Shanghai Gench Education Group Limited (1525) AI Stock Analysis

• Market Cap: HK$1.18B
• Dividend Yield: 7.02%
• Average Volume (3M): 650.33K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.08
• Revenue Growth: 2.12%
• EPS Growth: -23.09%
• Country: HK
• Employees: 1,889
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Education & Training Services
• EPS (TTM): 0.12
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 1,044,800
• 30 Day Avg. Volume: 650,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$3.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: HK$3.00 ▲(5.26% Upside)

Shanghai Gench Education Group Limited is financially stable with strong revenue growth and robust profitability margins. The stock is attractively valued with a low P/E ratio and high dividend yield. However, technical indicators suggest caution due to potential overbought conditions, and cash flow management needs improvement.

Shanghai Gench Education Group Limited Business Overview & Revenue Model

Company Description

Shanghai Gench Education Group Limited (1525) is a provider of higher education services in China. It operates primarily through its university, Shanghai Jianqiao University, which offers a range of undergraduate and junior college programs across various disciplines such as engineering, economics, management, literature, and art. The company is focused on providing quality educational programs and fostering a conducive learning environment to support student development and career readiness.

How the Company Makes Money

Shanghai Gench Education Group Limited generates revenue primarily through tuition fees from students enrolled in its programs. The company offers various undergraduate and junior college courses, each with specific tuition rates, contributing significantly to its income. Additionally, the company may earn revenue from ancillary services such as accommodation, catering, and other campus facilities provided to students. Partnerships with industries for internships and training programs can also enhance its educational offerings, though these are not direct revenue sources. Government policies, demographic trends, and the demand for higher education significantly influence the company's revenue potential.

Shanghai Gench Education Group Limited Financial Statement Overview

Summary

Strong revenue growth and healthy profitability margins provide a solid financial foundation. The balance sheet is robust with improved leverage and strong equity, though fluctuating debt levels and insufficient cash flow data need attention. Overall, the company is financially stable but should closely monitor cash flows and debt management.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2019 to 2024. Despite a slight decline in gross and net profit margins in 2024, the overall margin levels remain healthy. EBIT and EBITDA margins have been stable, indicating efficient operational management. However, there is a drop in net income in 2024 compared to the previous year, which is a point of concern.

Balance Sheet

The balance sheet shows a strong equity position with a steady increase in stockholders' equity. The debt-to-equity ratio has improved over time, suggesting better leverage management. The equity ratio remains strong, indicating a good balance between equity and assets. However, total debt levels have fluctuated, which requires careful monitoring.

Cash Flow

The company's cash flows present a mixed picture. Operating cash flow has been positive, but the free cash flow growth rate is not available for 2024 due to missing data. The free cash flow to net income ratio was strong in previous years but is unavailable for 2024, indicating potential issues in cash management. The lack of capital expenditure and other cash flow components in 2024 is a concern and requires further clarification.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	969.85M	929.88M	790.11M	683.58M	554.89M
Gross Profit	539.89M	574.38M	504.98M	421.68M	335.41M
EBITDA	366.64M	448.68M	401.22M	356.10M	324.07M
Net Income	223.62M	283.37M	224.93M	179.01M	193.06M
Balance Sheet
Total Assets	3.98B	3.80B	3.47B	3.24B	3.38B
Cash, Cash Equivalents and Short-Term Investments	803.57M	846.62M	617.52M	488.74M	714.62M
Total Debt	832.56M	761.93M	774.40M	784.28M	1.12B
Total Liabilities	1.66B	1.63B	1.51B	1.41B	1.62B
Stockholders Equity	2.32B	2.17B	1.96B	1.83B	1.76B
Cash Flow
Free Cash Flow	116.48M	212.28M	266.52M	272.52M	-138.26M
Operating Cash Flow	308.95M	467.75M	435.26M	412.24M	206.46M
Investing Cash Flow	-476.39M	-464.19M	-174.42M	32.31M	-487.90M
Financing Cash Flow	-36.65M	-114.49M	-141.83M	-497.38M	492.87M

Shanghai Gench Education Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.85
• 50DMA: Positive
• 100DMA: Positive
• 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:1525, the sentiment is Positive. The current price of 2.85 is below the 20-day moving average (MA) of 2.88, above the 50-day MA of 2.80, and above the 200-day MA of 2.66, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 65.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1525.

Shanghai Gench Education Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1935	81 Outperform	HK$1.36B	4.01	10.97%	―	10.10%	-21.18%
2779	74 Outperform	HK$965.15M	2.70	9.21%	10.53%	-1.33%	4.95%
1525	73 Outperform	HK$1.18B	4.68	9.98%	7.02%	2.12%	-23.09%
2175	61 Neutral	HK$1.10B	10.15	5.09%	―	-0.48%	-26.92%
Sector *	56 Neutral	HK$24.68B	3.78	-3.23%	5.89%	0.25%	-59.97%

Shanghai Gench Education Group Limited Corporate Events

Shanghai Gench Education Updates Director Remuneration Details

Shanghai Gench Education Group Limited has issued a supplemental announcement to its annual report for the year ended December 31, 2024, providing additional details on the remuneration of its directors and chief executive. The announcement clarifies the emoluments paid, with total remuneration slightly decreasing from RMB 4,108,000 in 2023 to RMB 4,002,000 in 2024. This update may have implications for stakeholders interested in the company’s governance and financial management.

Shanghai Gench Education Group’s AGM Resolutions Approved

Shanghai Gench Education Group Limited held its Annual General Meeting on May 11, 2025, where all proposed resolutions were approved by shareholders. These resolutions included the re-election of directors, re-appointment of auditors, declaration of a final dividend, and granting of mandates to issue and repurchase shares. The approval of these resolutions reflects shareholder confidence in the company’s governance and strategic direction.