SEHK:1969

Stock Analysis Report

China Chunlai Education Group

Executive Summary

China Chunlai Education Group Co., Ltd. provides private higher education services in the People’s Republic of China.

Snowflake

Fundamentals

Undervalued with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

1969

3.5%

HK Consumer Services

2.2%

HK Market


1 Year Return

15.6%

1969

2.4%

HK Consumer Services

-1.3%

HK Market

Return vs Industry: 1969 exceeded the Hong Kong Consumer Services industry which returned 2.4% over the past year.

Return vs Market: 1969 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1969IndustryMarket
7 Day1.3%3.5%2.2%
30 Day-4.3%3.3%-2.9%
90 Day1.3%6.4%-5.8%
1 Year15.6%15.6%4.5%2.4%2.3%-1.3%
3 Yearn/a2.3%-2.9%15.6%3.9%
5 Yearn/a8.4%-0.3%20.1%0.06%

Price Volatility Vs. Market

How volatile is China Chunlai Education Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Chunlai Education Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 1969 (HK$1.56) is trading below our estimate of fair value (HK$7.02)

Significantly Undervalued: 1969 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 1969 is good value based on its PE Ratio (12.4x) compared to the Consumer Services industry average (17.6x).

PE vs Market: 1969 is poor value based on its PE Ratio (12.4x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 1969 is good value based on its PEG Ratio (0.5x)


Price Based on Value of Assets

PB vs Industry: 1969 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 China Chunlai Education Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1969's forecast earnings growth (26.4% per year) is above the savings rate (2%).

Earnings vs Market: 1969's earnings (26.4% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

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

Revenue vs Market: 1969's revenue (17.3% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 1969's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 1969's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

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

34.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1969's earnings have grown significantly by 34.3% per year over the past 5 years.

Accelerating Growth: 1969's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1969 had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Consumer Services industry average (14.4%).


Return on Equity

High ROE: 1969's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: 1969's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: 1969's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China Chunlai Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1969's short term assets (HK$633.0M) do not cover its short term liabilities (HK$839.5M)

Long Term Liabilities: 1969's short term assets (HK$633.0M) exceeds its long term liabilities (HK$522.3M)


Debt to Equity History and Analysis

Debt Level: 1969's debt to equity ratio (72.7%) is considered high

Reducing Debt: Insufficient data to determine if 1969's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1969's debt is well covered by operating cash flow (40.1%).

Interest Coverage: 1969's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: 1969 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1969's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

5.37%

Expected Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.4%forecastin3Years5.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate 1969's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1969's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1969's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1969'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 1969'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 Chunlai Education Group's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Junyu Hou (27yo)

1.7yrs

Tenure

0

Mr. Junyu Hou has been Chief Executive Officer at China Chunlai Education Group Co., Ltd. since February 12, 2018 and has been its Executive Director since November 15, 2017. 


Management Age and Tenure

1.7yrs

Average Tenure

37yo

Average Age

Experienced Management: 1969's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

44.5yo

Average Age

Experienced Board: 1969's board of directors are not considered experienced ( 1.7 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


Management Team

  • Yu Kit Wong (37yo)

    Company Secretary

    • Tenure: 1.3yrs
  • Junyu Hou (27yo)

    CEO & Executive Director

    • Tenure: 1.7yrs
  • Shuqin Jiang (53yo)

    Executive Director

    • Tenure: 1.7yrs
  • Zhen Zhao (35yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
  • Yongqi Jiang (34yo)

    Head of Human Resources

    • Tenure: 1.7yrs
  • Wei Liu (38yo)

    Head of Business Support Services Department

    • Tenure: 0yrs
  • Jie Zhang (50yo)

    Vice Chief Executive Officer

    • Tenure: 0.5yrs

Board Members

  • Xiaobin Jin (62yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
  • Junyu Hou (27yo)

    CEO & Executive Director

    • Tenure: 1.7yrs
  • Chunlai Hou (50yo)

    Chairman of the Board

    • Tenure: 1.7yrs
  • Shuqin Jiang (53yo)

    Executive Director

    • Tenure: 1.7yrs
  • Joanna Fok (39yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
  • Tsz Man Lau (35yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs

Company Information

China Chunlai Education Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Chunlai Education Group Co., Ltd.
  • Ticker: 1969
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$1.872b
  • Shares outstanding: 1.20b
  • Website: https://www.chunlaiedu.com

Number of Employees


Location

  • China Chunlai Education Group Co., Ltd.
  • No.66 Beihai East Road
  • Shangqiu
  • Henan Province
  • 476000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1969SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2018

Biography

China Chunlai Education Group Co., Ltd. provides private higher education services in the People’s Republic of China. It operates three colleges in Henan Province. The company was founded in 2004 and is he ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 13:17
End of Day Share Price2019/10/11 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.

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