Man Wah Holdings (1999 HK): Looking Over-Stuffed

Director | Exposing Creative Accounting, Bucephalus Research Partnership

Robert Medd

Director | Exposing Creative Accounting

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

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Forensic Accounting

Here are the questions we think investors should be asking about Carson Block's latest short. 1) How can a company that exports so many bulky items have such fabulous margins (double the industry average)2) How come the margins keep improving, scale is great but surely not that great.3) Prepayments are great but again ManWah's are much better than the industry norms4) Tax paid vs expensed. One would expect these to trend together but they seem to have parted company5) Payable days keep falling…

Here are the questions we think investors should be asking about Carson Block's latest short. 1) How can a company that exports so many bulky items have such fabulous margins (double the industry average)2) How come the margins keep improving, scale is great but surely not that great.3) Prepayments are great but again ManWah's are much better than the industry norms4) Tax paid vs expensed. One would expect these to trend together but they seem to have parted company5) Payable days keep falling…

1999 HK Man Wah Holdings: A Quick Accounting Review