China Education Group Holdings Limited (0839) AI Stock Analysis

• Market Cap: HK$8.51B
• Dividend Yield: 9.49%
• Average Volume (3M): 41.62M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.10
• Revenue Growth: 11.85%
• EPS Growth: 100.46%
• Country: HK
• Employees: 19,149
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 2,800,312,700
• 10 Day Avg. Volume: 15,405,930
• 30 Day Avg. Volume: 41,623,777
• PEG Ratio: -0.34
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 125.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$3.76
• Price Target Upside: 26.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: HK$4.00 ▲(34.23% Upside)

The overall stock score of 76 reflects strong technical momentum and robust financial performance, despite concerns about valuation and cash flow. The stock's upward trend and attractive dividend yield are significant positives, but the high P/E ratio and reduced free cash flow warrant caution.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business expansion and increased market penetration, supporting long-term financial health.

Cost Management

Efficient cost management, as reflected in a stable gross profit margin, enhances profitability and supports sustainable growth.

Operating Cash Flow

Strong operating cash flow relative to net income suggests robust cash generation, providing financial flexibility for future investments.

Negative Factors

Net Income Decline

A significant decline in net income and profit margin could impact profitability and shareholder returns, challenging long-term financial stability.

Increased Leverage

Rising leverage may increase financial risk, potentially limiting the company's ability to invest in growth and manage economic downturns.

Free Cash Flow Decrease

A sharp decline in free cash flow raises concerns about cash generation capabilities, affecting the company's ability to fund operations and growth.

China Education Group Holdings Limited Business Overview & Revenue Model

Company Description

China Education Group Holdings Limited, an investment holding company, operates private higher and vocational education institutions in the People's Republic of China, Australia, and internationally. As of August 31, 2021, the company offers 14 master's degree programs, 285 bachelor's degree programs, 109 junior college diploma programs, 169 vocational education programs, and 184 continuing education programs. It also provides educational consultancy services; and vocational education services. The company operates higher education institutions under the Jiangxi University of Technology, Guangdong Baiyun University, Haikou University of Economics, Guangzhou Songtian University, Shandong Quancheng University, and Songtian Polytechnic College names; three vocational education institutions under the Xi'an Railway College, Zhengzhou Transit School, and Baiyun Technician College names in Jiangxi, Guangdong, Henan, Shaanxi, Shandong, and Chongqing; and a higher education institute under the King's Own Institute name in Sydney, Australia. China Education Group Holdings Limited was founded in 1989 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

China Education Group Holdings Limited generates revenue primarily through tuition and educational fees collected from students enrolled in its institutions. The company owns and operates a network of universities and vocational colleges, where it offers a variety of educational programs. Additional revenue streams include ancillary services such as student accommodation and educational materials. The company's expansion strategy includes acquiring new educational institutions to broaden its service offerings and increase student enrollment. This growth strategy is complemented by strategic partnerships with other educational entities to enhance its educational programs and market reach.

China Education Group Holdings Limited Financial Statement Overview

Summary

China Education Group Holdings Limited shows strong revenue growth and efficient cost management, as evidenced by a stable gross profit margin. However, the decline in net income and increased leverage are potential risks. The significant decrease in free cash flow could impact future investments, although the company maintains a healthy operating cash flow ratio.

Income Statement

The company has shown a robust revenue growth rate of approximately 17.1% year-over-year from 2023 to 2024, which is a positive indicator of business expansion in the education sector. However, there is a notable decline in net income, leading to a reduced net profit margin of 6.4% in 2024 from 24.6% in 2023. The gross profit margin remains strong at 55.4%, showcasing efficient cost management. The absence of EBIT in 2024 is unusual, possibly affecting operational analysis.

Balance Sheet

The debt-to-equity ratio has increased to 0.65 from 0.56, indicating a rise in leverage, which could pose a risk if not managed well. The equity ratio is stable at 40.8%, reflecting a solid equity base. Return on equity stands at 2.6%, a decrease from the previous year, suggesting lower profitability relative to shareholder equity.

