Gemdale Properties and Investment (HKSE:00535) Beneish M-Score : -2.28 (As of May. 23, 2024)

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What is Gemdale Properties and Investment 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 -2.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Gemdale Properties and Investment's Beneish M-Score or its related term are showing as below:

HKSE:00535' s Beneish M-Score Range Over the Past 10 Years
Min: -2.64 Med: -1.47 Max: 9.31
Current: -2.28

During the past 13 years, the highest Beneish M-Score of Gemdale Properties and Investment was 9.31. The lowest was -2.64. And the median was -1.47.

Gemdale Properties and Investment Beneish M-Score Historical Data

The historical data trend for Gemdale Properties and Investment'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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Gemdale Properties and Investment Beneish M-Score Chart

Gemdale Properties and Investment Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.19

-1.15

-1.52

-2.24

-2.28

Gemdale Properties and Investment Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.52	-	-2.24	-	-2.28

Competitive Comparison of Gemdale Properties and Investment's Beneish M-Score

For the Real Estate - Development subindustry, Gemdale Properties and Investment'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.

Gemdale Properties and Investment's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Gemdale Properties and Investment's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Gemdale Properties and Investment's Beneish M-Score falls into.

Gemdale Properties and Investment 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 Gemdale Properties and Investment 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 * 0.6074

0.528 * 1.0956

0.404 * 0.9179

0.892 * 1.6592

0.115 * 1.0117

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.3759

4.679 * -0.015648

0.327 * 1.2496

-2.28

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$15,769 Mil.
Revenue was HK$19,089 Mil.
Gross Profit was HK$3,952 Mil.
Total Current Assets was HK$50,665 Mil.
Total Assets was HK$99,642 Mil.
Property, Plant and Equipment(Net PPE) was HK$154 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$72 Mil.
Selling, General, & Admin. Expense(SGA) was HK$140 Mil.
Total Current Liabilities was HK$43,582 Mil.
Long-Term Debt & Capital Lease Obligation was HK$12,145 Mil.
Net Income was HK$375 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$1,934 Mil.

Total Receivables was HK$15,648 Mil.
Revenue was HK$11,505 Mil.
Gross Profit was HK$2,609 Mil.
Total Current Assets was HK$44,675 Mil.
Total Assets was HK$96,076 Mil.
Property, Plant and Equipment(Net PPE) was HK$113 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$54 Mil.
Selling, General, & Admin. Expense(SGA) was HK$224 Mil.
Total Current Liabilities was HK$38,835 Mil.
Long-Term Debt & Capital Lease Obligation was HK$4,166 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)
	=	(15769.243 / 19089.038)	/	(15647.6 / 11504.944)
	=	0.826089	/	1.360076
	=	0.6074

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)
	=	(2609.415 / 11504.944)	/	(3951.719 / 19089.038)
	=	0.226808	/	0.207015
	=	1.0956

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 - (50665.358 + 154.146) / 99641.514)	/	(1 - (44675.233 + 112.577) / 96075.983)
	=	0.489977	/	0.533829
	=	0.9179

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
	=	19089.038	/	11504.944
	=	1.6592

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))
	=	(53.765 / (53.765 + 112.577))	/	(72.369 / (72.369 + 154.146))
	=	0.32322	/	0.319489
	=	1.0117

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)
	=	(139.565 / 19089.038)	/	(223.768 / 11504.944)
	=	0.007311	/	0.01945
	=	0.3759

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)
	=	((12144.626 + 43582.384) / 99641.514)	/	((4166.35 + 38834.849) / 96075.983)
	=	0.559275	/	0.447575
	=	1.2496

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
	=	(374.858 - 0	-	1934.017)	/	99641.514
	=	-0.015648

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.

Gemdale Properties and Investment has a M-score of -2.28 suggests that the company is unlikely to be a manipulator.

Gemdale Properties and Investment Beneish M-Score Related Terms

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Gemdale Properties and Investment (HKSE:00535) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Gemdale Properties and Investment Corp Ltd (HKSE:00535) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

28 Queen’s Road Central, 19th Floor, Central Tower, Central, Hong Kong, HKG

Website

https://www.gemdalepi.com

Gemdale Properties and Investment Corp Ltd is an investment holding company that operates through four segments. The property development segment, which produces the company's revenue, develops and sells residential and commercial properties. The property investment and management segment invests and manages business parks and commercial properties. In the microfinance segment, Gemdale provides financial services to potential property buyers and small businesses. The corporate segment provides corporate management services to residential, commercial, and business park projects. The company generates almost all of its revenue from Mainland China.

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