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.

Risks

  • China Education Group Holdings's last earnings update was 264 days ago.

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

-1.4%

SEHK:839

-2.1%

HK Consumer Services

0.7%

HK Market


1 Year Return

9.5%

SEHK:839

-9.0%

HK Consumer Services

-5.3%

HK Market

839 outperformed the Consumer Services industry which returned -6.3% over the past year.

839 outperformed the Market in Hong Kong which returned -3.3% over the past year.


Share holder returns

839IndustryMarket
7 Day-1.4%-2.1%0.7%
30 Day5.8%7.0%4.9%
90 Day-6.7%4.8%-3.7%
1 Year10.5%9.5%-7.1%-9.0%-1.8%-5.3%
3 Yearn/a-0.9%-6.1%16.4%4.6%
5 Yearn/a3.0%-5.2%18.0%-1.7%

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

17%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Education Group Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

China Education Group Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

China Education Group Holdings is overvalued based on earnings compared to the HK Consumer Services industry average.

China Education Group Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China Education Group Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

China Education Group Holdings is overvalued based on assets compared to the HK Consumer Services industry average.


Next Steps

Future Growth

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

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Education Group Holdings's revenue is expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).

China Education Group Holdings's earnings are expected to grow significantly at over 20% yearly.

China Education Group Holdings's revenue growth is expected to exceed the Hong Kong market average.

China Education Group Holdings's earnings growth is expected to exceed the Hong Kong market average.

China Education Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Education Group Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Insufficient data to establish if China Education Group Holdings's year on year earnings growth rate was positive over the past 5 years.

Unable to compare China Education Group Holdings's 1-year earnings growth to the 5-year average due to insufficient past data.

China Education Group Holdings's earnings growth has exceeded the HK Consumer Services industry average in the past year (31.9% vs 11.8%).


Return on Equity

China Education Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Education Group Holdings used its assets less efficiently than the HK Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

China Education Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Education Group Holdings's financial position?


Financial Position Analysis

China Education Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Education Group Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Education Group Holdings's level of debt (3.7%) compared to net worth is satisfactory (less than 40%).

Unable to establish if China Education Group Holdings's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (255.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 40.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 8.7x debt.


Next Steps

Dividend

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

1.52%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Education Group Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

China Education Group Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.08%).

China Education Group Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.

China Education Group Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of China Education Group Holdings's dividends as it is not paying a notable one for Hong Kong.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


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?

1.8yrs

Average board tenure


CEO

Kai Yu (34yo)

2.1yrs

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

Kai's remuneration is lower than average for companies of similar size in Hong Kong.

Kai's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Board Age and Tenure

1.8yrs

Average Tenure

56yo

Average Age

The average tenure for the China Education Group Holdings 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

  • Bill Mok (58yo)

    CFO & Company Secretary

    • Tenure: 2.3yrs
  • Guo Yu (57yo)

    Co-Chairman

    • Tenure: 1.8yrs
    • Compensation: CN¥987.50k
  • Ketao Xie (55yo)

    Co-Chairman

    • Tenure: 1.8yrs
  • Kai Yu (34yo)

    CEO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥1.58m
  • Shaohua Xie (56yo)

    Executive Director

    • Tenure: 2.1yrs

Board Members

  • Meng Rui (52yo)

    Independent Non-Executive Director

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

    Co-Chairman

    • Tenure: 1.8yrs
    • Compensation: CN¥987.50k
  • Ketao Xie (55yo)

    Co-Chairman

    • Tenure: 1.8yrs
  • Kai Yu (34yo)

    CEO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥1.58m
  • Shaohua Xie (56yo)

    Executive Director

    • Tenure: 2.1yrs
  • 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$22.222b
  • 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 Analysis2019/09/17 13:04
End of Day Share Price2019/09/17 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.