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China Education Group Holdings Ltd
HKEX:839

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China Education Group Holdings Ltd
HKEX:839
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Price: 2.39 HKD -1.24%
Market Cap: HK$6.7B

P/B

0.4
Current
46%
Cheaper
vs 3-y average of 0.6

Price to Book (P/B) ratio compares a company`s market value to its book value. It shows how much investors are paying for each dollar of net assets on the balance sheet.

P/B
0.4
=
Market Cap
HK$8.2B
/
Total Equity
¥16.7B

Price to Book (P/B) ratio compares a company`s market value to its book value. It shows how much investors are paying for each dollar of net assets on the balance sheet.

P/B
0.4
=
Market Cap
HK$8.2B
/
Total Equity
¥16.7B

Valuation Scenarios

China Education Group Holdings Ltd is trading below its 3-year average

If P/B returns to its 3-Year Average (0.6), the stock would be worth HK$4.39 (84% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+826%
Average Upside
298%
Scenario P/B Value Implied Price Upside/Downside
Current Multiple 0.4 HK$2.39
0%
3-Year Average 0.6 HK$4.39
+84%
5-Year Average 0.9 HK$6.26
+162%
Industry Average 3.3 HK$22.14
+826%
Country Average 0.8 HK$5.24
+119%

Forward P/B
Today’s price vs future total equity

Not enough data available to calculate forward P/B

Peer Comparison

All Multiples
P/B
P/E
All Countries
Close

Market Distribution

Lower than 78% of companies in Hong Kong
Percentile
22st
Based on 1 630 companies
22st percentile
0.4
Low
0 — 0.5
Typical Range
0.5 — 1.3
High
1.3 —
Distribution Statistics
Hong Kong
Min 0
30th Percentile 0.5
Median 0.8
70th Percentile 1.3
Max 2 018.4

China Education Group Holdings Ltd
Glance View

China Education Group Holdings Ltd. has unfolded its narrative in the rapidly evolving landscape of China's private education sector. Founded by visionaries Yu Guo and Shi Yuzhu, the company emerged as a disruptor by amalgamating traditional educational values with modern efficiencies, driving an expansion that strategically navigates the country's educational policies. With a focus on tertiary education, the group operates a portfolio of private universities and colleges, catering to a burgeoning demand for higher education driven by China's emerging middle class and a job market that prizes quality credentials. This growth trajectory is underpinned by the company’s commitment to acquiring and integrating educational institutions across various provinces, fostering a diverse offering that spans disciplines and specializations. Central to China Education Group's business model is its revenue generation through tuition fees, which are amplified by an extensive student base and the company’s ability to maintain a lean operational structure. In peeling back the layers of its earnings, the company demonstrates adeptness in capitalizing on brand equity, where reputation and competitive positioning allow for premium pricing strategies. Complementing this income stream, the firm is also venturing into auxiliary services such as vocational education and international partnerships, which further diversify its revenue mix and hedge against potential regulatory shifts in the domestic education market. With these strategies, China Education Group Holdings Ltd. remains not just an educational facilitator but a dynamic player in the realm of academic enterprise, capable of pivoting and scaling in response to the fluctuations of both local and global academic demands.

Intrinsic Value
12.04 HKD
Undervaluation 80%
Intrinsic Value
Price HK$2.39
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