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8CN

China New Higher Education Group DB:8CN Stock Report

Last Price

HK$0.31

Market Cap

HK$514.9m

7D

2.6%

1Y

-42.2%

Updated

03 Jul, 2022

Data

Company Financials +
8CN fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance5/6
Financial Health2/6
Dividends3/6

8CN Stock Overview

China New Higher Education Group Limited, an investment holding company, provides education services in the People's Republic of China.

China New Higher Education Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China New Higher Education Group
Historical stock prices
Current Share PriceHK$0.31
52 Week HighHK$0.54
52 Week LowHK$0.20
Beta1.42
1 Month Change11.43%
3 Month Change8.33%
1 Year Change-42.22%
3 Year Change-3.11%
5 Year Changen/a
Change since IPO-40.23%

Recent News & Updates

Shareholder Returns

8CNDE Consumer ServicesDE Market
7D2.6%8.9%-2.5%
1Y-42.2%-19.6%-23.9%

Return vs Industry: 8CN underperformed the German Consumer Services industry which returned -19.6% over the past year.

Return vs Market: 8CN underperformed the German Market which returned -23.9% over the past year.

Price Volatility

Is 8CN's price volatile compared to industry and market?
8CN volatility
8CN Average Weekly Movement8.3%
Consumer Services Industry Average Movement5.7%
Market Average Movement5.6%
10% most volatile stocks in DE Market9.8%
10% least volatile stocks in DE Market2.8%

Stable Share Price: 8CN is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 8CN's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

FoundedEmployeesCEOWebsite
19999,437Shuai Zhaohttps://www.xingaojiao.com

China New Higher Education Group Limited, an investment holding company, provides education services in the People's Republic of China. The company operates education institutions under Yunnan Technology and Business University, Science and Technology College of Hubei Minzu University, Harbin Huade University, Lanzhou University of Technology College of Technology and Engineering, Guizhou Vocational College of Industry and Commerce, Luoyang Vocation College of Science and Technology, and Talent International College Guangxi names. It also offers technical and management consultancy services.

China New Higher Education Group Fundamentals Summary

How do China New Higher Education Group's earnings and revenue compare to its market cap?
8CN fundamental statistics
Market CapCN¥3.59b
Earnings (TTM)CN¥618.62m
Revenue (TTM)CN¥1.75b

5.8x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8CN income statement (TTM)
RevenueCN¥1.75b
Cost of RevenueCN¥1.02b
Gross ProfitCN¥726.95m
Other ExpensesCN¥108.33m
EarningsCN¥618.62m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.40
Gross Margin41.61%
Net Profit Margin35.41%
Debt/Equity Ratio81.4%

How did 8CN perform over the long term?

See historical performance and comparison

Dividends

9.2%

Current Dividend Yield

48%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 8CN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8CN?

Other financial metrics that can be useful for relative valuation.

8CN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA7.2x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does 8CN's PE Ratio compare to its peers?

8CN PE Ratio vs Peers
The above table shows the PE ratio for 8CN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average35.6x
TIMA ZEAL Network
59.5x20.4%€791.7m
1890 China Kepei Education Group
8.7x22.6%HK$4.2b
7366 LITALICO
66.3x22.0%JP¥71.5b
1765 Hope Education Group
8x17.2%HK$5.2b
8CN China New Higher Education Group
5.8x15.6%€4.2b

Price-To-Earnings vs Peers: 8CN is good value based on its Price-To-Earnings Ratio (5.8x) compared to the peer average (35.6x).


Price to Earnings Ratio vs Industry

How does 8CN's PE Ratio compare vs other companies in the Global Consumer Services Industry?

Price-To-Earnings vs Industry: 8CN is good value based on its Price-To-Earnings Ratio (5.8x) compared to the European Consumer Services industry average (19.5x)


Price to Earnings Ratio vs Fair Ratio

What is 8CN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8CN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.8x
Fair PE Ratio28.2x

Price-To-Earnings vs Fair Ratio: 8CN is good value based on its Price-To-Earnings Ratio (5.8x) compared to the estimated Fair Price-To-Earnings Ratio (28.2x).


Share Price vs Fair Value

What is the Fair Price of 8CN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8CN (€0.31) is trading below our estimate of fair value (€2.02)

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


Price to Earnings Growth Ratio

PEG Ratio: 8CN is good value based on its PEG Ratio (0.4x)


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Future Growth

How is China New Higher Education Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8CN's forecast earnings growth (15.6% per year) is above the savings rate (-0.01%).

Earnings vs Market: 8CN's earnings (15.6% per year) are forecast to grow faster than the German market (8.4% per year).

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

Revenue vs Market: 8CN's revenue (11.3% per year) is forecast to grow faster than the German market (4.7% per year).

High Growth Revenue: 8CN's revenue (11.3% 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 (19.5%).


Discover growth companies

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


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 (35.4%) are higher than last year (32.1%).


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 (49.5%) exceeds its 5-year average (27.9% per year).

Earnings vs Industry: 8CN earnings growth over the past year (49.5%) exceeded the Consumer Services industry 21.6%.


Return on Equity

High ROE: 8CN's Return on Equity (20%) is considered low.


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Financial Health

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

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8CN's short term assets (CN¥1.2B) do not cover its short term liabilities (CN¥2.6B).

Long Term Liabilities: 8CN's short term assets (CN¥1.2B) do not cover its long term liabilities (CN¥2.4B).


Debt to Equity History and Analysis

Debt Level: 8CN's net debt to equity ratio (60%) is considered high.

Reducing Debt: 8CN's debt to equity ratio has increased from 37.5% to 81.4% over the past 5 years.

Debt Coverage: 8CN's debt is well covered by operating cash flow (31.8%).

Interest Coverage: 8CN's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


9.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8CN's dividend (9.23%) is higher than the bottom 25% of dividend payers in the German market (1.49%).

High Dividend: 8CN's dividend (9.23%) is in the top 25% of dividend payers in the German market (4.52%)


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 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.3%), 8CN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (90.7%), 8CN's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

Shuai Zhao (41 yo)

5.92yrs

Tenure

CN¥1,375,000

Compensation

Mr. Shuai Zhao 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 ($USD205.19K) is below average for companies of similar size in the German market ($USD1.19M).

Compensation vs Earnings: Shuai's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 8CN's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: 8CN's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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
  • Implied Market Cap: HK$4.203b
  • Listing Market Cap: HK$514.927m
  • Shares outstanding: 1.56b
  • Website: https://www.xingaojiao.com

Number of Employees


Location

  • China New Higher Education Group Limited
  • Tower F, Phoenix Place
  • Room 2001-2007, 20th Floor
  • Beijing
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/02/28
Annual Earnings2021/08/31


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.