Huaming Power Equipment Co (SZSE:002270) Beneish M-Score : -2.60 (As of Jul. 22, 2025)

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What is Huaming Power Equipment 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 -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Huaming Power Equipment Co's Beneish M-Score or its related term are showing as below:

SZSE:002270' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88 Med: -2.44 Max: 2.13
Current: -2.6

During the past 13 years, the highest Beneish M-Score of Huaming Power Equipment Co was 2.13. The lowest was -2.88. And the median was -2.44.

Huaming Power Equipment Co Beneish M-Score Historical Data

The historical data trend for Huaming Power Equipment 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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Huaming Power Equipment Co Beneish M-Score Chart

Huaming Power Equipment Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.54

-2.59

-2.56

-2.52

-2.88

Huaming Power Equipment Co Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Beneish M-Score	Get a 7-Day Free Trial															-2.84	-2.43	-2.42	-2.88	-2.60

Competitive Comparison of Huaming Power Equipment Co's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Huaming Power Equipment 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.

Huaming Power Equipment Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Huaming Power Equipment Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Huaming Power Equipment Co's Beneish M-Score falls into.

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Huaming Power Equipment 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 Huaming Power Equipment 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 * 0.8917

0.528 * 1.0531

0.404 * 0.8486

0.892 * 1.1903

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8483

4.679 * -0.030799

0.327 * 1.108

-2.60

This Year (Mar25) TTM:

Last Year (Mar24) TTM:

Total Receivables was ¥1,390 Mil.
Revenue was 509.529 + 623.569 + 577.765 + 669.644 = ¥2,381 Mil.
Gross Profit was 281.289 + 285.919 + 312.074 + 298.89 = ¥1,178 Mil.
Total Current Assets was ¥3,062 Mil.
Total Assets was ¥4,502 Mil.
Property, Plant and Equipment(Net PPE) was ¥947 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥210 Mil.
Total Current Liabilities was ¥846 Mil.
Long-Term Debt & Capital Lease Obligation was ¥231 Mil.
Net Income was 171.341 + 120.494 + 179.304 + 187.583 = ¥659 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 61.456 + 338.344 + 60.067 + 337.521 = ¥797 Mil.

Total Receivables was ¥1,310 Mil.
Revenue was 451.225 + 506.525 + 545.118 + 497.041 = ¥2,000 Mil.
Gross Profit was 236.401 + 225.823 + 298.131 + 281.99 = ¥1,042 Mil.
Total Current Assets was ¥3,135 Mil.
Total Assets was ¥4,655 Mil.
Property, Plant and Equipment(Net PPE) was ¥919 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥208 Mil.
Total Current Liabilities was ¥771 Mil.
Long-Term Debt & Capital Lease Obligation was ¥233 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)
	=	(1390.346 / 2380.507)	/	(1309.946 / 1999.909)
	=	0.584055	/	0.655003
	=	0.8917

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)
	=	(1042.345 / 1999.909)	/	(1178.172 / 2380.507)
	=	0.521196	/	0.494925
	=	1.0531

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 - (3062.098 + 947.047) / 4502.257)	/	(1 - (3135.149 + 919.126) / 4655.131)
	=	0.109526	/	0.129074
	=	0.8486

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
	=	2380.507	/	1999.909
	=	1.1903

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 + 919.126))	/	(0 / (0 + 947.047))
	=	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)
	=	(209.719 / 2380.507)	/	(207.688 / 1999.909)
	=	0.088098	/	0.103849
	=	0.8483

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)
	=	((230.917 + 845.942) / 4502.257)	/	((233.418 + 771.444) / 4655.131)
	=	0.239182	/	0.215861
	=	1.108

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
	=	(658.722 - 0	-	797.388)	/	4502.257
	=	-0.030799

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.

Huaming Power Equipment Co has a M-score of -2.60 suggests that the company is unlikely to be a manipulator.

Huaming Power Equipment Co Beneish M-Score Related Terms

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Huaming Power Equipment Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Huaming Power Equipment Co Ltd (SZSE:002270) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 977, Tongpu Road, Putuo District, Shanghai, CHN, 200333

Website

http://www.hmoltc.com

Huaming Power Equipment Co Ltd is a Chinese company operating in the tap changer industry. Its products are on-load and off-circuit tap changers for transformeThat motor drive unit, online oil filter and other accessories. The products offered by the company is used in power grids and energy sector, chemical, metallurgical and railway projects, among others. The company offers products in the categories of OLTC and DETC. OLTC includes products of conventional type, vacuum type, dry type and gas insulated type, whereas DETC covers products of cage type and drum type.

Executives

Chen Dong Cai	Independent director
Li Sheng Jun	Director
Liu Yi	Director
Guo Bo Chun	Director
Guan Tong	Director
Cheng Sheng	Executives

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