SEHK:1317

Stock Analysis Report

China Maple Leaf Educational Systems

Executive Summary

China Maple Leaf Educational Systems Limited, together with its subsidiaries, operates bilingual private schools and preschools in the People’s Republic of China and Canada.

Rewards

Trading at 77.5% below its fair value

Earnings are forecast to grow 13.9% per year

Earnings grew by 21% over the past year

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has China Maple Leaf Educational Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1317 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

1317

1.4%

HK Consumer Services

3.7%

HK Market


1 Year Return

-15.4%

1317

1.9%

HK Consumer Services

2.4%

HK Market

Return vs Industry: 1317 underperformed the Hong Kong Consumer Services industry which returned 1.9% over the past year.

Return vs Market: 1317 underperformed the Hong Kong Market which returned 2.4% over the past year.


Shareholder returns

1317IndustryMarket
7 Day2.2%1.4%3.7%
30 Day15.1%0.8%4.2%
90 Day6.6%5.9%1.1%
1 Year-13.0%-15.4%4.0%1.9%6.0%2.4%
3 Year19.7%12.1%-16.8%-20.7%25.6%12.9%
5 Year216.2%185.4%27.3%16.7%23.2%2.5%

Price Volatility Vs. Market

How volatile is China Maple Leaf Educational Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Maple Leaf Educational Systems 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: 1317 (HK$2.74) is trading below our estimate of fair value (HK$12.18)

Significantly Below Fair Value: 1317 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1317 is good value based on its PE Ratio (11.1x) compared to the Consumer Services industry average (14.6x).

PE vs Market: 1317 is poor value based on its PE Ratio (11.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1317 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 1317 is good value based on its PB Ratio (1.8x) compared to the HK Consumer Services industry average (1.8x).


Next Steps

Future Growth

How is China Maple Leaf Educational Systems forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1317's forecast earnings growth (13.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1317's earnings (13.9% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: 1317's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1317's revenue (14.6% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 1317's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1317's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has China Maple Leaf Educational Systems performed over the past 5 years?

34.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1317 has high quality earnings.

Growing Profit Margin: 1317's current net profit margins (41.8%) are higher than last year (40.5%).


Past Earnings Growth Analysis

Earnings Trend: 1317's earnings have grown significantly by 34.8% per year over the past 5 years.

Accelerating Growth: 1317's earnings growth over the past year (21%) is below its 5-year average (34.8% per year).

Earnings vs Industry: 1317 earnings growth over the past year (21%) exceeded the Consumer Services industry 13.2%.


Return on Equity

High ROE: 1317's Return on Equity (15.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Maple Leaf Educational Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 1317's short term assets (CN¥3.0B) exceed its short term liabilities (CN¥2.0B).

Long Term Liabilities: 1317's short term assets (CN¥3.0B) exceed its long term liabilities (CN¥259.0M).


Debt to Equity History and Analysis

Debt Level: 1317's debt to equity ratio (7.8%) is considered satisfactory.

Reducing Debt: 1317's debt to equity ratio has reduced from 144.6% to 7.8% over the past 5 years.

Debt Coverage: 1317's debt is well covered by operating cash flow (258.9%).

Interest Coverage: 1317 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1317 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1317's debt is covered by short term assets (assets are 9.2x debt).


Next Steps

Dividend

What is China Maple Leaf Educational Systems's current dividend yield, its reliability and sustainability?

4.09%

Current Dividend Yield


Upcoming Dividend Payment

Purchase China Maple Leaf Educational Systems before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.1%marketbottom25%2.2%markettop25%6.2%industryaverage2.3%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: 1317's dividend (4.09%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 1317's dividend (4.09%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.17%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1317 has been paying a dividend for less than 10 years.

Growing Dividend: 1317's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.3%), 1317's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1317's dividends in 3 years are forecast to be well covered by earnings (40.8% payout ratio).


Next Steps

Management

What is the CEO of China Maple Leaf Educational Systems's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Sherman Jen (65yo)

3.3yrs

Tenure

CN¥3,612,000

Compensation

Mr. Shu Liang Jen, also known as Sherman, has been the President of China Operations at China Maple Leaf Educational Systems Limited since September 1, 2016 and has been its Chairman since 2007. Mr. Jen is ...


CEO Compensation Analysis

Compensation vs Market: Sherman's total compensation ($USD517.55K) is about average for companies of similar size in the Hong Kong market ($USD477.59K).

