Shenzhen Properties & Resources Development (Group) (SZSE:000011) Beneish M-Score : -1.75 (As of Apr. 30, 2024)

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What is Shenzhen Properties & Resources Development (Group) 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 -1.75 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Shenzhen Properties & Resources Development (Group)'s Beneish M-Score or its related term are showing as below:

SZSE:000011' s Beneish M-Score Range Over the Past 10 Years
Min: -4.08 Med: -1.97 Max: 8.83
Current: -1.75

During the past 13 years, the highest Beneish M-Score of Shenzhen Properties & Resources Development (Group) was 8.83. The lowest was -4.08. And the median was -1.97.

Shenzhen Properties & Resources Development (Group) Beneish M-Score Historical Data

The historical data trend for Shenzhen Properties & Resources Development (Group)'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.

* Premium members only.

Shenzhen Properties & Resources Development (Group) Beneish M-Score Chart

Shenzhen Properties & Resources Development (Group) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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0.22

-2.31

-1.88

-2.24

-1.76

Shenzhen Properties & Resources Development (Group) Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.21	-2.09	-1.33	-1.76	-1.75

Competitive Comparison of Shenzhen Properties & Resources Development (Group)'s Beneish M-Score

For the Real Estate - Development subindustry, Shenzhen Properties & Resources Development (Group)'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.

Shenzhen Properties & Resources Development (Group)'s Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Shenzhen Properties & Resources Development (Group)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shenzhen Properties & Resources Development (Group)'s Beneish M-Score falls into.

Shenzhen Properties & Resources Development (Group) 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 Shenzhen Properties & Resources Development (Group) 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 * 1.0498

0.528 * 1.7705

0.404 * 0.8656

0.892 * 1.0335

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8267

4.679 * 0.055898

0.327 * 0.9746

-1.75

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥1,154 Mil.
Revenue was 406.582 + 537.791 + 521.862 + 1493.995 = ¥2,960 Mil.
Gross Profit was 72.013 + 51.366 + 146.921 + 432.123 = ¥702 Mil.
Total Current Assets was ¥15,022 Mil.
Total Assets was ¥16,889 Mil.
Property, Plant and Equipment(Net PPE) was ¥83 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥100 Mil.
Total Current Liabilities was ¥9,852 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,804 Mil.
Net Income was 0.464 + 232.663 + 10.448 + 207.687 = ¥451 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -647.86 + 675.546 + -359.617 + -160.872 = ¥-493 Mil.

Total Receivables was ¥1,064 Mil.
Revenue was 411.47 + 568.373 + 1151.996 + 732.488 = ¥2,864 Mil.
Gross Profit was 101.182 + 161.274 + 648.97 + 291.9 = ¥1,203 Mil.
Total Current Assets was ¥13,711 Mil.
Total Assets was ¥15,779 Mil.
Property, Plant and Equipment(Net PPE) was ¥142 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥117 Mil.
Total Current Liabilities was ¥7,234 Mil.
Long-Term Debt & Capital Lease Obligation was ¥3,939 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)
	=	(1154.08 / 2960.23)	/	(1063.726 / 2864.327)
	=	0.389862	/	0.37137
	=	1.0498

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)
	=	(1203.326 / 2864.327)	/	(702.423 / 2960.23)
	=	0.420108	/	0.237287
	=	1.7705

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 - (15021.888 + 82.536) / 16889.161)	/	(1 - (13710.792 + 142.271) / 15779.473)
	=	0.105674	/	0.122083
	=	0.8656

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
	=	2960.23	/	2864.327
	=	1.0335

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 + 142.271))	/	(0 / (0 + 82.536))
	=	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)
	=	(100.002 / 2960.23)	/	(117.052 / 2864.327)
	=	0.033782	/	0.040865
	=	0.8267

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)
	=	((1803.962 + 9851.995) / 16889.161)	/	((3939.302 + 7234.232) / 15779.473)
	=	0.690144	/	0.708106
	=	0.9746

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
	=	(451.262 - 0	-	-492.803)	/	16889.161
	=	0.055898

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.

Shenzhen Properties & Resources Development (Group) has a M-score of -1.75 signals that the company is likely to be a manipulator.

Shenzhen Properties & Resources Development (Group) Beneish M-Score Related Terms

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Shenzhen Properties & Resources Development (Group) (SZSE:000011) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Shenzhen Properties & Resources Development (Group) Ltd (SZSE:000011) » Definitions » Beneish M-Score

Traded in Other Exchanges

200011:China

Address

Renmin South Road, 39 Floor and 42 Floor, International Trade Center, Guangdong Province, Luohu District, Shenzhen, CHN, 518014

Website

http://www.szwuye.com.cn

Shenzhen Properties & Resources Development (Group) Ltd is engaged in real estate development property management and housing asset operation as the basic business, with catering service, warehousing business and supervision business. It develops the residence, the hi-end apartment and the office building. It also provides house leasing, catering service, warehousing service, and supervision service. The company operates in three segments namely Real estate, Property management, and Catering service. Majority of the revenue is derived from the Real estate segment.

Shenzhen Properties & Resources Development (Group) (SZSE:000011) Headlines

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