China Education Group Holdings Limited (HK:0839)
:0839
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China Education Group Holdings Limited
(0839)
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Rating:65Neutral
Price Target:
HK$2.50
▼(-16.11% Downside)
Action:DowngradedDate:02/19/26
The score is driven mainly by attractive valuation (low P/E and high dividend yield), balanced against moderate fundamentals where cash conversion and profit volatility are key risks. Technical indicators are a meaningful drag due to currently weak momentum and price below key moving averages.
Positive Factors
Revenue Growth
Sustained multi-year revenue growth from ~2.68B to ~7.28B indicates durable demand across its higher education and vocational offerings. Persistent top-line expansion supports scale advantages, campus utilization and long-term capacity to invest in programs and absorb fixed costs.
Negative Factors
Margin Volatility
Large swings in net margins (very high to single-digit then partial recovery) indicate unstable profitability drivers—possible mix shifts, cost pressures or one-offs. This reduces earnings visibility, complicates medium-term budgeting and weakens confidence in sustained profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained multi-year revenue growth from ~2.68B to ~7.28B indicates durable demand across its higher education and vocational offerings. Persistent top-line expansion supports scale advantages, campus utilization and long-term capacity to invest in programs and absorb fixed costs.
Read all positive factors
China Education Group Holdings Limited (0839) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$6.50B
Dividend Yield9.49%
Average Volume (3M)41.62M
Price to Earnings (P/E)7.4
Beta (1Y)1.02
Revenue Growth11.88%
EPS Growth100.52%
CountryHK
Employees19,149
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding2,800,312,700
10 Day Avg. Volume15,405,930
30 Day Avg. Volume41,623,777
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.43
Price to Sales (P/S)0.98
P/FCF Ratio17.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$2.21Price Target Upside-25.84% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.74
Revenue Forecast (FY)HK$7.66B
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 ma...
How the Company Makes Money
The company primarily makes money by charging tuition and other education-related fees to students enrolled at its schools. Key revenue streams generally include: (1) tuition fees from degree and diploma programs (e.g., undergraduate, junior colle...
China Education Group Holdings Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
52
Neutral
| Breakdown | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.28B | 6.58B | 5.62B | 4.76B | 3.68B |
| Gross Profit | 3.88B | 3.64B | 3.16B | 2.75B | 2.18B |
| EBITDA | 2.37B | 1.84B | 2.87B | 2.42B | 2.09B |
| Net Income | 966.38M | 418.00M | 1.38B | 1.84B | 1.44B |
Balance Sheet | |||||
| Total Assets | 39.35B | 38.82B | 35.75B | 33.58B | 26.75B |
| Cash, Cash Equivalents and Short-Term Investments | 6.70B | 6.53B | 5.75B | 5.30B | 4.95B |
| Total Debt | 10.35B | 10.37B | 8.68B | 8.98B | 8.44B |
| Total Liabilities | 20.40B | 20.29B | 17.45B | 17.00B | 14.99B |
| Stockholders Equity | 16.74B | 15.85B | 15.57B | 14.01B | 10.92B |
Cash Flow | |||||
| Free Cash Flow | 408.56M | 81.00M | 1.03B | 582.00M | -434.09M |
| Operating Cash Flow | 3.33B | 4.51B | 3.85B | 2.75B | 2.53B |
| Investing Cash Flow | -3.60B | -4.18B | -2.70B | -1.74B | -4.95B |
| Financing Cash Flow | -164.22M | 729.00M | -764.00M | 459.00M | 2.36B |
China Education Group Holdings Limited Technical Analysis
Negative
2.98
Price Trends
2.83
Negative
2.94
Negative
2.97
Negative
Market Momentum
-0.08
Positive
33.55
Neutral
2.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0839, the sentiment is Negative. The current price of 2.98 is above the 20-day moving average (MA) of 2.70, above the 50-day MA of 2.83, and above the 200-day MA of 2.97, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 33.55 is Neutral, neither overbought nor oversold. The STOCH value of 2.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0839.
China Education Group Holdings Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$1.46B | 2.11 | 17.52% | 10.76% | 7.71% | 11.65% | |
74 Outperform | HK$2.51B | 8.99 | 15.10% | ― | 7.50% | 5.93% | |
71 Outperform | HK$1.50B | 1.75 | 18.80% | 4.65% | 9.97% | 8.54% | |
69 Neutral | HK$1.91B | 1.98 | 10.86% | ― | 0.43% | 111.19% | |
65 Neutral | HK$6.50B | 7.37 | 5.88% | 9.49% | 11.88% | 100.52% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
HK:0839
China Education Group Holdings Limited
2.32
-0.06
-2.52%
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Virscend Education Company Limited
0.19
-0.02
-7.66%
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China Gingko Education Group Co., Ltd.
5.01
4.01
401.00%
HK:1969
China Chunlai Education Group Co., Ltd.
1.25
-2.98
-70.45%
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China New Higher Education Group Ltd
0.74
-0.08
-9.76%
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China Yuhua Education Corp. Ltd.
0.45
0.09
25.00%
China Education Group Holdings Limited Corporate Events
China Education Group Posts Higher Revenue but Profit Drops on Interim Results
Apr 30, 2026
China Education Group reported interim revenue of RMB3.79 billion for the six months ended 28 February 2026, a 3.2% increase year on year, with EBITDA edging up 1.4% to RMB2.04 billion. However, net profit fell 23.2% to RMB838 million, even as the...
China Education Group Fully Redeems RMB500 Million Bonds Due 2026
Apr 21, 2026
China Education Group Holdings Limited has fully repaid its RMB500 million 4.00% investment-grade guaranteed bonds that were due in 2026, settling both principal and accrued interest on the 20 April 2026 maturity date. The timely redemption of the...
China Education Group Sets April Board Meeting to Approve Interim Results and Consider Dividend
Apr 20, 2026
China Education Group Holdings Limited has scheduled a board meeting for 30 April 2026 to review and approve the group’s interim results for the six months ended 28 February 2026. The board will also consider the recommendation of an interim...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.