SEHK:8055

Stock Analysis Report

China E-Information Technology Group

Executive Summary

China E-Information Technology Group Limited, an investment holding company, provides occupational education, industry certification courses, skills training, and education consultation services in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet with weak fundamentals.

Share Price & News

How has China E-Information Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

8055

3.7%

HK Consumer Services

2.4%

HK Market


1 Year Return

-37.7%

8055

4.7%

HK Consumer Services

0.4%

HK Market

Return vs Industry: 8055 underperformed the Hong Kong Consumer Services industry which returned 4.7% over the past year.

Return vs Market: 8055 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

8055IndustryMarket
7 Day1.5%3.7%2.4%
30 Day-22.4%3.5%-2.6%
90 Day-21.4%5.1%-5.6%
1 Year-37.7%-37.7%6.8%4.7%4.0%0.4%
3 Year-62.3%-62.3%5.4%-0.04%15.1%3.5%
5 Year-74.1%-74.1%11.3%2.4%20.3%0.3%

Price Volatility Vs. Market

How volatile is China E-Information Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China E-Information Technology Group undervalued compared to its fair value and its price relative to the market?

3.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 8055's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 8055's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8055 is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: 8055 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 8055's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8055 is overvalued based on its PB Ratio (3.6x) compared to the HK Consumer Services industry average (2x).


Next Steps

Future Growth

How is China E-Information Technology Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.6%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China E-Information Technology Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has China E-Information Technology Group performed over the past 5 years?

-13.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8055 is unprofitable, and losses have increased over the past 5 years at a rate of -13.7% per year.

Accelerating Growth: Unable to compare 8055's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8055 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (14.4%).


Return on Equity

High ROE: 8055 has a negative Return on Equity (-47.96%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 8055 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 8055 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is China E-Information Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8055's short term assets (HK$159.0M) exceeds its short term liabilities (HK$66.4M)

Long Term Liabilities: 8055's short term assets (159.0M) exceeds its long term liabilities (6.3M)


Debt to Equity History and Analysis

Debt Level: 8055's debt to equity ratio (25.1%) is considered satisfactory

Reducing Debt: 8055 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: 8055 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8055's debt is covered by short term assets (assets are 3.852390x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 8055 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 8055 has sufficient cash runway for 1.537648 years if free cash flow continues to grow at historical rates of 14.6% each year.


Next Steps

Dividend

What is China E-Information Technology Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8055's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8055's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 8055's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8055'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 8055's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of China E-Information Technology Group's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Wei Yuan (48yo)

1.4yrs

Tenure

HK$1,630,000

Compensation

Mr. Wei Yuan has been Chief Executive Officer of China E-Information Technology Group Ltd since May 3, 2018. He serves as a Compliance Officer at China E-Learning Group Limited since February 14, 2014. Mr. ...


CEO Compensation Analysis

Compensation vs. Market: Wei has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Management Age and Tenure

1.9yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 8055's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

49yo

Average Age

Experienced Board: 8055's board of directors are not considered experienced ( 2.3 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.


Ownership Breakdown


Management Team

  • Harris Chan (63yo)

    Chief Representative of Greater China Region of the Group

    • Tenure: 0yrs
  • Chi Kong Cheng (46yo)

    Chief Technical Officer

    • Tenure: 0yrs
  • Yim Kum Chan (54yo)

    Company Secretary

    • Tenure: 2.3yrs
  • Xiangjun Li (47yo)

    Consultant

    • Tenure: 3.3yrs
    • Compensation: HK$50.00k
  • Hui Wang (53yo)

    Deputy Chief Executive Officer

    • Tenure: 1.4yrs
  • Wei Yuan (48yo)

    CEO, Executive Director & Compliance Officer

    • Tenure: 1.4yrs
    • Compensation: HK$1.63m
  • Jianxin Zhang (51yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$600.00k
  • Zhijing Zheng (57yo)

    Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$600.00k
  • Yan Lin (37yo)

    Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$608.00k
  • Hiu Pui Wong (31yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$600.00k

Board Members

  • Wei Yuan (48yo)

    CEO, Executive Director & Compliance Officer

    • Tenure: 1.4yrs
    • Compensation: HK$1.63m
  • Jianxin Zhang (51yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$600.00k
  • Zhijing Zheng (57yo)

    Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$600.00k
  • Yan Lin (37yo)

    Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$608.00k
  • Hiu Pui Wong (31yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$600.00k
  • Xiaowei Lu (50yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$100.00k
  • Jiuda Tang (49yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$70.00k
  • Qingchun Yang (49yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: HK$44.00k

Company Information

China E-Information Technology Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China E-Information Technology Group Limited
  • Ticker: 8055
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$510.176m
  • Shares outstanding: 3.75b
  • Website: https://null

Number of Employees


Location

  • China E-Information Technology Group Limited
  • Office Tower, Convention Plaza
  • 26th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8055SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2001

Biography

China E-Information Technology Group Limited, an investment holding company, provides occupational education, industry certification courses, skills training, and education consultation services in the Peo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:41
End of Day Share Price2019/10/16 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.