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1569

Minsheng Education Group SEHK:1569 Stock Report

Last Price

HK$0.69

Market Cap

HK$2.9b

7D

11.3%

1Y

-44.4%

Updated

09 Aug, 2022

Data

Company Financials +
1569 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance5/6
Financial Health5/6
Dividends2/6

1569 Stock Overview

Minsheng Education Group Company Limited, an investment holding company, provides educational services in the People's Republic of China.

Minsheng Education Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Minsheng Education Group
Historical stock prices
Current Share PriceHK$0.69
52 Week HighHK$1.39
52 Week LowHK$0.52
Beta0.65
1 Month Change-4.17%
3 Month Change1.47%
1 Year Change-44.36%
3 Year Change-50.00%
5 Year Change-33.65%
Change since IPO-54.31%

Recent News & Updates

Aug 09
Be Wary Of Minsheng Education Group (HKG:1569) And Its Returns On Capital

Be Wary Of Minsheng Education Group (HKG:1569) And Its Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...

Jul 14
Minsheng Education Group (HKG:1569) Is Increasing Its Dividend To CN¥0.0532

Minsheng Education Group (HKG:1569) Is Increasing Its Dividend To CN¥0.0532

Minsheng Education Group Company Limited ( HKG:1569 ) will increase its dividend from last year's comparable payment on...

Jun 14
Minsheng Education Group (HKG:1569) Will Pay A Larger Dividend Than Last Year At HK$0.053

Minsheng Education Group (HKG:1569) Will Pay A Larger Dividend Than Last Year At HK$0.053

Minsheng Education Group Company Limited's ( HKG:1569 ) dividend will be increasing to HK$0.053 on 22nd of August. This...

Shareholder Returns

1569HK Consumer ServicesHK Market
7D11.3%2.9%0.2%
1Y-44.4%-39.0%-21.9%

Return vs Industry: 1569 underperformed the Hong Kong Consumer Services industry which returned -39% over the past year.

Return vs Market: 1569 underperformed the Hong Kong Market which returned -21.9% over the past year.

Price Volatility

Is 1569's price volatile compared to industry and market?
1569 volatility
1569 Average Weekly Movement8.5%
Consumer Services Industry Average Movement8.4%
Market Average Movement6.6%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 1569 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1569's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20057,470Weiping Zhanghttps://www.minshengedu.com

Minsheng Education Group Company Limited, an investment holding company, provides educational services in the People's Republic of China. The company operates 7 higher education institutions, 2 secondary vocational schools, and 1 high school. It also provides undergraduate and junior college education services; education management and services; disease diagnosis and treatment services; university and college logistics services; rental and business management services; investment management and services; education consulting and management services; technical training; technology development; and asset management, and project investment and management services.

Minsheng Education Group Fundamentals Summary

How do Minsheng Education Group's earnings and revenue compare to its market cap?
1569 fundamental statistics
Market CapCN¥2.50b
Earnings (TTM)CN¥576.89m
Revenue (TTM)CN¥2.39b

4.3x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1569 income statement (TTM)
RevenueCN¥2.39b
Cost of RevenueCN¥1.04b
Gross ProfitCN¥1.36b
Other ExpensesCN¥780.08m
EarningsCN¥576.89m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 17, 2022

Earnings per share (EPS)0.14
Gross Margin56.68%
Net Profit Margin24.10%
Debt/Equity Ratio37.1%

How did 1569 perform over the long term?

See historical performance and comparison

Dividends

7.5%

Current Dividend Yield

32%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1569 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1569?

Other financial metrics that can be useful for relative valuation.

1569 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA2.2x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

How does 1569's PE Ratio compare to its peers?

1569 PE Ratio vs Peers
The above table shows the PE ratio for 1569 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.4x
382 Edvantage Group Holdings
4.1x9.9%HK$2.3b
1969 China Chunlai Education Group
4.9xn/aHK$3.9b
2001 China New Higher Education Group
5.1x10.2%HK$3.7b
1890 China Kepei Education Group
7.5x22.6%HK$3.6b
1569 Minsheng Education Group
4.3x22.1%HK$2.9b

Price-To-Earnings vs Peers: 1569 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the peer average (5.4x).


Price to Earnings Ratio vs Industry

How does 1569's PE Ratio compare vs other companies in the HK Consumer Services Industry?

Price-To-Earnings vs Industry: 1569 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the Hong Kong Consumer Services industry average (7.8x)


Price to Earnings Ratio vs Fair Ratio

What is 1569's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1569 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.3x
Fair PE Ratio10.8x

Price-To-Earnings vs Fair Ratio: 1569 is good value based on its Price-To-Earnings Ratio (4.3x) compared to the estimated Fair Price-To-Earnings Ratio (10.8x).


Share Price vs Fair Value

What is the Fair Price of 1569 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1569 (HK$0.69) is trading below our estimate of fair value (HK$2.26)

Significantly Below Fair Value: 1569 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1569's forecast earnings growth (22.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1569's earnings (22.1% per year) are forecast to grow faster than the Hong Kong market (16.7% per year).

High Growth Earnings: 1569's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1569's revenue (11.3% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1569's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1569's Return on Equity is forecast to be low in 3 years time (18.1%).


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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1569 has high quality earnings.

Growing Profit Margin: 1569's current net profit margins (24.1%) are higher than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: 1569's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: 1569's earnings growth over the past year (338.8%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: 1569 earnings growth over the past year (338.8%) exceeded the Consumer Services industry 16.7%.


Return on Equity

High ROE: 1569's Return on Equity (12.7%) is considered low.


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Financial Health

How is Minsheng Education Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1569's short term assets (CN¥3.9B) exceed its short term liabilities (CN¥3.3B).

Long Term Liabilities: 1569's short term assets (CN¥3.9B) exceed its long term liabilities (CN¥3.3B).


Debt to Equity History and Analysis

Debt Level: 1569 has more cash than its total debt.

Reducing Debt: 1569's debt to equity ratio has increased from 8.7% to 37.1% over the past 5 years.

Debt Coverage: 1569's debt is well covered by operating cash flow (46.7%).

Interest Coverage: 1569's interest payments on its debt are well covered by EBIT (14.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


7.55%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1569's dividend (7.55%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.84%).

High Dividend: 1569's dividend (7.55%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.38%).


Stability and Growth of Payments

Stable Dividend: 1569 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1569's dividend payments have increased, but the company has only paid a dividend for 2 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.6%), 1569's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (95.2%), 1569's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.1yrs

Average management tenure


CEO

Weiping Zhang (57 yo)

6yrs

Tenure

CN¥8,758,000

Compensation

Ms. Weiping Zhang has been Vice Chairperson of the Board at Minsheng Education Group Company Limited since July 20, 2020. Ms. Zhang has been Chief Executive Officer and Executive Director at Minsheng Educa...


CEO Compensation Analysis

Compensation vs Market: Weiping's total compensation ($USD1.30M) is above average for companies of similar size in the Hong Kong market ($USD417.58K).

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


Leadership Team

Experienced Management: 1569's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: 1569's board of directors are considered experienced (5.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Minsheng Education Group Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Minsheng Education Group Company Limited
  • Ticker: 1569
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Education Services
  • Sector: Consumer Services
  • Implied Market Cap: HK$2.910b
  • Shares outstanding: 4.22b
  • Website: https://www.minshengedu.com

Number of Employees


Location

  • Minsheng Education Group Company Limited
  • United Shanxi Merchants Tower
  • 6th Floor
  • Beijing
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.