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.

Risks

  • China E-Information Technology Group has significant price volatility in the past 3 months.
  • China E-Information Technology Group is not covered by any analysts.

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

-2.8%

SEHK:8055

-0.2%

HK Consumer Services

2.5%

HK Market


1 Year Return

-27.9%

SEHK:8055

-5.8%

HK Consumer Services

-3.9%

HK Market

8055 underperformed the Consumer Services industry which returned -5.8% over the past year.

8055 underperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

8055IndustryMarket
7 Day-2.8%-0.2%2.5%
30 Day-24.1%9.2%7.6%
90 Day-1.7%8.1%0.8%
1 Year-27.9%-27.9%-3.8%-5.8%-0.4%-3.9%
3 Year-51.3%-51.3%4.5%-1.0%19.6%7.6%
5 Year-68.0%-68.0%6.9%-1.9%17.7%-1.7%

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 based on future cash flows and its price relative to the stock market?

4.75x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for China E-Information Technology Group to establish if it is available at moderate discount.

Unable to calculate intrinsic value for China E-Information Technology Group to establish if it is available at substantial discount.


Price Based on Earnings

China E-Information Technology Group is loss making, we can't compare its value to the HK Consumer Services industry average.

China E-Information Technology Group is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for China E-Information Technology Group, we can't assess if its growth is good value.


Price Based on Value of Assets

China E-Information Technology Group is overvalued based on assets compared to the HK Consumer Services industry average.


Next Steps

Future Growth

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

25.8%

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

China E-Information Technology Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare China E-Information Technology Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare China E-Information Technology Group's 1-year growth to the HK Consumer Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if China E-Information Technology Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if China E-Information Technology Group has efficiently used its assets last year compared to the HK Consumer Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if China E-Information Technology Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

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


Financial Position Analysis

China E-Information Technology Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China E-Information Technology Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China E-Information Technology Group's level of debt (25.1%) compared to net worth is satisfactory (less than 40%).

China E-Information Technology Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.9x 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.

China E-Information Technology Group has sufficient cash runway for 1.7 years based on current free cash flow.

China E-Information Technology Group has sufficient cash runway for 1.5 years if free cash flow continues to reduce 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 and Payments Analysis

Unable to evaluate China E-Information Technology Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate China E-Information Technology Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as China E-Information Technology Group has not reported any payouts.

Unable to verify if China E-Information Technology Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as China E-Information Technology Group has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

1.8yrs

Average management tenure


CEO

Wei Yuan (48yo)

1.3yrs

Tenure

HK$1,890,000

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

Wei's remuneration is about average for companies of similar size in Hong Kong.

Wei's compensation has increased whilst company is loss making.


Management Age and Tenure

1.8yrs

Average Tenure

49.5yo

Average Age

The average tenure for the China E-Information Technology Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

49yo

Average Age

The average tenure for the China E-Information Technology Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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: 3.2yrs
    • Compensation: HK$50.00k
  • Hui Wang (53yo)

    Deputy Chief Executive Officer

    • Tenure: 1.3yrs
  • Wei Yuan (48yo)

    CEO, Executive Director & Compliance Officer

    • Tenure: 1.3yrs
    • Compensation: HK$1.89m
  • Jianxin Zhang (51yo)

    Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$600.00k
  • Zhijing Zheng (57yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$600.00k
  • Yan Lin (37yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$608.00k
  • Hiu Pui Wong (31yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$600.00k

Board Members

  • Wei Yuan (48yo)

    CEO, Executive Director & Compliance Officer

    • Tenure: 1.3yrs
    • Compensation: HK$1.89m
  • Jianxin Zhang (51yo)

    Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$600.00k
  • Zhijing Zheng (57yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$600.00k
  • Yan Lin (37yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$608.00k
  • Hiu Pui Wong (31yo)

    Executive Director

    • Tenure: 2.1yrs
    • 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: 1.4yrs
    • Compensation: HK$70.00k
  • Qingchun Yang (49yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • 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$648.974m
  • 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 Analysis2019/09/14 12:50
End of Day Share Price2019/09/13 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.