DB:9CK

Stock Analysis Report

China Kepei Education Group

Executive Summary

China Kepei Education Group Limited, an investment holding company, provides private higher education services focusing on profession-oriented education.


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 9CK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

9CK

-2.8%

DE Consumer Services

-6.8%

DE Market


1 Year Return

n/a

9CK

12.3%

DE Consumer Services

6.5%

DE Market

Return vs Industry: Insufficient data to determine how 9CK performed against the German Consumer Services industry.

Return vs Market: Insufficient data to determine how 9CK performed against the German Market.


Shareholder returns

9CKIndustryMarket
7 Day-2.8%-2.8%-6.8%
30 Day4.8%3.4%-3.7%
90 Day29.4%9.1%-3.6%
1 Yearn/a14.1%12.3%9.8%6.5%
3 Yearn/a3.6%-2.1%6.8%-2.6%
5 Yearn/a-40.2%-55.3%12.5%-2.9%

Price Volatility Vs. Market

How volatile is China Kepei 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 Kepei 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: 9CK (€0.52) is trading below our estimate of fair value (€1.05)

Significantly Below Fair Value: 9CK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 9CK is good value based on its PE Ratio (17.5x) compared to the Consumer Services industry average (18x).

PE vs Market: 9CK is good value based on its PE Ratio (17.5x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: 9CK is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 9CK is overvalued based on its PB Ratio (3.3x) compared to the XE Consumer Services industry average (2.5x).


Next Steps

Future Growth

How is China Kepei Education Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9CK's forecast earnings growth (17.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: 9CK's earnings (17.4% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: 9CK's earnings are forecast to grow, but not significantly.

Revenue vs Market: 9CK's revenue (16.1% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: 9CK's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9CK's Return on Equity is forecast to be high in 3 years time (23.5%)


Next Steps

Past Performance

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

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9CK has high quality earnings.

Growing Profit Margin: 9CK's current net profit margins (62.8%) are higher than last year (55.5%).


Past Earnings Growth Analysis

Earnings Trend: 9CK's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: 9CK's earnings growth over the past year (42.8%) exceeds its 5-year average (29.8% per year).

Earnings vs Industry: 9CK earnings growth over the past year (42.8%) exceeded the Consumer Services industry 38.3%.


Return on Equity

High ROE: 9CK's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is China Kepei Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: 9CK's short term assets (CN¥1.2B) exceed its short term liabilities (CN¥237.8M).

Long Term Liabilities: 9CK's short term assets (CN¥1.2B) exceed its long term liabilities (CN¥114.9M).


Debt to Equity History and Analysis

Debt Level: 9CK's debt to equity ratio (3.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 9CK's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 9CK's debt is well covered by operating cash flow (428.5%).

Interest Coverage: 9CK earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 9CK has a high level of physical assets or inventory.

Debt Coverage by Assets: 9CK's debt is covered by short term assets (assets are 12.2x debt).


Next Steps

Dividend

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

2.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 9CK's dividend (2.11%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: 9CK's dividend (2.11%) is low compared to the top 25% of dividend payers in the German market (3.81%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 9CK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 9CK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.9%), 9CK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 9CK's dividends in 3 years are forecast to be well covered by earnings (32.5% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Nianqiao Ye (55yo)

2.3yrs

Tenure

CN¥1,303,000

Compensation

Mr. Nianqiao Ye serves as an Executive Director, the Chairman of the Board and the General Manager of China Kepei Education Group Limited August 2017, and as its Chief Executive Officer since November 26,  ...


CEO Compensation Analysis

Compensation vs Market: Nianqiao's total compensation ($USD185.56K) is below average for companies of similar size in the German market ($USD1.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nianqiao Ye
Chairman of the Board2.3yrsCN¥1.30m52.48% CN¥570.9m
Yan Li
Executive Director2.5yrsCN¥386.00kno data
Xiangwei Zhang
Executive Director & COO2.3yrsCN¥1.06mno data
Xun Ye
Deputy GM & Executive Director2.5yrsCN¥228.00k14.99% CN¥163.1m
Donghui Zha
Deputy GM & Executive Director2.5yrsCN¥394.00kno data
Nianjiu Ye
Executive Director0yrsCN¥254.00kno data
Suet Wing Leung
Joint Company Secretary1.8yrsno datano data

2.3yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 9CK's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nianqiao Ye
Chairman of the Board2.3yrsCN¥1.30m52.48% CN¥570.9m
Yan Li
Executive Director2.5yrsCN¥386.00kno data
Xiangwei Zhang
Executive Director & COO2.3yrsCN¥1.06mno data
Xun Ye
Deputy GM & Executive Director2.5yrsCN¥228.00k14.99% CN¥163.1m
Donghui Zha
Deputy GM & Executive Director2.5yrsCN¥394.00kno data
Ming Xu
Independent Non-Executive Director2.3yrsno datano data
Xiaolu Li
Independent Non-Executive Director2.3yrsno datano data
Feiqi Deng
Independent Non-Executive Director2.3yrsno datano data
Chuanwu Wang
Non-Executive Director2.5yrsCN¥368.00kno data

2.5yrs

Average Tenure

55yo

Average Age

Experienced Board: 9CK's board of directors are not considered experienced ( 2.5 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 119.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: China Kepei Education Group Limited
  • Ticker: 9CK
  • Exchange: DB
  • Founded: 2000
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$9.224b
  • Listing Market Cap: HK$1.088b
  • Shares outstanding: 2.00b
  • Website: https://www.chinakepeiedu.com

Number of Employees


Location

  • China Kepei Education Group Limited
  • Qifu Road
  • Gaoyao District
  • Zhaoqing
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1890SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2019
9CKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2019
1890SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2019

Biography

China Kepei Education Group Limited, an investment holding company, provides private higher education services focusing on profession-oriented education. It operates Guangdong Polytechnic College, a degree-granting undergraduate-level education institution that offers 41 majors, including 22 undergraduate majors and 19 junior college majors in a range of subject areas. The company also operates Zhaoqing Science and Technology Secondary Vocational School, a secondary vocational school, which provides secondary vocational education in 11 majors comprising automobile servicing, electronic commerce, and electromechanical technology application. As of September 30, 2018, it had an aggregate of 45,118 students enrolled at its schools located in Guangdong Province, the People’s Republic of China. The company was founded in 2000 and is headquartered in Zhaoqing, 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 Analysis2020/02/26 23:30
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.