Qi-House Holdings (HKSE:08395) Beneish M-Score : -2.93 (As of May. 29, 2024)

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What is Qi-House Holdings 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 -2.93 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Qi-House Holdings's Beneish M-Score or its related term are showing as below:

HKSE:08395' s Beneish M-Score Range Over the Past 10 Years
Min: -4.31 Med: -2.07 Max: 16.44
Current: -2.93

During the past 9 years, the highest Beneish M-Score of Qi-House Holdings was 16.44. The lowest was -4.31. And the median was -2.07.

Qi-House Holdings Beneish M-Score Historical Data

The historical data trend for Qi-House Holdings'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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Qi-House Holdings Beneish M-Score Chart

Qi-House Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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16.44

-2.07

-3.10

-3.31

-2.93

Qi-House Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-	-2.93	-	-

Competitive Comparison of Qi-House Holdings's Beneish M-Score

For the Specialty Retail subindustry, Qi-House Holdings'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.

Qi-House Holdings's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Qi-House Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Qi-House Holdings's Beneish M-Score falls into.

Qi-House Holdings 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 Qi-House Holdings 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 * 1.4349

0.528 * 1.0039

0.404 * 0.5068

0.892 * 0.8153

0.115 * 1.0391

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1366

4.679 * -0.09572

0.327 * 1.0601

-2.93

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was HK$49.19 Mil.
Revenue was HK$78.19 Mil.
Gross Profit was HK$51.58 Mil.
Total Current Assets was HK$74.55 Mil.
Total Assets was HK$99.79 Mil.
Property, Plant and Equipment(Net PPE) was HK$13.81 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$10.17 Mil.
Selling, General, & Admin. Expense(SGA) was HK$55.76 Mil.
Total Current Liabilities was HK$43.43 Mil.
Long-Term Debt & Capital Lease Obligation was HK$4.68 Mil.
Net Income was HK$-11.05 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-1.50 Mil.

Total Receivables was HK$42.05 Mil.
Revenue was HK$95.91 Mil.
Gross Profit was HK$63.52 Mil.
Total Current Assets was HK$74.72 Mil.
Total Assets was HK$114.97 Mil.
Property, Plant and Equipment(Net PPE) was HK$14.27 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$11.24 Mil.
Selling, General, & Admin. Expense(SGA) was HK$60.18 Mil.
Total Current Liabilities was HK$46.75 Mil.
Long-Term Debt & Capital Lease Obligation was HK$5.54 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)
	=	(49.19 / 78.194)	/	(42.049 / 95.913)
	=	0.629076	/	0.438408
	=	1.4349

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)
	=	(63.522 / 95.913)	/	(51.584 / 78.194)
	=	0.662288	/	0.659693
	=	1.0039

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 - (74.554 + 13.81) / 99.791)	/	(1 - (74.715 + 14.273) / 114.966)
	=	0.114509	/	0.225962
	=	0.5068

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
	=	78.194	/	95.913
	=	0.8153

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))
	=	(11.24 / (11.24 + 14.273))	/	(10.165 / (10.165 + 13.81))
	=	0.44056	/	0.423983
	=	1.0391

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)
	=	(55.761 / 78.194)	/	(60.175 / 95.913)
	=	0.713111	/	0.627391
	=	1.1366

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)
	=	((4.684 + 43.428) / 99.791)	/	((5.54 + 46.746) / 114.966)
	=	0.482128	/	0.454795
	=	1.0601

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
	=	(-11.05 - 0	-	-1.498)	/	99.791
	=	-0.09572

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.

Qi-House Holdings has a M-score of -2.93 suggests that the company is unlikely to be a manipulator.

Qi-House Holdings Beneish M-Score Related Terms

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Qi-House Holdings (HKSE:08395) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Qi-House Holdings Ltd (HKSE:08395) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2 Lee Wing Street, 28th Floor, Horizon Plaza, Ap Lei Chau, Hong Kong, HKG

Website

https://www.treeholdings.com

Qi-House Holdings Ltd Formerly Tree Holdings Ltd is engaged in the sale and distribution of furniture, home accessories, consignment sales, distribution and licensing of intellectual property rights, and provision of styling and consulting services. The company derives its revenue from the sale of furniture and home accessories, distribution and license fee income, food and beverage income, commission income, and consulting income. It operates in two segments, Furniture sale and consultancy services and Furniture agency service. Most of the firm's revenue gets derived from the Furniture sale and consultancy services segment. The group has a business presence in Hong Kong and the PRC, of which a majority of revenue is generated from Hong Kong.

Executives

Xu Qiang	2101 Beneficial owner
Wuxing Hehe Holding Group Co., Limited	2101 Beneficial owner
Yang Songmei	2201 Interest of corporation controlled by you
Tiptop Honour Limited	2201 Interest of corporation controlled by you
Shum Yuet Wah Anna	2202 Interest of your spouse
Tong Tang Joseph	2201 Interest of corporation controlled by you
Zhang Jianing	2401 A concert party to an agreement to buy shares

Qi-House Holdings (HKSE:08395) Headlines

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