SEHK:1569

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued with high growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1569 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

1569

-1.2%

HK Consumer Services

-3.2%

HK Market


1 Year Return

-31.9%

1569

-3.5%

HK Consumer Services

-10.2%

HK Market

Return vs Industry: 1569 underperformed the Hong Kong Consumer Services industry which returned -1.5% over the past year.

Return vs Market: 1569 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1569IndustryMarket
7 Day-2.3%-1.2%-3.2%
30 Day-8.0%3.1%-3.3%
90 Day-3.8%8.4%0.2%
1 Year-31.9%-31.9%-1.4%-3.5%-6.9%-10.2%
3 Yearn/a-8.7%-13.4%11.7%0.4%
5 Yearn/a28.2%17.9%11.1%-7.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Minsheng Education Group 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: 1569 (HK$1.27) is trading below our estimate of fair value (HK$3.76)

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


Price To Earnings Ratio

PE vs Industry: 1569 is good value based on its PE Ratio (14.3x) compared to the Consumer Services industry average (16.3x).

PE vs Market: 1569 is poor value based on its PE Ratio (14.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1569 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1569 is good value based on its PB Ratio (1.3x) compared to the HK Consumer Services industry average (2x).


Next Steps

Future Growth

How is Minsheng Education Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1569's forecast earnings growth (22.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1569's earnings (22.9% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

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

Revenue vs Market: 1569's revenue (26.1% per year) is forecast to grow faster than the Hong Kong market (9.6% per year).

High Growth Revenue: 1569's revenue (26.1% per year) is forecast to grow faster 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 (11.7%).


Next Steps

Past Performance

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

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1569 has a high level of non-cash earnings.

Growing Profit Margin: 1569's current net profit margins (38.6%) are lower than last year (58.7%).


Past Earnings Growth Analysis

Earnings Trend: 1569's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: 1569's earnings growth over the past year (1.7%) is below its 5-year average (13.6% per year).

Earnings vs Industry: 1569 earnings growth over the past year (1.7%) underperformed the Consumer Services industry 15.4%.


Return on Equity

High ROE: 1569's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Minsheng Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1569's short term assets (CN¥836.8M) exceed its short term liabilities (CN¥810.7M).

Long Term Liabilities: 1569's short term assets (CN¥836.8M) do not cover its long term liabilities (CN¥1.8B).


Debt to Equity History and Analysis

Debt Level: 1569's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1569's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1569's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: 1569's interest payments on its debt are well covered by EBIT (17.9x coverage).


Balance Sheet

Inventory Level: 1569 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1569's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

0.41%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage2.1%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1569's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1569's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1569's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1569's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1569's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Weiping Zhang (54yo)

3.5yrs

Tenure

CN¥12,447,000

Compensation

Ms. Zhang Weiping has been Chief Executive Officer and Executive Director at Minsheng Education Group Company Limited since August 2016 and July 2008 respectively. Ms. Zhang joined Minsheng Education Group ...


CEO Compensation Analysis

Compensation vs Market: Weiping's total compensation ($USD1.77M) is above average for companies of similar size in the Hong Kong market ($USD469.84K).

Compensation vs Earnings: Weiping's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Xuechun Li
Chairman of the Board14.1yrsCN¥2.35m74.67% CN¥3.8b
Weiping Zhang
CEO & Executive Director3.5yrsCN¥12.45mno data
Yichen Zuo
President3.5yrsCN¥3.89mno data
Ngai Lung Lam
CFO & Executive Director3.5yrsCN¥3.22mno data
Wing Shan Ng
Company Secretary3.4yrsno datano data
Wei Wang
Financial Director and Head of Finance Dept - Chongqing College of Humanities0yrsno datano data

3.5yrs

Average Tenure

47yo

Average Age

Experienced Management: 1569's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xuechun Li
Chairman of the Board14.1yrsCN¥2.35m74.67% CN¥3.8b
Weiping Zhang
CEO & Executive Director3.5yrsCN¥12.45mno data
Yichen Zuo
President3.5yrsCN¥3.89mno data
Ngai Lung Lam
CFO & Executive Director3.5yrsCN¥3.22mno data
Ngai Sang Chan
Independent Non-Executive Director2.9yrsCN¥201.00kno data
Wei Hung Wang
Independent Non-Executive Director2.9yrsCN¥201.00kno data
Kaihua Lin
Non-Executive Director2.7yrsno datano data
Huangcheng Yu
Independent Non-Executive Director2.9yrsCN¥201.00kno data
Yanping Li
Non-Executive Director2.7yrsCN¥418.00kno data

2.9yrs

Average Tenure

54yo

Average Age

Experienced Board: 1569's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


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 company bio, 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
  • Market Cap: HK$5.103b
  • Shares outstanding: 4.02b
  • Website: https://www.minshengedu.com

Number of Employees


Location

  • Minsheng Education Group Company Limited
  • Full Tower
  • Room 301
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1569SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2017
MEGBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMar 2017
1569SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2017
1569SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2017

Biography

Minsheng Education Group Company Limited, an investment holding company, provides educational services in the People's Republic of China. The company operates six higher education schools, two secondary vocational schools, and two high schools. It also provides 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; and asset management, and project investment and management services. In addition, the company invests in education projects, as well as develops real estate properties. Minsheng Education Group Company Limited was incorporated in 2005 and is headquartered in Beijing, the People's Republic of China. Minsheng Education Group Company Limited is a subsidiary of Minsheng Group Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 13:24
End of Day Share Price2020/02/25 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.