SEHK:6068

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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. More Details


Snowflake Analysis

Good value with reasonable growth potential.


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

Stable Share Price: 6068's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.8%

6068

-6.2%

HK Consumer Services

-0.6%

HK Market


1 Year Return

-17.9%

6068

21.1%

HK Consumer Services

0.9%

HK Market

Return vs Industry: 6068 underperformed the Hong Kong Consumer Services industry which returned 23.8% over the past year.

Return vs Market: 6068 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

6068IndustryMarket
7 Day-6.8%-6.2%-0.6%
30 Day-11.3%-9.7%0.02%
90 Day-32.8%-12.6%-1.7%
1 Year-15.0%-17.9%23.4%21.1%5.1%0.9%
3 Year-37.2%-41.7%-13.6%-18.7%-6.1%-16.3%
5 Yearn/a8.7%-0.3%14.1%-5.3%

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?

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6068 (HK$2.75) is trading below our estimate of fair value (HK$5.16)

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 (11.6x) compared to the HK Consumer Services industry average (17.7x).

PE vs Market: 6068 is poor value based on its PE Ratio (11.6x) compared to the Hong Kong market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6068 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 6068's PB Ratio (2.1x) is in line with the HK Consumer Services industry average.


Next Steps

Future Growth

How is Wisdom Education International Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6068's forecast earnings growth (20.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 6068's earnings (20.6% per year) are forecast to grow slower than the Hong Kong market (22.4% per year).

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

Revenue vs Market: 6068's revenue (18.9% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).

High Growth Revenue: 6068's revenue (18.9% 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 (21.5%)


Next Steps

Past Performance

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

25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6068 has high quality earnings.

Growing Profit Margin: 6068's current net profit margins (24.4%) are higher than last year (24%).


Past Earnings Growth Analysis

Earnings Trend: 6068's earnings have grown significantly by 25.2% per year over the past 5 years.

Accelerating Growth: 6068's earnings growth over the past year (20.8%) is below its 5-year average (25.2% per year).

Earnings vs Industry: 6068 earnings growth over the past year (20.8%) exceeded the Consumer Services industry 6.5%.


Return on Equity

High ROE: 6068's Return on Equity (17.5%) is considered low.


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¥1.0B) do not cover its short term liabilities (CN¥1.9B).

Long Term Liabilities: 6068's short term assets (CN¥1.0B) do not cover its long term liabilities (CN¥2.2B).


Debt to Equity History and Analysis

Debt Level: 6068's debt to equity ratio (108.2%) is considered high.

Reducing Debt: 6068's debt to equity ratio has reduced from 214.6% to 108.2% over the past 5 years.

Debt Coverage: 6068's debt is well covered by operating cash flow (24.9%).

Interest Coverage: 6068's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6068's dividend (4.8%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 6068's dividend (4.8%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.82%).


Stability and Growth of Payments

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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.3%), 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 (42.1% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Suwen Li (46 yo)

no data

Tenure

CN¥1,935,000

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: Suwen's total compensation ($USD288.93K) is below average for companies of similar size in the Hong Kong market ($USD505.41K).

Compensation vs Earnings: Suwen's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Suwen Li
Chairman & CEOno dataCN¥1.94m26.29%
CN¥ 1.6b
Jiuchang Li
COO & Executive Director4.33yrsCN¥2.24mno data
Xuebin Liu
Executive Director10.25yrsCN¥2.58m42.85%
CN¥ 2.6b
Yongchun Wang
Executive Director2.75yrsCN¥1.81mno data
Chi Hung Lau
Chief Investor Relations Officer & VP3.58yrsno datano data
Suet Lun Leung
Company Secretary1.08yrsno datano data
Xi Chen
Principal of Huanan Shida Yuedong Preparatory School3.17yrsno datano data
Shan He
Principal of Panjin Guangzheng Preparatory School6.08yrsno datano data
Jingfeng Zhang
Principal of Huizhou Guangzheng Preparatory School7.25yrsno datano data

4.3yrs

Average Tenure

40yo

Average Age

Experienced Management: 6068's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Suwen Li
Chairman & CEOno dataCN¥1.94m26.29%
CN¥ 1.6b
Jiuchang Li
COO & Executive Director4.33yrsCN¥2.24mno data
Xuebin Liu
Executive Director10.25yrsCN¥2.58m42.85%
CN¥ 2.6b
Yongchun Wang
Executive Director2.75yrsCN¥1.81mno data
King-Ching Tam
Independent Non-Executive Director3.75yrsCN¥222.00kno data
Kai Lit Sun
Independent Non-Executive Director3.75yrsCN¥222.00kno data
Weiguo Huang
Independent Non-Executive Director1.58yrsCN¥55.00kno data

3.8yrs

Average Tenure

47yo

Average Age

Experienced Board: 6068's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 6068 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

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$6.118b
  • Shares outstanding: 2.18b
  • 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
5Q4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 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 Analysis2020/10/19 12:36
End of Day Share Price2020/10/19 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


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.