DB:2YU

Stock Analysis Report

China YuHua Education

Executive Summary

China YuHua Education Corporation Limited provides education services in the People’s Republic of China.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

2YU

1.1%

DE Consumer Services

1.4%

DE Market


1 Year Return

57.2%

2YU

0.3%

DE Consumer Services

3.7%

DE Market

Return vs Industry: 2YU exceeded the German Consumer Services industry which returned 0.3% over the past year.

Return vs Market: 2YU exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

2YUIndustryMarket
7 Day-1.0%1.1%1.4%
30 Day4.7%-0.8%1.3%
90 Day35.5%-0.7%3.4%
1 Year63.2%57.2%0.8%0.3%7.0%3.7%
3 Yearn/a-7.2%-10.5%18.5%8.3%
5 Yearn/a-24.1%-38.6%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is China YuHua Education undervalued compared to its fair value and its price relative to the market?

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 2YU (€0.5) is trading below our estimate of fair value (€0.82)

Significantly Undervalued: 2YU is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2YU is poor value based on its PE Ratio (19.8x) compared to the Consumer Services industry average (15.3x).

PE vs Market: 2YU is poor value based on its PE Ratio (19.8x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 2YU is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 2YU is overvalued based on its PB Ratio (3.6x) compared to the XE Consumer Services industry average (2.3x).


Next Steps

Future Growth

How is China YuHua Education forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2YU's forecast earnings growth (18.1% per year) is above the savings rate (0.2%).

Earnings vs Market: 2YU's earnings (18.1% per year) are forecast to grow faster than the German market (12.7% per year).

High Growth Earnings: 2YU's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2YU's revenue (15% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 2YU's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2YU's Return on Equity is forecast to be high in 3 years time (22.5%)


Next Steps

Past Performance

How has China YuHua Education performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2YU's earnings have grown significantly by 31.9% per year over the past 5 years.

Accelerating Growth: 2YU's earnings growth over the past year (67.6%) exceeds its 5-year average (31.9% per year).

Earnings vs Industry: 2YU earnings growth over the past year (67.6%) exceeded the Consumer Services industry 34.2%.


Return on Equity

High ROE: 2YU's Return on Equity (18.9%) is considered low.


Return on Assets

ROA vs Industry: 2YU has a higher Return on Assets than the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: 2YU's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China YuHua Education's financial position?


Financial Position Analysis

Short Term Liabilities: 2YU's short term assets (CN¥3.2B) exceeds its short term liabilities (CN¥2.6B)

Long Term Liabilities: 2YU's short term assets (3.2B) exceeds its long term liabilities (847.0M)


Debt to Equity History and Analysis

Debt Level: 2YU's debt to equity ratio (12.3%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 2YU's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2YU's debt is well covered by operating cash flow (212.8%).

Interest Coverage: 2YU's interest payments on its debt are well covered by EBIT (44x coverage).


Balance Sheet

Inventory Level: 2YU has a high level of physical assets or inventory.

Debt Coverage by Assets: 2YU's debt is covered by short term assets (assets are 6.518520x debt).


Next Steps

Dividend

What is China YuHua Education's current dividend yield, its reliability and sustainability?

2.69%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2YU's dividend (2.69%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: 2YU's dividend (2.69%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: Whilst dividend payments have been stable, 2YU has been paying a dividend for less than 10 years.

Growing Dividend: 2YU's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54%), 2YU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2YU's dividends in 3 years are forecast to be covered by earnings (51.3% payout ratio).


Next Steps

Management

What is the CEO of China YuHua Education's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average board tenure


CEO

Hua Li (31yo)

0yrs

Tenure

CN¥17,849,000

Compensation

Ms. Li Hua has been the Vice chairman of the Board on at China YuHua Education Corporation Limited September 7, 2016 and serves as its Chief executive officer. Ms. Li has more than seven years of experienc ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Hua's total compensation is reasonable compared to companies of similar size in the German market.

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


Board Age and Tenure

3.1yrs

Average Tenure

52yo

Average Age

Experienced Board: 2YU's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥609,92923 Sep 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,268,000
Max PriceCN¥0.48
SellCN¥507,74820 Aug 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,160,000
Max PriceCN¥0.44
SellCN¥5,495,74820 Aug 19
UBS Asset Management
EntityCompany
Shares12,461,060
Max PriceCN¥0.44
BuyCN¥677,46402 Aug 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,484,000
Max PriceCN¥0.46
SellCN¥3,487,38525 Jul 19
UBS Asset Management
EntityCompany
Shares8,604,000
Max PriceCN¥0.41
BuyCN¥936,28602 Jul 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares2,568,000
Max PriceCN¥0.36
SellCN¥82,76824 Jun 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares220,000
Max PriceCN¥0.38
BuyCN¥1,215,11829 Apr 19
UBS Asset Management
EntityCompany
Shares2,898,000
Max PriceCN¥0.42
SellCN¥5,499,27025 Apr 19
UBS Asset Management
EntityCompany
Shares13,178,000
Max PriceCN¥0.42

Ownership Breakdown


Management Team

  • Ace Xu (36yo)

    CFO & Joint Company Secretary

    • Tenure: 3.8yrs
  • Guangyu Li (55yo)

    Executive Chairman

    • Tenure: 3.1yrs
    • Compensation: CN¥14.40m
  • Hua Li (31yo)

    Vice Chairman of the Board & CEO

    • Tenure: 0yrs
    • Compensation: CN¥17.85m
  • Hongjun Qiu (52yo)

    VP, Financial Controller & Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥877.00k
  • Suet Wing Leung

    Joint Company Secretary

    • Tenure: 1.2yrs

Board Members

  • Zuoquan Xia (56yo)

    Independent Non Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥180.00k
  • Zhixue Zhang (52yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥180.00k
  • Lei Chen (46yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥180.00k
  • Guangyu Li (55yo)

    Executive Chairman

    • Tenure: 3.1yrs
    • Compensation: CN¥14.40m
  • Hua Li (31yo)

    Vice Chairman of the Board & CEO

    • Tenure: 0yrs
    • Compensation: CN¥17.85m
  • Hongjun Qiu (52yo)

    VP, Financial Controller & Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥877.00k

Company Information

China YuHua Education Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China YuHua Education Corporation Limited
  • Ticker: 2YU
  • Exchange: DB
  • Founded: 2001
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$14.643b
  • Listing Market Cap: HK$1.676b
  • Shares outstanding: 3.26b
  • Website: https://www.yuhuachina.com

Number of Employees


Location

  • China YuHua Education Corporation Limited
  • No. 21, Block 10
  • 4th Floor
  • Zhengzhou
  • Henan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6169SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2017
2YUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2017
6169SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2017

Biography

China YuHua Education Corporation Limited provides education services in the People’s Republic of China. The company operates through Kindergartens, Grade 1–12, and University segments. It operates private ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 22:01
End of Day Share Price2019/10/18 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.