SEHK:1569

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Very undervalued with proven track record.

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

-3.4%

1569

3.0%

HK Consumer Services

1.5%

HK Market


1 Year Return

-17.9%

1569

39.7%

HK Consumer Services

0.7%

HK Market

Return vs Industry: 1569 underperformed the Hong Kong Consumer Services industry which returned 42.2% over the past year.

Return vs Market: 1569 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

1569IndustryMarket
7 Day-3.4%3.0%1.5%
30 Day-5.0%-5.5%-3.1%
90 Day0%7.0%2.9%
1 Year-15.7%-17.9%42.5%39.7%4.8%0.7%
3 Year-34.4%-36.1%-1.6%-7.3%-5.6%-15.8%
5 Yearn/a15.2%5.8%24.5%3.4%

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$1.15) is trading below our estimate of fair value (HK$2.51)

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 (10.9x) compared to the HK Consumer Services industry average (19.1x).

PE vs Market: 1569 is good value based on its PE Ratio (10.9x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1569 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1569 is good value based on its PB Ratio (1x) compared to the HK Consumer Services industry average (2.2x).


Next Steps

Future Growth

How is Minsheng Education Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1569's forecast earnings growth (16.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 1569's earnings (16.7% per year) are forecast to grow slower than the Hong Kong market (22.5% per year).

High Growth Earnings: 1569's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1569's revenue (14.6% per year) is forecast to grow faster than the Hong Kong market (13.2% per year).

High Growth Revenue: 1569'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: 1569's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

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

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1569 has high quality earnings.

Growing Profit Margin: 1569's current net profit margins (36.3%) are lower than last year (38.6%).


Past Earnings Growth Analysis

Earnings Trend: 1569's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: 1569's earnings growth over the past year (15.1%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: 1569 earnings growth over the past year (15.1%) exceeded the Consumer Services industry 7.4%.


Return on Equity

High ROE: 1569's Return on Equity (8.7%) is considered low.


Next Steps

Financial Health

How is Minsheng Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1569's short term assets (CN¥1.5B) exceed its short term liabilities (CN¥1.4B).

Long Term Liabilities: 1569's short term assets (CN¥1.5B) do not cover its long term liabilities (CN¥1.6B).


Debt to Equity History and Analysis

Debt Level: 1569's debt to equity ratio (16.4%) is considered satisfactory.

Reducing Debt: 1569's debt to equity ratio has increased from 3.6% to 16.4% over the past 5 years.

Debt Coverage: 1569's debt is well covered by operating cash flow (56.2%).

Interest Coverage: 1569's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1569's dividend (2.58%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1569's dividend (2.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1569's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1569'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 (28.2%), 1569's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1569's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Weiping Zhang (55 yo)

4.08yrs

Tenure

CN¥11,616,000

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 ($USD1.72M) is above average for companies of similar size in the Hong Kong market ($USD463.84K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xuechun Li
Executive Chairman14.67yrsCN¥3.27m71.13%
CN¥ 3.5b
Weiping Zhang
Executive Vice Chairperson of the Board & CEO4.08yrsCN¥11.62mno data
Yichen Zuo
President & Executive Director4.08yrsCN¥3.91mno data
Ngai Lung Lam
CFO & Executive Director4.08yrsCN¥3.22mno data
Derek Yiyi Feng
President0.17yrno datano data
Yu Huang
President0.17yrno datano data
Wing Shan Ng
Company Secretary4yrsno datano data
Wei Wang
Financial Director and Head of Finance Dept - Chongqing College of Humanitiesno datano datano data

2.1yrs

Average Tenure

48yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Xuechun Li
Executive Chairman14.67yrsCN¥3.27m71.13%
CN¥ 3.5b
Weiping Zhang
Executive Vice Chairperson of the Board & CEO4.08yrsCN¥11.62mno data
Yichen Zuo
President & Executive Director4.08yrsCN¥3.91mno data
Ngai Lung Lam
CFO & Executive Director4.08yrsCN¥3.22mno data
Ngai Sang Chan
Independent Non-Executive Director3.5yrsCN¥275.00kno data
Wei Hung Wang
Independent Non-Executive Director3.5yrsCN¥275.00kno data
Kaihua Lin
Non-Executive Director3.25yrsno datano data
Huangcheng Yu
Independent Non-Executive Director3.5yrsCN¥275.00kno data
Yanping Li
Non-Executive Director3.25yrsCN¥492.00kno data

3.5yrs

Average Tenure

55yo

Average Age

Experienced Board: 1569's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 5%.


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$4.850b
  • Shares outstanding: 4.22b
  • Website: https://www.minshengedu.com

Number of Employees


Location

  • Minsheng Education Group Company Limited
  • Full Tower
  • Room 301
  • Beijing
  • Beijing Province
  • 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 seven higher education schools, two secondary ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/17 20:14
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.