Shanghai Gench Education Group Limited (1525) AI Stock Analysis

• Market Cap: HK$1.22B
• Dividend Yield: 6.76%
• Average Volume (3M): 159.33K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.07
• Revenue Growth: 2.12%
• EPS Growth: -23.09%
• Country: HK
• Employees: 1,889
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Education & Training Services
• EPS (TTM): 0.61
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 343,750
• 30 Day Avg. Volume: 159,333
• PEG Ratio: 0.20
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.10
• 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

• Rating: 73 Outperform
• Price Target: HK$3.00 ▲(1.35%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 prominent higher education service provider in China, primarily focusing on offering undergraduate programs. The company operates through its wholly-owned private university, Shanghai Jian Qiao University, which provides a wide range of academic disciplines including engineering, management, economics, literature, and art. With a commitment to delivering quality education, the institution is dedicated to fostering students' academic growth and professional development.

How the Company Makes Money

Shanghai Gench Education Group Limited generates revenue primarily through tuition fees collected from students enrolled in its undergraduate programs at Shanghai Jian Qiao University. The university's offerings encompass various fields of study, appealing to a broad spectrum of students. Additional income streams may include fees for supplementary educational services and on-campus facilities, as well as government subsidies or financial aids aimed at supporting educational institutions. The company's strategic partnerships with academic and industry organizations may also contribute to its financial performance by enhancing educational offerings and attracting more students.

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
	EBIT
286.75M	368.80M	329.75M	289.34M	252.95M
	EBITDA
366.64M	448.68M	401.22M	356.10M	324.07M
	Net Income Common Stockholders
223.62M	283.37M	224.93M	179.01M	193.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
803.57M	846.62M	617.52M	488.74M	714.62M
	Total Assets
3.98B	3.80B	3.47B	3.24B	3.38B
	Total Debt
832.56M	761.93M	774.40M	784.28M	1.12B
	Net Debt
502.16M	255.82M	156.88M	295.55M	578.31M
	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: 2.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.96 is above the 20-day moving average (MA) of 2.60, above the 50-day MA of 2.34, and above the 200-day MA of 2.65, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 83.88 is Negative, neither overbought nor oversold. The STOCH value of 97.71 is Negative, 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	76 Outperform	HK$1.33B	3.92	10.97%	―	10.10%	-21.18%
1525	73 Outperform	HK$1.22B	4.83	9.98%	6.76%	2.12%	-23.09%
2779	72 Outperform	HK$965.15M	2.70	9.21%	10.53%	-1.33%	4.95%
2175	64 Neutral	HK$1.30B	12.07	5.09%	―	-0.48%	-26.92%
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%

Shanghai Gench Education Group Limited Corporate Events

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.

Shanghai Gench Education Group Announces 2025 AGM and Key Resolutions

Shanghai Gench Education Group Limited has announced its upcoming annual general meeting (AGM) scheduled for May 11, 2025. Key agenda items include the consideration of audited financial statements, re-election of directors, re-appointment of auditors, and the declaration of a final dividend. Additionally, the company seeks approval to allot and issue additional shares, which could impact its capital structure and shareholder value.

Shanghai Gench Education Group Reports 2024 Annual Results with Revenue Growth but Profit Decline

Shanghai Gench Education Group Limited announced its annual financial results for the year ended December 31, 2024. The company reported a 4.3% increase in revenue to RMB 969,854,000 compared to the previous year. However, there was a decline in gross profit by 6.0% and a significant drop in profit before tax by 21.4%, resulting in a profit for the year of RMB 223,618,000, down 21.1% from 2023. These results indicate a challenging financial year for the company, impacting its profitability despite increased revenue.

Shanghai Gench Education Group Announces Board Composition

Shanghai Gench Education Group Limited has announced the composition of its board of directors, detailing the roles and committee memberships of each member. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership and decision-making processes within the organization.

Shanghai Gench Education Group Announces Final Dividend for 2024

Shanghai Gench Education Group Limited has announced a final ordinary cash dividend of HKD 0.1 per share for the financial year ending December 31, 2024. The dividend is subject to shareholder approval on May 11, 2025, with the payment date set for June 17, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Shanghai Gench Education Group Forms Strategic Limited Partnership

Shanghai Gench Education Group Limited announced the formation of a Limited Partnership with Shanghai Yunyao and Shanghai Fengfu, with a total capital contribution of RMB150 million. This venture aims to support the company’s industry-education integration strategy by investing in high-quality enterprises, enhancing its market positioning in venture capital, equity investment, investment management, and asset management.