South Malaysia Industries Bhd (XKLS:4375) Beneish M-Score : -2.42 (As of May. 26, 2024)

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What is South Malaysia Industries Bhd 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 -2.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for South Malaysia Industries Bhd's Beneish M-Score or its related term are showing as below:

XKLS:4375' s Beneish M-Score Range Over the Past 10 Years
Min: -7.41 Med: -3.11 Max: -1.34
Current: -2.42

During the past 13 years, the highest Beneish M-Score of South Malaysia Industries Bhd was -1.34. The lowest was -7.41. And the median was -3.11.

South Malaysia Industries Bhd Beneish M-Score Historical Data

The historical data trend for South Malaysia Industries Bhd'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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South Malaysia Industries Bhd Beneish M-Score Chart

South Malaysia Industries Bhd Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Beneish M-Score

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-2.01

-1.48

-1.34

-3.11

-2.42

South Malaysia Industries Bhd Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Mar23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of South Malaysia Industries Bhd's Beneish M-Score

For the Electrical Equipment & Parts subindustry, South Malaysia Industries Bhd'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.

South Malaysia Industries Bhd's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, South Malaysia Industries Bhd's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where South Malaysia Industries Bhd's Beneish M-Score falls into.

South Malaysia Industries Bhd 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 South Malaysia Industries Bhd 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 * 0.8683

0.528 * 1.8295

0.404 * 1.1781

0.892 * 0.7542

0.115 * 0.8565

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.6871

4.679 * -0.001586

0.327 * 0.9098

-2.42

This Year (Dec20) TTM:

Last Year (Dec19) TTM:

Total Receivables was RM20.12 Mil.
Revenue was RM51.10 Mil.
Gross Profit was RM5.13 Mil.
Total Current Assets was RM46.38 Mil.
Total Assets was RM190.44 Mil.
Property, Plant and Equipment(Net PPE) was RM12.91 Mil.
Depreciation, Depletion and Amortization(DDA) was RM2.56 Mil.
Selling, General, & Admin. Expense(SGA) was RM22.76 Mil.
Total Current Liabilities was RM27.49 Mil.
Long-Term Debt & Capital Lease Obligation was RM10.69 Mil.
Net Income was RM-3.86 Mil.
Gross Profit was RM0.00 Mil.
Cash Flow from Operations was RM-3.56 Mil.

Total Receivables was RM30.72 Mil.
Revenue was RM67.75 Mil.
Gross Profit was RM12.44 Mil.
Total Current Assets was RM70.25 Mil.
Total Assets was RM202.98 Mil.
Property, Plant and Equipment(Net PPE) was RM14.08 Mil.
Depreciation, Depletion and Amortization(DDA) was RM2.33 Mil.
Selling, General, & Admin. Expense(SGA) was RM17.89 Mil.
Total Current Liabilities was RM33.49 Mil.
Long-Term Debt & Capital Lease Obligation was RM11.23 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)
	=	(20.121 / 51.099)	/	(30.724 / 67.753)
	=	0.393765	/	0.453471
	=	0.8683

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)
	=	(12.437 / 67.753)	/	(5.127 / 51.099)
	=	0.183564	/	0.100335
	=	1.8295

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 - (46.38 + 12.91) / 190.439)	/	(1 - (70.246 + 14.079) / 202.981)
	=	0.688667	/	0.584567
	=	1.1781

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
	=	51.099	/	67.753
	=	0.7542

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))
	=	(2.326 / (2.326 + 14.079))	/	(2.561 / (2.561 + 12.91))
	=	0.141786	/	0.165536
	=	0.8565

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)
	=	(22.759 / 51.099)	/	(17.887 / 67.753)
	=	0.44539	/	0.264003
	=	1.6871

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)
	=	((10.688 + 27.485) / 190.439)	/	((11.228 + 33.491) / 202.981)
	=	0.200447	/	0.220311
	=	0.9098

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
	=	(-3.862 - 0	-	-3.56)	/	190.439
	=	-0.001586

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.

South Malaysia Industries Bhd has a M-score of -2.42 suggests that the company is unlikely to be a manipulator.

South Malaysia Industries Bhd Beneish M-Score Related Terms

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South Malaysia Industries Bhd (XKLS:4375) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » South Malaysia Industries Bhd (XKLS:4375) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

No. 6, Lorong P. Ramlee, 15th Floor, Menara SMI, Wilayah Persekutuan, Kuala Lumpur, SGR, MYS, 50250

Website

http://www.smib.com.my

South Malaysia Industries Bhd is a Malaysia-based company, which is engaged in property and investment holding, trading, property development, and provision of management services. Its operating segments cover Property development; Property and investment holding; and Manufacturing and trading. The Property Development segment is engaged in the development and sale of residential and commercial properties. The Property and Investment holding segment is engaged in investment in properties, car park management and operations, and holding companies. The Manufacturing and trading segment is engaged in the manufacturing and trading of assorted wires, and it generates the majority of revenue. Geographically the group operates only in Malaysia.

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