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Hope Education Group

SEHK:1765
Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1765
SEHK
HK$7B
Market Cap
  1. Home
  2. HK
  3. Consumer Services
Company description

Hope Education Group Co., Ltd. provides private higher education services in the People’s Republic of China. The last earnings update was 89 days ago. More info.


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1765 Share Price and Events
7 Day Returns
-3.5%
SEHK:1765
1.1%
HK Consumer Services
0.6%
HK Market
1 Year Returns
-
SEHK:1765
-28.6%
HK Consumer Services
-4.5%
HK Market
1765 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hope Education Group (1765) -3.5% 5.8% -10.6% - - -
HK Consumer Services 1.1% 4% -7.9% -28.6% 0.4% 0.8%
HK Market 0.6% 0.4% -7% -4.5% 17.8% 1.1%
1 Year Return vs Industry and Market
  • No trading data on 1765.
  • No trading data on 1765.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Hope Education Group's competitors could be found in our database.

Value

 Is Hope Education Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hope Education Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hope Education Group.

SEHK:1765 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1765
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.741 (1 + (1- 25%) (33.85%))
0.952
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.952 * 5.96%)
7.68%

Discounted Cash Flow Calculation for SEHK:1765 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hope Education Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1765 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 7.68%)
2020 866.00 Analyst x1 804.24
2021 1,064.00 Analyst x1 917.65
2022 1,223.31 Est @ 14.97% 979.81
2023 1,358.88 Est @ 11.08% 1,010.77
2024 1,472.46 Est @ 8.36% 1,017.14
2025 1,567.46 Est @ 6.45% 1,005.55
2026 1,647.67 Est @ 5.12% 981.62
2027 1,716.59 Est @ 4.18% 949.75
2028 1,777.17 Est @ 3.53% 913.14
2029 1,831.75 Est @ 3.07% 874.06
Present value of next 10 years cash flows CN¥9,453.73
SEHK:1765 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥1,831.75 × (1 + 2%) ÷ (7.68% – 2%)
CN¥32,916.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥32,916.23 ÷ (1 + 7.68%)10
CN¥15,706.74
SEHK:1765 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥9,453.73 + CN¥15,706.74
CN¥25,160.47
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥25,160.47 / 6,666.67
CN¥3.77
SEHK:1765 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1765)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥3.77 x 1.135
HK$4.28
Value per share (HKD) From above. HK$4.28
Current discount Discount to share price of HK$1.10
= -1 x (HK$1.10 - HK$4.28) / HK$4.28
74.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hope Education Group is available for.
Intrinsic value
>50%
Share price is HK$1.1 vs Future cash flow value of HK$4.28
Current Discount Checks
For Hope Education Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hope Education Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hope Education Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hope Education Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hope Education Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1765 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.03
SEHK:1765 Share Price ** SEHK (2019-07-22) in HKD HK$1.1
SEHK:1765 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥0.97
Hong Kong Consumer Services Industry PE Ratio Median Figure of 39 Publicly-Listed Consumer Services Companies 15.21x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hope Education Group.

SEHK:1765 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1765 Share Price ÷ EPS (both in CNY)

= 0.97 ÷ 0.03

32.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hope Education Group is overvalued based on earnings compared to the HK Consumer Services industry average.
  • Hope Education Group is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Hope Education Group's expected growth come at a high price?
Raw Data
SEHK:1765 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
37.9%per year
Hong Kong Consumer Services Industry PEG Ratio Median Figure of 17 Publicly-Listed Consumer Services Companies 0.87x
Hong Kong Market PEG Ratio Median Figure of 481 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:1765 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.75x ÷ 37.9%

0.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hope Education Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Hope Education Group's assets?
Raw Data
SEHK:1765 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥0.62
SEHK:1765 Share Price * SEHK (2019-07-22) in HKD HK$1.1
SEHK:1765 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥0.97
Hong Kong Consumer Services Industry PB Ratio Median Figure of 55 Publicly-Listed Consumer Services Companies 2.23x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:1765 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1765 Share Price ÷ Book Value per Share (both in CNY)

= 0.97 ÷ 0.62

1.55x

* Primary Listing of Hope Education Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hope Education Group is good value based on assets compared to the HK Consumer Services industry average.
X
Value checks
We assess Hope Education Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. Hope Education Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hope Education Group expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
37.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hope Education Group expected to grow at an attractive rate?
  • Hope Education Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Hope Education Group's earnings growth is expected to exceed the Hong Kong market average.
  • Hope Education Group's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1765 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1765 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 37.9%
SEHK:1765 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 19%
Hong Kong Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 23.9%
Hong Kong Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 20.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1765 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1765 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,855 1,211 714 5
2020-12-31 1,521 1,002 558 7
2019-12-31 1,270 865 421 7
SEHK:1765 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 1,030 802 168
2018-09-30 963 687 188
2018-06-30 897 572 209
2018-03-31 808 532 191
2017-12-31 752 501 212
2016-12-31 614 446 155

