Shanghai Gench Education Group Limited (1525) AI Stock Analysis

• Market Cap: HK$1.06B
• Dividend Yield: 6.83%
• Average Volume (3M): 608.88K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.17
• Revenue Growth: -0.56%
• EPS Growth: -26.67%
• Country: HK
• Employees: 1,889
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.45
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 448,200
• 30 Day Avg. Volume: 608,883
• PEG Ratio: -0.23
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 9.28
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$3.00 ▲(11.94% Upside)

The overall stock score is primarily influenced by the company's strong financial performance and attractive valuation. The financial stability is supported by robust revenue growth and healthy margins, although cash flow management needs attention. The low P/E ratio and high dividend yield enhance the stock's appeal. However, technical analysis indicates bearish momentum, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for educational services and effective business strategies, supporting long-term stability.

Profitability Margins

Healthy profitability margins suggest efficient cost management and pricing strategies, contributing to sustainable financial performance.

Balance Sheet Strength

A strong equity position enhances financial resilience, providing a buffer against economic fluctuations and supporting future growth initiatives.

Negative Factors

Fluctuating Debt Levels

Fluctuating debt levels can impact financial stability and limit strategic flexibility, necessitating vigilant management to avoid potential risks.

Cash Flow Management

Inconsistent cash flow data raises concerns about cash management efficiency, potentially affecting the company's ability to fund operations and growth.

Decline in Net Income

A decline in net income may indicate challenges in maintaining profitability, which could affect future financial performance and shareholder returns.

Shanghai Gench Education Group Limited Business Overview & Revenue Model

Company Description

Shanghai Gench Education Group Limited, an investment holding company, provides higher education services in the People's Republic of China. The company primarily operates a private university in Shanghai. It provides education services. The company also provides common undergraduate education services. As of December 31, 2021, its university offered 71 majors and concentrations in its formal undergraduate program and 12 majors and concentrations in its formal junior college program. The company was founded in 1999 and is headquartered in Shanghai, China.

How the Company Makes Money

Shanghai Gench Education Group generates revenue through multiple channels, primarily focusing on tuition fees collected from students enrolled in its tutoring and educational programs. The company offers a range of courses that vary in pricing based on the subject matter, duration, and format (in-person or online). Additionally, it may earn income from partnerships with schools, educational institutions, and corporations that seek to enhance their educational offerings or provide training programs. The growing demand for supplementary education in China, driven by an emphasis on academic achievement and exam preparation, contributes significantly to the company's earnings. Furthermore, potential collaborations with technology providers for online learning solutions could also enhance revenue streams through subscription models or licensing fees.

Shanghai Gench Education Group Limited Financial Statement Overview

Summary

Shanghai Gench Education Group Limited exhibits strong revenue growth and healthy profitability margins, indicating a solid financial foundation. The balance sheet is robust with improved leverage and strong equity, though the fluctuating debt levels warrant attention. Cash flow management appears to be an area needing improvement, as recent data is insufficient for a comprehensive analysis. Overall, the company is financially stable, but careful monitoring of cash flows and debt levels is advised.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	968.47M	969.85M	929.88M	790.11M	683.58M	554.89M
Gross Profit	526.26M	539.89M	574.38M	504.98M	421.68M	335.41M
EBITDA	352.67M	366.64M	448.68M	375.46M	356.10M	324.07M
Net Income	205.82M	223.62M	283.37M	224.93M	179.01M	193.06M
Balance Sheet
Total Assets	3.63B	3.98B	3.80B	3.47B	3.24B	3.38B
Cash, Cash Equivalents and Short-Term Investments	430.94M	811.94M	846.62M	617.52M	488.74M	714.62M
Total Debt	829.08M	832.56M	761.93M	774.40M	784.28M	1.12B
Total Liabilities	1.19B	1.66B	1.63B	1.51B	1.41B	1.62B
Stockholders Equity	2.44B	2.32B	2.17B	1.96B	1.83B	1.76B
Cash Flow
Free Cash Flow	479.44M	116.48M	212.28M	266.52M	272.52M	-138.26M
Operating Cash Flow	551.22M	308.95M	467.75M	435.26M	412.24M	206.46M
Investing Cash Flow	-492.55M	-476.39M	-464.19M	-174.42M	32.31M	-487.90M
Financing Cash Flow	-64.04M	-36.65M	-114.49M	-141.83M	-497.38M	492.87M

Shanghai Gench Education Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 2.68 is above the 20-day moving average (MA) of 2.61, below the 50-day MA of 2.72, and above the 200-day MA of 2.63, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2779	69 Neutral	HK$900.81M	2.32	9.80%	11.09%	0.87%	9.69%
1525	68 Neutral	HK$1.06B	4.58	8.59%	6.83%	-0.56%	-26.67%
1935	66 Neutral	HK$1.42B	4.47	9.02%	―	4.79%	-36.61%
2175	64 Neutral	HK$1.44B	16.22	4.06%	―	-0.48%	-29.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Shanghai Gench Education Group Limited Corporate Events

Shanghai Gench Education Reshapes Board with New Non-Executive Director Appointment

Shanghai Gench Education Group Limited has announced a board change effective 19 December 2025, with non-executive director Li Huihui stepping down to focus on other work commitments, and confirming there is no disagreement with the board or issues requiring shareholder attention. The company has appointed 43-year-old Mr. Fang Xiaoge as a new non-executive director, bringing extensive experience across banking, asset operations and education at various Xiamen ITG Group entities; he will serve under a one-year, automatically renewable appointment with annual remuneration of HK$240,000, a move that is expected to further strengthen the board’s expertise in education and corporate management.

The most recent analyst rating on (HK:1525) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Shanghai Gench Education Group Limited stock, see the HK:1525 Stock Forecast page.

Shanghai Gench Education Details Board and Committee Composition

Shanghai Gench Education Group Limited has announced the current composition of its board of directors, which comprises executive, non-executive and independent non-executive members led by chairman Zhao Donghui. The company has also detailed the structure of its three key board committees—Audit, Remuneration and Nomination—clarifying the membership and leadership of each, a move that underscores its corporate governance framework and may provide investors with greater transparency around oversight and decision-making responsibilities.

The most recent analyst rating on (HK:1525) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Shanghai Gench Education Group Limited stock, see the HK:1525 Stock Forecast page.

Shanghai Gench Education Group Discloses Wealth Management Subscriptions

Shanghai Gench Education Group Limited has announced that it subscribed to various wealth management products, specifically structured deposits, from financial institutions in Mainland China. These transactions, when aggregated, exceeded certain percentage ratios as per Hong Kong’s Listing Rules, making them discloseable transactions. The company initially failed to report these transactions due to a misunderstanding of the rules but has since implemented measures to improve internal controls and prevent future non-compliance.

The most recent analyst rating on (HK:1525) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Shanghai Gench Education Group Limited stock, see the HK:1525 Stock Forecast page.