SEHK:1598

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China 21st Century Education Group

Executive Summary

China 21st Century Education Group Limited, an investment holding company, provides education and college management services in the People’s Republic of China. More Details


Snowflake Analysis

Very undervalued with high growth potential.

Share Price & News

How has China 21st Century Education Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1598 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1598's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

16.1%

1598

0.8%

HK Consumer Services

1.1%

HK Market


1 Year Return

-12.2%

1598

32.2%

HK Consumer Services

8.2%

HK Market

Return vs Industry: 1598 underperformed the Hong Kong Consumer Services industry which returned 29.8% over the past year.

Return vs Market: 1598 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

1598IndustryMarket
7 Day16.1%0.8%1.1%
30 Day10.8%9.8%7.2%
90 Day7.5%-7.0%5.2%
1 Year-8.9%-12.2%34.8%32.2%12.6%8.2%
3 Yearn/a-0.07%-6.2%0.4%-10.0%
5 Yearn/a13.7%4.2%30.6%8.5%

Long-Term Price Volatility Vs. Market

How volatile is China 21st Century Education Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China 21st Century 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: 1598 (HK$0.72) is trading below our estimate of fair value (HK$10.29)

Significantly Below Fair Value: 1598 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1598 is good value based on its PE Ratio (10.8x) compared to the HK Consumer Services industry average (17.7x).

PE vs Market: 1598 is good value based on its PE Ratio (10.8x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1598 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 1598 is good value based on its PB Ratio (1.1x) compared to the HK Consumer Services industry average (2.1x).


Next Steps

Future Growth

How is China 21st Century Education Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1598's forecast earnings growth (40.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 1598's earnings (40.4% per year) are forecast to grow faster than the Hong Kong market (21.9% per year).

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

Revenue vs Market: 1598's revenue (22.6% per year) is forecast to grow faster than the Hong Kong market (13.7% per year).

High Growth Revenue: 1598's revenue (22.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1598's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China 21st Century Education Group performed over the past 5 years?

21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1598 has high quality earnings.

Growing Profit Margin: 1598's current net profit margins (29.5%) are lower than last year (41.4%).


Past Earnings Growth Analysis

Earnings Trend: 1598's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: 1598's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1598 had negative earnings growth (-24.6%) over the past year, making it difficult to compare to the Consumer Services industry average (6.7%).


Return on Equity

High ROE: 1598's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is China 21st Century Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1598's short term assets (CN¥613.1M) exceed its short term liabilities (CN¥210.8M).

Long Term Liabilities: 1598's short term assets (CN¥613.1M) exceed its long term liabilities (CN¥138.9M).


Debt to Equity History and Analysis

Debt Level: 1598's debt to equity ratio (20.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1598's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1598's debt is well covered by operating cash flow (168.4%).

Interest Coverage: 1598 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is China 21st Century Education Group current dividend yield, its reliability and sustainability?

3.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1598's dividend (3.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 1598's dividend (3.07%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1598's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1598'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 (35.2%), 1598's dividend payments are well 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

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

3.8yrs

Average management tenure


CEO

Hongwei Liu (37 yo)

1.83yrs

Tenure

CN¥299,000

Compensation

Ms. Hongwei Liu has been Chief Executive Officer at China 21st Century Education Group Limited since January 7, 2019 and its Executive Director since January 19, 2017. She joined China 21st Century Educati...


CEO Compensation Analysis

Compensation vs Market: Hongwei's total compensation ($USD45.47K) is below average for companies of similar size in the Hong Kong market ($USD230.00K).

Compensation vs Earnings: Hongwei's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yunong Li
Chairman of the Board3.83yrsCN¥307.00k72.59%
CN¥ 584.7m
Hongwei Liu
CEO & Executive Director1.83yrsCN¥299.00kno data
Zhanjie Liu
Vice Chairman of the Board1.83yrsCN¥463.00kno data
Caiyin Ren
Executive VP3.83yrsCN¥274.00kno data
Li Yang
Executive Director3.75yrsCN¥217.00kno data
Yongsheng Wang
CFO & VP5yrsno datano data
Min Xu
Executive VP & COO1.83yrsno datano data
Lijing Wang
Executive VP & President of Quality-Oriented Education Segment4.42yrsno datano data
Sau Ping Wong
Joint Company Secretary3.08yrsno datano data
Tieqiu Zheng
Joint Company Secretary & Assistant to the CEO1.83yrsno datano data

3.8yrs

Average Tenure

44yo

Average Age

Experienced Management: 1598's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yunong Li
Chairman of the Board3.83yrsCN¥307.00k72.59%
CN¥ 584.7m
Hongwei Liu
CEO & Executive Director1.83yrsCN¥299.00kno data
Zhanjie Liu
Vice Chairman of the Board1.83yrsCN¥463.00kno data
Caiyin Ren
Executive VP3.83yrsCN¥274.00kno data
Li Yang
Executive Director3.75yrsCN¥217.00kno data
Joseph Jason Wan
Independent Non-Executive Director1.67yrsCN¥53.00kno data
Litian Guo
Independent Non-Executive Director3.83yrsCN¥60.00kno data
Zhijun Yao
Independent Non-Executive Director3.83yrsCN¥60.00kno data
Yixian Yin
Independent Non-Executive Directorno datano datano data

3.8yrs

Average Tenure

47.5yo

Average Age

Experienced Board: 1598's board of directors are considered experienced (3.8 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

China 21st Century Education Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China 21st Century Education Group Limited
  • Ticker: 1598
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$805.379m
  • Shares outstanding: 1.17b
  • Website: https://www.21centuryedu.com

Number of Employees


Location

  • China 21st Century Education Group Limited
  • Zhongdian Information Building
  • 8th Floor
  • Shijiazhuang
  • Hebei Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1598SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2018

Biography

China 21st Century Education Group Limited, an investment holding company, provides education and college management services in the People’s Republic of China. It operates through two segments: Vocational...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:20
End of Day Share Price2020/11/26 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.