SEHK:839

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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. More Details


Snowflake Analysis

Solid track record 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

Stable Share Price: 839 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

839

-0.3%

HK Consumer Services

-1.0%

HK Market


1 Year Return

30.4%

839

40.3%

HK Consumer Services

0.4%

HK Market

Return vs Industry: 839 underperformed the Hong Kong Consumer Services industry which returned 42% over the past year.

Return vs Market: 839 exceeded the Hong Kong Market which returned 1.4% over the past year.


Shareholder returns

839IndustryMarket
7 Day-2.2%-0.3%-1.0%
30 Day-12.0%-6.2%-3.2%
90 Day7.3%6.7%1.4%
1 Year32.8%30.4%43.1%40.3%4.5%0.4%
3 Yearn/a-0.8%-6.6%-3.9%-14.2%
5 Yearn/a17.9%8.2%22.7%2.0%

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?

16.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 839 (HK$14.16) is trading below our estimate of fair value (HK$16.85)

Significantly Below Fair Value: 839 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 839 is poor value based on its PE Ratio (31.8x) compared to the HK Consumer Services industry average (19x).

PE vs Market: 839 is poor value based on its PE Ratio (31.8x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 839 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 839 is overvalued based on its PB Ratio (3.7x) compared to the HK Consumer Services industry average (2.2x).


Next Steps

Future Growth

How is China Education Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 839's forecast earnings growth (24.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 839's earnings (24.6% per year) are forecast to grow faster than the Hong Kong market (22.6% per year).

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

Revenue vs Market: 839's revenue (15.9% per year) is forecast to grow faster than the Hong Kong market (13.2% per year).

High Growth Revenue: 839's revenue (15.9% 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 (15.3%).


Next Steps

Past Performance

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

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 839 has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: 839's earnings have grown by 19.2% per year over the past 5 years.

Accelerating Growth: 839's earnings growth over the past year (40.1%) exceeds its 5-year average (19.2% per year).

Earnings vs Industry: 839 earnings growth over the past year (40.1%) exceeded the Consumer Services industry 7.4%.


Return on Equity

High ROE: 839's Return on Equity (12.4%) is considered low.


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¥3.4B) exceed its short term liabilities (CN¥3.3B).

Long Term Liabilities: 839's short term assets (CN¥3.4B) do not cover its long term liabilities (CN¥5.0B).


Debt to Equity History and Analysis

Debt Level: 839's debt to equity ratio (60%) is considered high.

Reducing Debt: 839's debt to equity ratio has increased from 18.3% to 60% over the past 5 years.

Debt Coverage: 839's debt is well covered by operating cash flow (27.7%).

Interest Coverage: 839's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 839's dividend (1.88%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 839's dividend (1.88%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.89%).


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 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.2%), 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 (39.7% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Consumer Services industry.

Management

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

2.8yrs

Average board tenure


CEO

Kai Yu (35 yo)

3.08yrs

Tenure

CN¥2,495,000

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: Kai's total compensation ($USD366.64K) is below average for companies of similar size in the Hong Kong market ($USD596.55K).

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


Board Members

NamePositionTenureCompensationOwnership
Guo Yu
Executive Co-Chairman2.83yrsCN¥1.07m34.88%
CN¥ 10.6b
Ketao Xie
Executive Co-Chairman2.83yrsCN¥1.11m34.88%
CN¥ 10.6b
Kai Yu
CEO & Executive Director3.08yrsCN¥2.50mno data
Shaohua Xie
Executive Director3.08yrsCN¥2.20mno data
Meng Rui
Independent Non-Executive Director2.75yrsCN¥246.00kno data
Gerard A. Postiglione
Independent Non-Executive Director2.75yrsCN¥246.00kno data
Kin Bing Wu
Independent Non-Executive Director2.75yrsCN¥246.00kno data

2.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 839's board of directors are not considered experienced ( 2.8 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 been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

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$30.447b
  • Shares outstanding: 2.15b
  • 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 210 bachelor’s deg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 19:12
End of Day Share Price2020/09/21 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


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.