China New Higher Education Group

DB:8CN

Snowflake Description

Undervalued with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

8CN

HK$5B

Market Cap

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Last updated 2019/06/17 22:53

Company description

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China New Higher Education Group has significant price volatility in the past 3 months.

8CN Share Price and Events

7 Day Returns

6.7%

DB:8CN

1.5%

Europe Consumer Services

0.3%

DE Market

1 Year Returns

DB:8CN

-20.8%

Europe Consumer Services

-11.7%

DE Market

8CN Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
China New Higher Education Group (8CN)	6.7%	-7.5%	-17.9%	-	-	-
Europe Consumer Services	1.5%	1.5%	0.9%	-20.8%	-45.1%	-49.9%
DE Market	0.3%	-2.3%	-1.1%	-11.7%	12.2%	6.1%

1 Year Return vs Industry and Market

No trading data on 8CN.
No trading data on 8CN.

Price Volatility

8CN

Industry

5yr Volatility vs Market

Related Companies

Sorry, no analysis for China New Higher Education Group's competitors could be found in our database.

8CN Value

Is China New Higher Education Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of China New Higher Education Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China New Higher Education Group.

DB:8CN Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 17 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	5.9%
Perpetual Growth Rate	10-Year DE Government Bond Rate	0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:8CN
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year DE Govt Bond Rate	0.2%
Equity Risk Premium	S&P Global	6%
Consumer Services Unlevered Beta	Simply Wall St/ S&P Global	0.76
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.757 (1 + (1- 25%) (32.01%))	0.959
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.96
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 0.23% + (0.959 * 5.96%)	5.94%

Discounted Cash Flow Calculation for DB:8CN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China New Higher Education Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:8CN DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (CNY, Millions)	Source	Present Value Discounted (@ 5.94%)
2019	370.45	Analyst x4	349.67
2020	512.95	Analyst x6	457.00
2021	568.98	Analyst x5	478.49
2022	610.65	Est @ 7.32%	484.72
2023	642.38	Est @ 5.2%	481.30
2024	666.18	Est @ 3.71%	471.13
2025	683.91	Est @ 2.66%	456.54
2026	697.12	Est @ 1.93%	439.25
2027	707.03	Est @ 1.42%	420.49
2028	714.54	Est @ 1.06%	401.12
Present value of next 10 years cash flows			CN¥4,439.71

DB:8CN DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = CN¥714.54 × (1 + 0.23%) ÷ (5.94% – 0.23%)	CN¥12,529.91
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = CN¥12,529.91 ÷ (1 + 5.94%)¹⁰	CN¥7,033.92

DB:8CN Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = CN¥4,439.71 + CN¥7,033.92	CN¥11,473.63
Equity Value per Share (CNY)	= Total value / Shares Outstanding = CN¥11,473.63 / 1,541.10	CN¥68.63

DB:8CN Discount to Share Price
	Calculation	Result
Exchange Rate	CNY/HKD (Reporting currency to currency of SEHK:2001)	1.131
Value per Share (HKD)	= Value per Share in CNY x Exchange Rate (CNY/HKD) = CN¥7.45 x 1.131	HK$8.42
Non-primary Listing Adjustment Factor	1 share in DB:8CN represents 0.10847x of SEHK:2001 (This could be a different class, a depositary receipt, a different currency, or all of these things.)	0.10847x
Value per Share (Listing Adjusted, EUR)	= Value per Share (HKD) x Listing Adjustment Factor = HK$ 8.42 x 0.10847	€0.91
Value per share (EUR)	From above.	€0.91
Current discount	Discount to share price of €0.32 = -1 x (€0.32 - €0.91) / €0.91	65%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price China New Higher Education Group is available for.

^>50%

Share price is €0.32 vs Future cash flow value of €0.91338

Current Discount Checks

For China New Higher Education Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

China New Higher Education Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
China New Higher Education Group's share price is below the future cash flow value, and at a substantial discount (> 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China New Higher Education Group's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are China New Higher Education Group's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

DB:8CN PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in CNY	CN¥0.17
SEHK:2001 Share Price **	SEHK (2019-06-17) in HKD	HK$2.95
SEHK:2001 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.884	CN¥2.61
Europe Consumer Services Industry PE Ratio	Median Figure of 10 Publicly-Listed Consumer Services Companies	18.34x
Germany Market PE Ratio	Median Figure of 424 Publicly-Listed Companies	19.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China New Higher Education Group.

