Hope Education Group Co., Ltd. (1765) AI Stock Analysis

• Market Cap: €1.61B
• Dividend Yield: N/A
• Average Volume (3M): 10.69M
• Price to Earnings (P/E): 2.1
• Beta (1Y): 1.25
• Revenue Growth: 1.93%
• EPS Growth: N/A
• Country: HK
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Education & Training Services
• EPS (TTM): 0.04
• Shares Outstanding: 8,224,975,000
• 10 Day Avg. Volume: 12,956,200
• 30 Day Avg. Volume: 10,693,829
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

Hope Education Group's strong financial performance and attractive valuation are the primary drivers of its overall stock score. The company's robust revenue growth and profitability, along with a low P/E ratio, suggest a solid investment opportunity. Technical indicators show a neutral trend, which slightly tempers the overall score.

Hope Education Group Co., Ltd. Business Overview & Revenue Model

Company Description

Hope Education Group Co., Ltd., an investment holding company, provides higher education and secondary vocational education services in China and Malaysia. The company provides technician education and training, self-study examination, adult education, technical management and consultancy, and other training services, as well as sells textbooks and dormitory beddings. As of August 31, 2021, it owned and operated 22 schools, including 9 colleges and universities, 11 junior colleges, and 2 technician colleges. The company was founded in 2007 and is headquartered in Chengdu, the People's Republic of China. Hope Education Group Co., Ltd. is a subsidiary of Hope Education Investment Limited.

How the Company Makes Money

Hope Education Group Co., Ltd. generates revenue primarily through tuition fees collected from students enrolled in its educational institutions. Additional income streams include boarding fees from student accommodations and various service fees associated with educational activities. The company may also engage in strategic partnerships with other educational entities and businesses to enhance its educational offerings and expand its market reach. These factors, combined with its focus on providing quality education, contribute to its overall earnings.

Hope Education Group Co., Ltd. Financial Statement Overview

Summary

Hope Education Group displays strong financial performance with consistent revenue growth and improving profitability. The balance sheet is solid with manageable leverage, although a decline in equity requires attention. Robust cash flow is supported by significant free cash flow growth, but high capital expenditures could impact future stability.

Income Statement

Hope Education Group has demonstrated strong revenue growth over the years, with a 25.13% increase from 2022 to 2023. The gross profit margin remains robust at approximately 41.99% TTM, indicating effective cost management. However, there is a notable decline in EBIT margin from 28.92% in 2023 to 19.74% TTM, suggesting increased operating expenses. Net profit margin improved significantly to 18.21% TTM, reflecting better profitability control.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.48 TTM, indicating manageable leverage. The equity ratio is strong at 45.60% TTM, suggesting a solid financial structure. However, a decline in equity from previous years poses a risk. The return on equity is 7.33% TTM, showcasing a steady return for shareholders.

Cash Flow

Hope Education Group's cash flow position is improving, with a remarkable free cash flow growth rate of 235.91% TTM. The operating cash flow to net income ratio is 2.62, indicating strong cash generation relative to net income. However, the company experienced high capital expenditures, which could affect future cash flow stability.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.73B	3.58B	3.04B	2.32B	1.31B
Gross Profit	1.57B	1.68B	1.40B	1.18B	566.42M
EBITDA	1.61B	1.56B	1.33B	509.56M	535.85M
Net Income	609.56M	210.10M	444.64M	605.50M	178.84M
Balance Sheet
Total Assets	22.28B	22.30B	22.31B	19.87B	12.42B
Cash, Cash Equivalents and Short-Term Investments	2.65B	2.83B	2.77B	4.44B	2.90B
Total Debt	5.56B	5.84B	6.43B	5.17B	3.26B
Total Liabilities	13.13B	13.86B	14.27B	12.06B	6.73B
Stockholders Equity	9.15B	8.44B	8.05B	7.81B	5.68B
Cash Flow
Free Cash Flow	187.75M	232.03M	-969.04M	57.54M	-717.07M
Operating Cash Flow	1.49B	1.79B	1.41B	1.91B	88.04M
Investing Cash Flow	-972.45M	-181.06M	-2.85B	-3.71B	89.27M
Financing Cash Flow	-864.12M	-1.51B	-169.05M	3.29B	2.12B

Hope Education Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.19
• 50DMA: Negative
• 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:1765, the sentiment is Neutral. The current price of 0.19 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.19, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1765.

