SEHK:6068

Stock Analysis Report

Wisdom Education International Holdings

Executive Summary

Wisdom Education International Holdings Company Limited, an investment holding company, operates primary and secondary schools in the People’s Republic of China.

Snowflake

Fundamentals

High growth potential and good value.


Similar Companies

Share Price & News

How has Wisdom Education International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

6068

1.1%

HK Consumer Services

0.3%

HK Market


1 Year Return

-2.6%

6068

1.4%

HK Consumer Services

1.3%

HK Market

Return vs Industry: 6068 matched the Hong Kong Consumer Services industry which returned 1.4% over the past year.

Return vs Market: 6068 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

6068IndustryMarket
7 Day-2.4%1.1%0.3%
30 Day2.5%4.9%0.5%
90 Day-14.2%4.6%-4.6%
1 Year-0.01%-2.6%3.4%1.4%4.9%1.3%
3 Yearn/a4.6%-0.8%15.3%3.7%
5 Yearn/a10.7%2.2%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Wisdom Education International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wisdom Education International Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6068 (HK$3.31) is trading below our estimate of fair value (HK$11.52)

Significantly Below Fair Value: 6068 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6068 is good value based on its PE Ratio (17.2x) compared to the Consumer Services industry average (17.2x).

PE vs Market: 6068 is poor value based on its PE Ratio (17.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6068 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 6068 is overvalued based on its PB Ratio (3x) compared to the HK Consumer Services industry average (2x).


Next Steps

Future Growth

How is Wisdom Education International Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6068's forecast earnings growth (23.8% per year) is above the savings rate (2%).

Earnings vs Market: 6068's earnings (23.8% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 6068's revenue (19.5% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 6068's revenue (19.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6068's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Wisdom Education International Holdings performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 6068's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: 6068's earnings growth over the past year (50.6%) exceeds its 5-year average (24.8% per year).

Earnings vs Industry: 6068 earnings growth over the past year (50.6%) exceeded the Consumer Services industry 14.4%.


Return on Equity

High ROE: 6068's Return on Equity (16.7%) is considered low.


Return on Assets

ROA vs Industry: 6068's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: 6068's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Wisdom Education International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6068's short term assets (CN¥1.4B) do not cover its short term liabilities (CN¥2.1B)

Long Term Liabilities: 6068's short term assets (1.4B) do not cover its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: 6068's debt to equity ratio (113.5%) is considered high

Reducing Debt: 6068's debt to equity ratio has reduced from 173.3% to 113.5% over the past 5 years.

Debt Coverage: 6068's debt is well covered by operating cash flow (27.3%).

Interest Coverage: 6068's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet

Inventory Level: 6068 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6068's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Wisdom Education International Holdings's current dividend yield, its reliability and sustainability?

2.81%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.3%markettop25%6.2%industryaverage2.3%forecastin3Years4.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 6068's dividend (2.81%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 6068's dividend (2.81%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: Whilst dividend payments have been stable, 6068 has been paying a dividend for less than 10 years.

Growing Dividend: 6068's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.8%), 6068's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6068's dividends in 3 years are forecast to be well covered by earnings (42.7% payout ratio).


Next Steps

Management

What is the CEO of Wisdom Education International Holdings's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Suwen Li (45yo)

0yrs

Tenure

CN¥1,477,000

Compensation

Ms. Suwen Li serves as the Chief Executive Officer of Wisdom Education International Holdings Company Limited and has been its Director on 13 July 2010 and as an executive Director on 7 June 2016. Ms. Li h ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Suwen's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

Compensation vs Earnings: Suwen's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

44.5yo

Average Age

Experienced Management: 6068's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

46yo

Average Age

Experienced Board: 6068's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

SellCN¥29,390,47731 Jan 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares9,414,000
Max PriceCN¥3.12
BuyCN¥95,543,22630 Jan 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares9,580,000
Max PriceCN¥9.97
SellCN¥45,907,82325 Jan 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares15,074,000
Max PriceCN¥3.05
BuyCN¥60,120,41423 Jan 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares18,904,000
Max PriceCN¥3.18
SellCN¥2,934,44912 Dec 18
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares922,000
Max PriceCN¥3.18
BuyCN¥944,00329 Oct 18
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares276,000
Max PriceCN¥3.42

Ownership Breakdown


Management Team

  • Cheuk Ng (44yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: CN¥2.24m
  • Derek Lau (48yo)

    Chief Investor Relations Officer & VP

    • Tenure: 2.6yrs
  • Suet Lun Leung (35yo)

    Company Secretary

    • Tenure: 0.08yrs
  • Xuebin Liu (46yo)

    Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥2.06m
  • Suwen Li (45yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥1.48m
  • Jiuchang Li (39yo)

    COO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥808.00k
  • Xi Chen (52yo)

    Principal of Huanan Shida Yuedong Preparatory School

    • Tenure: 2.2yrs
  • Shan He (39yo)

    Principal of Panjin Guangzheng Preparatory School

    • Tenure: 5.1yrs
  • Yongchun Wang (37yo)

    Director & Principal of High School of Dongguan Guangming & Dongguan Guangzheng Preparatory School

    • Tenure: 1.8yrs
    • Compensation: CN¥786.28k
  • Wayne Li (50yo)

    Executive Vice President

    • Tenure: 0yrs

Board Members

  • Kenny Tam (70yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥208.00k
  • Cliff Sun (65yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥208.00k
  • Xuebin Liu (46yo)

    Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥2.06m
  • Suwen Li (45yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥1.48m
  • Jiuchang Li (39yo)

    COO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥808.00k
  • Yongchun Wang (37yo)

    Director & Principal of High School of Dongguan Guangming & Dongguan Guangzheng Preparatory School

    • Tenure: 1.8yrs
    • Compensation: CN¥786.28k
  • Weiguo Huang (67yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs

Company Information

Wisdom Education International Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wisdom Education International Holdings Company Limited
  • Ticker: 6068
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$6.776b
  • Shares outstanding: 2.05b
  • Website: https://www.wisdomeducationintl.com

Number of Employees


Location

  • Wisdom Education International Holdings Company Limited
  • No. 68 Guangming Da Dao
  • Dongcheng District
  • Dongguan
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6068SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2017
6068SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2017
6068SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2017

Biography

Wisdom Education International Holdings Company Limited, an investment holding company, operates primary and secondary schools in the People’s Republic of China. The company offers private education for pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:53
End of Day Share Price2019/10/22 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.