Hands Form Holdings (HKSE:01920) Beneish M-Score : -6.58 (As of May. 29, 2024)

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What is Hands Form 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 -6.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01920' s Beneish M-Score Range Over the Past 10 Years
Min: -6.58 Med: -0.94 Max: 11.54
Current: -6.58

During the past 8 years, the highest Beneish M-Score of Hands Form Holdings was 11.54. The lowest was -6.58. And the median was -0.94.

Hands Form Holdings Beneish M-Score Historical Data

The historical data trend for Hands Form 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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Hands Form Holdings Beneish M-Score Chart

Hands Form Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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3.38

11.54

-3.75

-6.58

Hands Form Holdings Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial									11.54	-	-3.75	-	-6.58

Competitive Comparison of Hands Form Holdings's Beneish M-Score

For the Engineering & Construction subindustry, Hands Form 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.

Hands Form Holdings's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Hands Form Holdings's Beneish M-Score distribution charts can be found below:

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

Hands Form 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 Hands Form 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 * 0.5664

0.528 * 0.9428

0.404 * 1.7977

0.892 * 0.7077

0.115 * 0.5519

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.6364

4.679 * -0.716599

0.327 * 1.6766

-6.58

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$28.62 Mil.
Revenue was HK$86.70 Mil.
Gross Profit was HK$-21.49 Mil.
Total Current Assets was HK$64.12 Mil.
Total Assets was HK$71.76 Mil.
Property, Plant and Equipment(Net PPE) was HK$4.94 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$2.65 Mil.
Selling, General, & Admin. Expense(SGA) was HK$9.10 Mil.
Total Current Liabilities was HK$18.59 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 Mil.
Net Income was HK$-51.62 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$-0.20 Mil.

Total Receivables was HK$71.41 Mil.
Revenue was HK$122.52 Mil.
Gross Profit was HK$-28.63 Mil.
Total Current Assets was HK$111.98 Mil.
Total Assets was HK$123.94 Mil.
Property, Plant and Equipment(Net PPE) was HK$9.36 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$2.24 Mil.
Selling, General, & Admin. Expense(SGA) was HK$7.86 Mil.
Total Current Liabilities was HK$19.15 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.00 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)
	=	(28.623 / 86.702)	/	(71.413 / 122.517)
	=	0.330131	/	0.582882
	=	0.5664

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)
	=	(-28.628 / 122.517)	/	(-21.489 / 86.702)
	=	-0.233666	/	-0.247849
	=	0.9428

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 - (64.12 + 4.935) / 71.757)	/	(1 - (111.976 + 9.364) / 123.936)
	=	0.037655	/	0.020946
	=	1.7977

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
	=	86.702	/	122.517
	=	0.7077

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))
	=	(2.237 / (2.237 + 9.364))	/	(2.65 / (2.65 + 4.935))
	=	0.192828	/	0.349374
	=	0.5519

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)
	=	(9.102 / 86.702)	/	(7.86 / 122.517)
	=	0.10498	/	0.064154
	=	1.6364

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)
	=	((0 + 18.589) / 71.757)	/	((0 + 19.15) / 123.936)
	=	0.259055	/	0.154515
	=	1.6766

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
	=	(-51.618 - 0	-	-0.197)	/	71.757
	=	-0.716599

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.

Hands Form Holdings has a M-score of -6.58 suggests that the company is unlikely to be a manipulator.

Hands Form Holdings Beneish M-Score Related Terms

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Hands Form Holdings (HKSE:01920) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Hands Form Holdings Ltd (HKSE:01920) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

28 Shanghai Street, Room 9, 2nd Floor, Hang Bong Commercial Centre, Jordan, Kowloon, Hong Kong, HKG

Website

https://www.handsform.com

Hands Form Holdings Ltd is an established subcontractor in Hong Kong and principally engaged in the provision of wet trades work and other wet trades-related ancillary works. Wet trades works include plastering on floors, walls, and ceilings, tile laying on internal and external walls and floors, bricklaying, and marble works. The company's segment includes Construction services and Construction IT services. It generates maximum revenue from the Construction services segment.

Executives

Wonderful Renown Limited	2101 Beneficial owner
Cheung Lai Chun	2103 Interests held jointly with another person
Chan Shui King	2202 Interest of your spouse
Cheung Kwok Fai Adam	2201 Interest of corporation controlled by you

Hands Form Holdings (HKSE:01920) Headlines

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