DB:HE1

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

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


Market Performance


7 Day Return

1.5%

HE1

1.7%

DE Consumer Services

1.7%

DE Market


1 Year Return

9.1%

HE1

2.9%

DE Consumer Services

7.2%

DE Market

Return vs Industry: HE1 exceeded the German Consumer Services industry which returned 2.9% over the past year.

Return vs Market: HE1 exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

HE1IndustryMarket
7 Day1.5%1.7%1.7%
30 Day1.8%-0.7%2.4%
90 Day5.7%0.01%2.3%
1 Year11.1%9.1%3.5%2.9%10.6%7.2%
3 Yearn/a-6.6%-10.3%18.4%8.1%
5 Yearn/a-38.1%-54.2%42.3%22.9%

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?

34.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HE1 (€0.13) is trading below our estimate of fair value (€0.2)

Significantly Below Fair Value: HE1 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HE1 is poor value based on its PE Ratio (26.5x) compared to the Consumer Services industry average (13.6x).

PE vs Market: HE1 is poor value based on its PE Ratio (26.5x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: HE1 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HE1 is good value based on its PB Ratio (1.7x) compared to the XE Consumer Services industry average (2.4x).


Next Steps

Future Growth

How is Hope Education Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

37.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HE1's forecast earnings growth (37.3% per year) is above the savings rate (0.2%).

Earnings vs Market: HE1's earnings (37.3% per year) are forecast to grow faster than the German market (12.7% per year).

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

Revenue vs Market: HE1's revenue (25.2% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: HE1's revenue (25.2% 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 (13.3%).


Next Steps

Past Performance

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

24.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HE1's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: HE1's earnings growth over the past year (32.8%) exceeds its 5-year average (24.4% per year).

Earnings vs Industry: HE1 earnings growth over the past year (32.8%) underperformed the Consumer Services industry 38.5%.


Return on Equity

High ROE: HE1's Return on Equity (6.4%) is considered low.


Return on Assets

ROA vs Industry: HE1's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: HE1's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hope Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: HE1's short term assets (CN¥3.2B) exceeds its short term liabilities (CN¥1.4B)

Long Term Liabilities: HE1's short term assets (3.2B) exceeds its long term liabilities (2.4B)


Debt to Equity History and Analysis

Debt Level: HE1's debt to equity ratio (51.2%) 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 (32.9%).

Interest Coverage: HE1's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: HE1 has a high level of physical assets or inventory.

Debt Coverage by Assets: HE1's debt is covered by short term assets (assets are 1.462090x debt).


Next Steps

Dividend

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

1.33%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HE1's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: HE1's dividend (1.33%) is low compared to the top 25% of dividend payers in the German market (3.83%).

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 (35.2%), 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 (32.6% payout ratio).


Next Steps

Management

What is the CEO of Hope Education Group's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Huiwu Wang (46yo)

1.7yrs

Tenure

0

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


Management Age and Tenure

1.7yrs

Average Tenure

49yo

Average Age

Experienced Management: HE1's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

2.6yrs

Average Tenure

49yo

Average Age

Experienced Board: HE1's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Sharon Leung

    Joint Company Secretary

    • Tenure: 1.7yrs
  • Changjun Xu (62yo)

    Chairman

    • Tenure: 1.7yrs
  • Huiwu Wang (46yo)

    CEO, President & Executive Director

    • Tenure: 1.7yrs
  • Tao Li (49yo)

    Chief Strategy Officer & Executive Director

    • Tenure: 2.6yrs
  • Lin Jiang (52yo)

    COO & Executive VP

    • Tenure: 1.7yrs
  • Houyi Chen (63yo)

    Senior VP & Education Management Committee Director

    • Tenure: 1.7yrs
  • Qunwei Lou (50yo)

    Senior Vice President

    • Tenure: 1.7yrs
  • Xiao Li (39yo)

    Senior Vice President

    • Tenure: 1.7yrs
  • Xuan He (49yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
  • Zhongcai Huang (34yo)

    VP & Joint Company Secretary

    • Tenure: 0.9yrs

Board Members

  • Ben Lu (49yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Hao Gao (36yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Changjun Xu (62yo)

    Chairman

    • Tenure: 1.7yrs
  • Huiwu Wang (46yo)

    CEO, President & Executive Director

    • Tenure: 1.7yrs
  • Tao Li (49yo)

    Chief Strategy Officer & Executive Director

    • Tenure: 2.6yrs
  • Jianyuan Tang (51yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Degen Wang (49yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Jin Zhang (60yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Yunhua Chen (67yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs

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$8.333b
  • Listing Market Cap: HK$953.772m
  • Shares outstanding: 6.67b
  • Website: https://www.hopeedu.com

Number of Employees


Location

  • Hope Education Group Co., Ltd.
  • Administrative Building
  • 5th Floor
  • 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 Analysis2019/10/22 22:07
End of Day Share Price2019/10/22 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.