Minsheng Education Group Co. Ltd. (1569) AI Stock Analysis

• Market Cap: HK$814.02M
• Dividend Yield: 5.19%
• Average Volume (3M): 651.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -20.92%
• EPS Growth: -121.60%
• Country: HK
• Employees: 6,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): >-0.01
• Shares Outstanding: 4,217,720,000
• 10 Day Avg. Volume: 252,200
• 30 Day Avg. Volume: 651,933
• PEG Ratio: -6.69
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -4.53
• 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): 1.73
• Revenue Forecast (FY): HK$24.27B

• Rating: 53 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. The company faces significant financial challenges with declining profitability and cash flow issues, which are major concerns. Technical indicators suggest a lack of strong momentum, and the valuation is impacted by negative earnings, despite a high dividend yield. These factors collectively result in a moderate overall stock score.

Minsheng Education Group Co. Ltd. Business Overview & Revenue Model

Company Description

Minsheng Education Group Co. Ltd. is a leading provider of education services in China, primarily focusing on higher education and vocational training. The company operates a diverse portfolio of educational institutions, including universities and colleges, and offers a range of programs designed to meet the needs of students and employers in various sectors. With a commitment to quality education and innovative teaching methods, Minsheng Education aims to equip students with the skills required for the evolving job market.

How the Company Makes Money

Minsheng Education Group generates revenue primarily through tuition fees from its educational institutions, encompassing both undergraduate and vocational programs. In addition to tuition, the company earns income from ancillary services such as accommodation, textbooks, and other educational materials. Key partnerships with businesses and industry stakeholders also enhance its offerings, providing students with internship opportunities and job placements, which in turn boosts the institution's reputation and attracts more students. Furthermore, the company may engage in government-sponsored educational initiatives, securing additional funding and grants that contribute to its overall earnings.

Minsheng Education Group Co. Ltd. Financial Statement Overview

Summary

Minsheng Education Group Co. Ltd. faces significant challenges with declining revenue, profitability, and cash flow generation. The balance sheet remains relatively stable with a manageable debt level and solid equity base, but the sharp drop in profitability and lack of cash flow in 2024 pose significant risks.

Income Statement

The company shows a declining trend in revenue and profitability over the last three years. Gross Profit Margin decreased to 44.7% in 2024 from 53.6% in 2023, indicating potential cost control issues. Net Profit Margin dropped significantly to 0.06% in 2024 from 5.9% in 2023, reflecting a substantial decline in net income. Revenue Growth Rate was negative at -17.2% in 2024, showing a significant reduction compared to previous periods. The company faces challenges with maintaining profitability and revenue growth.

Balance Sheet

The company maintains a solid equity base with the equity ratio at 44.7% in 2024, indicating a healthy balance between assets and liabilities. The Debt-to-Equity ratio is relatively stable at 0.47 in 2024, suggesting manageable leverage. Return on Equity (ROE) dropped significantly to 0.02% in 2024 from 2.73% in 2023, which is a concern regarding the company's ability to generate returns for shareholders. Despite a strong equity position, profitability challenges impact the overall balance sheet strength.

Cash Flow

The cash flow position is weak, with no positive operating or free cash flow reported in 2024. Previously, the Operating Cash Flow to Net Income ratio was favorable at 3.98 in 2023, but the absence of operating cash flow in 2024 raises concerns about the company's ability to sustain operations through internal cash generation. The Free Cash Flow to Net Income ratio was 0.77 in 2023, but the current absence of free cash flow highlights potential liquidity issues. The company needs to improve its cash management to stabilize operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.76B	1.95B	2.35B	2.35B	2.39B	1.11B
Gross Profit	644.82M	870.25M	1.26B	1.28B	1.36B	567.08M
EBITDA	273.39M	386.94M	790.24M	748.81M	830.51M	445.53M
Net Income	-107.69M	1.19M	138.87M	490.07M	576.89M	131.47M
Balance Sheet
Total Assets	10.71B	11.26B	11.37B	11.96B	11.44B	9.11B
Cash, Cash Equivalents and Short-Term Investments	1.81B	2.63B	3.30B	3.65B	2.95B	2.63B
Total Debt	2.71B	2.36B	2.14B	2.36B	1.98B	1.90B
Total Liabilities	4.72B	5.32B	5.42B	6.92B	6.65B	4.95B
Stockholders Equity	5.04B	5.04B	5.09B	4.82B	4.59B	4.04B
Cash Flow
Free Cash Flow	820.32M	-174.12M	107.38M	332.09M	220.96M	247.37M
Operating Cash Flow	945.03M	166.01M	552.32M	719.84M	830.47M	457.26M
Investing Cash Flow	-126.14M	-316.55M	-355.24M	-235.92M	-362.10M	-631.38M
Financing Cash Flow	-497.69M	-518.42M	-489.57M	227.22M	-328.64M	1.38B

Minsheng Education Group Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 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:1569, the sentiment is Positive. The current price of 0.2 is below the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.20, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 40.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1569.

Minsheng Education Group Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1756	74 Outperform	HK$840.00M	1.67	12.24%	―	13.37%	15.55%
6913	72 Outperform	HK$406.87M	4.36	5.05%	10.65%	15.28%	-23.69%
1851	70 Outperform	HK$995.00M	6.29	15.11%	―	1.40%	-15.24%
2779	69 Neutral	HK$997.32M	2.48	9.80%	9.88%	0.87%	9.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1569	53 Neutral	HK$814.02M	―	-2.11%	5.19%	-20.92%	-121.60%

Minsheng Education Group Co. Ltd. Corporate Events

Minsheng Education Reports Financial Decline but Increases Enrollment Quotas

Minsheng Education Group Co. Ltd. reported a decrease in financial performance for the first half of 2025, with revenue dropping by 17.1% and adjusted net profit falling by 56.6% compared to the same period in 2024. Despite the financial downturn, the company announced a substantial increase in enrollment quotas for the 2025/2026 academic year, particularly a 29% rise in bachelor’s degree programs, which could positively impact future operations and market positioning.

Minsheng Education Group Schedules Board Meeting to Discuss Interim Results and Dividend

Minsheng Education Group Co. Ltd. announced that its board meeting is scheduled for August 19, 2025, to consider and approve the interim results for the first half of 2025 and discuss the potential payment of an interim dividend. This meeting could impact the company’s financial strategies and shareholder returns, reflecting its operational performance and financial health.

Minsheng Education Group Issues Profit Warning for H1 2025

Minsheng Education Group Co. Ltd. has issued a profit warning, indicating a projected decrease in net profit by approximately 56.4% for the first half of 2025 compared to the same period in 2024. This decline is attributed to increased investments in school operations and adverse market conditions affecting its online education segment. Stakeholders are advised to exercise caution as the financial data is preliminary and unaudited, with final results expected by the end of August 2025.