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Zhefu Holding Group Co (SZSE:002266) Beneish M-Score : -2.19 (As of Apr. 26, 2024)


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What is Zhefu Holding Group 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 -2.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Zhefu Holding Group Co's Beneish M-Score or its related term are showing as below:

SZSE:002266' s Beneish M-Score Range Over the Past 10 Years
Min: -6.9   Med: -2.09   Max: 2.02
Current: -2.19

During the past 13 years, the highest Beneish M-Score of Zhefu Holding Group Co was 2.02. The lowest was -6.90. And the median was -2.09.


Zhefu Holding Group Co Beneish M-Score Historical Data

The historical data trend for Zhefu Holding Group 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.

* Premium members only.

Zhefu Holding Group Co Beneish M-Score Chart

Zhefu Holding Group Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.91 1.03 -2.10 -2.97 -2.12

Zhefu Holding Group Co Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.07 -2.12 -1.98 -2.05 -2.19

Competitive Comparison of Zhefu Holding Group Co's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Zhefu Holding Group 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.


Zhefu Holding Group Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Zhefu Holding Group Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Zhefu Holding Group Co's Beneish M-Score falls into.



Zhefu Holding Group 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 Zhefu Holding Group 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 * 0.7633+0.528 * 1.2442+0.404 * 0.986+0.892 * 1.2474+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5487+4.679 * 0.014619-0.327 * 0.9503
=-2.19

* 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 (Sep23) TTM:Last Year (Sep22) TTM:
Total Receivables was ¥1,557 Mil.
Revenue was 4909.567 + 4714.084 + 4639.668 + 4949.536 = ¥19,213 Mil.
Gross Profit was 583.605 + 651.61 + 694.809 + 867.306 = ¥2,797 Mil.
Total Current Assets was ¥14,001 Mil.
Total Assets was ¥22,662 Mil.
Property, Plant and Equipment(Net PPE) was ¥5,262 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥172 Mil.
Total Current Liabilities was ¥9,587 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,400 Mil.
Net Income was 238.512 + 253.895 + 494.155 + 423.641 = ¥1,410 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 450.819 + 721.801 + -393.828 + 300.128 = ¥1,079 Mil.
Total Receivables was ¥1,636 Mil.
Revenue was 4026.613 + 4002.691 + 3800.952 + 3571.716 = ¥15,402 Mil.
Gross Profit was 714.525 + 662.185 + 676.377 + 737.086 = ¥2,790 Mil.
Total Current Assets was ¥13,330 Mil.
Total Assets was ¥21,955 Mil.
Property, Plant and Equipment(Net PPE) was ¥5,286 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥252 Mil.
Total Current Liabilities was ¥9,840 Mil.
Long-Term Debt & Capital Lease Obligation was ¥1,361 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)
=(1557.352 / 19212.855) / (1635.55 / 15401.972)
=0.081058 / 0.106191
=0.7633

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)
=(2790.173 / 15401.972) / (2797.33 / 19212.855)
=0.181157 / 0.145597
=1.2442

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 - (14000.837 + 5262.412) / 22661.515) / (1 - (13330.236 + 5285.556) / 21954.837)
=0.149958 / 0.152087
=0.986

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
=19212.855 / 15401.972
=1.2474

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 + 5285.556)) / (0 / (0 + 5262.412))
=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)
=(172.15 / 19212.855) / (251.509 / 15401.972)
=0.00896 / 0.01633
=0.5487

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)
=((1400.337 + 9586.782) / 22661.515) / ((1361.431 + 9839.82) / 21954.837)
=0.484836 / 0.510195
=0.9503

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
=(1410.203 - 0 - 1078.92) / 22661.515
=0.014619

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.

Zhefu Holding Group Co has a M-score of -2.19 suggests that the company is unlikely to be a manipulator.


Zhefu Holding Group Co Beneish M-Score Related Terms

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Zhefu Holding Group Co (SZSE:002266) Business Description

Traded in Other Exchanges
N/A
Address
No. 177 Yingchun South Road, 25th Floor, Zhefu Building, County Town, Zhejiang Province, Tonglu, CHN, 311501
Zhefu Holding Group Co Ltd is a China-based company engaged in the research, development, manufacture, and sale of large and medium-sized turbine-generators in China. Its products cover a variety of types and capacity including all sizes of conventional turbine generator units, tidal power generation units and pumped storage generating units. The company is also involved in the other business areas of hydropower, nuclear power, oil and gas, microfinance, among others.

Zhefu Holding Group Co (SZSE:002266) Headlines

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