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.

Risks

  • China Chunlai Education Group is covered by less than 3 analysts.

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

-2.4%

SEHK:1969

6.8%

HK Consumer Services

3.3%

HK Market


1 Year Return

n/a

SEHK:1969

-14.4%

HK Consumer Services

-12.3%

HK Market

No trading data on 1969.

No trading data on 1969.


Share holder returns

1969IndustryMarket
7 Day-2.4%6.8%3.3%
30 Day-1.2%-1.0%-8.0%
90 Day10.8%0.6%-5.5%
1 Yearn/a-12.7%-14.4%-9.2%-12.3%
3 Yearn/a7.6%2.1%11.5%0.8%
5 Yearn/a4.5%-4.0%6.7%-10.5%

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

China Chunlai Education Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Chunlai Education Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Chunlai Education Group is good value based on earnings compared to the HK Consumer Services industry average.

China Chunlai Education Group is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China Chunlai Education Group is good value based on expected growth next year.


Price Based on Value of Assets

China Chunlai Education Group is good value based on assets compared to the HK Consumer Services industry average.


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

China Chunlai Education Group's revenue is expected to grow by 17.3% yearly, however this is not considered high growth (20% yearly).

China Chunlai Education Group's earnings are expected to grow significantly at over 20% yearly.

China Chunlai Education Group's revenue growth is expected to exceed the Hong Kong market average.

China Chunlai Education Group's earnings growth is expected to exceed the Hong Kong market average.

China Chunlai Education Group's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Chunlai Education Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

China Chunlai Education Group has delivered over 20% year on year earnings growth in the past 5 years.

China Chunlai Education Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

China Chunlai Education Group's 1-year earnings growth is negative, it can't be compared to the HK Consumer Services industry average.


Return on Equity

China Chunlai Education Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Chunlai Education Group used its assets more efficiently than the HK Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

China Chunlai Education Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Chunlai Education Group's financial position?


Financial Position Analysis

China Chunlai Education Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

China Chunlai Education Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Chunlai Education Group's level of debt (72.7%) compared to net worth is high (greater than 40%).

Unable to establish if China Chunlai Education Group's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (40.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.87%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate China Chunlai Education Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate China Chunlai Education Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as China Chunlai Education Group has not reported any payouts.

Unable to verify if China Chunlai Education Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as China Chunlai Education Group has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


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?

1.5yrs

Average management tenure


CEO

Junyu Hou (27yo)

1.5yrs

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

1.5yrs

Average Tenure

37yo

Average Age

The average tenure for the China Chunlai Education Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

44.5yo

Average Age

The average tenure for the China Chunlai Education Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCN¥137,357,09413 Sep 18
Xiang Rong International Limited
EntityCompany
Shares66,037,000
Max PriceCN¥2.08

Ownership Breakdown


Management Team

  • Yu Kit Wong (37yo)

    Company Secretary

    • Tenure: 1.2yrs
  • Junyu Hou (27yo)

    CEO & Executive Director

    • Tenure: 1.5yrs
  • Shuqin Jiang (53yo)

    Executive Director

    • Tenure: 1.5yrs
  • Zhen Zhao (35yo)

    Chief Financial Officer

    • Tenure: 1.5yrs
  • Yongqi Jiang (34yo)

    Head of Human Resources

    • Tenure: 1.5yrs
  • Wei Liu (38yo)

    Head of Business Support Services Department

    • Tenure: 0.0yrs
  • Jie Zhang (50yo)

    Vice Chief Executive Officer

    • Tenure: 0.3yrs

Board Members

  • Xiaobin Jin (62yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Junyu Hou (27yo)

    CEO & Executive Director

    • Tenure: 1.5yrs
  • Chunlai Hou (50yo)

    Chairman of the Board

    • Tenure: 1.5yrs
  • Shuqin Jiang (53yo)

    Executive Director

    • Tenure: 1.5yrs
  • Joanna Fok (39yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Tsz Man Lau (35yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs

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$1.968b
  • 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 Analysis2019/08/22 13:14
End of Day Share Price2019/08/22 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.