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

• Market Cap: HK$729.67M
• Dividend Yield: 5.3%
• Average Volume (3M): 461.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• 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: 459,400
• 30 Day Avg. Volume: 461,266
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$0.20 ▲(12.22% Upside)

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.

Positive Factors

Stable Balance Sheet

A stable Debt-to-Equity ratio indicates manageable leverage, providing the company with financial stability and flexibility to navigate challenges.

Diverse Revenue Streams

Diverse revenue streams from tuition, ancillary services, and partnerships reduce dependency on a single income source, enhancing resilience.

Solid Equity Base

A strong equity base with a 44.7% equity ratio suggests a healthy balance between assets and liabilities, supporting long-term financial health.

Negative Factors

Declining Profitability

Significant decline in net profit margin reflects challenges in maintaining profitability, potentially affecting future growth and investment capacity.

Negative Revenue Growth

Negative revenue growth indicates shrinking market share or demand, which could hinder the company's ability to expand and compete effectively.

Weak Cash Flow Position

Absence of positive cash flow raises concerns about liquidity and the ability to fund operations and investments without external financing.

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

Company Description

Minsheng Education Group Company Limited, an investment holding company, provides educational services in the People's Republic of China. The company operates 7 higher education institutions, 2 secondary vocational schools, and 1 high school. It also provides undergraduate and junior college education services; education management and services; disease diagnosis and treatment services; university and college logistics services; rental and business management services; investment management and services; education consulting and management services; technical training; technology development; and asset management, and project investment and management services. In addition, the company invests in education projects, as well as develops real estate properties. Further, it provides organizing cultural and artistic exchange activities; advertising; computer animation design; teacher continuing training; cloud training platform; vocational qualification certificate training; and educational software development and other related services. Additionally, the company offers online academic educational services and vocational training programs; SaaS services and human resource compliance consultative services; self-study examination assistance services; intermediary services for overseas studies; and digitalize educational information and online education supportive services, as well as operates public service system for distance education. The company was incorporated in 2005 and is headquartered in Beijing, the People's Republic of China. Minsheng Education Group Company Limited is a subsidiary of Minsheng Group Company Limited.

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: Negative
• Last Price: 0.18
• 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:1569, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and above the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 32.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$768.00M	1.55	11.13%	―	13.88%	1.52%
1851	73 Outperform	HK$1.53B	9.70	15.11%	―	1.40%	-15.24%
6913	72 Outperform	HK$393.53M	4.22	5.05%	11.00%	15.28%	-23.69%
2779	69 Neutral	HK$916.89M	2.28	9.80%	11.09%	0.87%	9.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1569	53 Neutral	HK$729.67M	-6.25	-2.11%	5.30%	-20.92%	-121.60%

Minsheng Education Group Co. Ltd. Corporate Events

Minsheng Education Secures RMB300 Million Loan Facility from Hang Seng Bank with Control Covenant

Minsheng Education Group has secured a new term loan facility of up to RMB300 million, or its equivalent in Hong Kong or US dollars, from Hang Seng Bank, with a final maturity of no later than three years from each drawdown. As part of the facility’s conditions, chairman and ultimate controlling shareholder Li Xuechun is required to remain the company’s controlling shareholder and maintain at least a 50% single beneficial interest in its share and voting capital, reinforcing continuity of control and triggering ongoing disclosure obligations in the company’s interim and annual reports under Hong Kong listing rules.

The most recent analyst rating on (HK:1569) stock is a Hold with a HK$0.20 price target. To see the full list of analyst forecasts on Minsheng Education Group Co. Ltd. stock, see the HK:1569 Stock Forecast page.

Minsheng Education Group Updates on Board Appointment

Minsheng Education Group Co. Ltd. announced a supplemental update regarding the appointment of Ms. Xu Wenya as a non-executive director. Ms. Xu has also been serving as a non-executive director at E-House (China) Enterprise Holdings Limited since October 2025. This announcement clarifies Ms. Xu’s current roles and ensures transparency in the company’s board composition, potentially impacting stakeholder perceptions and the company’s governance structure.

Minsheng Education Group Announces Board Changes

Minsheng Education Group Co. Ltd. announced a change in its board of directors, with Mr. Liang Xingchao resigning as a non-executive director due to work adjustments, effective November 18, 2025. Following his resignation, Ms. Xu Wenya has been appointed as a non-executive director. Ms. Xu brings extensive experience from her previous roles in asset operations and management, and her appointment is set for a one-year term, renewable by mutual agreement. This change in leadership is expected to bring new perspectives to the company’s operations, potentially impacting its strategic direction and stakeholder relations.

Minsheng Education Group Announces Board Composition and Committee Assignments

Minsheng Education Group Co. Ltd. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned to each. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.