 - (1589.951 + 2761.684) / 4547.538)	/	(1 - (688.727 + 2309.728) / 3375)
	=	0.043079	/	0.111569
	=	0.3861

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
	=	1413.035	/	1136.858
	=	1.2429

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 + 2309.728))	/	(0 / (0 + 2761.684))
	=	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)
	=	(45.098 / 1413.035)	/	(31.584 / 1136.858)
	=	0.031916	/	0.027782
	=	1.1488

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)
	=	((1105.118 + 213.516) / 4547.538)	/	((1.948 + 186.615) / 3375)
	=	0.289967	/	0.055871
	=	5.1899

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
	=	(154.751 - 0	-	440.401)	/	4547.538
	=	-0.062814

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.

Union Semiconductor (Hefei) Co has a M-score of -4.17 suggests that the company is unlikely to be a manipulator.

Union Semiconductor (Hefei) Co Beneish M-Score Related Terms

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Union Semiconductor (Hefei) Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Union Semiconductor (Hefei) Co Ltd (SHSE:688403) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Hefei Comprehensive Bonded Zone, Xinzhan District, Anhui Province, Hefei, CHN, 230012

Website

http://www.unionsemicon.com.cn

Union Semiconductor (Hefei) Co Ltd is a high-end advanced packaging and testing service provider for integrated circuits. It focuses on the field of display driver chips. The company's main business is the front-end gold bumping manufacturing as the core and integrates wafer testing, back-end chip-on-glass, and chip-on-film links to form a full range of display driver chips.

Executives

Chen Han Zong	Core technical personnel
Xu Yuan Cheng	Core technical personnel

Union Semiconductor (Hefei) Co Headlines

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