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hope Education Group's earnings are expected to grow significantly at over 20% yearly.
  • Hope Education Group's revenue is expected to grow by 19% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1765 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Hope Education Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1765 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.10 0.12 0.09 4.00
2020-12-31 0.09 0.09 0.08 6.00
2019-12-31 0.07 0.07 0.06 4.00
SEHK:1765 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.03
2018-09-30 0.04
2018-06-30 0.04
2018-03-31 0.04
2017-12-31 0.04
2016-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hope Education Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hope Education Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hope Education Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hope Education Group's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Hope Education Group's year on year earnings growth rate was positive over the past 5 years.
  • Hope Education Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hope Education Group's 1-year earnings growth is negative, it can't be compared to the HK Consumer Services industry average.
Earnings and Revenue History
Hope Education Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hope Education Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1765 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,029.52 167.92 288.26
2018-09-30 963.15 188.48 236.61
2018-06-30 896.78 209.04 175.12
2018-03-31 808.25 191.47 119.99
2017-12-31 752.43 211.71 118.07
2016-12-31 614.40 154.99 101.67
2015-12-31 486.71 65.19 91.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hope Education Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hope Education Group used its assets less efficiently than the HK Consumer Services industry average last year based on Return on Assets.
  • Hope Education Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hope Education Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hope Education Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hope Education Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hope Education Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hope Education Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hope Education Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hope Education Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hope Education Group Company Filings, last reported 6 months ago.

SEHK:1765 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,160.15 2,207.56 3,049.18
2018-09-30 4,160.15 2,207.56 3,049.18
2018-06-30 1,348.36 3,333.92 352.24
2018-03-31 1,220.24 3,124.46 450.85
2017-12-31 679.39 2,860.42 197.44
2016-12-31 494.97 2,147.85 168.25
2015-12-31 249.94 2,144.01 185.96
  • Hope Education Group's level of debt (53.1%) compared to net worth is high (greater than 40%).
  • Unable to establish if Hope Education Group's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (36.4%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Hope Education Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hope Education Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.55%
Current annual income from Hope Education Group dividends. Estimated to be 2.61% next year.
If you bought HK$2,000 of Hope Education Group shares you are expected to receive HK$31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hope Education Group's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Hope Education Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1765 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Hong Kong Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1765 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.03 3.00
2020-12-31 0.03 5.00
2019-12-31 0.02 5.00
SEHK:1765 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.015 1.568

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Hope Education Group has stable dividend payments.
  • Hope Education Group only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Hope Education Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).
X
Income/ dividend checks
We assess Hope Education Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hope Education Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hope Education Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hope Education Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Huiwu Wang
AGE 46
TENURE AS CEO 1.4 years
CEO Bio

Mr. Huiwu Wang serves as co-owner at Hope Education Investment Limited.

CEO Compensation
  • Insufficient data for Huiwu to compare compensation growth.
  • Insufficient data for Huiwu to establish whether their remuneration is reasonable compared to companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Hope Education Group management team in years:

1.4
Average Tenure
49
Average Age
  • The average tenure for the Hope Education Group management team is less than 2 years, this suggests a new team.
Management Team

Changjun Xu

TITLE
Chairman
AGE
62

Huiwu Wang

TITLE
CEO, President & Executive Director
AGE
46
TENURE
1.4 yrs

Xuan He

TITLE
Chief Financial Officer
AGE
49
TENURE
1.4 yrs

Lin Jiang

TITLE
COO & Executive VP
AGE
52
TENURE
1.4 yrs

Tao Li

TITLE
Chief Strategy Officer & Executive Director
AGE
49
TENURE
1.4 yrs

Houyi Chen

TITLE
Senior VP & Education Management Committee Director
AGE
63
TENURE
1.4 yrs

Qunwei Lou

TITLE
Senior Vice President
AGE
50
TENURE
1.4 yrs

Xiao Li

TITLE
Senior Vice President
AGE
39
TENURE
1.4 yrs

Zhongcai Huang

TITLE
VP & Joint Company Secretary
AGE
34
TENURE
0.7 yrs

Sharon Leung

TITLE
Joint Company Secretary
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Hope Education Group board of directors in years:

2.3
Average Tenure
49
Average Age
  • The average tenure for the Hope Education Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Huiwu Wang

