SEHK:6169

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Executive Summary

China YuHua Education Corporation Limited provides education services in the People’s Republic of China and Thailand.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6169's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.6%

6169

4.8%

HK Consumer Services

5.0%

HK Market


1 Year Return

133.7%

6169

34.0%

HK Consumer Services

-5.3%

HK Market

Return vs Industry: 6169 exceeded the Hong Kong Consumer Services industry which returned 34% over the past year.

Return vs Market: 6169 exceeded the Hong Kong Market which returned -5.3% over the past year.


Shareholder returns

6169IndustryMarket
7 Day-2.6%4.8%5.0%
30 Day-5.3%8.0%4.0%
90 Day22.3%9.8%-4.0%
1 Year139.1%133.7%36.3%34.0%-1.9%-5.3%
3 Year194.1%171.6%2.1%-3.2%-0.5%-10.9%
5 Yearn/a-24.7%-29.7%-9.0%-23.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

31.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6169 (HK$7.36) is trading below our estimate of fair value (HK$10.78)

Significantly Below Fair Value: 6169 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6169 is poor value based on its PE Ratio (129x) compared to the Consumer Services industry average (17.2x).

PE vs Market: 6169 is poor value based on its PE Ratio (129x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 6169 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 6169 is overvalued based on its PB Ratio (6.1x) compared to the HK Consumer Services industry average (2.3x).


Next Steps

Future Growth

How is China YuHua Education forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

50.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6169's forecast earnings growth (50.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 6169's earnings (50.9% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

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

Revenue vs Market: 6169's revenue (9.3% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 6169's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6169's Return on Equity is forecast to be high in 3 years time (26.4%)


Next Steps

Past Performance

How has China YuHua Education performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6169 has a large one-off loss of CN¥298.2M impacting its February 29 2020 financial results.

Growing Profit Margin: 6169's current net profit margins (7.9%) are lower than last year (44.5%).


Past Earnings Growth Analysis

Earnings Trend: 6169's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: 6169's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6169 had negative earnings growth (-73.9%) over the past year, making it difficult to compare to the Consumer Services industry average (15.7%).


Return on Equity

High ROE: 6169's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is China YuHua Education's financial position?


Financial Position Analysis

Short Term Liabilities: 6169's short term assets (CN¥1.9B) do not cover its short term liabilities (CN¥2.2B).

Long Term Liabilities: 6169's short term assets (CN¥1.9B) do not cover its long term liabilities (CN¥2.6B).


Debt to Equity History and Analysis

Debt Level: 6169's debt to equity ratio (55.5%) is considered high.

Reducing Debt: 6169's debt to equity ratio has reduced from 90.4% to 55.5% over the past 5 years.

Debt Coverage: 6169's debt is well covered by operating cash flow (61.4%).

Interest Coverage: 6169's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Next Steps

Dividend

What is China YuHua Education's current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6169's dividend (1.75%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.46%).

High Dividend: 6169's dividend (1.75%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.13%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6169 has been paying a dividend for less than 10 years.

Growing Dividend: 6169's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (274.9%), 6169's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6169's dividends in 3 years are forecast to be well covered by earnings (47.8% payout ratio).


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Hua Li (31yo)

no data

Tenure

CN¥10,607,000

Compensation

Ms. Li Hua has been the Vice chairman of the Board on at China YuHua Education Corporation Limited September 7, 2016 and serves as its Chief executive officer. Ms. Li has more than seven years of experienc ...


CEO Compensation Analysis

Compensation vs Market: Hua's total compensation ($USD1.49M) is above average for companies of similar size in the Hong Kong market ($USD419.64K).

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


Board Members

NamePositionTenureCompensationOwnership
Guangyu Li
Executive Chairman3.75yrsCN¥8.59m0.36% CN¥87.2m
Hua Li
Vice Chairman of the Board & CEOno dataCN¥10.61m0.44% CN¥107.7m
Hongjun Qiu
VP, Financial Controller & Executive Director3.75yrsCN¥697.00k0.0098% CN¥2.4m
Zuoquan Xia
Independent Non Executive Director3.75yrsCN¥180.00kno data
Zhixue Zhang
Independent Non-Executive Director3.75yrsCN¥180.00kno data
Lei Chen
Independent Non-Executive Director3.75yrsCN¥180.00kno data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Board: 6169'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: 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 YuHua Education Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China YuHua Education Corporation Limited
  • Ticker: 6169
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$24.407b
  • Shares outstanding: 3.32b
  • Website: https://www.yuhuachina.com

Number of Employees


Location

  • China YuHua Education Corporation Limited
  • No. 21, Block 10
  • 4th Floor
  • Zhengzhou
  • Henan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6169SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2017
2YUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2017
6169SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2017

Biography

China YuHua Education Corporation Limited provides education services in the People’s Republic of China and Thailand. The company operates through Kindergartens, Grade 1–12, and University segments. It operates private schools; and offers tertiary level education services under the YuHua brand name. The company’s K-12 schools provide education from kindergarten to high school. As of August 31, 2019, it operated 26 schools in Henan province, 1 school in Shandong province, and 1 school in Hunan province, as well as 1 school in Thailand. The company also provides property management and research services. China YuHua Education Corporation Limited was founded in 2001 and is headquartered in Zhengzhou, the People’s Republic of China. China YuHua Education Corporation Limited is a subsidiary of Nai Hai Trust. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 08:32
End of Day Share Price2020/06/04 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.