DB:8CN PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:2001 Share Price ÷ EPS (both in CNY) = 2.61 ÷ 0.17	15.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

China New Higher Education Group is good value based on earnings compared to the Europe Consumer Services industry average.
China New Higher Education Group is good value based on earnings compared to the Germany market.

Price based on expected Growth

Does China New Higher Education Group's expected growth come at a high price?

Raw Data

DB:8CN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	15.39x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts	24.8%per year
Europe Consumer Services Industry PEG Ratio	Median Figure of 7 Publicly-Listed Consumer Services Companies	1.24x
Germany Market PEG Ratio	Median Figure of 270 Publicly-Listed Companies	1.47x

*Line of best fit is calculated by linear regression .

DB:8CN PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 15.39x ÷ 24.8%	0.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

China New Higher Education Group is good value based on expected growth next year.

Price based on value of assets

What value do investors place on China New Higher Education Group's assets?

Raw Data

DB:8CN PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in CNY	CN¥1.30
SEHK:2001 Share Price *	SEHK (2019-06-17) in HKD	HK$2.95
SEHK:2001 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.884	CN¥2.61
Europe Consumer Services Industry PB Ratio	Median Figure of 18 Publicly-Listed Consumer Services Companies	1.85x
Germany Market PB Ratio	Median Figure of 576 Publicly-Listed Companies	1.76x

DB:8CN PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:2001 Share Price ÷ Book Value per Share (both in CNY) = 2.61 ÷ 1.30	2.01x

* Primary Listing of China New Higher Education Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

China New Higher Education Group is overvalued based on assets compared to the Europe Consumer Services industry average.

Show me more potentially undervalued companies in the Consumer Services industry

Value checks

We assess China New Higher Education Group's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

8CN Future Performance

How is China New Higher Education Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

24.8%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is China New Higher Education Group expected to grow at an attractive rate?

China New Higher Education Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.

Growth vs Market Checks

China New Higher Education Group's earnings growth is expected to exceed the Germany market average.
China New Higher Education Group's revenue growth is expected to exceed the Germany market average.

Annual Growth Rates Comparison

Raw Data

DB:8CN Future Growth Rates Data Sources
Data Point	Source	Value (per year)
DB:8CN Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts	24.8%
DB:8CN Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts	26.4%
Europe Consumer Services Industry Earnings Growth Rate	Market Cap Weighted Average	13.7%
Europe Consumer Services Industry Revenue Growth Rate	Market Cap Weighted Average	7.3%
Germany Market Earnings Growth Rate	Market Cap Weighted Average	12.7%
Germany Market Revenue Growth Rate	Market Cap Weighted Average	5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

DB:8CN Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (5 months ago)	See Below
Future Estimates	Average of up to 17 Analyst Estimates (S&P Global)	See Below

All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

DB:8CN Future Estimates Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-12-31	1,421	871	540	11
2020-12-31	1,278	902	461	17
2019-12-31	1,028	745	362	17

DB:8CN Past Financials Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	561	457	243
2018-09-30	506	375	258
2018-06-30	451	294	273
2018-03-31	433	290	253
2017-12-31	414	287	233
2017-09-30	395	227	187
2017-06-30	375	167	141
2017-03-31	358	196	125
2016-12-31	341	225	110

*GAAP earnings excluding extraordinary items.

High Growth Checks

China New Higher Education Group's earnings are expected to grow significantly at over 20% yearly.
China New Higher Education Group's revenue is expected to grow significantly at over 20% yearly.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

DB:8CN Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (5 months ago)	See Below
Future Estimates	Average of up to 17 Analyst Estimates (S&P Global)	See Below

All data from China New Higher Education Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8CN Future Estimates Data
Date (Data in CNY Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-12-31	0.36	0.46	0.26	10.00
2020-12-31	0.31	0.36	0.25	14.00
2019-12-31	0.24	0.27	0.20	14.00

DB:8CN Past Financials Data
Date (Data in CNY Millions)	EPS *
2018-12-31	0.17
2018-09-30	0.18
2018-06-30	0.19
2018-03-31	0.18
2017-12-31	0.17
2017-09-30	0.15
2017-06-30	0.12
2017-03-31	0.11
2016-12-31	0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

China New Higher Education Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).

