SEHK:3978

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China Beststudy Education Group

Executive Summary

China Beststudy Education Group provides K-12 after-school education services in China. More Details


Snowflake Analysis

Exceptional growth potential and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3978 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 3978's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.0%

3978

0.8%

HK Consumer Services

-0.5%

HK Market


1 Year Return

-7.3%

3978

29.8%

HK Consumer Services

7.6%

HK Market

Return vs Industry: 3978 underperformed the Hong Kong Consumer Services industry which returned 29.8% over the past year.

Return vs Market: 3978 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

3978IndustryMarket
7 Day-4.0%0.8%-0.5%
30 Day1.8%8.5%5.3%
90 Day-12.1%-7.8%4.2%
1 Year-5.6%-7.3%32.3%29.8%11.9%7.6%
3 Yearn/a-0.9%-7.0%-1.2%-11.4%
5 Yearn/a11.6%2.3%29.7%7.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3978 (HK$2.9) is trading below our estimate of fair value (HK$4.47)

Significantly Below Fair Value: 3978 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3978 is good value based on its PE Ratio (17x) compared to the HK Consumer Services industry average (17.7x).

PE vs Market: 3978 is poor value based on its PE Ratio (17x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 3978 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 3978 is overvalued based on its PB Ratio (2.5x) compared to the HK Consumer Services industry average (2.1x).


Next Steps

Future Growth

How is China Beststudy Education Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3978's forecast earnings growth (40.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 3978's earnings (40.4% per year) are forecast to grow faster than the Hong Kong market (21.9% per year).

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

Revenue vs Market: 3978's revenue (21.4% per year) is forecast to grow faster than the Hong Kong market (13.7% per year).

High Growth Revenue: 3978's revenue (21.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3978's Return on Equity is forecast to be high in 3 years time (21.7%)


Next Steps

Past Performance

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

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3978 has a large one-off gain of CN¥96.3M impacting its June 30 2020 financial results.

Growing Profit Margin: 3978's current net profit margins (6.6%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: 3978's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: 3978's earnings growth over the past year (61.1%) exceeds its 5-year average (19.5% per year).

Earnings vs Industry: 3978 earnings growth over the past year (61.1%) exceeded the Consumer Services industry 6.7%.


Return on Equity

High ROE: 3978's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is China Beststudy Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3978's short term assets (CN¥1.2B) do not cover its short term liabilities (CN¥1.2B).

Long Term Liabilities: 3978's short term assets (CN¥1.2B) exceed its long term liabilities (CN¥776.9M).


Debt to Equity History and Analysis

Debt Level: 3978's debt to equity ratio (32%) is considered satisfactory.

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

Debt Coverage: 3978's debt is well covered by operating cash flow (128.4%).

Interest Coverage: 3978's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

What is China Beststudy Education Group current dividend yield, its reliability and sustainability?

1.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3978's dividend (1.82%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 3978's dividend (1.82%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 3978's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 3978's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.8%), 3978's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3978's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Junjing Tang (50 yo)

2.42yrs

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

NamePositionTenureCompensationOwnership
Junjing Tang
Chairman & CEO2.42yrsno data21.7%
CN¥ 512.3m
Zheng Hongzhang
Chief Financial Officer2.42yrsno datano data
Junying Tang
Executive Director & Senior VP9.83yrsno data18.05%
CN¥ 426.2m
Gui Zhou
Senior VP & Executive Director9.83yrsno data18%
CN¥ 424.9m
Zhu Changxu
Joint Company Secretary2.42yrsno datano data
Hing Ling Chau
Joint Company Secretaryno datano datano data

2.4yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 3978's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Junjing Tang
Chairman & CEO2.42yrsno data21.7%
CN¥ 512.3m
Junying Tang
Executive Director & Senior VP9.83yrsno data18.05%
CN¥ 426.2m
Gui Zhou
Senior VP & Executive Director9.83yrsno data18%
CN¥ 424.9m
Wen Hui Xu
Non-Executive Director9.83yrsno data1.34%
CN¥ 31.7m
Wu Yingmin
Independent Non-Executive Director1.92yrsno datano data
Long Yu
Independent Non-Executive Director1.92yrsno datano data
Xue Peng
Independent Non-Executive Director1.92yrsno datano data

2.4yrs

Average Tenure

50yo

Average Age

Experienced Board: 3978's board of directors are not considered experienced ( 2.4 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: 3978 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 company bio, 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
  • Market Cap: HK$2.361b
  • Shares outstanding: 794.98m
  • Website: https://www.beststudy.com

Number of Employees


Location

  • China Beststudy Education Group
  • China International Center
  • 35th Floor, Tower B
  • Guangzhou
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3978SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2018

Biography

China Beststudy Education Group provides K-12 after-school education services in China. The company offers premium learning program that enhances student’s academic performance in schools, and covers vario...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:22
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.