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839

China Education Group HoldingsSEHK:839 Stock Report

Last Price

HK$12.18

Market Cap

HK$29.1b

7D

-4.1%

1Y

-29.8%

Updated

18 Jan, 2022

Data

Company Financials +
839 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health3/6
Dividends3/6

839 Stock 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$12.18
52 Week HighHK$20.80
52 Week LowHK$11.30
Beta0.78
1 Month Change-0.49%
3 Month Change-20.08%
1 Year Change-29.76%
3 Year Change14.47%
5 Year Changen/a
Change since IPO92.42%

Recent News & Updates

Jan 17
Should You Be Adding China Education Group Holdings (HKG:839) To Your Watchlist Today?

Should You Be Adding China Education Group Holdings (HKG:839) To Your Watchlist Today?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Dec 25
China Education Group Holdings (HKG:839) Is Paying Out A Larger Dividend Than Last Year

China Education Group Holdings (HKG:839) Is Paying Out A Larger Dividend Than Last Year

China Education Group Holdings Limited ( HKG:839 ) has announced that it will be increasing its dividend on the 14th of...

Nov 28
China Education Group Holdings (HKG:839) Has Announced That It Will Be Increasing Its Dividend To HK$0.20

China Education Group Holdings (HKG:839) Has Announced That It Will Be Increasing Its Dividend To HK$0.20

China Education Group Holdings Limited's ( HKG:839 ) dividend will be increasing to HK$0.20 on 14th of March. The...

Nov 27
Does China Education Group Holdings (HKG:839) Have A Healthy Balance Sheet?

Does China Education Group Holdings (HKG:839) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

839HK Consumer ServicesHK Market
7D-4.1%-4.0%0.3%
1Y-29.8%-49.7%-16.0%

Return vs Industry: 839 exceeded the Hong Kong Consumer Services industry which returned -48.4% over the past year.

Return vs Market: 839 underperformed the Hong Kong Market which returned -15.6% over the past year.

Price Volatility

Is 839's price volatile compared to industry and market?
839 volatility
839 Average Weekly Movement6.5%
Consumer Services Industry Average Movement8.0%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.2%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 839 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 839's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198911,034Kai 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, 2021, the company offers 14 master’s degree programs, 285 bachelor’s degree programs, 109 junior college diploma programs, 169 vocational education programs, and 184 continuing education programs. It also provides educational consultancy services; and vocational education services.

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¥23.71b
Earnings (TTM)CN¥1.44b
Revenue (TTM)CN¥3.68b

16.4x

P/E Ratio

6.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
839 income statement (TTM)
RevenueCN¥3.68b
Cost of RevenueCN¥1.51b
Gross ProfitCN¥2.18b
ExpensesCN¥731.29m
EarningsCN¥1.44b

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.60
Gross Margin59.07%
Net Profit Margin39.21%
Debt/Equity Ratio70.9%

How did 839 perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

51%

Payout Ratio

Does 839 pay a reliable dividends?

See 839 dividend history and benchmarks
When do you need to buy 839 by to receive an upcoming dividend?
China Education Group Holdings dividend dates
Ex Dividend DateFeb 24 2022
Dividend Pay DateMar 14 2022
Days until Ex dividend36 days
Days until Dividend pay date54 days

Does 839 pay a reliable dividends?

See 839 dividend history and benchmarks

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$12.18) is trading below our estimate of fair value (HK$48.12)

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 (16.4x) compared to the Hong Kong Consumer Services industry average (12.2x).

PE vs Market: 839 is poor value based on its PE Ratio (16.4x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 839 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 839 is overvalued based on its PB Ratio (2.2x) compared to the HK Consumer Services industry average (1.3x).


Future Growth

How is China Education Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 839's forecast earnings growth (14.3% per year) is above the savings rate (1.5%).

Earnings vs Market: 839's earnings (14.3% per year) are forecast to grow slower than the Hong Kong market (16.3% per year).

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

Revenue vs Market: 839's revenue (14.1% per year) is forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Revenue: 839's revenue (14.1% 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 (16.5%).


Past Performance

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

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 839 has high quality earnings.

Growing Profit Margin: 839's current net profit margins (39.2%) are higher than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: 839's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: 839's earnings growth over the past year (128%) exceeds its 5-year average (24.2% per year).

Earnings vs Industry: 839 earnings growth over the past year (128%) exceeded the Consumer Services industry 29.2%.


Return on Equity

High ROE: 839's Return on Equity (12.5%) 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) do not cover its short term liabilities (CN¥6.2B).

Long Term Liabilities: 839's short term assets (CN¥5.9B) do not cover its long term liabilities (CN¥8.7B).


Debt to Equity History and Analysis

Debt Level: 839's net debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: 839's debt to equity ratio has increased from 20.5% to 70.9% over the past 5 years.

Debt Coverage: 839's debt is well covered by operating cash flow (30.4%).

Interest Coverage: 839's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet


Dividend

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

3.31%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 19 2022Ex Dividend DateFeb 24 2022Dividend Pay DateMar 14 202218 days from Ex DividendBuy in the next 36 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 839's dividend (3.31%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.37%).

High Dividend: 839's dividend (3.31%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.06%).


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 (51%), 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 (49.1% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Kai Yu (36 yo)

4.42yrs

Tenure

CN¥2,415,000

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 ($USD380.40K) is below average for companies of similar size in the Hong Kong market ($USD666.86K).

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 (4.4 years average tenure).


Board Members

Experienced Board: 839's board of directors are considered experienced (4.4 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 11.1%.


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
  • Implied Market Cap: HK$29.101b
  • Shares outstanding: 2.39b
  • Website: https://www.chinaeducation.hk

Number of Employees


Location

  • China Education Group Holdings Limited
  • Central Plaza
  • Suite 6703-04
  • 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 Analysis2022/01/18 16:12
End of Day Share Price2022/01/18 00:00
Earnings2021/08/31
Annual Earnings2021/08/31


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.