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1765

Hope Education Group SEHK:1765 Stock Report

Last Price

HK$0.58

Market Cap

HK$4.7b

7D

-3.3%

1Y

-70.1%

Updated

25 Jun, 2022

Data

Company Financials +
1765 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends2/6

1765 Stock Overview

Hope Education Group Co., Ltd., an investment holding company, provides higher education and secondary vocational education services in China and Malaysia.

Hope Education Group Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Hope Education Group
Historical stock prices
Current Share PriceHK$0.58
52 Week HighHK$2.00
52 Week LowHK$0.42
Beta1.06
1 Month Change33.33%
3 Month Change-27.50%
1 Year Change-70.10%
3 Year Change-47.75%
5 Year Changen/a
Change since IPO-68.98%

Recent News & Updates

Jun 07
What Does Hope Education Group Co., Ltd.'s (HKG:1765) Share Price Indicate?

What Does Hope Education Group Co., Ltd.'s (HKG:1765) Share Price Indicate?

Hope Education Group Co., Ltd. ( HKG:1765 ), might not be a large cap stock, but it received a lot of attention from a...

May 10
Is Hope Education Group (HKG:1765) Using Too Much Debt?

Is Hope Education Group (HKG:1765) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

1765HK Consumer ServicesHK Market
7D-3.3%-6.7%2.1%
1Y-70.1%-51.6%-23.3%

Return vs Industry: 1765 underperformed the Hong Kong Consumer Services industry which returned -51.6% over the past year.

Return vs Market: 1765 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1765's price volatile compared to industry and market?
1765 volatility
1765 Average Weekly Movement11.5%
Consumer Services Industry Average Movement8.9%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 1765 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: 1765's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
200712,491n/ahttps://www.hopeedu.com

Hope Education Group Co., Ltd., an investment holding company, provides higher education and secondary vocational education services in China and Malaysia. The company provides technician education and training, self-study examination, adult education, technical management and consultancy, and other training services, as well as sells textbooks and dormitory beddings. As of August 31, 2021, it owned and operated 22 schools, including 9 colleges and universities, 11 junior colleges, and 2 technician colleges.

Hope Education Group Fundamentals Summary

How do Hope Education Group's earnings and revenue compare to its market cap?
1765 fundamental statistics
Market CapCN¥3.97b
Earnings (TTM)CN¥557.81m
Revenue (TTM)CN¥2.67b

7.1x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1765 income statement (TTM)
RevenueCN¥2.67b
Cost of RevenueCN¥1.36b
Gross ProfitCN¥1.31b
Other ExpensesCN¥751.21m
EarningsCN¥557.81m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.069
Gross Margin49.08%
Net Profit Margin20.91%
Debt/Equity Ratio50.5%

How did 1765 perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

47%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1765 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1765?

Other financial metrics that can be useful for relative valuation.

1765 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/Revenue2.9x
Enterprise Value/EBITDA7.3x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does 1765's PE Ratio compare to its peers?

1765 PE Ratio vs Peers
The above table shows the PE ratio for 1765 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.1x

Price-To-Earnings vs Peers: 1765 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (8.1x).


Price to Earnings Ratio vs Industry

How does 1765's PE Ratio compare vs other companies in the Hong Kong Consumer Services Industry?

Price-To-Earnings vs Industry: 1765 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the Hong Kong Consumer Services industry average (8.3x)


Price to Earnings Ratio vs Fair Ratio

What is 1765'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.

1765 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.1x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: 1765 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).


Share Price vs Fair Value

What is the Fair Price of 1765 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1765 (HK$0.58) is trading below our estimate of fair value (HK$7.25)

Significantly Below Fair Value: 1765 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 1765 is good value based on its PEG Ratio (0.4x)


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Future Growth

How is Hope Education Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1765's forecast earnings growth (17.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 1765's earnings (17.8% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 1765's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1765's revenue (15.3% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1765's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1765's Return on Equity is forecast to be low in 3 years time (11%).


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Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


27.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1765 has a large one-off gain of CN¥810.9M impacting its February 28 2022 financial results.

Growing Profit Margin: 1765's current net profit margins (20.9%) are higher than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: 1765's earnings have grown significantly by 27.1% per year over the past 5 years.

Accelerating Growth: 1765's earnings growth over the past year (72.6%) exceeds its 5-year average (27.1% per year).

Earnings vs Industry: 1765 earnings growth over the past year (72.6%) exceeded the Consumer Services industry 17.3%.


Return on Equity

High ROE: 1765's Return on Equity (6.8%) is considered low.


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Financial Health

How is Hope Education Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1765's short term assets (CN¥2.7B) do not cover its short term liabilities (CN¥6.5B).

Long Term Liabilities: 1765's short term assets (CN¥2.7B) do not cover its long term liabilities (CN¥5.0B).


Debt to Equity History and Analysis

Debt Level: 1765's net debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: 1765's debt to equity ratio has reduced from 431.2% to 50.5% over the past 5 years.

Debt Coverage: 1765's debt is well covered by operating cash flow (34.5%).

Interest Coverage: 1765's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1765's dividend (6.53%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 1765's dividend (6.53%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).


Stability and Growth of Payments

Stable Dividend: 1765 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1765's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (47.3%), 1765's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 1765 is paying a dividend but the company has no free cash flows.


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Management

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

4.3yrs

Average management tenure


CEO

Hope Education Group has no CEO, or we have no data on them.


Leadership Team

Experienced Management: 1765's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: 1765's board of directors are considered experienced (4.6 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

Hope Education Group Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Hope Education Group Co., Ltd.
  • Ticker: 1765
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Education Services
  • Sector: Consumer Services
  • Implied Market Cap: HK$4.656b
  • Shares outstanding: 8.03b
  • Website: https://www.hopeedu.com

Number of Employees


Location

  • Hope Education Group Co., Ltd.
  • Administrative Building
  • 5th Floor, 2000 Xi Qu Avenue
  • Chengdu
  • Sichuan Province
  • 610091
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/02/28
Annual Earnings2021/08/31


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.