SEHK:1775

Stock Analysis Report

BExcellent Group Holdings

Executive Summary

BExcellent Group Holdings Limited, an investment holding company, engages in the private supplementary secondary school education and private secondary day schools operation businesses in Hong Kong.

Risk Analysis

Earnings have declined by -25.81% per year over past 5 years

Unstable dividend track record

Profit margins (3.2%) are lower than last year (6.3%)

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Excellent balance sheet unattractive dividend payer.

Share Price & News

How has BExcellent Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1775 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.1%

1775

1.7%

HK Consumer Services

0.6%

HK Market


1 Year Return

-22.4%

1775

0.2%

HK Consumer Services

-0.06%

HK Market

Return vs Industry: 1775 underperformed the Hong Kong Consumer Services industry which returned 0.2% over the past year.

Return vs Market: 1775 underperformed the Hong Kong Market which returned -0.1% over the past year.


Shareholder returns

1775IndustryMarket
7 Day-7.1%1.7%0.6%
30 Day-13.3%-4.3%-3.6%
90 Day2.0%3.2%-0.01%
1 Year-13.0%-22.4%2.4%0.2%3.5%-0.06%
3 Yearn/a-14.7%-18.7%19.5%7.4%
5 Yearn/a23.5%13.2%18.4%-1.4%

Price Volatility Vs. Market

How volatile is BExcellent Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BExcellent Group Holdings undervalued compared to its fair value and its price relative to the market?

21.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1775 (HK$0.52) is trading above our estimate of fair value (HK$0.28)

Significantly Below Fair Value: 1775 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1775 is poor value based on its PE Ratio (21.8x) compared to the Consumer Services industry average (14.7x).

PE vs Market: 1775 is poor value based on its PE Ratio (21.8x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1775's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1775 is good value based on its PB Ratio (1.4x) compared to the HK Consumer Services industry average (1.9x).


Next Steps

Future Growth

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

26.1%

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 BExcellent Group Holdings 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 BExcellent Group Holdings performed over the past 5 years?

-25.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1775 has high quality earnings.

Growing Profit Margin: 1775's current net profit margins (3.2%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: 1775's earnings have declined by -25.8% per year over the past 5 years.

Accelerating Growth: 1775's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1775 had negative earnings growth (-53.9%) over the past year, making it difficult to compare to the Consumer Services industry average (11%).


Return on Equity

High ROE: 1775's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BExcellent Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1775's short term assets (HK$181.3M) exceed its short term liabilities (HK$58.2M).

Long Term Liabilities: 1775's short term assets (HK$181.3M) exceed its long term liabilities (HK$3.7M).


Debt to Equity History and Analysis

Debt Level: 1775's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1775's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1775's debt is well covered by operating cash flow (225.1%).

Interest Coverage: 1775 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1775 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1775's debt is covered by short term assets (assets are 21.1x debt).


Next Steps

Dividend

What is BExcellent Group Holdings's current dividend yield, its reliability and sustainability?

5.77%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%2.3%markettop25%6.3%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1775's dividend (5.77%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1775's dividend (5.77%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.26%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1775's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1775's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.9%), 1775's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Wai Lung Tam (54yo)

0yrs

Tenure

HK$2,969,000

Compensation

Mr. Wai Lung Tam is Chief Executive Officer of BExcellent Group Holdings Limited and serves as its Executive Director since June 21, 2018. Mr. Tam was appointed as a Director of BExcellent Group Holdings L ...


CEO Compensation Analysis

Compensation vs Market: Wai Lung's total compensation ($USD379.26K) is above average for companies of similar size in the Hong Kong market ($USD215.77K).

Compensation vs Earnings: Wai Lung's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

47yo

Average Age

Experienced Management: 1775's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

Experienced Board: 1775's board of directors are not considered experienced ( 2.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 31.1%.


Management Team

  • June Leung (54yo)

    Co-Founder & Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.72m
  • Wai Lung Tam (54yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.97m
  • Wister Chan (57yo)

    Head Principal of Day School & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$1.25m
  • Man Wai Li (47yo)

    Executive Director & Deputy CEO

    • Tenure: 4.3yrs
    • Compensation: HK$998.00k
  • Shing Wai Choi (37yo)

    Deputy CEO

    • Tenure: 0yrs
  • Lin Bong Tam (41yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
  • Wai Lun Ng (31yo)

    Deputy Chief Operating Officer

    • Tenure: 6.4yrs
  • Chi Keung Cheung (40yo)

    Chief Information Officer

    • Tenure: 0.9yrs
  • Guan Zhong Luo (64yo)

    Chief Assessment Scientist

    • Tenure: 0.8yrs

Board Members

  • Roderick Wong (74yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$180.00k
  • Jacky Kwan (47yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$180.00k
  • Kai Sing Li (57yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$180.00k
  • June Leung (54yo)

    Co-Founder & Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.72m
  • Wai Lung Tam (54yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.97m
  • Wister Chan (57yo)

    Head Principal of Day School & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$1.25m
  • Man Wai Li (47yo)

    Executive Director & Deputy CEO

    • Tenure: 4.3yrs
    • Compensation: HK$998.00k
  • Xu Hui Shen (40yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$456.00k

Company Information

BExcellent Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BExcellent Group Holdings Limited
  • Ticker: 1775
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$285.000m
  • Shares outstanding: 500.00m
  • Website: https://www.bexcellentgroup.com

Number of Employees


Location

  • BExcellent Group Holdings Limited
  • CDW Building
  • Units 01-03 & 05-06
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1775SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018

Biography

BExcellent Group Holdings Limited, an investment holding company, engages in the private supplementary secondary school education and private secondary day schools operation businesses in Hong Kong. It off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 13:24
End of Day Share Price2019/12/10 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


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.