SEHK:1565

Stock Analysis Report

Executive Summary

Virscend Education Company Limited, an investment holding company, provides K-12 private education services in the People’s Republic of China.

Snowflake

Fundamentals

Exceptional growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.1%

1565

1.1%

HK Consumer Services

0.3%

HK Market


1 Year Return

-46.2%

1565

1.4%

HK Consumer Services

1.3%

HK Market

Return vs Industry: 1565 underperformed the Hong Kong Consumer Services industry which returned 1.4% over the past year.

Return vs Market: 1565 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1565IndustryMarket
7 Day-2.1%1.1%0.3%
30 Day1.3%4.9%0.5%
90 Day-12.7%4.6%-4.6%
1 Year-45.5%-46.2%3.4%1.4%4.9%1.3%
3 Year-38.1%-40.8%4.6%-0.8%15.3%3.7%
5 Yearn/a10.7%2.2%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Virscend Education's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Virscend Education undervalued compared to its fair value and its price relative to the market?

17.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1565 (HK$2.34) is trading above our estimate of fair value (HK$1.9)

Significantly Below Fair Value: 1565 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1565 is good value based on its PE Ratio (17.2x) compared to the Consumer Services industry average (17.2x).

PE vs Market: 1565 is poor value based on its PE Ratio (17.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1565 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 1565 is overvalued based on its PB Ratio (2.4x) compared to the HK Consumer Services industry average (2x).


Next Steps

Future Growth

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

35.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1565's forecast earnings growth (35.3% per year) is above the savings rate (2%).

Earnings vs Market: 1565's earnings (35.3% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 1565's revenue (23.5% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1565's revenue (23.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1565's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Virscend Education performed over the past 5 years?

29.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1565's earnings have grown significantly by 29.9% per year over the past 5 years.

Accelerating Growth: 1565's earnings growth over the past year (11%) is below its 5-year average (29.9% per year).

Earnings vs Industry: 1565 earnings growth over the past year (11%) underperformed the Consumer Services industry 14.4%.


Return on Equity

High ROE: 1565's Return on Equity (14.1%) is considered low.


Return on Assets

ROA vs Industry: 1565 has a higher Return on Assets than the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: 1565 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Virscend Education's financial position?


Financial Position Analysis

Short Term Liabilities: 1565's short term assets (CN¥1.1B) do not cover its short term liabilities (CN¥1.5B)

Long Term Liabilities: 1565's short term assets (1.1B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: 1565's debt to equity ratio (45.3%) is considered high

Reducing Debt: 1565's debt to equity ratio has reduced from 217% to 45.3% over the past 5 years.

Debt Coverage: 1565's debt is well covered by operating cash flow (39.6%).

Interest Coverage: 1565's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet

Inventory Level: 1565 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1565's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

3.41%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Virscend Education before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.4%marketbottom25%2.3%markettop25%6.2%industryaverage2.3%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1565's dividend (3.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1565's dividend (3.41%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 1565 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1565's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.3%), 1565's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Yude Yan (57yo)

0.9yrs

Tenure

CN¥865,000

Compensation

Mr. Yude Yan has been Executive Director at Virscend Education Company Limited since August 31, 2015 and also it's Chief Executive Officer since November 15, 2018. He served as its Director since March 13, ...


CEO Compensation Analysis

Compensation vs. Market: Yude has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Management Age and Tenure

4.1yrs

Average Tenure

57yo

Average Age

Experienced Management: 1565's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 1565's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: 1565 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥1,442,58730 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares610,000
Max PriceCN¥2.36
BuyCN¥1,118,73527 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares480,000
Max PriceCN¥2.33
BuyCN¥471,60027 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares200,000
Max PriceCN¥2.36
BuyCN¥559,63127 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares240,000
Max PriceCN¥2.33
BuyCN¥704,64123 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares300,000
Max PriceCN¥2.35
BuyCN¥457,44023 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares200,000
Max PriceCN¥2.29
BuyCN¥110,29019 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares50,000
Max PriceCN¥2.21
BuyCN¥449,74119 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares200,000
Max PriceCN¥2.25
BuyCN¥1,523,81119 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares720,000
Max PriceCN¥2.12
BuyCN¥85,80017 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares39,000
Max PriceCN¥2.20
BuyCN¥606,50917 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares276,000
Max PriceCN¥2.20
BuyCN¥132,82817 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares60,000
Max PriceCN¥2.21
BuyCN¥2,111,61411 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares960,000
Max PriceCN¥2.20
BuyCN¥297,05411 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares135,000
Max PriceCN¥2.20
BuyCN¥735,96611 Sep 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares330,000
Max PriceCN¥2.23
BuyCN¥852,16016 Jul 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares317,000
Max PriceCN¥2.69
BuyCN¥82,40116 Jul 19
Yude Yan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares30,000
Max PriceCN¥2.75

Ownership Breakdown


Management Team

  • Sau Mei Ng (42yo)

    Company Secretary

    • Tenure: 3.9yrs
  • Xiaoying Wang (56yo)

    Chairwoman

    • Tenure: 4.2yrs
    • Compensation: CN¥865.00k
  • Jiayu Ye (59yo)

    Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥865.00k
  • Yude Yan (57yo)

    CEO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥865.00k
  • Juan Zhang (55yo)

    Chief Financial Officer

    • Tenure: 4.2yrs
  • Dajia Yin (72yo)

    President of the University

    • Tenure: 15.5yrs
  • Zhifa Gong (58yo)

    Acting Principal of Chengdu Foreign Languages School

    • Tenure: 4.1yrs
  • Minghua Xiao (61yo)

    Principal of Chengdu Experimental Foreign Languages School (Western Campus)

    • Tenure: 12.1yrs
  • Chaoran Zheng

    Director of Investor Relations

    • Tenure: 0yrs
  • Bangkai Deng (37yo)

    COO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥226.00k

Board Members

  • Kim Sun Chan (37yo)

    Independent Non Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥104.00k
  • Xiaoying Wang (56yo)

    Chairwoman

    • Tenure: 4.2yrs
    • Compensation: CN¥865.00k
  • Jiayu Ye (59yo)

    Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥865.00k
  • Yude Yan (57yo)

    CEO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥865.00k
  • Chiu Wing Sit (68yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥104.00k
  • Ruizheng Wen (74yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥11.00k
  • Bangkai Deng (37yo)

    COO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥226.00k

Company Information

Virscend Education Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Virscend Education Company Limited
  • Ticker: 1565
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$7.228b
  • Shares outstanding: 3.09b
  • Website: https://www.virscendeducation.com

Number of Employees


Location

  • Virscend Education Company Limited
  • No. 23 He Xin Lu
  • Pi County
  • Chengdu
  • Sichuan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1565SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2016

Biography

Virscend Education Company Limited, an investment holding company, provides K-12 private education services in the People’s Republic of China. It operates schools for grades K-12, which include Chengdu For ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:55
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.