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 Analysis

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

Stable Share Price: 8055's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

8055

-1.2%

HK Consumer Services

-3.2%

HK Market


1 Year Return

-66.0%

8055

-3.5%

HK Consumer Services

-10.2%

HK Market

Return vs Industry: 8055 underperformed the Hong Kong Consumer Services industry which returned -1.5% over the past year.

Return vs Market: 8055 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

8055IndustryMarket
7 Day-5.6%-1.2%-3.2%
30 Day-19.8%3.1%-3.3%
90 Day-19.8%8.4%0.2%
1 Year-66.0%-66.0%-1.4%-3.5%-6.9%-10.2%
3 Year-71.7%-71.7%-8.7%-13.4%11.7%0.4%
5 Year-79.0%-79.0%28.2%17.9%11.1%-7.3%

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?

2.33x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Below Fair Value: 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

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 (2.3x) 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?

28.6%

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?

-12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8055 is currently unprofitable.

Growing Profit Margin: 8055 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8055 is unprofitable, and losses have increased over the past 5 years at a rate of -12.6% 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 (15.4%).


Return on Equity

High ROE: 8055 has a negative Return on Equity (-67.95%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


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) exceed its short term liabilities (HK$66.4M).

Long Term Liabilities: 8055's short term assets (HK$159.0M) exceed its long term liabilities (HK$6.3M).


Debt to Equity History and Analysis

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

Reducing Debt: 8055's debt to equity ratio has reduced from 38.5% to 25.1% over the past 5 years.


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 3.9x 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.

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 1.7 years if free cash flow continues to reduce at historical rates of -15% 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%6.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

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

2.2yrs

Average management tenure


CEO

Wei Yuan (48yo)

1.8yrs

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's total compensation ($USD209.30K) is about average for companies of similar size in the Hong Kong market ($USD226.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wei Yuan
CEO, Executive Director & Compliance Officer1.8yrsHK$1.63mno data
Jianxin Zhang
Executive Director3.6yrsHK$600.00kno data
Zhijing Zheng
Executive Director2.8yrsHK$600.00kno data
Yan Lin
Executive Director2.8yrsHK$608.00k3.36% HK$10.7m
Hiu Pui Wong
Executive Director2.5yrsHK$600.00k0.0032% HK$10.2k
Chi Kong Cheng
Chief Technical Officer0yrsno datano data
Chee Ming Chan
Chief Representative of Greater China Region of the Group0yrsno datano data
Hui Wang
Deputy Chief Executive Officer1.8yrsno datano data
Yim Kum Chan
Company Secretary2.7yrsno datano data
Xiangjun Li
Consultant3.6yrsHK$50.00kno data

2.2yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 8055's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wei Yuan
CEO, Executive Director & Compliance Officer1.8yrsHK$1.63mno data
Jianxin Zhang
Executive Director3.6yrsHK$600.00kno data
Zhijing Zheng
Executive Director2.8yrsHK$600.00kno data
Yan Lin
Executive Director2.8yrsHK$608.00k3.36% HK$10.7m
Hiu Pui Wong
Executive Director2.5yrsHK$600.00k0.0032% HK$10.2k
Xiaowei Lu
Independent Non-Executive Director2.2yrsHK$100.00k0.027% HK$85.0k
Jiuda Tang
Independent Non-Executive Director1.8yrsHK$70.00kno data
Qingchun Yang
Independent Non-Executive Director1.5yrsHK$44.00k0.014% HK$45.6k
Ruiping Lin
Honorary Chairman0.4yrsno datano data

2.5yrs

Average Tenure

49yo

Average Age

Experienced Board: 8055's board of directors are not considered experienced ( 2.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$318.860m
  • 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 People’s Republic of China. The company principally provides an Internet platform for the facilitation of education program in Chinese medicine, and other advisory and training programs. It also offers distance learning program in Chinese medicine. The company was formerly known as China E-Learning Group Limited and changed its name to China E-Information Technology Group Limited in June 2017. China E-Information Technology Group Limited was incorporated in 2001 and is headquartered in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 12:57
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
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.