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1851

China Gingko Education Group SEHK:1851 Stock Report

Last Price

HK$0.59

Market Cap

HK$295.0m

7D

9.3%

1Y

-56.3%

Updated

27 Sep, 2022

Data

Company Financials
1851 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends0/6

1851 Stock Overview

China Gingko Education Group Company Limited, together with its subsidiaries, provides higher education services in the People's Republic of China.

China Gingko Education Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Gingko Education Group
Historical stock prices
Current Share PriceHK$0.59
52 Week HighHK$2.09
52 Week LowHK$0.53
Beta0.32
1 Month Change-20.27%
3 Month Change-46.36%
1 Year Change-56.30%
3 Year Change-68.78%
5 Year Changen/a
Change since IPO-56.30%

Recent News & Updates

Sep 01
China Gingko Education Group (HKG:1851) Has A Somewhat Strained Balance Sheet

China Gingko Education Group (HKG:1851) Has A Somewhat Strained Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 31
We Think China Gingko Education Group (HKG:1851) Is Taking Some Risk With Its Debt

We Think China Gingko Education Group (HKG:1851) Is Taking Some Risk With Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

1851HK Consumer ServicesHK Market
7D9.3%-1.9%-3.5%
1Y-56.3%-33.1%-25.2%

Return vs Industry: 1851 underperformed the Hong Kong Consumer Services industry which returned -33.1% over the past year.

Return vs Market: 1851 underperformed the Hong Kong Market which returned -25.2% over the past year.

Price Volatility

Is 1851's price volatile compared to industry and market?
1851 volatility
1851 Average Weekly Movement13.0%
Consumer Services Industry Average Movement7.4%
Market Average Movement6.3%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.0%

Stable Share Price: 1851 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: 1851's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
2002858Yi Mahttps://www.chinagingkoedu.com

China Gingko Education Group Company Limited, together with its subsidiaries, provides higher education services in the People's Republic of China. It operates in two segments, Higher Education, and Hotel Operation. The company operates Gingko College of Hospitality Management that offers a range of courses in the management, literature, engineering, education, economics, and arts disciplines; and Chengdu Yinxing Hotel Vocational Skills Training School.

China Gingko Education Group Fundamentals Summary

How do China Gingko Education Group's earnings and revenue compare to its market cap?
1851 fundamental statistics
Market CapHK$295.00m
Earnings (TTM)HK$74.41m
Revenue (TTM)HK$277.27m

4.0x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1851 income statement (TTM)
RevenueCN¥252.22m
Cost of RevenueCN¥121.99m
Gross ProfitCN¥130.23m
Other ExpensesCN¥62.54m
EarningsCN¥67.69m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin51.63%
Net Profit Margin26.84%
Debt/Equity Ratio76.6%

How did 1851 perform over the long term?

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

Valuation

Is 1851 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 1851?

Other financial metrics that can be useful for relative valuation.

1851 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/Revenue2.6x
Enterprise Value/EBITDA5.8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 1851's PE Ratio compare to its peers?

1851 PE Ratio vs Peers
The above table shows the PE ratio for 1851 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11x
1598 China 21st Century Education Group
31.4x60.2%HK$402.3m
2371 Chuanglian Holdings
3.7xn/aHK$209.3m
1449 Leader Education
2.9xn/aHK$186.7m
1756 China Vocational Education Holdings
6x28.9%HK$972.0m
1851 China Gingko Education Group
4xn/aHK$295.0m

Price-To-Earnings vs Peers: 1851 is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (11x).


Price to Earnings Ratio vs Industry

How does 1851's PE Ratio compare vs other companies in the HK Consumer Services Industry?

Price-To-Earnings vs Industry: 1851 is good value based on its Price-To-Earnings Ratio (4x) compared to the Hong Kong Consumer Services industry average (6.9x)


Price to Earnings Ratio vs Fair Ratio

What is 1851's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1851 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1851's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1851 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 1851's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 1851'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 China Gingko 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


29.2%

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 China Gingko 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

Past Performance

How has China Gingko Education Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1851 has high quality earnings.

Growing Profit Margin: 1851's current net profit margins (26.8%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: 1851's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: 1851's earnings growth over the past year (257.8%) exceeds its 5-year average (5.9% per year).

Earnings vs Industry: 1851 earnings growth over the past year (257.8%) exceeded the Consumer Services industry 23%.


Return on Equity

High ROE: 1851's Return on Equity (11.2%) is considered low.


Discover strong past performing companies

Financial Health

How is China Gingko Education Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1851's short term assets (CN¥97.9M) do not cover its short term liabilities (CN¥256.3M).

Long Term Liabilities: 1851's short term assets (CN¥97.9M) do not cover its long term liabilities (CN¥331.2M).


Debt to Equity History and Analysis

Debt Level: 1851's net debt to equity ratio (61.3%) is considered high.

Reducing Debt: 1851's debt to equity ratio has increased from 5.7% to 76.6% over the past 5 years.

Debt Coverage: 1851's debt is well covered by operating cash flow (25.8%).

Interest Coverage: 1851's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


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Dividend

What is China Gingko 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

China Gingko Education Group Dividend Yield vs Market
How does China Gingko Education Group dividend yield compare to the market?
SegmentDividend Yield
Company (China Gingko Education Group)n/a
Market Bottom 25% (HK)2.9%
Market Top 25% (HK)8.6%
Industry Average (Consumer Services)5.5%
Analyst forecast in 3 Years (China Gingko Education Group)n/a

Notable Dividend: Unable to evaluate 1851's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1851'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 1851's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1851's dividend payments have been increasing.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1851 has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.6yrs

Average management tenure


CEO

Yi Ma (42 yo)

0.58yr

Tenure

Dr. Yi Ma has been the Chief Executive Officer of China Gingko Education Group Company Limited since February 04, 2022. From 2011 to 2016, Dr. Ma worked at KPMG Corporate Finance Limited as Manager, Senior...


Leadership Team

Experienced Management: 1851's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1851's board of directors are considered experienced (3.8 years average tenure).


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.


Ownership Breakdown

What is the ownership structure of 1851?
Owner TypeNumber of SharesOwnership Percentage
Private Companies41,336,0008.3%
General Public83,664,00016.7%
Individual Insiders375,000,00075.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 3 shareholders own 83.27% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
73.31%
Gongyu Fang
366,562,500CN¥216.3m0%no data
8.27%
GreenTree Inns Hotel Management Group, Inc.
41,336,000CN¥24.4m0%no data
1.69%
Tao Tian
8,437,500CN¥5.0m0%no data

Company Information

China Gingko Education Group Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: China Gingko Education Group Company Limited
  • Ticker: 1851
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Education Services
  • Sector: Consumer Services
  • Implied Market Cap: HK$295.000m
  • Shares outstanding: 500.00m
  • Website: https://www.chinagingkoedu.com

Number of Employees


Location

  • China Gingko Education Group Company Limited
  • 2 Jinli Zhonglu
  • Qingyang District
  • Chengdu
  • Sichuan Province
  • China


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1851SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
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.