TITLE
CEO, President & Executive Director
AGE
46
TENURE
2.3 yrs

Tao Li

TITLE
Chief Strategy Officer & Executive Director
AGE
49
TENURE
2.3 yrs

Jin Zhang

TITLE
Independent Non-Executive Director
AGE
60
TENURE
1 yrs

Changjun Xu

TITLE
Chairman
AGE
62
TENURE
1.4 yrs

Yunhua Chen

TITLE
Independent Non-Executive Director
AGE
67
TENURE
1 yrs

Jianyuan Tang

TITLE
Non-Executive Director
AGE
51
TENURE
2.3 yrs

Ben Lu

TITLE
Non-Executive Director
AGE
49
TENURE
2.3 yrs

Degen Wang

TITLE
Non-Executive Director
AGE
49
TENURE
2.3 yrs

Hao Gao

TITLE
Independent Non-Executive Director
AGE
36
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
08. Aug 18 Buy Citigroup Inc.,Banking and Securities Investments Company 03. Aug 18 03. Aug 18 95,654,000 HK$1.91 HK$182,450,481
23. Aug 18 Buy Citigroup Inc.,Banking and Securities Investments Company 20. Aug 18 20. Aug 18 5,524,000 HK$1.68 HK$9,267,079
20. Aug 18 Buy Citigroup Inc.,Banking and Securities Investments Company 15. Aug 18 15. Aug 18 23,538,000 HK$1.70 HK$39,920,387
16. Aug 18 Buy Citigroup Inc.,Banking and Securities Investments Company 13. Aug 18 13. Aug 18 34,998,000 HK$1.76 HK$61,459,950
X
Management checks
We assess Hope Education Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hope Education Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Worried About Hope Education Group Co., Ltd.'s (HKG:1765) 4.0% Return On Equity?

Our data shows Hope Education Group has a return on equity of 4.0% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Hope Education Group: 4.0% = CN¥168m ÷ CN¥4.2b (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Hope Education Group's Debt And Its 4.0% Return On Equity Hope Education Group has a debt to equity ratio of 0.53, which is far from excessive.

Simply Wall St -

What Kind Of Investor Owns Most Of Hope Education Group Co., Ltd. (HKG:1765)?

Every investor in Hope Education Group Co., Ltd. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Hope Education Group has a market capitalization of HK$8.1b, so we would expect some institutional investors to have noticed the stock.

Simply Wall St -

Are Investors Undervaluing Hope Education Group Co., Ltd. (HKG:1765) By 48%?

I will use the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Is Hope Education Group Co., Ltd. (HKG:1765) A Smart Choice For Dividend Investors?

Recently, Hope Education Group Co., Ltd. … Does Hope Education Group tick all the boxes of a great dividend stock? … Check out our latest analysis for Hope Education Group

Simply Wall St -

Why You Should Care About Hope Education Group Co., Ltd.’s (HKG:1765) Low Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

How Good Is Hope Education Group Co., Ltd. (HKG:1765), When It Comes To ROE?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Hope Education Group Co., Ltd. … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Many Hope Education Group Co., Ltd. (HKG:1765) Shares Do Institutions Own?

If you want to know who really controls Hope Education Group Co., Ltd. … Companies that have been privatized tend to have low insider ownership. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

A Look At The Intrinsic Value Of Hope Education Group Co Ltd (HKG:1765)

I am going to run you through how I calculated the intrinsic value of Hope Education Group Co Ltd (HKG:1765). … by projecting its future cash flows and then discounting them to today's value. … If you are reading this and its not November 2018 then I highly recommend you check out the latest calculation for Hope Education Group by following the link below

Simply Wall St -

What You Must Know About Hope Education Group Co Ltd's (HKG:1765) ROE

Hope Education Group Co Ltd (HKG:1765) delivered an ROE of 15.49% over the past 12 months, which is relatively in-line with its industry average of 13.65% during the same period. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface. … Check out our latest analysis for Hope Education Group

Simply Wall St -

Company Info

Description

Hope Education Group Co., Ltd. provides private higher education services in the People’s Republic of China. The company provides self-study examination, adult education, and technical management and consultancy services, as well as sells textbooks and dormitory beddings. As of December 31, 2018, it owned and operated nine schools, including three independent colleges, five higher vocational colleges, and one technical college. The company was founded in 2007 and is headquartered in Chengdu, the People’s Republic of China. Hope Education Group Co., Ltd. is a subsidiary of Hope Education Investment Limited.

Details
Name: Hope Education Group Co., Ltd.
1765
Exchange: SEHK
Founded: 2007
HK$7,400,001,480
6,666,668,000
Website: http://www.hopeedu.com
Address: Hope Education Group Co., Ltd.
Administrative Building,
5th Floor,
Chengdu,
Sichuan Province, 610091,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1765 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 03. Aug 2018
DB HE1 Ordinary Shares Deutsche Boerse AG DE EUR 03. Aug 2018
SZSC 1765 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 03. Aug 2018
Number of employees
Current staff
Staff numbers
5,357
Hope Education Group employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 13:04
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/10
Last earnings filing: 2019/04/24
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.