Shanghai Gench Education Group Limited (HK:1525)
:1525
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Shanghai Gench Education Group Limited
(1525)
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Rating:75Outperform
Price Target:
HK$2.50
▼(-6.72% Downside)
Action:UpgradedDate:04/21/26
The score is supported primarily by very attractive valuation (low P/E and high dividend yield) and solid financial performance led by a strengthened, low-leverage balance sheet. These positives are tempered by weak technicals (price below key moving averages and negative MACD) and fundamental watch items including slowed recent revenue growth, some margin compression, and uneven free-cash-flow consistency.
Positive Factors
Improving balance sheet / low leverage
Sharply reduced leverage and consistent equity growth strengthen financial flexibility and lower refinancing risk. This gives management capacity to fund campus upkeep and modest expansion, absorb enrollment variability, and support shareholder returns without heavy reliance on external financing.
Negative Factors
Slowing revenue growth
A marked deceleration to low single-digit revenue growth reduces scalability of fixed-cost campus operations and limits room for operating-leverage gains. If enrollment or pricing momentum does not recover, organic growth constraints could pressure long-term investments and earnings expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving balance sheet / low leverage
Sharply reduced leverage and consistent equity growth strengthen financial flexibility and lower refinancing risk. This gives management capacity to fund campus upkeep and modest expansion, absorb enrollment variability, and support shareholder returns without heavy reliance on external financing.
Read all positive factors
Shanghai Gench Education Group Limited (1525) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$846.10M
Dividend Yield6.83%
Average Volume (3M)608.88K
Price to Earnings (P/E)4.1
Beta (1Y)0.18
Revenue Growth3.55%
EPS Growth8.38%
CountryHK
Employees1,889
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.22
Shares Outstanding415,000,000
10 Day Avg. Volume448,200
30 Day Avg. Volume608,883
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)0.39
Price to Sales (P/S)0.98
P/FCF Ratio2.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.98
Revenue Forecast (FY)HK$1.23B
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 compa...
How the Company Makes Money
The company primarily makes money by operating its higher education schools and charging students tuition and fees. Key revenue streams typically include: (1) tuition fees from enrolled students in undergraduate and junior college programs; (2) bo...
Shanghai Gench Education Group Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 978.59M | 969.85M | 929.88M | 790.11M | 683.58M |
| Gross Profit | 530.55M | 539.89M | 574.38M | 504.98M | 421.68M |
| EBITDA | 408.47M | 366.64M | 448.68M | 375.46M | 356.10M |
| Net Income | 236.27M | 223.62M | 283.37M | 224.93M | 179.01M |
Balance Sheet | |||||
| Total Assets | 3.66B | 3.98B | 3.80B | 3.47B | 3.24B |
| Cash, Cash Equivalents and Short-Term Investments | 447.30M | 811.94M | 846.62M | 617.52M | 488.74M |
| Total Debt | 282.32M | 832.56M | 761.93M | 774.40M | 784.28M |
| Total Liabilities | 1.17B | 1.66B | 1.63B | 1.51B | 1.41B |
| Stockholders Equity | 2.49B | 2.32B | 2.17B | 1.96B | 1.83B |
Cash Flow | |||||
| Free Cash Flow | 325.09M | 116.48M | 212.28M | 266.52M | 272.52M |
| Operating Cash Flow | 441.67M | 308.95M | 467.75M | 435.26M | 412.24M |
| Investing Cash Flow | 257.03M | -476.39M | -464.19M | -174.42M | 32.31M |
| Financing Cash Flow | -648.77M | -36.65M | -114.49M | -141.83M | -497.38M |
Shanghai Gench Education Group Limited Technical Analysis
Negative
2.68
Price Trends
2.38
Negative
2.55
Negative
2.66
Negative
Market Momentum
-0.09
Positive
27.59
Positive
9.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1525, the sentiment is Negative. The current price of 2.68 is above the 20-day moving average (MA) of 2.24, above the 50-day MA of 2.38, and above the 200-day MA of 2.66, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 27.59 is Positive, neither overbought nor oversold. The STOCH value of 9.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1525.
Shanghai Gench Education Group Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$846.10M | 4.08 | 8.65% | 6.83% | 3.55% | 8.38% | |
72 Outperform | HK$796.25M | 2.52 | 9.71% | 11.09% | 1.47% | 1.93% | |
63 Neutral | HK$1.61B | 11.85 | 4.05% | ― | -0.48% | -29.65% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | HK$1.74B | 5.82 | 6.96% | ― | -2.97% | -28.56% |
* Consumer Defensive Sector Average
HK:1525
Shanghai Gench Education Group Limited
2.10
0.08
3.96%
HK:1565
Virscend Education Company Limited
0.19
-0.02
-9.95%
HK:1593
Chen Lin Education Group Holdings Ltd.
1.23
-0.13
-9.56%
HK:1935
JH Educational Technology INC.
1.08
0.30
38.46%
HK:2175
China General Education Group Limited
3.32
0.36
12.16%
HK:2779
China Xinhua Education Group Limited
0.49
-0.06
-10.19%
Shanghai Gench Education Group Limited Corporate Events
Shanghai Gench Education Sets 2026 AGM, Proposes Dividend and Share Issuance Mandate
Apr 14, 2026
Shanghai Gench Education Group Limited has called its annual general meeting for 8 May 2026 in Shanghai, where shareholders will review the audited financial statements and the reports of the board and independent auditor for the year ended 31 Dec...
Shanghai Gench Education Proposes Final Dividend for 2025 Financial Year
Mar 27, 2026
Shanghai Gench Education Group Limited has proposed a final ordinary cash dividend of HKD 0.04 per share for the financial year ended 31 December 2025, subject to shareholder approval at a meeting scheduled for 8 May 2026. The dividend, payable in...
Shanghai Gench Education Posts Higher 2025 Profit on Lower Finance Costs
Mar 27, 2026
Shanghai Gench Education Group Limited reported steady growth for the year ended 31 December 2025, with revenue rising 3.6% year on year to RMB1.00 billion and gross profit edging up 0.9% to RMB544.7 million. Net profit attributable to shareholder...
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.