China Three Gorges Renewables (Group) Co (SHSE:600905) Beneish M-Score : -2.33 (As of May. 03, 2024)

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What is China Three Gorges Renewables (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 -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for China Three Gorges Renewables (Group) Co's Beneish M-Score or its related term are showing as below:

SHSE:600905' s Beneish M-Score Range Over the Past 10 Years
Min: -2.81 Med: -2.01 Max: 3.25
Current: -2.33

During the past 13 years, the highest Beneish M-Score of China Three Gorges Renewables (Group) Co was 3.25. The lowest was -2.81. And the median was -2.01.

China Three Gorges Renewables (Group) Co Beneish M-Score Historical Data

The historical data trend for China Three Gorges Renewables (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.

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China Three Gorges Renewables (Group) Co Beneish M-Score Chart

China Three Gorges Renewables (Group) Co Annual Data

Trend

Dec09

Dec10

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.88

-2.50

-2.18

-2.37

-2.29

China Three Gorges Renewables (Group) Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.43	-2.49	-2.49	-2.29	-2.33

Competitive Comparison of China Three Gorges Renewables (Group) Co's Beneish M-Score

For the Utilities - Renewable subindustry, China Three Gorges Renewables (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.

China Three Gorges Renewables (Group) Co's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, China Three Gorges Renewables (Group) Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where China Three Gorges Renewables (Group) Co's Beneish M-Score falls into.

China Three Gorges Renewables (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 China Three Gorges Renewables (Group) Co 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 * 1.1874

0.528 * 1.0207

0.404 * 0.9317

0.892 * 1.1067

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9223

4.679 * -0.024406

0.327 * 1.0038

-2.33

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ¥41,172 Mil.
Revenue was 7899.12 + 7196.429 + 5585.32 + 6850.594 = ¥27,531 Mil.
Gross Profit was 4657.257 + 3936.298 + 2603.333 + 4031.136 = ¥15,228 Mil.
Total Current Assets was ¥54,198 Mil.
Total Assets was ¥324,949 Mil.
Property, Plant and Equipment(Net PPE) was ¥227,997 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥590 Mil.
Total Current Liabilities was ¥42,525 Mil.
Long-Term Debt & Capital Lease Obligation was ¥154,297 Mil.
Net Income was 2421.824 + 1744.902 + 919.562 + 2097.227 = ¥7,184 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 4420.58 + 2765.374 + 4626.559 + 3301.821 = ¥15,114 Mil.

Total Receivables was ¥31,331 Mil.
Revenue was 6853.129 + 6405.89 + 5277.015 + 6340.536 = ¥24,877 Mil.
Gross Profit was 4029.462 + 3223.427 + 2743.638 + 4047.653 = ¥14,044 Mil.
Total Current Assets was ¥50,004 Mil.
Total Assets was ¥270,946 Mil.
Property, Plant and Equipment(Net PPE) was ¥182,682 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥578 Mil.
Total Current Liabilities was ¥41,249 Mil.
Long-Term Debt & Capital Lease Obligation was ¥122,248 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)
	=	(41171.5 / 27531.463)	/	(31331.335 / 24876.57)
	=	1.495435	/	1.259472
	=	1.1874

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)
	=	(14044.18 / 24876.57)	/	(15228.024 / 27531.463)
	=	0.564555	/	0.553114
	=	1.0207

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 - (54197.54 + 227997.422) / 324948.529)	/	(1 - (50003.515 + 182682.214) / 270946.469)
	=	0.13157	/	0.141211
	=	0.9317

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
	=	27531.463	/	24876.57
	=	1.1067

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))
	=	(0 / (0 + 182682.214))	/	(0 / (0 + 227997.422))
	=	0	/	0
	=	1

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)
	=	(590.185 / 27531.463)	/	(578.233 / 24876.57)
	=	0.021437	/	0.023244
	=	0.9223

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)
	=	((154297.012 + 42524.895) / 324948.529)	/	((122248.292 + 41249.496) / 270946.469)
	=	0.605702	/	0.603432
	=	1.0038

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
	=	(7183.515 - 0	-	15114.334)	/	324948.529
	=	-0.024406

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.

China Three Gorges Renewables (Group) Co has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.

China Three Gorges Renewables (Group) Co Beneish M-Score Related Terms

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China Three Gorges Renewables (Group) Co (SHSE:600905) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » China Three Gorges Renewables (Group) Co Ltd (SHSE:600905) » Definitions » Beneish M-Score

Traded in Other Exchanges

N/A

Address

No. 1, Gongyuan Street, Room 206-23, 2nd Floor, Building 1, Tongzhou District, Beijing, CHN, 101149

Website

https://www.ctgne.com

China Three Gorges Renewables, or CTGR, is one of China's largest renewable energy producers. The firm operates wind farms, photovoltaic power plants, hydro-electric power plants, and energy storage projects. CTGR has a total generation capacity of about 26.5 gigawatts as of the end of 2022. In particular, the firm is also one of the largest offshore wind farm operators in China, with 4.9 GW of installed capacity at the end of 2022, representing about 16% of China's total capacity. Parent company, China Three Gorges, a state-owned enterprise, owns approximately 52.4% of CTGR's issued shares as of the end of 2022.

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