DB:HE1

Stock Analysis Report

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Executive Summary

Hope Education Group Co., Ltd. provides private higher education services in the People’s Republic of China. More Details


Snowflake Analysis

Solid track record with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HE1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.6%

HE1

6.0%

DE Consumer Services

0.1%

DE Market


1 Year Return

95.8%

HE1

34.7%

DE Consumer Services

6.2%

DE Market

Return vs Industry: HE1 exceeded the German Consumer Services industry which returned 34.7% over the past year.

Return vs Market: HE1 exceeded the German Market which returned 6.2% over the past year.


Shareholder returns

HE1IndustryMarket
7 Day7.6%6.0%0.1%
30 Day-5.2%15.7%1.5%
90 Day-15.9%21.5%5.3%
1 Year97.8%95.8%37.0%34.7%8.7%6.2%
3 Yearn/a5.1%-0.3%6.4%-2.3%
5 Yearn/a-28.4%-45.9%36.6%18.0%

Price Volatility Vs. Market

How volatile is Hope 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 Hope Education Group undervalued compared to its fair value and its price relative to the market?

28.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HE1 (€0.25) is trading above our estimate of fair value (€0.07)

Significantly Below Fair Value: HE1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HE1 is poor value based on its PE Ratio (28.4x) compared to the XE Consumer Services industry average (18.3x).

PE vs Market: HE1 is poor value based on its PE Ratio (28.4x) compared to the German market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: HE1 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: HE1 is overvalued based on its PB Ratio (3.1x) compared to the XE Consumer Services industry average (2.5x).


Next Steps

Future Growth

How is Hope Education Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HE1's forecast earnings growth (26.6% per year) is above the savings rate (0.2%).

Earnings vs Market: HE1's earnings (26.6% per year) are forecast to grow slower than the German market (27.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HE1's revenue (25.4% per year) is forecast to grow faster than the German market (6.1% per year).

High Growth Revenue: HE1's revenue (25.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HE1's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Hope Education Group performed over the past 5 years?

33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HE1 has high quality earnings.

Growing Profit Margin: HE1's current net profit margins (36.8%) are higher than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: HE1's earnings have grown significantly by 33.5% per year over the past 5 years.

Accelerating Growth: HE1's earnings growth over the past year (191.7%) exceeds its 5-year average (33.5% per year).

Earnings vs Industry: HE1 earnings growth over the past year (191.7%) exceeded the Consumer Services industry 39.2%.


Return on Equity

High ROE: HE1's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Hope Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: HE1's short term assets (CN¥3.5B) exceed its short term liabilities (CN¥3.1B).

Long Term Liabilities: HE1's short term assets (CN¥3.5B) exceed its long term liabilities (CN¥3.1B).


Debt to Equity History and Analysis

Debt Level: HE1's debt to equity ratio (58.5%) is considered high.

Reducing Debt: Insufficient data to determine if HE1's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HE1's debt is well covered by operating cash flow (26.1%).

Interest Coverage: HE1's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Hope Education Group current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HE1's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.17%).

High Dividend: HE1's dividend (1.1%) is low compared to the top 25% of dividend payers in the German market (3.61%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HE1's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HE1'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 (31.3%), HE1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HE1's dividends in 3 years are forecast to be well covered by earnings (37.1% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Huiwu Wang (47 yo)

2.58yrs

Tenure

Mr. Huiwu Wang serves as co-owner at Hope Education Investment Limited.


Leadership Team

NamePositionTenureCompensationOwnership
Changjun Xu
Chairman2.58yrsno data0.000020%
CN¥ 375.9
Huiwu Wang
CEO, President & Executive Director2.58yrsno datano data
Xuan He
Chief Financial Officer2.58yrsno datano data
Lin Jiang
COO & Executive VP2.58yrsno datano data
Tao Li
Chief Strategy Officer & Executive Director3.5yrsno data0.050%
CN¥ 939.3k
Qunwei Lou
Senior Vice President2.58yrsno datano data
Zhongcai Huang
VP & Joint Company Secretary1.83yrsno datano data
Wing Han Leung
Joint Company Secretary2.58yrsno datano data

2.6yrs

Average Tenure

50yo

Average Age

Experienced Management: HE1's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Changjun Xu
Chairman2.58yrsno data0.000020%
CN¥ 375.9
Huiwu Wang
CEO, President & Executive Director2.58yrsno datano data
Tao Li
Chief Strategy Officer & Executive Director3.5yrsno data0.050%
CN¥ 939.3k
Zhichao Lu
Non-Executive Director3.5yrsno datano data
Hao Gao
Independent Non-Executive Director2.17yrsno datano data
Jianyuan Tang
Non-Executive Director3.5yrsno datano data
Degen Wang
Non-Executive Director3.5yrsno datano data
Jin Zhang
Independent Non-Executive Director2.17yrsno datano data
Yunhua Chen
Independent Non-Executive Director2.17yrsno datano data

3.5yrs

Average Tenure

50yo

Average Age

Experienced Board: HE1's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 8.4%.


Top Shareholders

Company Information

Hope Education Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hope Education Group Co., Ltd.
  • Ticker: HE1
  • Exchange: DB
  • Founded: 2007
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$17.279b
  • Listing Market Cap: HK$1.879b
  • Shares outstanding: 7.23b
  • Website: https://www.hopeedu.com

Number of Employees


Location

  • Hope Education Group Co., Ltd.
  • Administrative Building
  • 5th Floor,2000 Xi Qu Avenue
  • Chengdu
  • Sichuan Province
  • 610091
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1765SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2018
HE1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2018
1765SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDAug 2018

Biography

Hope Education Group Co., Ltd. provides private higher education services in the People’s Republic of China. The company provides self-study examination, adult education, and technical management and consu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 05:28
End of Day Share Price2020/09/18 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.