Cash Flow

The free cash flow has significantly decreased by 92.1% from the previous year, which raises concerns about cash generation capabilities. However, the operating cash flow to net income ratio is high at 10.8, indicating strong cash earnings relative to reported profits. The company shows a cautious approach towards capital expenditure, aligning with its strategic investment in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.97B	6.58B	5.62B	4.76B	3.68B	2.68B
Gross Profit	3.78B	3.64B	3.16B	2.75B	2.18B	1.60B
EBITDA	3.42B	1.84B	2.87B	2.42B	2.09B	1.14B
Net Income	314.00M	418.00M	1.38B	1.84B	1.44B	633.20M
Balance Sheet
Total Assets	38.01B	38.82B	35.75B	33.58B	26.75B	17.97B
Cash, Cash Equivalents and Short-Term Investments	5.04B	6.53B	5.75B	5.30B	4.95B	4.27B
Total Debt	9.99B	10.37B	8.68B	8.98B	8.44B	5.22B
Total Liabilities	18.66B	20.29B	17.45B	17.00B	14.99B	9.07B
Stockholders Equity	16.54B	15.85B	15.57B	14.01B	10.92B	8.57B
Cash Flow
Free Cash Flow	604.00M	81.00M	1.03B	582.00M	-434.09M	-89.99M
Operating Cash Flow	4.08B	4.51B	3.85B	2.75B	2.53B	910.94M
Investing Cash Flow	-4.32B	-4.18B	-2.70B	-1.74B	-4.95B	-2.59B
Financing Cash Flow	13.00M	729.00M	-764.00M	459.00M	2.36B	1.63B

China Education Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0839, the sentiment is Neutral. The current price of 2.98 is below the 20-day moving average (MA) of 3.12, below the 50-day MA of 3.05, and above the 200-day MA of 2.89, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.33 is Neutral, neither overbought nor oversold. The STOCH value of 20.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0839.

China Education Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2001	81 Outperform	HK$1.77B	1.69	18.04%	10.76%	7.71%	11.65%
0839	76 Outperform	HK$8.51B	7.92	5.90%	9.49%	11.85%	100.46%
1851	73 Outperform	HK$1.81B	11.41	15.11%	―	1.40%	-15.24%
1969	72 Outperform	HK$4.60B	5.09	19.40%	4.65%	9.69%	7.31%
6169	69 Neutral	HK$2.38B	2.22	10.94%	―	0.40%	111.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

China Education Group Holdings Limited Corporate Events

China Education Group Announces AGM with Key Governance Agenda

China Education Group Holdings Limited has announced its upcoming Annual General Meeting to be held on January 26, 2026. Key agenda items include adopting the audited financial statements for the latest fiscal year, re-electing independent non-executive directors, appointing Deloitte Touche Tohmatsu as the auditor, and authorizing share-related resolutions to enable flexibility in potential stock issuance. The meeting reflects the company’s focus on governance, operational stability, and preparation for future financial opportunities, signaling potential impacts on shareholder interests and strategic development.

The most recent analyst rating on (HK:0839) stock is a Buy with a HK$4.10 price target. To see the full list of analyst forecasts on China Education Group Holdings Limited stock, see the HK:0839 Stock Forecast page.

China Education Group Reports Revenue Growth and Increased Enrollment

China Education Group Holdings Limited reported its annual results for the year ending August 31, 2025, showing a revenue increase of 11.9% to RMB 7,363 million and a slight net profit rise of 0.8% to RMB 506 million. The company has aligned with national education policies, leading to a steady growth in higher education enrollment, with a 5% year-on-year increase in full-time students, reaching approximately 282,000. This growth is driven by the demand for high-quality, employment-oriented curricula and improved campus environments, positioning the company strongly in the education sector.

The most recent analyst rating on (HK:0839) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on China Education Group Holdings Limited stock, see the HK:0839 Stock Forecast page.

China Education Group Schedules Board Meeting for Annual Results and Dividend Decision

China Education Group Holdings Limited has announced a board meeting scheduled for November 26, 2025, to approve the annual results for the year ending August 31, 2025, and to consider recommending a final dividend. This meeting is crucial for stakeholders as it will determine the company’s financial performance and potential dividend payouts, impacting investor decisions and market perception.

The most recent analyst rating on (HK:0839) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on China Education Group Holdings Limited stock, see the HK:0839 Stock Forecast page.

China Education Group Projects FY2025 Profit Amid Impairment Challenges

China Education Group Holdings Limited announced an expected net profit for FY2025 ranging from RMB440 million to RMB600 million, compared to RMB502 million in FY2024. The company anticipates recognizing a significant one-off, non-cash impairment loss of approximately RMB1,620 million to RMB1,700 million due to intensified market competition and reduced affordability, impacting the projected future cash flows of certain cash-generating units in Hainan, Guangdong, and Henan provinces.

The most recent analyst rating on (HK:0839) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on China Education Group Holdings Limited stock, see the HK:0839 Stock Forecast page.