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1769

Scholar Education Group SEHK:1769 Stock Report

Last Price

HK$0.79

Market Cap

HK$439.0m

7D

0%

1Y

-59.3%

Updated

15 Aug, 2022

Data

Company Financials
1769 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

1769 Stock Overview

Scholar Education Group, an investment holding company, provides K-12 after-school education services in the People’s Republic of China.

Scholar Education Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Scholar Education Group
Historical stock prices
Current Share PriceHK$0.79
52 Week HighHK$3.16
52 Week LowHK$0.39
Beta-0.27
1 Month Change31.67%
3 Month Change83.72%
1 Year Change-59.28%
3 Year Change-83.81%
5 Year Changen/a
Change since IPO-78.59%

Recent News & Updates

Jul 20
Shareholders Are Optimistic That Scholar Education Group (HKG:1769) Will Multiply In Value

Shareholders Are Optimistic That Scholar Education Group (HKG:1769) Will Multiply In Value

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Shareholder Returns

1769HK Consumer ServicesHK Market
7D0%-3.3%0.3%
1Y-59.3%-37.5%-21.6%

Return vs Industry: 1769 underperformed the Hong Kong Consumer Services industry which returned -37.5% over the past year.

Return vs Market: 1769 underperformed the Hong Kong Market which returned -21.6% over the past year.

Price Volatility

Is 1769's price volatile compared to industry and market?
1769 volatility
1769 Average Weekly Movement19.1%
Consumer Services Industry Average Movement8.6%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.7%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 1769 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: 1769's weekly volatility (19%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
20121,552Mingzhi Qihttps://www.skledu.com

Scholar Education Group, an investment holding company, provides K-12 after-school education services in the People’s Republic of China. The company offers a suite of after-school education services through its academic preparation program and early primary education program. It delivers academic preparation program under the Sheng Xue brand, which offers classes to students in grade one through grade 12 in school academic subjects; and early primary education program under the Le Xue brand that provides childhood education courses and hobby courses, such as languages and performing arts to students from grade one to grade three.

Scholar Education Group Fundamentals Summary

How do Scholar Education Group's earnings and revenue compare to its market cap?
1769 fundamental statistics
Market CapCN¥377.63m
Earnings (TTM)-CN¥26.61m
Revenue (TTM)CN¥831.73m

0.5x

P/S Ratio

-14.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1769 income statement (TTM)
RevenueCN¥831.73m
Cost of RevenueCN¥519.04m
Gross ProfitCN¥312.68m
Other ExpensesCN¥339.29m
Earnings-CN¥26.61m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)-0.048
Gross Margin37.59%
Net Profit Margin-3.20%
Debt/Equity Ratio9.4%

How did 1769 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 1769 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1769?

Other financial metrics that can be useful for relative valuation.

1769 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/Revenue0.2x
Enterprise Value/EBITDA1.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 1769's PS Ratio compare to its peers?

1769 PS Ratio vs Peers
The above table shows the PS ratio for 1769 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.9x
1598 China 21st Century Education Group
1.2x18.3%HK$447.6m
1851 China Gingko Education Group
1.4xn/aHK$370.0m
6068 Wisdom Education International Holdings
0.3xn/aHK$470.5m
2371 Chuanglian Holdings
0.8xn/aHK$263.3m
1769 Scholar Education Group
0.5xn/aHK$439.0m

Price-To-Sales vs Peers: 1769 is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.9x).


Price to Earnings Ratio vs Industry

How does 1769's PE Ratio compare vs other companies in the HK Consumer Services Industry?

Price-To-Sales vs Industry: 1769 is good value based on its Price-To-Sales Ratio (0.5x) compared to the Hong Kong Consumer Services industry average (1.5x)


Price to Sales Ratio vs Fair Ratio

What is 1769's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1769 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1769's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1769 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 1769's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 1769's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


36.3%

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 Scholar Education Group 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.


Discover growth companies

  • Examine Scholar Education Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Scholar Education Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-7.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1769 is currently unprofitable.

Growing Profit Margin: 1769 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1769 is unprofitable, and losses have increased over the past 5 years at a rate of 7.9% per year.

Accelerating Growth: Unable to compare 1769's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1769 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (16.7%).


Return on Equity

High ROE: 1769 has a negative Return on Equity (-8.51%), as it is currently unprofitable.


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Financial Health

How is Scholar Education Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1769's short term assets (CN¥403.4M) exceed its short term liabilities (CN¥323.4M).

Long Term Liabilities: 1769's short term assets (CN¥403.4M) exceed its long term liabilities (CN¥119.6M).


Debt to Equity History and Analysis

Debt Level: 1769 has more cash than its total debt.

Reducing Debt: 1769's debt to equity ratio has reduced from 179.9% to 9.4% over the past 5 years.

Debt Coverage: 1769's debt is well covered by operating cash flow (309.3%).

Interest Coverage: 1769's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1769's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1769's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1769's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1769's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 1769 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1769 has not reported any payouts.


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Management

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

3.6yrs

Average management tenure


CEO

Mingzhi Qi (37 yo)

3.67yrs

Tenure

CN¥547,000

Compensation

Mr. Qi Mingzhi has been Director of Scholar Education Group since 16 April 2018 and Chief Executive Officer since 8 December 2018. He was re-designated as an executive Director of Scholar Education Group...


CEO Compensation Analysis

Compensation vs Market: Mingzhi's total compensation ($USD81.12K) is below average for companies of similar size in the Hong Kong market ($USD246.34K).

Compensation vs Earnings: Mingzhi's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: 1769's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: 1769's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1769 insiders have only sold shares 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

Scholar Education Group's employee growth, exchange listings and data sources


Key Information

  • Name: Scholar Education Group
  • Ticker: 1769
  • Exchange: SEHK
  • Founded: 2012
  • Industry: Education Services
  • Sector: Consumer Services
  • Implied Market Cap: HK$439.003m
  • Shares outstanding: 555.70m
  • Website: https://www.skledu.com

Number of Employees


Location

  • Scholar Education Group
  • Room 401–410, 4th Floor
  • Yunfeng Garden, 29 Youyi Road
  • Shenzhen
  • Guangdong Province
  • 518049
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.