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3978

China Beststudy Education Group SEHK:3978 Stock Report

Last Price

HK$0.38

Market Cap

HK$304.6m

7D

-7.3%

1Y

-73.6%

Updated

27 Jun, 2022

Data

Company Financials
3978 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

3978 Stock Overview

China Beststudy Education Group provides after-school education services for K-12 student groups in China.

China Beststudy Education Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Beststudy Education Group
Historical stock prices
Current Share PriceHK$0.38
52 Week HighHK$1.46
52 Week LowHK$0.19
Beta0.54
1 Month Change-9.52%
3 Month Change52.00%
1 Year Change-73.61%
3 Year Change-84.43%
5 Year Changen/a
Change since IPO-84.17%

Recent News & Updates

Feb 15
There Are Reasons To Feel Uneasy About China Beststudy Education Group's (HKG:3978) Returns On Capital

There Are Reasons To Feel Uneasy About China Beststudy Education Group's (HKG:3978) Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

3978HK Consumer ServicesHK Market
7D-7.3%-6.7%2.1%
1Y-73.6%-51.6%-23.3%

Return vs Industry: 3978 underperformed the Hong Kong Consumer Services industry which returned -51.6% over the past year.

Return vs Market: 3978 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 3978's price volatile compared to industry and market?
3978 volatility
3978 Average Weekly Movement13.9%
Consumer Services Industry Average Movement8.9%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 3978 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: 3978's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
19973,043Junjing Tanghttps://www.beststudy.com

China Beststudy Education Group provides after-school education services for K-12 student groups in China. The company offers education related courses, such as full-time test preparation programs, which aims to help middle school and high school graduates to be admitted to their preferred schools; talent education solutions to promote the all-round development of students that allows an engaging and enjoyable learning process; after-school tutoring program, which targets to help students establish a sound learning thinking and knowledge system, as well as to develop good learning habits; self-study program to improve students’ soft power of learning through self-study model; and vocational education to cultivate various types of vocational and technical talents needed by the country and society with the support of public vocational colleges. It also provides management consultancy, internet information, publicity and advertising, and technical support and development services, as well as engages in the investment activities.

China Beststudy Education Group Fundamentals Summary

How do China Beststudy Education Group's earnings and revenue compare to its market cap?
3978 fundamental statistics
Market CapCN¥259.61m
Earnings (TTM)-CN¥325.03m
Revenue (TTM)CN¥1.90b

0.1x

P/S Ratio

-0.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3978 income statement (TTM)
RevenueCN¥1.90b
Cost of RevenueCN¥1.18b
Gross ProfitCN¥723.25m
Other ExpensesCN¥1.05b
Earnings-CN¥325.03m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.43
Gross Margin38.09%
Net Profit Margin-17.12%
Debt/Equity Ratio95.0%

How did 3978 perform over the long term?

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

Valuation

Is 3978 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3978?

Other financial metrics that can be useful for relative valuation.

3978 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/Revenue0.07x
Enterprise Value/EBITDA0.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 3978's PS Ratio compare to its peers?

3978 PS Ratio vs Peers
The above table shows the PS ratio for 3978 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.7x
9986 Dashan Education Holdings
1xn/aHK$400.0m
1449 Leader Education
0.8xn/aHK$233.3m
1769 Scholar Education Group
0.4xn/aHK$377.9m
2371 Chuanglian Holdings
0.8xn/aHK$256.6m
3978 China Beststudy Education Group
0.1xn/aHK$304.6m

Price-To-Sales vs Peers: 3978 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.7x).


Price to Earnings Ratio vs Industry

How does 3978's PE Ratio compare vs other companies in the HK Consumer Services Industry?

Price-To-Sales vs Industry: 3978 is good value based on its Price-To-Sales Ratio (0.1x) compared to the Hong Kong Consumer Services industry average (1.6x)


Price to Sales Ratio vs Fair Ratio

What is 3978's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3978 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.1x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 3978's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 3978 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 3978's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 3978's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3978's PEG Ratio to determine if it is good value.


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Future Growth

How is China Beststudy 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


26.5%

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 Beststudy 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.


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  • Take a look at our analysis of 3978’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • China Beststudy Education Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-25.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3978 is currently unprofitable.

Growing Profit Margin: 3978 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 3978 is unprofitable, and losses have increased over the past 5 years at a rate of 25.7% per year.

Accelerating Growth: Unable to compare 3978's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3978 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (17.3%).


Return on Equity

High ROE: 3978 has a negative Return on Equity (-92.87%), as it is currently unprofitable.


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Financial Health

How is China Beststudy Education Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3978's short term assets (CN¥772.0M) do not cover its short term liabilities (CN¥817.8M).

Long Term Liabilities: 3978's short term assets (CN¥772.0M) exceed its long term liabilities (CN¥150.2M).


Debt to Equity History and Analysis

Debt Level: 3978 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 3978's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3978's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 3978's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


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Dividend

What is China Beststudy 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

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3978's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 3978'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 3978's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3978's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 3978 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 3978 has not reported any payouts.


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Management

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

2.5yrs

Average management tenure


CEO

Junjing Tang (51 yo)

4yrs

Tenure

Mr. Junjing Tang has been Chairman, Executive Director and Chief Executive Officer at China Beststudy Education Group since June 13, 2018, being responsible for the overall development, operation and manag...


Leadership Team

Experienced Management: 3978's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: 3978's board of directors are considered experienced (7.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

China Beststudy Education Group's employee growth, exchange listings and data sources


Key Information

  • Name: China Beststudy Education Group
  • Ticker: 3978
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Education Services
  • Sector: Consumer Services
  • Implied Market Cap: HK$304.630m
  • Shares outstanding: 752.17m
  • Website: https://www.beststudy.com

Number of Employees


Location

  • China Beststudy Education Group
  • Xinde Business Centre
  • 41st Floor
  • Guangzhou
  • Guangdong Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/12/31
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.