Kangda New Materials (Group) Co (SZSE:002669) Beneish M-Score : -2.79 (As of Apr. 22, 2025)

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What is Kangda New Materials (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 -2.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Kangda New Materials (Group) Co's Beneish M-Score or its related term are showing as below:

SZSE:002669' s Beneish M-Score Range Over the Past 10 Years
Min: -2.79 Med: -1.99 Max: -1.48
Current: -2.79

During the past 13 years, the highest Beneish M-Score of Kangda New Materials (Group) Co was -1.48. The lowest was -2.79. And the median was -1.99.

Kangda New Materials (Group) Co Beneish M-Score Historical Data

The historical data trend for Kangda New Materials (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.

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Kangda New Materials (Group) Co Beneish M-Score Chart

Kangda New Materials (Group) Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-1.51

-2.62

-2.45

-2.32

Kangda New Materials (Group) Co 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															-2.32	-2.62	-2.74	-2.79	-

Competitive Comparison of Kangda New Materials (Group) Co's Beneish M-Score

For the Specialty Chemicals subindustry, Kangda New Materials (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.

Kangda New Materials (Group) Co's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Kangda New Materials (Group) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kangda New Materials (Group) Co's Beneish M-Score falls into.

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Kangda New Materials (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 Kangda New Materials (Group) 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 * 1.064

0.528 * 1.2292

0.404 * 0.7302

0.892 * 1.1105

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9339

4.679 * -0.107323

0.327 * 1.128

-2.84

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was ¥2,509 Mil.
Revenue was 922.203 + 816.474 + 826.777 + 535.608 = ¥3,101 Mil.
Gross Profit was 165.023 + 140.845 + 124.826 + 98.877 = ¥530 Mil.
Total Current Assets was ¥3,971 Mil.
Total Assets was ¥6,940 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,876 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥168 Mil.
Total Current Liabilities was ¥3,195 Mil.
Long-Term Debt & Capital Lease Obligation was ¥801 Mil.
Net Income was -169.696 + -19.966 + -31.717 + -24.794 = ¥-246 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 70.969 + 139.942 + 214.357 + 73.4 = ¥499 Mil.

Total Receivables was ¥2,124 Mil.
Revenue was 807.448 + 705.36 + 648.773 + 630.943 = ¥2,793 Mil.
Gross Profit was 206.002 + 164.917 + 127.081 + 88.196 = ¥586 Mil.
Total Current Assets was ¥3,667 Mil.
Total Assets was ¥7,123 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,918 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥162 Mil.
Total Current Liabilities was ¥2,799 Mil.
Long-Term Debt & Capital Lease Obligation was ¥836 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)
	=	(2509.477 / 3101.062)	/	(2123.917 / 2792.524)
	=	0.809231	/	0.760573
	=	1.064

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)
	=	(586.196 / 2792.524)	/	(529.571 / 3101.062)
	=	0.209916	/	0.170771
	=	1.2292

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 - (3970.636 + 1875.784) / 6940.15)	/	(1 - (3667.43 + 1918.29) / 7122.937)
	=	0.157595	/	0.215812
	=	0.7302

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
	=	3101.062	/	2792.524
	=	1.1105

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 + 1918.29))	/	(0 / (0 + 1875.784))
	=	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)
	=	(167.547 / 3101.062)	/	(161.552 / 2792.524)
	=	0.054029	/	0.057852
	=	0.9339

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)
	=	((800.584 + 3194.559) / 6940.15)	/	((836.102 + 2799.013) / 7122.937)
	=	0.575657	/	0.510339
	=	1.128

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
	=	(-246.173 - 0	-	498.668)	/	6940.15
	=	-0.107323

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.

Kangda New Materials (Group) Co has a M-score of -2.84 suggests that the company is unlikely to be a manipulator.

Kangda New Materials (Group) Co Beneish M-Score Related Terms

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Kangda New Materials (Group) Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Kangda New Materials (Group) Co Ltd (SZSE:002669) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No.655, Qingda Road, Pudong New Area, Shanghai, CHN, 201201

Website

http://www.kangda-sh.com

Kangda New Materials (Group) Co Ltd is mainly engaged in the research, development, production, and sale of adhesive and sealant products. The company provides more than 200 kinds of products, including epoxy adhesive, polyurethane adhesive, acrylate AB adhesive (SGA), cyanoacrylate adhesive, UV curing adhesive, silicon rubber, anaerobic adhesive, butyl hot melt adhesive, industrial repair putty, spray polyurea and others. The products are widely used in the fields of loudspeaker assembling, energy power plants, transportation, anti-corrosion, ports and mines, military equipment, mechanical equipment, electronic appliances, and construction reinforcement.

Executives

Yao Qi Sheng	Directors, executives
Lu Wei	Executives
Wu Ming	Supervisors
Xu Hong Shan	Executives
Wen Dong Hua	Independent director
Wang Zhi Hua	Executives

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