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Guangdong Real Design Intelligent Technology Co (SZSE:301135) Beneish M-Score : -2.29 (As of Dec. 14, 2024)


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What is Guangdong Real Design Intelligent Technology 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 -2.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Guangdong Real Design Intelligent Technology Co's Beneish M-Score or its related term are showing as below:

SZSE:301135' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38   Med: -2.21   Max: 3.03
Current: -2.29

During the past 9 years, the highest Beneish M-Score of Guangdong Real Design Intelligent Technology Co was 3.03. The lowest was -3.38. And the median was -2.21.


Guangdong Real Design Intelligent Technology Co Beneish M-Score Historical Data

The historical data trend for Guangdong Real Design Intelligent Technology 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.

Guangdong Real Design Intelligent Technology Co Beneish M-Score Chart

Guangdong Real Design Intelligent Technology Co Annual Data
Trend Dec13 Dec14 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only - 0.88 -2.88 -1.86 -2.47

Guangdong Real Design Intelligent Technology Co Quarterly Data
Dec18 Dec19 Jun20 Sep20 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 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 -2.12 -2.47 -2.32 -2.36 -2.29

Competitive Comparison of Guangdong Real Design Intelligent Technology Co's Beneish M-Score

For the Semiconductors subindustry, Guangdong Real Design Intelligent Technology 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.


Guangdong Real Design Intelligent Technology Co's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Guangdong Real Design Intelligent Technology Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Guangdong Real Design Intelligent Technology Co's Beneish M-Score falls into.



Guangdong Real Design Intelligent Technology 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 Guangdong Real Design Intelligent Technology 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 * 0.9492+0.528 * 1.0585+0.404 * 0.9976+0.892 * 1.1803+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1706+4.679 * 0.016346-0.327 * 1.0102
=-2.29

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was ¥510 Mil.
Revenue was 311.865 + 346.048 + 242.636 + 319.539 = ¥1,220 Mil.
Gross Profit was 60.156 + 64.747 + 44.468 + 61.967 = ¥231 Mil.
Total Current Assets was ¥1,200 Mil.
Total Assets was ¥1,740 Mil.
Property, Plant and Equipment(Net PPE) was ¥420 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥52 Mil.
Total Current Liabilities was ¥445 Mil.
Long-Term Debt & Capital Lease Obligation was ¥59 Mil.
Net Income was 7.228 + 11.576 + 2.893 + 14.022 = ¥36 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was -72.691 + 70.617 + -41.244 + 50.589 = ¥7 Mil.
Total Receivables was ¥455 Mil.
Revenue was 269.693 + 254.002 + 226.012 + 284.046 = ¥1,034 Mil.
Gross Profit was 53.109 + 52.698 + 44.085 + 57.581 = ¥207 Mil.
Total Current Assets was ¥1,328 Mil.
Total Assets was ¥1,806 Mil.
Property, Plant and Equipment(Net PPE) was ¥354 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥38 Mil.
Total Current Liabilities was ¥469 Mil.
Long-Term Debt & Capital Lease Obligation was ¥49 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)
=(509.868 / 1220.088) / (455.118 / 1033.753)
=0.417894 / 0.440258
=0.9492

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)
=(207.473 / 1033.753) / (231.338 / 1220.088)
=0.200699 / 0.189608
=1.0585

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 - (1200.255 + 420.224) / 1740.369) / (1 - (1328.107 + 353.58) / 1806.433)
=0.068888 / 0.069057
=0.9976

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
=1220.088 / 1033.753
=1.1803

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 + 353.58)) / (0 / (0 + 420.224))
=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)
=(51.854 / 1220.088) / (37.532 / 1033.753)
=0.0425 / 0.036307
=1.1706

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)
=((58.789 + 445.15) / 1740.369) / ((48.968 + 468.822) / 1806.433)
=0.289559 / 0.286637
=1.0102

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
=(35.719 - 0 - 7.271) / 1740.369
=0.016346

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.

Guangdong Real Design Intelligent Technology Co has a M-score of -2.29 suggests that the company is unlikely to be a manipulator.


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Guangdong Real Design Intelligent Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Ruixiang Road, Fengxiang Industrial Park, Daliang, Shunde District, Guangdong Province, Foshan, CHN, 528300
Guangdong Real Design Intelligent Technology Co Ltd is engaged in the research and development, production and sales of intelligent controllers, as well as production and sales of a small number of end products.

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