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

• Market Cap: HK$915.25M
• Dividend Yield: 4.62%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 533.3
• Beta (1Y): 1.16
• Revenue Growth: -20.92%
• EPS Growth: -121.60%
• Country: HK
• Employees: 6,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Education & Training Services
• EPS (TTM): >-0.01
• Shares Outstanding: 4,217,720,000
• 10 Day Avg. Volume: 4,277,200
• 30 Day Avg. Volume: 2,087,533
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 60 reflects significant financial performance challenges, particularly in profitability and cash flow, which are the most critical factors. Technical analysis shows strong bullish momentum, but overbought conditions suggest caution. Valuation is weak due to negative earnings, though the dividend yield offers some appeal. The absence of earnings call and corporate events data limits additional insights.

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 Co. Ltd. makes money primarily through tuition fees charged to students enrolled in its educational institutions. The company generates revenue by offering a diverse range of educational programs, catering to the growing demand for higher education in China. Additional revenue streams include fees for boarding, educational materials, and other related services provided to students. Minsheng Education Group also benefits from government policies that support private education, as well as its strategic partnerships with other educational and corporate entities that enhance its educational offerings and market reach.

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. While the balance sheet remains relatively stable with a manageable debt level and solid equity base, the sharp drop in profitability and lack of cash flow in 2024 pose significant risks. The company must focus on reversing these negative trends to enhance its financial position and ensure long-term sustainability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.95B	2.35B	2.35B	2.39B	1.11B
Gross Profit	870.25M	1.26B	1.28B	1.36B	567.08M
EBITDA	386.94M	790.24M	732.53M	830.51M	445.53M
Net Income	1.19M	138.87M	490.07M	576.89M	131.47M
Balance Sheet
Total Assets	11.26B	11.37B	11.96B	11.44B	9.11B
Cash, Cash Equivalents and Short-Term Investments	2.63B	3.30B	3.68B	2.97B	2.63B
Total Debt	2.36B	2.14B	2.36B	1.98B	1.90B
Total Liabilities	5.32B	5.42B	6.92B	6.65B	4.95B
Stockholders Equity	5.04B	5.09B	4.82B	4.59B	4.04B
Cash Flow
Free Cash Flow	-174.12M	107.38M	332.09M	220.96M	247.37M
Operating Cash Flow	166.01M	552.32M	719.84M	830.47M	457.26M
Investing Cash Flow	-316.55M	-355.24M	-235.92M	-362.10M	-631.38M
Financing Cash Flow	-518.42M	-489.57M	227.22M	-328.64M	1.38B

Minsheng Education Group Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.21 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.17, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 65.18 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
2779	75 Outperform	1.09B	2.72	8.88%	9.29%	0.87%	9.69%
1756	74 Outperform	924.00M	1.84	11.81%	―	13.37%	15.55%
1851	73 Outperform	760.00M	4.80	16.33%	―	1.40%	-15.24%
6913	71 Outperform	406.87M	4.43	5.48%	10.82%	15.28%	-23.69%
1569	60 Neutral	HK$915.25M	533.33	-2.11%	4.62%	-20.92%	-121.60%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.