Show me more growth companies in the Consumer Services industry

Future performance checks

We assess China New Higher Education Group's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China New Higher Education Group has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

8CN Past Performance

How has China New Higher Education Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare China New Higher Education Group's growth in the last year to its industry (Consumer Services).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

China New Higher Education Group has delivered over 20% year on year earnings growth in the past 5 years.
China New Higher Education Group's 1-year earnings growth is less than its 5-year average (3.9% vs 29.6%)
China New Higher Education Group's earnings growth has exceeded the Europe Consumer Services industry average in the past year (3.9% vs -1.3%).

Earnings and Revenue History

China New Higher Education Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from China New Higher Education Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8CN Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	561.45	242.53	59.14
2018-09-30	506.06	257.82	55.37
2018-06-30	450.67	273.12	51.61
2018-03-31	432.54	253.24	56.68
2017-12-31	414.41	233.37	61.76
2017-09-30	394.86	186.96	67.55
2017-06-30	375.31	140.55	73.34
2017-03-31	358.15	125.32	68.22
2016-12-31	341.00	110.09	63.10
2015-12-31	273.99	104.25	40.27
2014-12-31	206.50	78.73	34.02

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

China New Higher Education Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
China New Higher Education Group used its assets less efficiently than the Europe Consumer Services industry average last year based on Return on Assets.
China New Higher Education Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Past performance checks

We assess China New Higher Education Group's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China New Higher Education Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

8CN Health

How is China New Higher Education Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China New Higher Education Group's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

China New Higher Education Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
China New Higher Education Group's long term commitments exceed its cash and other short term assets.

Balance sheet

This treemap shows a more detailed breakdown of China New Higher Education Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.4x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from China New Higher Education Group Company Filings, last reported 5 months ago.

DB:8CN Past Debt and Equity Data
Date (Data in CNY Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	2,279.21	1,286.85	375.16
2018-09-30	2,279.21	1,286.85	375.16
2018-06-30	1,823.75	1,566.58	584.45
2018-03-31	1,823.75	1,566.58	584.45
2017-12-31	1,724.86	352.26	134.27
2017-09-30	1,724.86	352.26	134.27
2017-06-30	1,702.36	588.22	633.34
2017-03-31	1,702.36	588.22	633.34
2016-12-31	942.52	578.63	194.75
2015-12-31	381.62	451.00	102.98
2014-12-31	381.06	417.80	309.17

China New Higher Education Group's level of debt (56.5%) compared to net worth is high (greater than 40%).
Unable to establish if China New Higher Education Group's debt level has increased without past 5-year debt data.
Debt is well covered by operating cash flow (35.5%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).

Financial health checks

We assess China New Higher Education Group's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

8CN Dividends

What is China New Higher Education Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

1.76%

Current annual income from China New Higher Education Group dividends. Estimated to be 3.15% next year.

If you bought €2,000 of China New Higher Education Group shares you are expected to receive €35 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

China New Higher Education Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
China New Higher Education Group's dividend is below the markets top 25% of dividend payers in Germany (3.91%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

DB:8CN Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 17 Analyst Estimates (S&P Global)	See Below
Europe Consumer Services Industry Average Dividend Yield	Market Cap Weighted Average of 5 Stocks	2.3%
Germany Market Average Dividend Yield	Market Cap Weighted Average of 327 Stocks	3.2%
Germany Minimum Threshold Dividend Yield	10th Percentile	0.8%
Germany Bottom 25% Dividend Yield	25th Percentile	1.4%
Germany Top 25% Dividend Yield	75th Percentile	3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:8CN Future Dividends Estimate Data
Date (Data in CN¥)	Dividend per Share (annual)	Avg. No. Analysts
2021-12-31	0.10	11.00
2020-12-31	0.09	15.00
2019-12-31	0.07	15.00

DB:8CN Past Annualized Dividends Data
Date (Data in CN¥)	Dividend per share (annual)	Avg. Yield (%)
2019-04-25	0.046	1.689
2019-04-01	0.046	1.437
2018-09-27	0.054	1.509
2018-08-31	0.054	1.184
2018-04-11	0.050	0.885
2017-09-26	0.042	1.039
2017-08-31	0.042	1.299

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

China New Higher Education Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
Dividend payments have increased, but China New Higher Education Group only paid a dividend in the past 2 years.

