SEHK:1851

Stock Analysis Report

China Gingko Education Group

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has China Gingko Education Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1851 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

1851

1.7%

HK Consumer Services

0.6%

HK Market


1 Year Return

n/a

1851

0.2%

HK Consumer Services

-0.06%

HK Market

Return vs Industry: Insufficient data to determine how 1851 performed against the Hong Kong Consumer Services industry.

Return vs Market: Insufficient data to determine how 1851 performed against the Hong Kong Market.


Shareholder returns

1851IndustryMarket
7 Day0.6%1.7%0.6%
30 Day-3.7%-4.3%-3.6%
90 Day-0.6%3.2%-0.01%
1 Yearn/a2.4%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 China Gingko Education Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Gingko Education Group undervalued compared to its fair value and its price relative to the market?

24.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1851's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1851's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1851 is poor value based on its PE Ratio (24.8x) compared to the Consumer Services industry average (14.7x).

PE vs Market: 1851 is poor value based on its PE Ratio (24.8x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1851's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1851 is good value based on its PB Ratio (1.7x) compared to the HK Consumer Services industry average (1.9x).


Next Steps

Future Growth

How is China Gingko Education Group 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 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.


Next Steps

Past Performance

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

-11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1851 has a high level of non-cash earnings.

Growing Profit Margin: 1851's current net profit margins (17.8%) are lower than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: 1851's earnings have declined by -11.1% per year over the past 5 years.

Accelerating Growth: 1851's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1851 had negative earnings growth (-11.2%) over the past year, making it difficult to compare to the Consumer Services industry average (11%).


Return on Equity

High ROE: 1851's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Gingko Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1851's short term assets (CN¥111.1M) do not cover its short term liabilities (CN¥126.3M).

Long Term Liabilities: 1851's short term assets (CN¥111.1M) exceed its long term liabilities (CN¥26.5M).


Debt to Equity History and Analysis

Debt Level: 1851's debt to equity ratio (23.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1851's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1851's debt is well covered by operating cash flow (33.3%).

Interest Coverage: 1851's interest payments on its debt are well covered by EBIT (15x coverage).


Balance Sheet

Inventory Level: 1851 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1851's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is China Gingko Education Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


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 1851'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 China Gingko Education Group's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Gongyu Fang (55yo)

1.5yrs

Tenure

CN¥127,000

Compensation

Mr. Fang Gongyu is Founder and serves as Chairman of the Board and Chief Executive Officer of China Ginkgo Education Group Co., Ltd. and has been its Executive Director since June 7, 2018. Mr. Fang served  ...


CEO Compensation Analysis

Compensation vs Market: Gongyu's total compensation ($USD18.04K) is below average for companies of similar size in the Hong Kong market ($USD215.77K).

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


Management Age and Tenure

1.5yrs

Average Tenure

43yo

Average Age

Experienced Management: 1851's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

43yo

Average Age

Experienced Board: 1851's board of directors are not considered experienced ( 1 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¥12,960,02008 Feb 19
GreenTree Inns Hotel Managment Group., Inc.
EntityCompany
Shares9,000,000
Max PriceCN¥1.44
BuyCN¥6,566,39508 Feb 19
GreenTree Inns Hotel Managment Group., Inc.
EntityCompany
Shares4,560,000
Max PriceCN¥1.44
BuyCN¥40,000,18526 Jan 19
GreenTree Inns Hotel Managment Group., Inc.
EntityCompany
Shares27,776,000
Max PriceCN¥1.44

Ownership Breakdown

Dilution of Shares: 1851 only recently listed within the past 12 months, with total shares outstanding growing by 15.1% in the past year..


Management Team

  • Xiaoming Ma (36yo)

    Executive Director

    • Tenure: 0.08yrs
  • Gongyu Fang (55yo)

    Founder

    • Tenure: 1.5yrs
    • Compensation: CN¥127.00k
  • Tao Tian (43yo)

    Executive Director & Joint Company Secretary

    • Tenure: 1.5yrs
    • Compensation: CN¥117.00k
  • Yuan Yu (57yo)

    Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥129.00k
  • Chi Hei Wan (30yo)

    Joint Company Secretary

    • Tenure: 1.5yrs

Board Members

  • Xiaoming Ma (36yo)

    Executive Director

    • Tenure: 0.08yrs
  • Jeffrey Chong (41yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
  • Gongyu Fang (55yo)

    Founder

    • Tenure: 1.5yrs
    • Compensation: CN¥127.00k
  • Tao Tian (43yo)

    Executive Director & Joint Company Secretary

    • Tenure: 1.5yrs
    • Compensation: CN¥117.00k
  • Yuan Yu (57yo)

    Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥129.00k
  • Qian Jiang (40yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
  • Jun Yuan (54yo)

    Independent Non-Executive Director

    • Tenure: 1yrs

Company Information

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


Key Information

  • Name: China Gingko Education Group Company Limited
  • Ticker: 1851
  • Exchange: SEHK
  • Founded: 2018
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$910.000m
  • 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

Biography

China Gingko Education Group Company Limited, together with its subsidiaries, provides higher education services on hospitality management in the People's Republic of China. The company operates Yinxing Ho ...


Company Analysis and Financial Data Status

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