Skip to Content

China Education Group Holdings Ltd 00839

Morningstar Rating
HKD 4.66 −0.14 (2.92%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

China Education Group Plans Huge Capital Expenditure to Expand Capacity

China Education Group is one of the largest private higher education providers in China. Over the years, it has built a strong portfolio of higher vocational education schools. Many of CEG's schools are in economically vibrant areas. Large population inflows and low gross enrollment rates create strong demand for quality education in such areas. We expect CEG to continue benefiting from that.

Price vs Fair Value

00839 is trading at a 829% premium.
Price
HKD 4.80
Fair Value
HKD 17.50
Uncertainty
Very High
1-Star Price
HKD 39.94
5-Star Price
HKD 7.15
Economic Moat
Ghhwxbc
Capital Allocation
Yjsmzbkh

Bulls Say, Bears Say

Bulls

Negative sentiment toward the education sector could ease, with no additional regulatory headwinds.

Bears

Large capital expenditure will weigh on cash flow and margins

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if 00839 is a good fit for your portfolio.

Trading Information

Previous Close Price
HKD 4.80
Day Range
HKD 4.644.89
52-Week Range
HKD 3.517.73
Bid/Ask
HKD 4.66 / HKD 4.67
Market Cap
HKD 12.20 Bil
Volume/Avg
3.5 Mil / 7.9 Mil

Key Statistics

Price/Earnings (Normalized)
5.85
Price/Sales
1.85
Dividend Yield (Trailing)
7.29%
Dividend Yield (Forward)
8.49%
Total Yield
7.29%

Company Profile

China Education Group is a leading ultra-large-scale private education group in China with 30 years of experience in higher education operations. CEG's schools offer both higher vocational education and secondary vocational education. The school network spans domestic China and overseas. CEG also offers continuing education to full-time working adults. The group's total enrolled full-time students in China expanded more than 3 times over the last six years to about 248,000 as of August 2023. The rapid growth is primarily attributable to school acquisitions. CEG currently operates 14 schools, up from only 3 in 2017.
Sector
Consumer Defensive
Industry
Education & Training Services
Stock Style Box
Mid Value
Total Number of Employees
16,468

Competitors

Valuation

Metric
00839
06169
00667
Price/Earnings (Normalized)
5.852.2716.91
Price/Book Value
0.750.200.79
Price/Sales
1.850.641.12
Price/Cash Flow
4.161.325.96
Price/Earnings
00839
06169
00667

Financial Strength

Metric
00839
06169
00667
Quick Ratio
0.760.341.57
Current Ratio
0.850.341.70
Interest Coverage
4.1617.233.47
Quick Ratio
00839
06169
00667

Profitability

Metric
00839
06169
00667
Return on Assets (Normalized)
5.49%6.15%3.01%
Return on Equity (Normalized)
12.83%10.54%5.02%
Return on Invested Capital (Normalized)
8.69%8.32%4.25%
Return on Assets
00839
06169
00667
See how this stock stacks up to its competitors with Morningstar Investor

Education & Training Services Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
New Oriental Education & Technology Group Inc ADR
EDU
VqhybhjPdjht$12.7 Bil
TAL Education Group ADR
TAL
ZwylNvdx$6.5 Bil
Grand Canyon Education Inc
LOPE
Pcqrz$4.2 Bil
Graham Holdings Co
GHC
BkchdrmgtWzqfq$3.2 Bil
Stride Inc
LRN
Snvt$3.0 Bil
Strategic Education Inc
STRA
SpdrxqjxmMkn$2.7 Bil
Adtalem Global Education Inc
ATGE
HjwcknppSzxbl$2.4 Bil
Laureate Education Inc Shs
LAUR
Kky$2.2 Bil
Afya Ltd Class A
AFYA
Xjtjr$1.4 Bil
Perdoceo Education Corp
PRDO
Pgw$1.4 Bil

Sponsor Center