SEHK:839

Stock Analysis Report

China Education Group Holdings

Executive Summary

China Education Group Holdings Limited, an investment holding company, operates private higher and vocational education institutions in the People's Republic of China.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

839

4.3%

HK Consumer Services

3.1%

HK Market


1 Year Return

40.8%

839

4.1%

HK Consumer Services

0.5%

HK Market

Return vs Industry: 839 exceeded the Hong Kong Consumer Services industry which returned 4.1% over the past year.

Return vs Market: 839 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

839IndustryMarket
7 Day1.0%4.3%3.1%
30 Day11.4%3.7%-1.8%
90 Day-1.9%6.6%-4.8%
1 Year42.1%40.8%6.3%4.1%4.1%0.5%
3 Yearn/a4.3%-1.0%15.8%4.2%
5 Yearn/a10.8%2.1%18.9%-0.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

42.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 839 (HK$12.14) is trading below our estimate of fair value (HK$21.18)

Significantly Undervalued: 839 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 839 is poor value based on its PE Ratio (41.3x) compared to the Consumer Services industry average (17.5x).

PE vs Market: 839 is poor value based on its PE Ratio (41.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 839 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 839 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 Education Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 839's forecast earnings growth (24.7% per year) is above the savings rate (2%).

Earnings vs Market: 839's earnings (24.7% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 839's revenue (17.8% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 839's revenue (17.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 839's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

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

31.9%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 839's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 839's past year earnings growth to its 5-year average.

Earnings vs Industry: 839 earnings growth over the past year (31.9%) exceeded the Consumer Services industry 14.4%.


Return on Equity

High ROE: 839's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: 839's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: 839's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China Education Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 839's short term assets (CN¥2.1B) exceeds its short term liabilities (CN¥1.7B)

Long Term Liabilities: 839's short term assets (2.1B) exceeds its long term liabilities (523.7M)


Debt to Equity History and Analysis

Debt Level: 839's debt to equity ratio (3.7%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 839's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 839's debt is well covered by operating cash flow (255.9%).

Interest Coverage: 839's interest payments on its debt are well covered by EBIT (40.9x coverage).


Balance Sheet

Inventory Level: 839 has a high level of physical assets or inventory.

Debt Coverage by Assets: 839's debt is covered by short term assets (assets are 8.686250x debt).


Next Steps

Dividend

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

0.56%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%2.3%markettop25%6.3%industryaverage2.3%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 839's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 839's dividend (0.56%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 839 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 839 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 839 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 839'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 Education Group Holdings's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average board tenure


CEO

Kai Yu (34yo)

2.2yrs

Tenure

CN¥1,584,000

Compensation

Dr. Yu Kai is the Chief Executive Officer and Executive Director at China Education Group Holdings Ltd. Dr. Yu served as an educational consultant to the World Bank. He also provided research services to t ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Kai's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

Compensation vs Earnings: Kai's compensation has increased by more than 20% in the past year.


Board Age and Tenure

1.9yrs

Average Tenure

56yo

Average Age

Experienced Board: 839's board of directors are not considered experienced ( 1.9 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

  • Bill Mok (58yo)

    CFO & Company Secretary

    • Tenure: 2.4yrs
  • Guo Yu (57yo)

    Co-Chairman

    • Tenure: 1.9yrs
    • Compensation: CN¥908.50k
  • Ketao Xie (55yo)

    Co-Chairman

    • Tenure: 1.9yrs
    • Compensation: CN¥897.00k
  • Kai Yu (34yo)

    CEO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥1.58m
  • Shaohua Xie (56yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥1.27m

Board Members

  • Meng Rui (52yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥154.00k
  • Guo Yu (57yo)

    Co-Chairman

    • Tenure: 1.9yrs
    • Compensation: CN¥908.50k
  • Ketao Xie (55yo)

    Co-Chairman

    • Tenure: 1.9yrs
    • Compensation: CN¥897.00k
  • Kai Yu (34yo)

    CEO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥1.58m
  • Shaohua Xie (56yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥1.27m
  • Gerard A. Postiglione (68yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥154.00k
  • Kin Bing Wu (68yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥154.00k

Company Information

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


Key Information

  • Name: China Education Group Holdings Limited
  • Ticker: 839
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$24.323b
  • Shares outstanding: 2.02b
  • Website: https://www.chinaeducation.hk

Number of Employees


Location

  • China Education Group Holdings Limited
  • Two Exchange Square
  • Suite 1504
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
839SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2017
839SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2017
839SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2017

Biography

China Education Group Holdings Limited, an investment holding company, operates private higher and vocational education institutions in the People's Republic of China. The company offers 86 Bachelor’s degr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:57
End of Day Share Price2019/10/17 00:00
Earnings2018/08/31
Annual Earnings2018/08/31


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.