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Jujiang Construction Group Co (HKSE:01459) Beneish M-Score : -2.48 (As of May. 27, 2024)


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What is Jujiang Construction Group 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.

Good Sign:

Beneish M-Score -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Jujiang Construction Group Co's Beneish M-Score or its related term are showing as below:

HKSE:01459' s Beneish M-Score Range Over the Past 10 Years
Min: -2.6   Med: -2.28   Max: -2.06
Current: -2.48

During the past 10 years, the highest Beneish M-Score of Jujiang Construction Group Co was -2.06. The lowest was -2.60. And the median was -2.28.


Jujiang Construction Group Co Beneish M-Score Historical Data

The historical data trend for Jujiang Construction Group 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.

* Premium members only.

Jujiang Construction Group Co Beneish M-Score Chart

Jujiang Construction Group Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.14 -2.09 -2.06 -2.50 -2.48

Jujiang Construction Group Co Semi-Annual Data
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.06 - -2.50 - -2.48

Competitive Comparison of Jujiang Construction Group Co's Beneish M-Score

For the Engineering & Construction subindustry, Jujiang Construction Group 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.


Jujiang Construction Group Co's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Jujiang Construction Group Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Jujiang Construction Group Co's Beneish M-Score falls into.



Jujiang Construction Group 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 Jujiang Construction Group Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1008+0.528 * 1.0274+0.404 * 1.1484+0.892 * 0.9524+0.115 * 0.6825
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0299+4.679 * -0.017437-0.327 * 1.0174
=-2.48

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was HK$6,433 Mil.
Revenue was HK$9,095 Mil.
Gross Profit was HK$376 Mil.
Total Current Assets was HK$6,914 Mil.
Total Assets was HK$7,465 Mil.
Property, Plant and Equipment(Net PPE) was HK$169 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$32 Mil.
Selling, General, & Admin. Expense(SGA) was HK$189 Mil.
Total Current Liabilities was HK$5,521 Mil.
Long-Term Debt & Capital Lease Obligation was HK$152 Mil.
Net Income was HK$12 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$142 Mil.
Total Receivables was HK$6,136 Mil.
Revenue was HK$9,550 Mil.
Gross Profit was HK$406 Mil.
Total Current Assets was HK$6,690 Mil.
Total Assets was HK$7,254 Mil.
Property, Plant and Equipment(Net PPE) was HK$240 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$29 Mil.
Selling, General, & Admin. Expense(SGA) was HK$193 Mil.
Total Current Liabilities was HK$5,240 Mil.
Long-Term Debt & Capital Lease Obligation was HK$178 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)
=(6432.832 / 9094.851) / (6136.188 / 9549.693)
=0.707305 / 0.642553
=1.1008

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)
=(406.072 / 9549.693) / (376.405 / 9094.851)
=0.042522 / 0.041387
=1.0274

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 - (6914.181 + 168.729) / 7465.452) / (1 - (6690.281 + 240.409) / 7254.398)
=0.051242 / 0.044622
=1.1484

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
=9094.851 / 9549.693
=0.9524

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))
=(29.106 / (29.106 + 240.409)) / (31.716 / (31.716 + 168.729))
=0.107994 / 0.158228
=0.6825

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)
=(189.175 / 9094.851) / (192.878 / 9549.693)
=0.0208 / 0.020197
=1.0299

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)
=((151.648 + 5520.96) / 7465.452) / ((177.727 + 5240.451) / 7254.398)
=0.759848 / 0.746882
=1.0174

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
=(11.559 - 0 - 141.737) / 7465.452
=-0.017437

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.

Jujiang Construction Group Co has a M-score of -2.48 suggests that the company is unlikely to be a manipulator.


Jujiang Construction Group Co Beneish M-Score Related Terms

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Jujiang Construction Group Co (HKSE:01459) Business Description

Traded in Other Exchanges
N/A
Address
No. 669 Qingfeng South Road (South), Zhejiang Province, Tongxiang, CHN, 314500
Jujiang Construction Group Co Ltd is a civil engineering company. It provides construction contracting services for residential, commercial, industrial, and public works in the People's Republic of China. Its operating business segments are the Construction contracting segment, which is engaged in the provision of services relating to construction contracting in architecture; and the Others segment is engaged in the provision of services on designing, surveying, and consulting relating to construction contracting in architecture, and sale of civil defense products. It generates the vast majority of its revenue from the Construction contracting segment in Mainland China.

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