Shenzhen SEICHI Technologies Co (SHSE:688627) Beneish M-Score : -1.14 (As of May. 25, 2024)

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What is Shenzhen SEICHI Technologies 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.

Warning Sign:

Beneish M-Score -1.14 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Shenzhen SEICHI Technologies Co's Beneish M-Score or its related term are showing as below:

SHSE:688627' s Beneish M-Score Range Over the Past 10 Years
Min: -3.13 Med: -1.65 Max: -1.14
Current: -1.14

During the past 7 years, the highest Beneish M-Score of Shenzhen SEICHI Technologies Co was -1.14. The lowest was -3.13. And the median was -1.65.

Shenzhen SEICHI Technologies Co Beneish M-Score Historical Data

The historical data trend for Shenzhen SEICHI Technologies 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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Shenzhen SEICHI Technologies Co Beneish M-Score Chart

Shenzhen SEICHI Technologies Co Annual Data

Trend

Dec13

Dec14

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.27

-2.02

Shenzhen SEICHI Technologies Co Quarterly Data
	Dec13	Dec14	Dec19	Dec20	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial										-	-3.13	-	-2.02	-1.14

Competitive Comparison of Shenzhen SEICHI Technologies Co's Beneish M-Score

For the Specialty Industrial Machinery subindustry, Shenzhen SEICHI Technologies 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.

Shenzhen SEICHI Technologies Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shenzhen SEICHI Technologies Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shenzhen SEICHI Technologies Co's Beneish M-Score falls into.

Shenzhen SEICHI Technologies 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 Shenzhen SEICHI Technologies 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 * 1.6302

0.528 * 0.9235

0.404 * 0.238

0.892 * 1.2419

0.115 * 1.9257

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9912

4.679 * 0.122405

0.327 * 0.3465

-1.14

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥312.8 Mil.
Revenue was 83.047 + 277.244 + 123.906 + 196.229 = ¥680.4 Mil.
Gross Profit was 27.774 + 115.487 + 53.652 + 73.906 = ¥270.8 Mil.
Total Current Assets was ¥1,812.1 Mil.
Total Assets was ¥1,947.8 Mil.
Property, Plant and Equipment(Net PPE) was ¥35.7 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥2.8 Mil.
Selling, General, & Admin. Expense(SGA) was ¥87.7 Mil.
Total Current Liabilities was ¥231.7 Mil.
Long-Term Debt & Capital Lease Obligation was ¥4.8 Mil.
Net Income was -14.443 + 60.831 + 20.301 + 37.975 = ¥104.7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0.0 Mil.
Cash Flow from Operations was -105.365 + 22.666 + -81.734 + 30.68 = ¥-133.8 Mil.

Total Receivables was ¥154.5 Mil.
Revenue was 51.185 + 204.155 + 87.1 + 205.434 = ¥547.9 Mil.
Gross Profit was 18.777 + 85.25 + 18.101 + 79.244 = ¥201.4 Mil.
Total Current Assets was ¥711.7 Mil.
Total Assets was ¥942.7 Mil.
Property, Plant and Equipment(Net PPE) was ¥27.8 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥4.5 Mil.
Selling, General, & Admin. Expense(SGA) was ¥71.3 Mil.
Total Current Liabilities was ¥327.3 Mil.
Long-Term Debt & Capital Lease Obligation was ¥2.9 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)
	=	(312.812 / 680.426)	/	(154.502 / 547.874)
	=	0.45973	/	0.282003
	=	1.6302

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)
	=	(201.372 / 547.874)	/	(270.819 / 680.426)
	=	0.367552	/	0.398014
	=	0.9235

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 - (1812.073 + 35.744) / 1947.765)	/	(1 - (711.682 + 27.786) / 942.67)
	=	0.051314	/	0.21556
	=	0.238

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
	=	680.426	/	547.874
	=	1.2419

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))
	=	(4.535 / (4.535 + 27.786))	/	(2.809 / (2.809 + 35.744))
	=	0.140311	/	0.072861
	=	1.9257

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)
	=	(87.742 / 680.426)	/	(71.277 / 547.874)
	=	0.128952	/	0.130097
	=	0.9912

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)
	=	((4.751 + 231.695) / 1947.765)	/	((2.934 + 327.275) / 942.67)
	=	0.121393	/	0.350291
	=	0.3465

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
	=	(104.664 - 0	-	-133.753)	/	1947.765
	=	0.122405

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.

Shenzhen SEICHI Technologies Co has a M-score of -1.14 signals that the company is likely to be a manipulator.

Shenzhen SEICHI Technologies Co Beneish M-Score Related Terms

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Shenzhen SEICHI Technologies Co (SHSE:688627) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Shenzhen SEICHI Technologies Co Ltd (SHSE:688627) » Definitions » Beneish M-Score

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Address

Longhua Street, East of 1st Floor, Building D, 101 Industrial Park, No. 1 Fuanna Company, Qinghu Village, Longhua, Qinghu, Guangdong, Shenzhen, CHN, 518110

Website

http://www.seichitech.com

Shenzhen SEICHI Technologies Co Ltd is a provider of testing equipment and system solution. It is mainly engaged in research, development, production and sales of new display device testing equipment. Detection and calibration repair, and gradually extended to the field of semiconductor storage device testing equipment, related products are used in wafer testing, packaging testing and aging repair of semiconductor storage devices represented by DRAM.

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