SEHK:667

Stock Analysis Report

China East Education Holdings

Executive Summary

China East Education Holdings Limited, an investment holding company, provides vocational training education services.

Rewards

Trading at 13.3% below its fair value

Earnings are forecast to grow 28.52% per year

Earnings have grown 8.1% per year over the past 5 years

Risk Analysis

No risks detected for 667 from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 667 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

667

-0.5%

HK Consumer Services

2.9%

HK Market


1 Year Return

n/a

667

-1.5%

HK Consumer Services

-3.8%

HK Market

Return vs Industry: Insufficient data to determine how 667 performed against the Hong Kong Consumer Services industry.

Return vs Market: Insufficient data to determine how 667 performed against the Hong Kong Market.


Shareholder returns

667IndustryMarket
7 Day4.0%-0.5%2.9%
30 Day-7.6%-1.9%-4.1%
90 Day-2.1%8.5%2.9%
1 Yearn/a0.5%-1.5%-0.2%-3.8%
3 Yearn/a-5.1%-10.0%15.3%3.7%
5 Yearn/a28.3%17.8%16.8%-2.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 667 (HK$16.02) is trading below our estimate of fair value (HK$18.47)

Significantly Below Fair Value: 667 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 667 is poor value based on its PE Ratio (64.7x) compared to the Consumer Services industry average (15.7x).

PE vs Market: 667 is poor value based on its PE Ratio (64.7x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 667 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 667 is overvalued based on its PB Ratio (5.7x) compared to the HK Consumer Services industry average (2x).


Next Steps

Future Growth

How is China East Education Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 667's forecast earnings growth (28.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 667's earnings (28.5% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

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

Revenue vs Market: 667's revenue (18.4% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 667's revenue (18.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 667's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has China East Education Holdings performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 667 has high quality earnings.

Growing Profit Margin: 667's current net profit margins (16.7%) are lower than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: 667's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: 667's earnings growth over the past year (3.8%) is below its 5-year average (8.1% per year).

Earnings vs Industry: 667 earnings growth over the past year (3.8%) underperformed the Consumer Services industry 15.4%.


Return on Equity

High ROE: 667's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China East Education Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 667's short term assets (CN¥5.9B) exceed its short term liabilities (CN¥2.2B).

Long Term Liabilities: 667's short term assets (CN¥5.9B) exceed its long term liabilities (CN¥1.3B).


Debt to Equity History and Analysis

Debt Level: 667 is debt free.

Reducing Debt: 667 had no debt 5 years ago.

Debt Coverage: 667 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 667 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 667 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 667's debt is covered by short term assets.


Next Steps

Dividend

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

1.11%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.3%industryaverage2.1%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 667's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 667's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 667's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 667's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 667's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

China East Education Holdings has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Wei Wu
Executive Chairman of the Board1.3yrsno data23.32% CN¥8.4b
Guoqing Xiao
Deputy Chairman0.2yrsno data22.43% CN¥8.1b
Siu Au Yeung
Chief Financial Officer1.3yrsno datano data
Chaosheng Mao
Joint Company Secretary1.3yrsno datano data
Suet Wing Leung
Joint Company Secretary1.3yrsno datano data

1.3yrs

Average Tenure

46.5yo

Average Age

Experienced Management: 667's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wei Wu
Executive Chairman of the Board1.3yrsno data23.32% CN¥8.4b
Guoqing Xiao
Deputy Chairman0.2yrsno data22.43% CN¥8.1b
Guobin Zhu
Independent Non-Executive Director1.3yrsno datano data
Ka Hai Hung
Independent Non-Executive Director1.3yrsno datano data
Junbao Wu
Non-Executive Director1.3yrsno data34.05% CN¥12.3b
Zhen Lu
Non-Executive Director1.3yrsno datano data
Tsun Cheung
Independent Non-Executive Director1.3yrsno datano data

1.3yrs

Average Tenure

51yo

Average Age

Experienced Board: 667's board of directors are not considered experienced ( 1.3 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: 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: 667 only recently listed within the past 12 months, with total shares outstanding growing by -51.1% in the past year..


Top Shareholders

Company Information

China East Education Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China East Education Holdings Limited
  • Ticker: 667
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$36.083b
  • Shares outstanding: 2.18b
  • Website: https://www.chinaeastedu.com

Number of Employees


Location

  • China East Education Holdings Limited
  • No. 1009 Xuelin Road
  • Vocational Education Town
  • Hefei
  • Anhui Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
667SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2019
667SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2019
667SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2019

Biography

China East Education Holdings Limited, an investment holding company, provides vocational training education services. The company operates through three segments: Culinary Arts, Information Technology, and Auto Services. As of December 31, 2018, it operated a network of 145 schools, which included 50 under New East Culinary Education, 24 under Xinhua Internet Technology Education, 26 under Wontone Automotive Education, 23 under Omick Education of Western Cuisine and Pastry, and 22 under Wisezone Data Technology Education brands in 29 provinces in Mainland China and Hong Kong. The company also operated 18 customized catering experience centers under Cuisine Academy brand. In addition, it offers secondary vocational education through 26 schools. The company’s customers primarily consist of students and their parents, as well as customized catering experience centers. China East Education Holdings Limited was founded in 1988 and is headquartered in Hefei, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:25
End of Day Share Price2020/02/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.