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839

China Education Group HoldingsSEHK:839 Stock Report

Market Cap

HK$38.5b

7D

24.1%

1Y

24.3%

Updated

19 Oct, 2021

Data

Company Financials +
839 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends3/6

839 Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for China Education Group Holdings
Historical stock prices
Current Share PriceHK$16.66
52 Week HighHK$11.30
52 Week LowHK$20.80
Beta0.91
1 Month Change26.02%
3 Month Change8.04%
1 Year Change24.33%
3 Year Change77.05%
5 Year Changen/a
Change since IPO163.19%

Recent News & Updates

Oct 12
Here's Why I Think China Education Group Holdings (HKG:839) Is An Interesting Stock

Here's Why I Think China Education Group Holdings (HKG:839) Is An Interesting Stock

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Sep 27
At HK$13.12, Is China Education Group Holdings Limited (HKG:839) Worth Looking At Closely?

At HK$13.12, Is China Education Group Holdings Limited (HKG:839) Worth Looking At Closely?

China Education Group Holdings Limited ( HKG:839 ), might not be a large cap stock, but it received a lot of attention...

Aug 27
China Education Group Holdings (HKG:839) Has A Pretty Healthy Balance Sheet

China Education Group Holdings (HKG:839) Has A Pretty Healthy Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Aug 14
The Returns On Capital At China Education Group Holdings (HKG:839) Don't Inspire Confidence

The Returns On Capital At China Education Group Holdings (HKG:839) Don't Inspire Confidence

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

839HK Consumer ServicesHK Market
7D24.1%14.0%2.8%
1Y24.3%-26.3%6.6%

Return vs Industry: 839 exceeded the Hong Kong Consumer Services industry which returned -26% over the past year.

Return vs Market: 839 exceeded the Hong Kong Market which returned 5.7% over the past year.

Price Volatility

Is 839's price volatile compared to industry and market?
839 volatility
839 Beta0.91
Industry Beta1.04
Market Beta1

Stable Share Price: 839 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 839's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198910,688Kai Yuhttps://www.chinaeducation.hk

China Education Group Holdings Limited, an investment holding company, operates private higher and vocational education institutions in the People's Republic of China, Australia, and internationally. As of August 31, 2020, the company offers 12 master’s degree programs, 238 bachelor’s degree programs, 71 junior college diploma programs, 151 vocational education programs, and 115 continuing education programs. It also provides educational consultancy services; and vocational education services for technical workers and technicians.

China Education Group Holdings Fundamentals Summary

How do China Education Group Holdings's earnings and revenue compare to its market cap?
839 fundamental statistics
Market CapCN¥31.83b
Earnings (TTM)CN¥967.02m
Revenue (TTM)CN¥3.19b

32.9x

P/E Ratio

10.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
839 income statement (TTM)
RevenueCN¥3.19b
Cost of RevenueCN¥1.27b
Gross ProfitCN¥1.92b
ExpensesCN¥954.11m
EarningsCN¥967.02m

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.42
Gross Margin60.29%
Net Profit Margin30.35%
Debt/Equity Ratio61.8%

How did 839 perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

62%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 839 (HK$16.66) is trading below our estimate of fair value (HK$33.85)

Significantly Below Fair Value: 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 (32.9x) compared to the Hong Kong Consumer Services industry average (16.7x).

PE vs Market: 839 is poor value based on its PE Ratio (32.9x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 839 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 839 is overvalued based on its PB Ratio (3x) compared to the HK Consumer Services industry average (1.7x).


Future Growth

How is China Education Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 839's forecast earnings growth (15.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 839's earnings (15.7% per year) are forecast to grow slower than the Hong Kong market (17.4% per year).

High Growth Earnings: 839's earnings are forecast to grow, but not significantly.

Revenue vs Market: 839's revenue (14.7% per year) is forecast to grow faster than the Hong Kong market (12.4% per year).

High Growth Revenue: 839's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 839's Return on Equity is forecast to be low in 3 years time (16.8%).


Past Performance

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

19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 839 has a large one-off loss of CN¥482.3M impacting its February 28 2021 financial results.

Growing Profit Margin: 839's current net profit margins (30.3%) are lower than last year (33.7%).


Past Earnings Growth Analysis

Earnings Trend: 839's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: 839's earnings growth over the past year (22.3%) exceeds its 5-year average (19.1% per year).

Earnings vs Industry: 839 earnings growth over the past year (22.3%) exceeded the Consumer Services industry 1.4%.


Return on Equity

High ROE: 839's Return on Equity (8.8%) is considered low.


Financial Health

How is China Education Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 839's short term assets (CN¥5.9B) exceed its short term liabilities (CN¥5.8B).

Long Term Liabilities: 839's short term assets (CN¥5.9B) do not cover its long term liabilities (CN¥7.5B).


Debt to Equity History and Analysis

Debt Level: 839's debt to equity ratio (61.8%) is considered high.

Reducing Debt: 839's debt to equity ratio has increased from 22.6% to 61.8% over the past 5 years.

Debt Coverage: 839's debt is well covered by operating cash flow (24.1%).

Interest Coverage: 839's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet


Dividend

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

2.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 839's dividend (2.35%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 839's dividend (2.35%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 839 has been paying a dividend for less than 10 years.

Growing Dividend: 839's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.9%), 839's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 839's dividends in 3 years are forecast to be well covered by earnings (48.6% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Kai Yu (36 yo)

4.17yrs

Tenure

CN¥2,530,000

Compensation

Dr. Kai Yu is the Chief Executive Officer and Executive Director at China Education Group Holdings Ltd. since August 2017. Dr. Yu served as an educational consultant to the World Bank.He also provided res...


CEO Compensation Analysis

Compensation vs Market: Kai's total compensation ($USD393.49K) is below average for companies of similar size in the Hong Kong market ($USD692.76K).

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


Leadership Team

Experienced Management: 839's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: 839's board of directors are considered experienced (3.9 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 7.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: China Education Group Holdings Limited
  • Ticker: 839
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$38.506b
  • Shares outstanding: 2.31b
  • Website: https://www.chinaeducation.hk

Number of Employees


Location

  • China Education Group Holdings Limited
  • Central Plaza
  • 67th Floor
  • Wan Chai
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:54
End of Day Share Price2021/10/19 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.