China General Education Explains Discounted Valuation in Strategic Education Acquisition

The latest announcement is out from China General Education Group Limited ( (HK:2175) ).

China General Education Group Limited has issued further details on its previously announced acquisition of a target education company, stating that the purchase price was set below an independently appraised value of RMB541.8 million after arm’s length negotiations. The board argues the discounted consideration is fair and reasonable because it reflects not only current valuation but also expected strategic synergies, as both the vendors and the group seek to expand in the less saturated private higher education and art exam training markets, which the company views as having strong growth potential. The valuation, prepared by an independent valuer using an income approach over a forecast period from September 2025 to August 2030, was chosen over asset-based and market approaches due to the target’s asset-light model, brand value and lack of comparable public transactions, and is based on assumptions of stable laws, industry policies, macroeconomic conditions and the absence of major disruptive events affecting the target’s operations.

The most recent analyst rating on (HK:2175) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China General Education Group Limited stock, see the HK:2175 Stock Forecast page.

More about China General Education Group Limited

China General Education Group Limited is a Hong Kong-listed private education provider incorporated in the Cayman Islands, focusing on higher education and related training services in China, including art exam training and other non-academic education segments that target fast-growing niches within the broader education and training sector.

Average Trading Volume: 547,737

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$1.62B

For detailed information about 2175 stock, go to TipRanks’ Stock Analysis page.