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China New Higher Education Group

Executive Summary

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.


Snowflake Analysis

Proven track record with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8CN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.8%

8CN

-0.6%

DE Consumer Services

0.7%

DE Market


1 Year Return

87.9%

8CN

9.2%

DE Consumer Services

3.9%

DE Market

Return vs Industry: 8CN exceeded the German Consumer Services industry which returned 9.2% over the past year.

Return vs Market: 8CN exceeded the German Market which returned 3.9% over the past year.


Shareholder returns

8CNIndustryMarket
7 Day1.8%-0.6%0.7%
30 Day6.7%3.1%5.3%
90 Day55.6%10.1%17.3%
1 Year92.0%87.9%11.0%9.2%6.2%3.9%
3 Yearn/a-5.4%-10.1%1.8%-6.2%
5 Yearn/a-43.8%-58.4%9.3%-5.4%

Price Volatility Vs. Market

How volatile is China New Higher 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 China New Higher 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: 8CN (€0.56) is trading below our estimate of fair value (€1.57)

Significantly Below Fair Value: 8CN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8CN is poor value based on its PE Ratio (18x) compared to the XE Consumer Services industry average (15.4x).

PE vs Market: 8CN is good value based on its PE Ratio (18x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 8CN is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 8CN is overvalued based on its PB Ratio (2.9x) compared to the XE Consumer Services industry average (2.4x).


Next Steps

Future Growth

How is China New Higher Education Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8CN's forecast earnings growth (17.7% per year) is above the savings rate (0.2%).

Earnings vs Market: 8CN's earnings (17.7% per year) are forecast to grow slower than the German market (22.3% per year).

High Growth Earnings: 8CN's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8CN's revenue (14.2% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 8CN's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8CN's Return on Equity is forecast to be low in 3 years time (19%).


Next Steps

Past Performance

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

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8CN has high quality earnings.

Growing Profit Margin: 8CN's current net profit margins (35.5%) are lower than last year (43.2%).


Past Earnings Growth Analysis

Earnings Trend: 8CN's earnings have grown significantly by 27.9% per year over the past 5 years.

Accelerating Growth: 8CN's earnings growth over the past year (59.3%) exceeds its 5-year average (27.9% per year).

Earnings vs Industry: 8CN earnings growth over the past year (59.3%) exceeded the Consumer Services industry 57.7%.


Return on Equity

High ROE: 8CN's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is China New Higher Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8CN's short term assets (CN¥1.2B) do not cover its short term liabilities (CN¥2.1B).

Long Term Liabilities: 8CN's short term assets (CN¥1.2B) exceed its long term liabilities (CN¥925.2M).


Debt to Equity History and Analysis

Debt Level: 8CN's debt to equity ratio (49.8%) is considered high.

Reducing Debt: 8CN's debt to equity ratio has reduced from 108.5% to 49.8% over the past 5 years.

Debt Coverage: 8CN's debt is well covered by operating cash flow (56.5%).

Interest Coverage: 8CN's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8CN's dividend (1.47%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: 8CN's dividend (1.47%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

Stable Dividend: 8CN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 8CN's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.6%), 8CN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 8CN's dividends in 3 years are forecast to be well covered by earnings (24.6% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Shuai Zhao (39yo)

no data

Tenure

CN¥1,495,000

Compensation

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 Worldwid ...


CEO Compensation Analysis

Compensation vs Market: Shuai's total compensation ($USD213.68K) is below average for companies of similar size in the German market ($USD1.43M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xiaoxuan Li
Chairmanno dataCN¥2.00m32.92% CN¥294.9m
Shuai Zhao
CEO & Executive Directorno dataCN¥1.50m0.056% CN¥503.3k
Lu Sun
Chief Financial Officer1.25yrsno datano data
Jingnan Teng
Chief Investment Officer1.92yrsno datano data
Qizuo Ji
Senior Vice President0.67yrno datano data
Wai Ling Wong
Company Secretary3.92yrsno datano data

1.6yrs

Average Tenure

39.5yo

Average Age

Experienced Management: 8CN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xiaoxuan Li
Chairmanno dataCN¥2.00m32.92% CN¥294.9m
Shuai Zhao
CEO & Executive Directorno dataCN¥1.50m0.056% CN¥503.3k
Wai Sun Kwong
Independent Non-Executive Director3.33yrsCN¥373.00kno data
Tung Hoi Chan
Independent Non-Executive Director0.92yrCN¥109.00kno data
Jianbo Hu
Independent Non-Executive Director2.58yrsCN¥341.00k0.011% CN¥99.7k
Tsz Kit Pang
Independent Non-Executive Director0.92yrCN¥109.00kno data

2.6yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 8CN's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: 8CN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China New Higher Education Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China New Higher Education Group Limited
  • Ticker: 8CN
  • Exchange: DB
  • Founded: 1999
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$7.890b
  • Listing Market Cap: HK$895.743m
  • Shares outstanding: 1.54b
  • Website: https://www.xingaojiao.com

Number of Employees


Location

  • China New Higher Education Group Limited
  • Tower A
  • 25th Floor, Global Trade Center
  • Beijing
  • Beijing Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2001SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2017
2001SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDApr 2017
8CNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2017
2001SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDApr 2017

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 21:39
End of Day Share Price2020/07/13 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.