SEHK:1935

Stock Analysis Report

JH Educational Technology

Executive Summary

JH Educational Technology INC. provides higher education services in China.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1935 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1935

0.2%

HK Consumer Services

-2.7%

HK Market


1 Year Return

n/a

1935

0.4%

HK Consumer Services

-8.5%

HK Market

Return vs Industry: Insufficient data to determine how 1935 performed against the Hong Kong Consumer Services industry.

Return vs Market: Insufficient data to determine how 1935 performed against the Hong Kong Market.


Shareholder returns

1935IndustryMarket
7 Day0%0.2%-2.7%
30 Day-5.3%5.2%-3.1%
90 Day3.2%16.5%2.4%
1 Yearn/a2.4%0.4%-5.2%-8.5%
3 Yearn/a14.5%8.3%12.0%0.7%
5 Yearn/a27.4%17.4%14.1%-4.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is JH Educational Technology undervalued compared to its fair value and its price relative to the market?

29.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1935 (HK$1.6) is trading below our estimate of fair value (HK$2.27)

Significantly Below Fair Value: 1935 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1935 is good value based on its PE Ratio (11.7x) compared to the Consumer Services industry average (15.8x).

PE vs Market: 1935 is poor value based on its PE Ratio (11.7x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1935's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1935 is good value based on its PB Ratio (1.4x) compared to the HK Consumer Services industry average (2x).


Next Steps

Future Growth

How is JH Educational Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1935's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 1935's earnings are forecast to grow faster than the Hong Kong market

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

Revenue vs Market: 1935's revenue (16.5% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 1935's revenue (16.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1935's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has JH Educational Technology performed over the past 5 years?

42.1%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 1935 has a large one-off gain of CN¥89.1M impacting its June 30 2019 financial results.

Growing Profit Margin: 1935's current net profit margins (43.1%) are lower than last year (58.8%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1935's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 1935's past year earnings growth to its 5-year average.

Earnings vs Industry: 1935 earnings growth over the past year (42.1%) exceeded the Consumer Services industry 15.4%.


Return on Equity

High ROE: 1935's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JH Educational Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 1935's short term assets (CN¥851.9M) exceed its short term liabilities (CN¥232.0M).

Long Term Liabilities: 1935's short term assets (CN¥851.9M) exceed its long term liabilities (CN¥13.4M).


Debt to Equity History and Analysis

Debt Level: 1935's debt to equity ratio (5.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1935's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1935's debt is well covered by operating cash flow (188.2%).

Interest Coverage: 1935 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1935 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1935's debt is covered by short term assets (assets are 7.8x debt).


Next Steps

Dividend

What is JH Educational Technology's current dividend yield, its reliability and sustainability?

2.57%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.3%markettop25%6.4%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: 1935's dividend (2.57%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 1935's dividend (2.57%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.42%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1935's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1935's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15%), 1935's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1935 is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

1.3yrs

Average board tenure


CEO

Yuguo Chen (58yo)

2.7yrs

Tenure

0

Mr. Yuguo Chen is Chairman, Chief Executive Officer and Executive Director of JH Educational Technology INC since June 2017. 


Board Members

NamePositionTenureCompensationOwnership
Yuguo Chen
Chairman & CEO2.7yrsno data23.61% CN¥608.6m
Yuchun Chen
Executive Director1.3yrsno data7.5% CN¥193.2m
Shu Chen
Executive Director & Assistant to Chairman1.3yrsno data13.49% CN¥347.8m
Nansun Chen
Executive Director1.3yrsno data3.75% CN¥96.6m
Lingfeng Chen
Executive Director1.3yrsno data13.49% CN¥347.8m
Nam Shan Fung
Independent Non-Executive Director1.3yrsno datano data
Xuli Zhang
Non-Executive Director1.3yrsno data7.5% CN¥193.2m
Yuqing Wang
Independent Non-Executive Director1.3yrsno datano data
Hui Bi
Independent Non Executive Director0.3yrsno datano data

1.3yrs

Average Tenure

52yo

Average Age

Experienced Board: 1935's board of directors are not considered experienced ( 1.3 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.


Ownership Breakdown

Dilution of Shares: 1935 only recently listed within the past 12 months.


Top Shareholders

Company Information

JH Educational Technology INC.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JH Educational Technology INC.
  • Ticker: 1935
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$2.577b
  • Shares outstanding: 1.60b
  • Website: https://www.jheduchina.com

Number of Employees


Location

  • JH Educational Technology INC.
  • No. 618 Liuweng Road
  • Liushi Town
  • Yueqing
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1935SEHK (The Stock Exchange of Hong Kong Ltd.)YesDomestic SharesHKHKDJun 2019

Biography

JH Educational Technology INC. provides higher education services in China. It offers junior college education and secondary education services to high school students. The company operates and controls two schools, including Changzheng College and Jingyi Secondary School; a joint venture school; and College of Information and Business that provides undergraduate and junior college education facilities. The company was founded in 1997 and is headquartered in Yueqing, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:37
End of Day Share Price2020/02/27 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.