SEHK:1773

Stock Analysis Report

Tianli Education International Holdings

Executive Summary

Tianli Education International Holdings Limited, an investment holding company, provides private education services in China.

Snowflake

Fundamentals

High growth potential with proven track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

8.9%

1773

1.1%

HK Consumer Services

0.3%

HK Market


1 Year Return

119.2%

1773

1.4%

HK Consumer Services

1.3%

HK Market

Return vs Industry: 1773 exceeded the Hong Kong Consumer Services industry which returned 1.4% over the past year.

Return vs Market: 1773 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1773IndustryMarket
7 Day8.9%1.1%0.3%
30 Day9.6%4.9%0.5%
90 Day1.8%4.6%-4.6%
1 Year121.7%119.2%3.4%1.4%4.9%1.3%
3 Yearn/a4.6%-0.8%15.3%3.7%
5 Yearn/a10.7%2.2%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tianli Education International Holdings 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: 1773 (HK$3.31) is trading below our estimate of fair value (HK$14.23)

Significantly Below Fair Value: 1773 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1773 is poor value based on its PE Ratio (26x) compared to the Consumer Services industry average (17.2x).

PE vs Market: 1773 is poor value based on its PE Ratio (26x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1773 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 1773 is overvalued based on its PB Ratio (2.7x) compared to the HK Consumer Services industry average (2x).


Next Steps

Future Growth

How is Tianli Education International Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

28.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1773's forecast earnings growth (28% per year) is above the savings rate (2%).

Earnings vs Market: 1773's earnings (28% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 1773's revenue (33.6% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1773's revenue (33.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1773's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Tianli Education International Holdings performed over the past 5 years?

42.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1773's earnings have grown significantly by 42.8% per year over the past 5 years.

Accelerating Growth: 1773's earnings growth over the past year (47.9%) exceeds its 5-year average (42.8% per year).

Earnings vs Industry: 1773 earnings growth over the past year (47.9%) exceeded the Consumer Services industry 14.4%.


Return on Equity

High ROE: 1773's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: 1773's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: 1773 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tianli Education International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1773's short term assets (CN¥1.1B) do not cover its short term liabilities (CN¥1.4B)

Long Term Liabilities: 1773's short term assets (1.1B) exceeds its long term liabilities (840.4M)


Debt to Equity History and Analysis

Debt Level: 1773's debt to equity ratio (18.8%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1773's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1773's debt is well covered by operating cash flow (180.3%).

Interest Coverage: 1773 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1773 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1773's debt is covered by short term assets (assets are 2.565680x debt).


Next Steps

Dividend

What is Tianli Education International Holdings's current dividend yield, its reliability and sustainability?

0.94%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.3%markettop25%6.2%industryaverage2.3%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1773's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1773's dividend (0.94%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 1773 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1773 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1773 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1773's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Tianli Education International Holdings's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Shi Luo (46yo)

1.8yrs

Tenure

0

Mr. Shi Luo serves as Chief Executive Officer, Chairman of the Board and Executive Director at Tianli Education International Holdings Limited. 


Management Age and Tenure

1.8yrs

Average Tenure

46yo

Average Age

Experienced Management: 1773's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

47.5yo

Average Age

Experienced Board: 1773's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥6,047,49930 Jan 19
The Core Trust Company Limited
EntityCompany
Shares3,582,000
Max PriceCN¥1.69

Ownership Breakdown


Management Team

  • Shi Luo (46yo)

    Chairman of the Board & CEO

    • Tenure: 1.8yrs
  • Zhaotao Yang (46yo)

    Executive Director & Deputy General Principal

    • Tenure: 0yrs
  • Rui Wang (37yo)

    CFO, Joint Company Secretary & Executive Director

    • Tenure: 1.8yrs
  • Xiao Zhang

    Joint Company Secretary

    • Tenure: 0.2yrs

Board Members

  • Yiqun Cheng (49yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Kenneth Liu (49yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Shi Luo (46yo)

    Chairman of the Board & CEO

    • Tenure: 1.8yrs
  • Mu Tian (58yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Zhaotao Yang (46yo)

    Executive Director & Deputy General Principal

    • Tenure: 0yrs
  • Rui Wang (37yo)

    CFO, Joint Company Secretary & Executive Director

    • Tenure: 1.8yrs
  • Shen Jinzhou (32yo)

    Non-Executive Director

    • Tenure: 1yrs
  • Yang Dong (56yo)

    Independent Non-Executive Director

    • Tenure: 0yrs

Company Information

Tianli Education International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tianli Education International Holdings Limited
  • Ticker: 1773
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$6.868b
  • Shares outstanding: 2.08b
  • Website: https://www.sztljyjt.com

Number of Employees


Location

  • Tianli Education International Holdings Limited
  • Tower T25
  • Qingyang Industrial Park
  • Chengdu
  • Sichuan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1773SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018

Biography

Tianli Education International Holdings Limited, an investment holding company, provides private education services in China. The company offers K-12 education services; and tutoring services for K-12 stud ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:54
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.