Current Payout to shareholders

What portion of China New Higher Education Group's earnings are paid to the shareholders as a dividend.

Dividends paid are well covered by earnings (3.7x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).

Income/ dividend checks

We assess China New Higher Education Group's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can China New Higher Education Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

8CN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Shuai Zhao

COMPENSATION	CN¥1,273,000
AGE	37

CEO Bio

Mr. Zhao Shuai serves as the Chief Executive Officer of China New Higher Education Group Limited and has been its Executive Director since August 19, 2016. Mr. Zhao is Co-Owner of Aspire Education Worldwide Limited. He joined the China New Higher Education Group in April 2004 and has more than 12 years of experience in education and is responsible for setting annual operational targets and day-to-day management. Mr. Zhao has been Senior President of Yun Ai Group since March 2016, where he is In charge of management and strategic development. Mr. Zhao served as General Manager of Administration Department at Yun Ai Group from April 2014 to April 2015, where hw was In charge of procurement, logistics and infrastructures. He served as Student Recruitment Director of Yunnan School from April 2004 to August 2008, where he was In charge of student recruitment. Mr. Zhao served as an Associate Dean of Yunnan School from September 2008 to March 2014, where he was In charge of student recruitment administrative and logistics matters. Mr. Zhao served as Executive Dean of Guizhou School from May 2015 to March 2016, where he was In charge of management and strategic development, staff recruitment and other administrative matters. Mr. Zhao obtained the qualification as Senior Economist in December 2013. He was awarded a Bachelor Degree in Mechanical Engineering Automation from Kunming University of Science and Technology, the PRC, in July 2004.

CEO Compensation

Shuai's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
Shuai's remuneration is lower than average for companies of similar size in Germany.

Average tenure and age of the China New Higher Education Group board of directors in years:

2.8

Average Tenure

47.5

Average Age

The average tenure for the China New Higher Education Group board of directors is less than 3 years, this suggests a new board.

Board of Directors

Shuai Zhao

TITLE

CEO & Executive Director

COMPENSATION

CN¥1M

AGE

37

TENURE

Recent Insider Trading

More shares have been bought than sold by China New Higher Education Group insiders in the past 3 months.

Show me more companies with insider buying in the Consumer Services industry

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (€)	Value (€)
09. May 19	Buy	Xiaoxuan Li	Individual	07. May 19	07. May 19	239,000	€0.38	€90,682
09. May 19	Buy	Xiaoxuan Li	Individual	08. May 19	08. May 19	159,000	€0.37	€59,407
07. May 19	Buy	Xiaoxuan Li	Individual	03. May 19	03. May 19	602,000	€0.39	€236,186

Management checks

We assess China New Higher Education Group's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

8CN News

Simply Wall St News

8CN Company Info

Description

China New Higher Education Group Limited, an investment holding company, provides higher education services in various fields of applied sciences in the People's Republic of China. The company operates education institutions under the Yunnan School, Guizhou School, Northeast School, Central China School, Guangxi School, Henan School, and Gansu College names. It also offers technical and management consultancy services. The company was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

Details

Name:	China New Higher Education Group Limited
Ticker:	8CN
Exchange:	DB
Founded:	1999
Market Cap:	HK$516,683,387
Shares outstanding:	1,541,100,000
Website:	http://www.xingaojiao.com
Address:	China New Higher Education Group Limited Tower A, 25th Floor, Global Trade Center, Beijing, China

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
SEHK	2001	Ordinary Shares	The Stock Exchange of Hong Kong Ltd.	HK	HKD	19. Apr 2017
DB	8CN	Ordinary Shares	Deutsche Boerse AG	DE	EUR	19. Apr 2017
BST	8CN	Ordinary Shares	Boerse-Stuttgart	DE	EUR	19. Apr 2017
SHSC	2001	Ordinary Shares	Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect	HK	HKD	19. Apr 2017
SZSC	2001	Ordinary Shares	The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect	HK	HKD	19. Apr 2017

Number of employees

Current staff

4,610

China New Higher Education Group employees.

Industry

Industry:	Education Services
Sector:	Consumer Services

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/06/17 22:53
End of day share price update:	2019/06/17 00:00
Last estimates confirmation:	2019/06/13
Last earnings filing:	2019/04/25
Last earnings reported:	2018/12/31
Last annual earnings reported:	2018/12/31

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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