Compensation vs Earnings: Sherman's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

65yo

Average Age

Experienced Management: 1317's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

67yo

Average Age

Experienced Board: 1317's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: 1317 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyHK$743,99922 Oct 19
Howard Balloch
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares300,000
Max PriceHK$2.48
SellHK$456,28030 Sep 19
James William Beeke
EntityIndividual
Role
Member of the Board of Directors
VP, Superintendent of Global Education & Executive Director
Shares187,000
Max PriceHK$2.44
BuyHK$48,80030 Sep 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares20,000
Max PriceHK$2.44
BuyHK$2,450,00013 Aug 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,000,000
Max PriceHK$2.45
BuyHK$7,947,88905 Aug 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares3,000,000
Max PriceHK$2.65
BuyHK$2,848,19701 Aug 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,000,000
Max PriceHK$2.85
SellHK$1,193,64019 Jul 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares406,000
Max PriceHK$2.94
BuyHK$4,686,36019 Jul 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,594,000
Max PriceHK$2.94
BuyHK$8,061,21017 Jul 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,742,000
Max PriceHK$2.94
BuyHK$814,20015 Jul 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares276,000
Max PriceHK$2.95
BuyHK$5,008,54310 Jun 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,700,000
Max PriceHK$2.95
BuyHK$5,082,06506 Jun 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,696,000
Max PriceHK$3.00
BuyHK$7,483,49805 Jun 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,500,000
Max PriceHK$2.99
BuyHK$308,00029 May 19
Lap Tat Wong
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceHK$3.08
BuyHK$314,00029 May 19
Lap Tat Wong
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceHK$3.14
BuyHK$14,778,02016 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares4,630,000
Max PriceHK$3.19
BuyHK$3,146,69916 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,000,000
Max PriceHK$3.15
BuyHK$4,963,95007 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,500,000
Max PriceHK$3.31
BuyHK$7,745,79403 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,000,000
Max PriceHK$3.87
BuyHK$3,759,06003 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,026,000
Max PriceHK$3.66
BuyHK$7,191,20203 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,000,000
Max PriceHK$3.60
BuyHK$3,310,29928 Jan 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,000,000
Max PriceHK$3.31
BuyHK$5,910,74520 Dec 18
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,850,000
Max PriceHK$3.19

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Management Team

  • Sherman Jen (65yo)

    Founder

    • Tenure: 3.3yrs
    • Compensation: CN¥3.61m
  • Jingxia Zhang (62yo)

    Senior VP

    • Tenure: 11.8yrs
    • Compensation: CN¥2.26m
  • James William Beeke (69yo)

    VP, Superintendent of Global Education & Executive Director

    • Tenure: 5.7yrs
    • Compensation: CN¥1.18m
  • Karl Dick

    Principal

    • Tenure: 0yrs
  • Brad Helgason

    Principal

    • Tenure: 0yrs
  • Graham Setters

    Principal

    • Tenure: 0yrs
  • Nigel Austen

    Principal

    • Tenure: 4.3yrs
  • Mark Wuerch

    Principal

    • Tenure: 4.3yrs
  • Dave Brecht

    Principal

    • Tenure: 4.3yrs
  • Ryan Waurynchuk

    Principal

    • Tenure: 0yrs

Board Members

  • Howard Balloch (67yo)

    Vice Chairman

    • Tenure: 2.9yrs
    • Compensation: CN¥840.00k
  • Sherman Jen (65yo)

    Founder

    • Tenure: 3.3yrs
    • Compensation: CN¥3.61m
  • Jingxia Zhang (62yo)

    Senior VP

    • Tenure: 11.8yrs
    • Compensation: CN¥2.26m
  • James William Beeke (69yo)

    VP, Superintendent of Global Education & Executive Director

    • Tenure: 5.7yrs
    • Compensation: CN¥1.18m
  • Arthur Wong (59yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: CN¥709.00k
  • Alan Shaver (72yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Peter Humphrey Owen (72yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: CN¥695.00k

Company Information

China Maple Leaf Educational Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Maple Leaf Educational Systems Limited
  • Ticker: 1317
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$8.207b
  • Shares outstanding: 3.00b
  • Website: https://www.mapleleaf.cn

Number of Employees


Location

  • China Maple Leaf Educational Systems Limited
  • Maple Leaf Educational Park
  • 6 Central Street
  • Dalian
  • Liaoning Province
  • 116650
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1317SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary sharesHKHKDNov 2014
CML1DB (Deutsche Boerse AG)YesOrdinary sharesDEEURNov 2014
1317SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary sharesHKHKDNov 2014
CMLL.FOTCPK (Pink Sheets LLC)YesOrdinary sharesUSUSDNov 2014

Biography

China Maple Leaf Educational Systems Limited, together with its subsidiaries, operates bilingual private schools and preschools in the People’s Republic of China and Canada. The company offers dual-diploma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:56
End of Day Share Price2019/12/13 00:00
Earnings2019/08/31
Annual Earnings2019/08/31


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.