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

• Market Cap: HK$712.79M
• Dividend Yield: 5.8%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 533.3
• Beta (1Y): 1.10
• Revenue Growth: -20.92%
• EPS Growth: -121.60%
• Country: HK
• Employees: 6,700
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Education & Training Services
• EPS (TTM): >-0.01
• Shares Outstanding: 4,217,720,000
• 10 Day Avg. Volume: 947,000
• 30 Day Avg. Volume: 1,015,466
• 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: 56 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 56 reflects significant financial performance challenges, particularly in profitability and cash flow, which are the most impactful factors. Technical analysis shows moderate strength, providing some support to the stock price. Valuation concerns due to negative earnings are partially offset by a high dividend yield. The absence of earnings call data and corporate events limits additional insights.

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

Company Description

Minsheng Education Group Co. Ltd. (1569) is a leading private education service provider in China, focusing on the development and operation of higher education institutions. The company primarily operates vocational colleges and universities, offering a range of undergraduate and junior college programs across various disciplines, including engineering, management, and arts. Minsheng Education Group is dedicated to providing high-quality education services and aims to cultivate skilled professionals to meet the demands of the market.

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: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 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 0.17 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.16, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 54.56 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	78 Outperform	HK$720.00M	1.43	12.24%	―	13.37%	15.55%
2779	77 Outperform	HK$965.15M	2.40	9.80%	10.53%	0.87%	9.69%
6913	71 Outperform	HK$420.21M	4.51	5.07%	4.13%	15.28%	-23.69%
1851	66 Neutral	HK$650.00M	4.11	15.11%	―	1.40%	-15.24%
Sector *	61 Neutral	$17.99B	12.87	-5.33%	2.97%	1.27%	-14.28%
1569	56 Neutral	HK$712.79M	533.33	-2.11%	5.80%	-20.92%	-121.60%
1565	―	HK$608.49M	8.87	7.33%	5.47%	―	―

Minsheng Education Group Co. Ltd. Corporate Events

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.

Minsheng Education Group’s AGM Resolutions Approved

Minsheng Education Group Co. Ltd. held its Annual General Meeting on June 2, 2025, where all proposed resolutions were approved by shareholders through a poll. The meeting was attended by all company directors, and no shares were held in treasury or repurchased, ensuring full voting rights were exercised. The successful approval of resolutions at the AGM reflects the company’s stable governance and shareholder support, potentially strengthening its position in the education industry.

Minsheng Education Secures RMB300 Million Revolving Loan

Minsheng Education Group Co. Ltd. announced that it has entered into a facility letter with China CITIC Bank International Limited for a revolving loan of up to RMB300 million. This financial arrangement requires that the company’s chairman, Mr. Li Xuechun, maintains a minimum shareholding control of 51%, ensuring stability in the company’s leadership and potentially impacting its financial strategy and stakeholder confidence.