China New Higher Education Group
Market Cap
€895.7m
Last Updated
2020/07/13 21:39 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
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
| 8CN | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | -0.6% | 0.7% |
| 30 Day | 6.7% | 3.1% | 5.3% |
| 90 Day | 55.6% | 10.1% | 17.3% |
| 1 Year | 92.0%87.9% | 11.0%9.2% | 6.2%3.9% |
| 3 Year | n/a | -5.4%-10.1% | 1.8%-6.2% |
| 5 Year | n/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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | no data | CN¥2.00m | 32.92% CN¥294.9m | |
| CEO & Executive Director | no data | CN¥1.50m | 0.056% CN¥503.3k | |
| Chief Financial Officer | 1.25yrs | no data | no data | |
| Chief Investment Officer | 1.92yrs | no data | no data | |
| Senior Vice President | 0.67yr | no data | no data | |
| Company Secretary | 3.92yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | no data | CN¥2.00m | 32.92% CN¥294.9m | |
| CEO & Executive Director | no data | CN¥1.50m | 0.056% CN¥503.3k | |
| Independent Non-Executive Director | 3.33yrs | CN¥373.00k | no data | |
| Independent Non-Executive Director | 0.92yr | CN¥109.00k | no data | |
| Independent Non-Executive Director | 2.58yrs | CN¥341.00k | 0.011% CN¥99.7k | |
| Independent Non-Executive Director | 0.92yr | CN¥109.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2001 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Apr 2017 |
| 2001 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Apr 2017 |
| 8CN | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Apr 2017 |
| 2001 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/13 21:39 |
| End of Day Share Price | 2020/07/13 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.