BST:MEG

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Minsheng Education Group

Executive Summary

Minsheng Education Group Company Limited, an investment holding company, provides educational services in the People's Republic of China.


Snowflake Analysis

Very undervalued with adequate balance sheet.

Share Price & News

How has Minsheng Education Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MEG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-11.1%

MEG

-0.7%

DE Consumer Services

0.7%

DE Market


1 Year Return

-23.3%

MEG

8.9%

DE Consumer Services

3.9%

DE Market

Return vs Industry: MEG underperformed the German Consumer Services industry which returned 8.9% over the past year.

Return vs Market: MEG underperformed the German Market which returned 3% over the past year.


Shareholder returns

MEGIndustryMarket
7 Day-11.1%-0.7%0.7%
30 Day-4.8%0.7%1.4%
90 Day8.1%10.0%17.3%
1 Year-21.2%-23.3%10.7%8.9%6.2%3.9%
3 Year-8.6%-11.1%-5.4%-10.1%1.8%-6.2%
5 Yearn/a-44.8%-59.1%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Minsheng Education Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Minsheng Education Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MEG (€0.12) is trading below our estimate of fair value (€0.47)

Significantly Below Fair Value: MEG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MEG is good value based on its PE Ratio (12x) compared to the XE Consumer Services industry average (15.6x).

PE vs Market: MEG is good value based on its PE Ratio (12x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: MEG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: MEG is good value based on its PB Ratio (1.1x) compared to the XE Consumer Services industry average (2.7x).


Next Steps

Future Growth

How is Minsheng Education Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEG's forecast earnings growth (17.9% per year) is above the savings rate (0.2%).

Earnings vs Market: MEG's earnings (17.9% per year) are forecast to grow slower than the German market (22.4% per year).

High Growth Earnings: MEG's earnings are forecast to grow, but not significantly.

Revenue vs Market: MEG's revenue (13.7% per year) is forecast to grow faster than the German market (6% per year).

High Growth Revenue: MEG's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MEG's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Minsheng Education Group performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MEG has high quality earnings.

Growing Profit Margin: MEG's current net profit margins (34%) are lower than last year (53.4%).


Past Earnings Growth Analysis

Earnings Trend: MEG's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: MEG's earnings growth over the past year (2.6%) is below its 5-year average (12.7% per year).

Earnings vs Industry: MEG earnings growth over the past year (2.6%) underperformed the Consumer Services industry 57.7%.


Return on Equity

High ROE: MEG's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Minsheng Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: MEG's short term assets (CN¥1.5B) exceed its short term liabilities (CN¥1.5B).

Long Term Liabilities: MEG's short term assets (CN¥1.5B) do not cover its long term liabilities (CN¥1.7B).


Debt to Equity History and Analysis

Debt Level: MEG's debt to equity ratio (13.5%) is considered satisfactory.

Reducing Debt: MEG's debt to equity ratio has increased from 0.02% to 13.5% over the past 5 years.

Debt Coverage: MEG's debt is well covered by operating cash flow (74.5%).

Interest Coverage: MEG's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Minsheng Education Group current dividend yield, its reliability and sustainability?

2.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MEG's dividend (2.54%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: MEG's dividend (2.54%) is low compared to the top 25% of dividend payers in the German market (3.85%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MEG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MEG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), MEG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MEG's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Weiping Zhang (55yo)

3.92yrs

Tenure

CN¥11,616,000

Compensation

Ms. Zhang Weiping has been Chief Executive Officer and Executive Director at Minsheng Education Group Company Limited since August 2016 and July 2008 respectively. Ms. Zhang joined Minsheng Education Group ...


CEO Compensation Analysis

Compensation vs Market: Weiping's total compensation ($USD1.66M) is about average for companies of similar size in the German market ($USD1.42M).

Compensation vs Earnings: Weiping's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Xuechun Li
Executive Chairman14.5yrsCN¥3.27m71.13% CN¥387.1m
Weiping Zhang
CEO & Executive Director3.92yrsCN¥11.62mno data
Yichen Zuo
President3.92yrsCN¥3.91mno data
Ngai Lung Lam
CFO & Executive Director3.92yrsCN¥3.22mno data
Wing Shan Ng
Company Secretary3.83yrsno datano data
Wei Wang
Financial Director and Head of Finance Dept - Chongqing College of Humanitiesno datano datano data

3.9yrs

Average Tenure

48yo

Average Age

Experienced Management: MEG's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xuechun Li
Executive Chairman14.5yrsCN¥3.27m71.13% CN¥387.1m
Weiping Zhang
CEO & Executive Director3.92yrsCN¥11.62mno data
Yichen Zuo
President3.92yrsCN¥3.91mno data
Ngai Lung Lam
CFO & Executive Director3.92yrsCN¥3.22mno data
Ngai Sang Chan
Independent Non-Executive Director3.33yrsCN¥275.00kno data
Wei Hung Wang
Independent Non-Executive Director3.33yrsCN¥275.00kno data
Kaihua Lin
Non-Executive Director3.08yrsno datano data
Huangcheng Yu
Independent Non-Executive Director3.33yrsCN¥275.00kno data
Yanping Li
Non-Executive Director3.08yrsCN¥492.00kno data

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: MEG's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MEG insiders have bought and sold the same number of shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Company Information

Minsheng Education Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Minsheng Education Group Company Limited
  • Ticker: MEG
  • Exchange: BST
  • Founded: 2005
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$4.766b
  • Listing Market Cap: HK$544.245m
  • Shares outstanding: 4.22b
  • Website: https://www.minshengedu.com

Number of Employees


Location

  • Minsheng Education Group Company Limited
  • Full Tower
  • Room 301
  • Beijing
  • Beijing Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1569SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2017
MEGBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMar 2017
1569SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2017
1569SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2017

Biography

Minsheng Education Group Company Limited, an investment holding company, provides educational services in the People's Republic of China. The company operates seven higher education schools, two secondary vocational schools, and two high schools. It also provides education management and services; disease diagnosis and treatment services; university and college logistics services; rental and business management services; investment management and services; education consulting and management services; and asset management, and project investment and management services. In addition, the company invests in education projects, as well as develops real estate properties. Minsheng Education Group Company Limited was incorporated in 2005 and is headquartered in Beijing, the People's Republic of China. Minsheng Education Group Company Limited is a subsidiary of Minsheng Group Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 21:22
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.