L K Technology Holdings (HKSE:00558) Beneish M-Score : -2.06 (As of May. 04, 2024)

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What is L K Technology 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 -2.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:00558' s Beneish M-Score Range Over the Past 10 Years
Min: -2.82 Med: -2.41 Max: -1.77
Current: -2.06

During the past 13 years, the highest Beneish M-Score of L K Technology Holdings was -1.77. The lowest was -2.82. And the median was -2.41.

L K Technology Holdings Beneish M-Score Historical Data

The historical data trend for L K Technology 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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L K Technology Holdings Beneish M-Score Chart

L K Technology Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.30

-2.82

-2.53

-1.77

-2.06

L K Technology Holdings Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-1.77	-	-2.06	-

Competitive Comparison of L K Technology Holdings's Beneish M-Score

For the Specialty Industrial Machinery subindustry, L K Technology 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.

L K Technology Holdings's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, L K Technology Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where L K Technology Holdings's Beneish M-Score falls into.

L K Technology 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 L K Technology 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 * 1.2934

0.528 * 1.0787

0.404 * 0.5712

0.892 * 1.0996

0.115 * 1.0636

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0624

4.679 * 0.050687

0.327 * 1.1105

-2.06

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was HK$2,870 Mil.
Revenue was HK$5,896 Mil.
Gross Profit was HK$1,597 Mil.
Total Current Assets was HK$5,545 Mil.
Total Assets was HK$8,540 Mil.
Property, Plant and Equipment(Net PPE) was HK$2,207 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$185 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,064 Mil.
Total Current Liabilities was HK$4,269 Mil.
Long-Term Debt & Capital Lease Obligation was HK$258 Mil.
Net Income was HK$532 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$99 Mil.

Total Receivables was HK$2,018 Mil.
Revenue was HK$5,362 Mil.
Gross Profit was HK$1,566 Mil.
Total Current Assets was HK$4,749 Mil.
Total Assets was HK$7,600 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,623 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$146 Mil.
Selling, General, & Admin. Expense(SGA) was HK$911 Mil.
Total Current Liabilities was HK$3,406 Mil.
Long-Term Debt & Capital Lease Obligation was HK$222 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)
	=	(2870.331 / 5896.349)	/	(2018.27 / 5362.474)
	=	0.486798	/	0.376369
	=	1.2934

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)
	=	(1566.4 / 5362.474)	/	(1596.687 / 5896.349)
	=	0.292104	/	0.270792
	=	1.0787

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 - (5545.21 + 2206.951) / 8539.878)	/	(1 - (4749.219 + 1623.106) / 7599.524)
	=	0.09224	/	0.161484
	=	0.5712

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
	=	5896.349	/	5362.474
	=	1.0996

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))
	=	(145.873 / (145.873 + 1623.106))	/	(185.482 / (185.482 + 2206.951))
	=	0.082462	/	0.077529
	=	1.0636

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)
	=	(1064.267 / 5896.349)	/	(911.076 / 5362.474)
	=	0.180496	/	0.169898
	=	1.0624

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)
	=	((257.976 + 4269.428) / 8539.878)	/	((222.22 + 3405.647) / 7599.524)
	=	0.530149	/	0.477381
	=	1.1105

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
	=	(532.235 - 0	-	99.375)	/	8539.878
	=	0.050687

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.

L K Technology Holdings has a M-score of -2.06 suggests that the company is unlikely to be a manipulator.

L K Technology Holdings Beneish M-Score Related Terms

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L K Technology Holdings (HKSE:00558) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » L K Technology Holdings Ltd (HKSE:00558) » Definitions » Beneish M-Score

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L5D:Germany

Address

1-7 Wah Sing Street, Unit A, 8th Floor, Mai Wah Industrial Building, Kwai Chung, New Territories, Hong Kong, HKG

Website

https://www.lk.world

L K Technology Holdings Ltd is an investment holding company. It is principally engaged in the design, manufacture, and sales of the hot chamber and cold chamber die-casting machines, plastic injection moulding machines, computerized numerical controlled (CNC) machining centers and related accessories. The company's operating segment includes Die-casting machine; Plastic injection moulding machine and CNC machining centre. It generates maximum revenue from the Die-casting machine segment. Geographically, it derives a majority of revenue from Mainland China and also has a presence in Europe, North America, Central America and South America and Other countries.

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