SEHK:1797

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Koolearn Technology Holding

Executive Summary

Koolearn Technology Holding Limited provides online extracurricular education services under the Koolear brand in China.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Koolearn Technology Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1797's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

1797

2.7%

HK Consumer Services

9.1%

HK Market


1 Year Return

257.1%

1797

35.2%

HK Consumer Services

0.9%

HK Market

Return vs Industry: 1797 exceeded the Hong Kong Consumer Services industry which returned 35.2% over the past year.

Return vs Market: 1797 exceeded the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

1797IndustryMarket
7 Day-4.3%2.7%9.1%
30 Day-11.2%0.3%8.2%
90 Day-4.6%21.8%13.8%
1 Year257.1%257.1%38.1%35.2%4.6%0.9%
3 Yearn/a19.1%12.4%13.1%1.4%
5 Yearn/a-4.3%-10.4%10.8%-7.1%

Price Volatility Vs. Market

How volatile is Koolearn Technology Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Koolearn Technology Holding undervalued compared to its fair value and its price relative to the market?

39.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1797 (HK$29.75) is trading below our estimate of fair value (HK$49)

Significantly Below Fair Value: 1797 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1797 is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: 1797 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1797's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1797 is overvalued based on its PB Ratio (10.4x) compared to the HK Consumer Services industry average (2.5x).


Next Steps

Future Growth

How is Koolearn Technology Holding forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

63.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1797 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1797 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1797 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1797's revenue (32.2% per year) is forecast to grow faster than the Hong Kong market (10.8% per year).

High Growth Revenue: 1797's revenue (32.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1797 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Koolearn Technology Holding performed over the past 5 years?

-89.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1797 is currently unprofitable.

Growing Profit Margin: 1797 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1797 is unprofitable, and losses have increased over the past 5 years at a rate of -89% per year.

Accelerating Growth: Unable to compare 1797's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1797 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (14.1%).


Return on Equity

High ROE: 1797 has a negative Return on Equity (-7.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Koolearn Technology Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 1797's short term assets (CN¥2.8B) exceed its short term liabilities (CN¥767.3M).

Long Term Liabilities: 1797's short term assets (CN¥2.8B) exceed its long term liabilities (CN¥200.5M).


Debt to Equity History and Analysis

Debt Level: 1797 is debt free.

Reducing Debt: 1797 has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1797 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 1797 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Koolearn Technology Holding current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1797's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1797'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 1797's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1797's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1797's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.0yrs

Average board tenure


CEO

Dongxu Sun (34yo)

0.50

Tenure

CN¥10,651,000

Compensation

Mr. Dongxu Sun serves as Chief Executive Officer at Koolearn Technology Holding Limited since January 30, 2020 and its Executive Director since August 16, 2019. He had been Co-Chief Executive Officer at Ko ...


CEO Compensation Analysis

Compensation vs Market: Dongxu's total compensation ($USD1.52M) is above average for companies of similar size in the Hong Kong market ($USD495.05K).

Compensation vs Earnings: Insufficient data to compare Dongxu's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Dongxu Sun
CEO & Executive Director0.50yrCN¥10.65mno data
Qiang Yin
CFO & Executive Director2.17yrsCN¥3.14m0.36% CN¥104.3m
Sui Bau Tong
Independent Non Executive Director1.33yrsCN¥86.00kno data
Minhong Yu
Chairmanno dataCN¥21.24m1.69% CN¥490.8m
Wai Sun Kwong
Independent Non Executive Director2yrsCN¥86.00kno data
Zheying Lin
Independent Non-Executive Director0.50yrno datano data
Qiang Wu
Non Executive Director2.17yrsCN¥1.72mno data
Chang Sun
Non-Executive Director2.42yrsCN¥1.93m1.57% CN¥456.3m
Yu Hua Leung
Non Executive Director2yrsno datano data

2.0yrs

Average Tenure

49yo

Average Age

Experienced Board: 1797's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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

Koolearn Technology Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Koolearn Technology Holding Limited
  • Ticker: 1797
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$29.076b
  • Shares outstanding: 939.46m
  • Website: https://www.koolearn.hk

Number of Employees


Location

  • Koolearn Technology Holding Limited
  • South Wing
  • Level 18
  • Beijing
  • Beijing Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1797SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2019
KTDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2019
1797SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2019

Biography

Koolearn Technology Holding Limited provides online extracurricular education services under the Koolear brand in China. The company operates through three segments: College Education, K12 Education, and Pre-school Education. It offers live and pre-recorded courses for pre-school, K-12, and college segments. The company offers test preparation, overseas test preparation, and English language services to college students and working professionals; and after-school tutoring courses. It also provides education content and service packages to institutional customers, such as universities, public libraries, telecom operators, and online video streaming service providers. The company was founded in 2005 and is headquartered in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 12:38
End of Day Share Price2020/07/07 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


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.