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

• Market Cap: HK$670.62M
• Dividend Yield: 6.16%
• Average Volume (3M): 603.07K
• Price to Earnings (P/E): 530.0
• Beta (1Y): 1.08
• Revenue Growth: -18.89%
• EPS Growth: -99.23%
• Country: HK
• Employees: 6,700
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Education & Training Services
• EPS (TTM): -0.03
• Shares Outstanding: 4,217,720,000
• 10 Day Avg. Volume: 674,200
• 30 Day Avg. Volume: 603,066
• PEG Ratio: -0.27
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.61
• 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: 51 Neutral
• Price Target: ―

The overall score reflects significant financial challenges, with declining revenue, profitability, and cash flow issues outweighing the stable balance sheet. Technical analysis indicates bearish momentum, and valuation metrics present a mixed picture with a high P/E ratio but a strong dividend yield. The company faces substantial risks but offers potential for income-focused investors.

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. generates revenue primarily through tuition fees collected from students enrolled in its educational programs. The company leverages its extensive network of institutions to attract a diverse student body, which contributes to a steady stream of income. Additionally, Minsheng Education may engage in partnerships with industry players to provide specialized training programs, which can also be a source of revenue. The company may also receive funding or grants from government initiatives aimed at enhancing educational infrastructure and quality, though this is less significant compared to tuition-based income.

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
	EBIT
110.57M	394.62M	490.23M	615.96M	317.64M
	EBITDA
386.94M	790.24M	732.53M	830.51M	445.53M
	Net Income Common Stockholders
1.19M	138.87M	490.07M	576.89M	131.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.63B	3.30B	3.68B	2.97B	2.63B
	Total Assets
11.26B	11.37B	11.96B	11.44B	9.11B
	Total Debt
2.36B	2.14B	2.36B	1.98B	1.90B
	Net Debt
-158.55M	-1.05B	-1.12B	-771.30M	-723.42M
	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
0.00	107.38M	332.09M	220.96M	247.37M
	Operating Cash Flow
0.00	552.32M	719.84M	830.47M	457.26M
	Investing Cash Flow
0.00	-355.24M	-235.92M	-362.10M	-631.38M
	Financing Cash Flow
0.00	-489.57M	227.22M	-328.64M	1.38B

Minsheng Education Group Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 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 Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.15, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 56.86 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
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
1569	51 Neutral	HK$670.62M	530.00	0.02%	6.16%	-18.89%	-99.23%
1773		HK$8.88B	11.93	27.25%	2.06%	―	―
2001		HK$1.81B	2.12	18.95%	0.55%	―	―
6169	75 Outperform	HK$2.16B	2.76	7.75%	―	1.32%	-20.13%
6068	57 Neutral	HK$238.31M	2.19	16.80%	50.00%	-41.24%	-36.17%

Minsheng Education Group Co. Ltd. Corporate Events

Minsheng Education Group Announces AGM Agenda and Share Issuance Plans

Minsheng Education Group Co. Ltd. announced the agenda for its upcoming annual general meeting, which includes the consideration of audited financial statements, re-election of directors, and re-appointment of auditors. The meeting will also address resolutions related to the company’s ability to issue additional shares, potentially impacting its capital structure and shareholder value.

Minsheng Education Group Reports Decline in 2024 Financial Performance

Minsheng Education Group Co. Ltd. reported a significant decline in its financial performance for the year ended December 31, 2024, with a 17.2% decrease in total revenue and a 41.2% drop in adjusted EBITDA compared to the previous year. Despite these declines, the company’s gearing ratio remains healthy at 37.0%, indicating stable financial management. The announcement highlights challenges in the company’s operations, potentially impacting its market positioning and stakeholder confidence.

Minsheng Education Group Updates Nomination Committee Leadership

Minsheng Education Group Co. Ltd. announced changes in its Nomination Committee, effective from March 19, 2025. Mr. Yu Huangcheng has been appointed as the new chairman, while Ms. Zhang Weiping joins as a member. These changes align with the updated Corporate Governance Code and aim to enhance the board’s effectiveness and diversity, thereby strengthening the company’s corporate governance practices.

Minsheng Education Group Announces Board Composition and Governance Structure

Minsheng Education Group Co. Ltd. announced the composition of its board of directors, detailing the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, and has established three committees: Audit, Remuneration, and Nomination, with specific directors assigned to each committee. This announcement clarifies the governance structure, potentially impacting stakeholders’ understanding of the company’s leadership and decision-making processes.

Minsheng Education Group Establishes Nomination Committee to Enhance Governance

Minsheng Education Group Company Limited has announced the effective establishment of its Nomination Committee as of March 19, 2025, following a resolution passed by the Board of Directors. The Committee, consisting primarily of independent non-executive directors, is tasked with reviewing and recommending changes to the Board’s structure, size, and composition to align with the company’s corporate strategy. This move is expected to enhance the governance and strategic oversight of the company, potentially impacting its operations and stakeholder relations positively.

Minsheng Education Group Issues Profit Warning Amid Increased Costs and Market Challenges

Minsheng Education Group Co. Ltd. has issued a profit warning, indicating an expected decrease in net profit by approximately 60% to 70% for the year ended December 31, 2024, compared to the previous year. This decline is attributed to increased investment in school operations and the expansion of teaching teams, as well as a significant drop in net profit from online education entities due to market conditions and enrollment suspensions.