SEHK:1758

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1758 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

1758

0.4%

HK Consumer Services

-2.1%

HK Market


1 Year Return

-65.5%

1758

-3.5%

HK Consumer Services

-9.8%

HK Market

Return vs Industry: 1758 underperformed the Hong Kong Consumer Services industry which returned -3.5% over the past year.

Return vs Market: 1758 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

1758IndustryMarket
7 Day-2.0%0.4%-2.1%
30 Day1.1%3.8%-3.2%
90 Day-3.0%11.7%0.09%
1 Year-65.5%-65.5%-1.5%-3.5%-6.5%-9.8%
3 Yearn/a10.1%4.3%11.6%0.3%
5 Yearn/a20.4%11.4%11.7%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1758's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1758's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1758 is good value based on its PE Ratio (13.4x) compared to the Consumer Services industry average (15.9x).

PE vs Market: 1758 is poor value based on its PE Ratio (13.4x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1758's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1758 is good value based on its PB Ratio (0.4x) compared to the HK Consumer Services industry average (1.8x).


Next Steps

Future Growth

How is Bojun Education forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

28.0%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bojun Education has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Bojun Education performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1758 has a high level of non-cash earnings.

Growing Profit Margin: 1758's current net profit margins (7.9%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: 1758's earnings have declined by -5% per year over the past 5 years.

Accelerating Growth: 1758's earnings growth over the past year (59.1%) exceeds its 5-year average (-5% per year).

Earnings vs Industry: 1758 earnings growth over the past year (59.1%) exceeded the Consumer Services industry 15.4%.


Return on Equity

High ROE: 1758's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bojun Education's financial position?


Financial Position Analysis

Short Term Liabilities: 1758's short term assets (CN¥437.5M) do not cover its short term liabilities (CN¥899.1M).

Long Term Liabilities: 1758's short term assets (CN¥437.5M) exceed its long term liabilities (CN¥69.7M).


Debt to Equity History and Analysis

Debt Level: 1758's debt to equity ratio (16.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1758's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1758's debt is well covered by operating cash flow (74.2%).

Interest Coverage: 1758's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet

Inventory Level: 1758 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1758's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1758's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1758'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 1758's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1758'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 1758'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?

1.5yrs

Average management tenure


CEO

Tao Ran (46yo)

1.6yrs

Tenure

CN¥327,000

Compensation

Mr. Ran Tao, has been Executive Director of Bojun Education Company Limited since October 13, 2016 and was appointed as the Chief Executive Officer in July 2018. Mr. Ran is responsible for Bojun Education ...


CEO Compensation Analysis

Compensation vs Market: Tao's total compensation ($USD46.62K) is below average for companies of similar size in the Hong Kong market ($USD225.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tao Xiong
Chairman3.3yrsCN¥356.00k25.93% CN¥102.3m
Tao Ran
CEO & Executive Director1.6yrsCN¥327.00k15.01% CN¥59.2m
Rong Liao
Executive Director3.3yrsCN¥279.00k10.12% CN¥39.9m
Chunguo Wang
Chief Financial Officer0.4yrsno datano data
Bohan Jiang
Principal of Jinjiang School0yrsno datano data
Bicong Duan
Principal of Pengzhou Bojun School1.4yrsno datano data
Wai Kei Lam
Company Secretary1.6yrsno datano data

1.5yrs

Average Tenure

54yo

Average Age

Experienced Management: 1758's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tao Xiong
Chairman3.3yrsCN¥356.00k25.93% CN¥102.3m
Tao Ran
CEO & Executive Director1.6yrsCN¥327.00k15.01% CN¥59.2m
Rong Liao
Executive Director3.3yrsCN¥279.00k10.12% CN¥39.9m
Tai Kwan Cheng
Independent Non-Executive Director1.6yrsCN¥157.00kno data
Jiwei Wu
Non-Executive Director0.4yrsno data0.0056% CN¥22.1k
Daowei Mao
Independent Non-Executive Director1.6yrsCN¥60.00kno data
Yunping Luo
Independent Non-Executive Director1.6yrsCN¥60.00kno data
Yuan Yang
Independent Non-Executive Director0.4yrsno datano data

1.6yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1758's board of directors are not considered experienced ( 1.6 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: 1758 insiders have only sold shares 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 33.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Bojun Education Company Limited
  • Ticker: 1758
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$394.491m
  • Shares outstanding: 821.86m
  • Website: https://bojuneducation.com

Number of Employees


Location

  • Bojun Education Company Limited
  • No. 288 Jingan Road
  • Jinjiang District
  • Chengdu
  • Sichuan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1758SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018

Biography

Bojun Education Company Limited, an investment holding company, provides private education services in the People’s Republic of China. It operates through two segments, Preschool Education and Degree Education. The company provides education services to kindergarten, as well as primary, middle, and high schools students. As of September 1, 2019, it operated 11 schools, which include 6 kindergartens, 1 primary and middle school, 2 middle schools, and 1 middle and high school in Chengdu, as well as 1 primary and middle school each in Bazhong, Guangyuan, and Ziyang. It also offers education consultancy and management services. The company was founded in 2001 and is headquartered in Chengdu, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:17
End of Day Share Price2020/02/25 00:00
Earnings2019/08/31
Annual Earnings2019/08/31


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.