Hubei Hongyuan Pharmaceutical Technology Co (SZSE:301246) Beneish M-Score : -2.39 (As of Mar. 25, 2025)

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What is Hubei Hongyuan Pharmaceutical 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 -2.39 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Hubei Hongyuan Pharmaceutical Technology Co's Beneish M-Score or its related term are showing as below:

SZSE:301246' s Beneish M-Score Range Over the Past 10 Years
Min: -2.53 Med: -1.98 Max: -1.64
Current: -2.39

During the past 10 years, the highest Beneish M-Score of Hubei Hongyuan Pharmaceutical Technology Co was -1.64. The lowest was -2.53. And the median was -1.98.

Hubei Hongyuan Pharmaceutical Technology Co Beneish M-Score Historical Data

The historical data trend for Hubei Hongyuan Pharmaceutical 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.

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Hubei Hongyuan Pharmaceutical Technology Co Beneish M-Score Chart

Hubei Hongyuan Pharmaceutical Technology Co Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.64

-1.88

-2.02

Hubei Hongyuan Pharmaceutical Technology Co Quarterly Data
	Jun16	Dec18	Dec19	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															-	-2.02	-1.94	-2.53	-2.39

Competitive Comparison of Hubei Hongyuan Pharmaceutical Technology Co's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Hubei Hongyuan Pharmaceutical 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.

Hubei Hongyuan Pharmaceutical Technology Co's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Hubei Hongyuan Pharmaceutical Technology Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hubei Hongyuan Pharmaceutical Technology Co's Beneish M-Score falls into.

Hubei Hongyuan Pharmaceutical 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 Hubei Hongyuan Pharmaceutical Technology 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 * 1.129

0.528 * 1.4973

0.404 * 0.7945

0.892 * 0.7948

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2195

4.679 * 0.018836

0.327 * 1.2274

-2.39

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ¥631 Mil.
Revenue was 424.109 + 472.061 + 426.064 + 496.167 = ¥1,818 Mil.
Gross Profit was 40.494 + 58.267 + 67.039 + 39.563 = ¥205 Mil.
Total Current Assets was ¥3,016 Mil.
Total Assets was ¥5,857 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,309 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥46 Mil.
Total Current Liabilities was ¥1,178 Mil.
Long-Term Debt & Capital Lease Obligation was ¥245 Mil.
Net Income was 0.333 + 4.611 + 31.199 + -9.132 = ¥27 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 9.423 + 71.035 + -89.498 + -74.266 = ¥-83 Mil.

Total Receivables was ¥703 Mil.
Revenue was 561.081 + 493.724 + 503.91 + 729.225 = ¥2,288 Mil.
Gross Profit was 82.495 + 47.663 + 97.147 + 159.578 = ¥387 Mil.
Total Current Assets was ¥3,299 Mil.
Total Assets was ¥5,560 Mil.
Property, Plant and Equipment(Net PPE) was ¥1,626 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥47 Mil.
Total Current Liabilities was ¥786 Mil.
Long-Term Debt & Capital Lease Obligation was ¥315 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)
	=	(631.172 / 1818.401)	/	(703.437 / 2287.94)
	=	0.347103	/	0.307454
	=	1.129

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)
	=	(386.883 / 2287.94)	/	(205.363 / 1818.401)
	=	0.169097	/	0.112936
	=	1.4973

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 - (3016.004 + 2309.113) / 5856.659)	/	(1 - (3299.109 + 1625.958) / 5560.244)
	=	0.090759	/	0.114235
	=	0.7945

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
	=	1818.401	/	2287.94
	=	0.7948

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 + 1625.958))	/	(0 / (0 + 2309.113))
	=	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)
	=	(45.845 / 1818.401)	/	(47.302 / 2287.94)
	=	0.025212	/	0.020674
	=	1.2195

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)
	=	((245.246 + 1178.469) / 5856.659)	/	((315.06 + 786.138) / 5560.244)
	=	0.243093	/	0.198049
	=	1.2274

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
	=	(27.011 - 0	-	-83.306)	/	5856.659
	=	0.018836

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.

Hubei Hongyuan Pharmaceutical Technology Co has a M-score of -2.39 suggests that the company is unlikely to be a manipulator.

Hubei Hongyuan Pharmaceutical Technology Co Beneish M-Score Related Terms

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Hubei Hongyuan Pharmaceutical Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Hubei Hongyuan Pharmaceutical Technology Co Ltd (SZSE:301246) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

No. 8, Hongyuan Road, Economic Development Zone, Luotian County, Hubei Province, Fengshan Town, CHN, 438600

Website

http://www.hbhypharm.com

Hubei Hongyuan Pharmaceutical Technology Co Ltd is engaged in the research and development, production and sales of organic chemical raw materials, pharmaceutical intermediates, raw materials and pharmaceutical preparations.

Executives

Lei Gao Liang	Supervisors
Duan Xiao Liu	Supervisors

Hubei Hongyuan Pharmaceutical Technology Co Headlines

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