Hope Education Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0382	81 Outperform	HK$1.89B	2.74	15.41%	12.25%	9.66%	-8.34%
1765	76 Outperform	€1.61B	2.07	7.59%	―	1.93%	―
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
1593	―	HK$1.37B	37.10	4.06%	―	―	―
2001	76 Outperform	HK$2.13B	2.49	18.95%	7.70%	9.07%	5.93%
1935	74 Outperform	HK$1.39B	4.52	9.02%	―	4.79%	-36.61%
2175	64 Neutral	HK$1.03B	9.73	5.09%	―	-0.48%	-26.92%

Hope Education Group Co., Ltd. Corporate Events

XJ International Holdings Announces Rights Issue Results and Plans for Unsubscribed Shares

XJ International Holdings Co., Ltd. announced the results of its Rights Issue, revealing that approximately 64.9% of the Rights Shares were subscribed, leaving 35.1% unsubscribed. The company plans to offer these unsubscribed shares to independent placees, with any premium over the subscription price to be distributed to certain shareholders. This move aims to optimize shareholder benefits and adjust the size of the Rights Issue accordingly.

Hope Education Group Forms Nomination and Remuneration Committee

Hope Education Group Co., Ltd. has established a Nomination and Remuneration Committee as part of its governance structure. This committee is responsible for overseeing the nomination of directors and determining remuneration policies for senior management, aligning with the company’s strategic goals and regulatory requirements.

XJ International Holdings Announces Changes to Board Committee

XJ International Holdings Co., Ltd., a company incorporated in the Cayman Islands, has announced changes to its Board’s Nomination and Remuneration Committee. Effective from August 29, 2025, Ms. Wang Xiu and Mr. Zhang Jin have been appointed as new members of the committee. This change reflects the company’s ongoing efforts to strengthen its governance structure and ensure a diverse and experienced leadership team. The updated committee now includes Mr. Liu Zhonghui as Chairman, with members Mr. Wang Huiwu, Mr. Xiang Chuan, Ms. Wang Xiu, and Mr. Zhang Jin, indicating a strategic move to enhance decision-making processes within the company.

XJ International Holdings Announces Board Composition and Roles

XJ International Holdings Co., Ltd., a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their respective roles. The board consists of executive, non-executive, and independent non-executive directors, with Mr. Zhang Bing serving as the Chairman. The company has also established three committees: the Audit Committee, the Nomination and Remuneration Committee, and the Strategy and Development Committee, each chaired by different board members. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders in understanding the decision-making framework and strategic direction of the organization.

XJ International Holdings Implements Financial Strategies to Address Going Concern

XJ International Holdings Co., Ltd. has announced measures to address a disclaimer of opinion on its financial statements regarding going concern, as highlighted in its 2024 annual report. The company has implemented several strategies to improve its liquidity and financial position, including the early redemption of convertible bonds, engaging in discussions regarding medium-term notes, and disposing of certain equity interests to generate additional cash inflows. These actions are aimed at stabilizing the company’s financial standing and ensuring its continued operations.

XJ International Holdings Announces Further Delay in Circular Dispatch

XJ International Holdings Co., Ltd., a company incorporated in the Cayman Islands, announced a further delay in the dispatch of a Circular related to a major transaction involving an Equity Transfer Agreement. The delay is attributed to the Purchaser’s late payment of a portion of the first installment and the additional time needed to finalize the Circular’s content. The new dispatch date is set for on or before 30 September 2025. This postponement may affect the company’s timeline for compliance with the Listing Rules and could have implications for stakeholders awaiting the transaction’s completion.

Hope Education Group Announces Major Equity Disposal

Hope Education Group Co., Ltd. has announced a major transaction involving the disposal of its entire equity interest in a target company and its subsidiaries. The transaction, valued at up to RMB650 million, involves an agreement between the vendor, Sichuan Hope Education Industry Group Limited, and the purchaser, Guilin Punuojie Electronic Co., Ltd., with URIT Medical Electronic Co., Ltd. acting as the purchaser’s guarantor. This disposal is classified as a major transaction under the Listing Rules, requiring shareholder approval and other regulatory steps. The outcome of this transaction could significantly impact the company’s financial positioning and strategic focus.

Hope Education Group Announces Major Equity Transfer Deal

Hope Education Group Co., Ltd. has announced a significant transaction involving the transfer of 100% equity interests in a target company and its subsidiaries. The transaction, valued at approximately RMB21.17 million, also includes the repayment of shareholder’s debt and other debts, with the purchaser providing a guarantee for the obligations. This move is categorized as a discloseable transaction under the Listing Rules, indicating its importance to the company’s financial operations and market positioning.

XJ International Holdings Faces Further Delay in Circular Dispatch

XJ International Holdings Co., Ltd. has announced a further delay in the dispatch of a Circular related to a major transaction concerning an Equity Transfer Agreement. The delay is attributed to the Purchaser’s delay in payment and the additional time required by the Company to finalize the Circular’s contents. The new dispatch date is set for on or before 31 August 2025, and further announcements will be made regarding the rescheduled closing date.

Hope Education Group Revises Rights Issue to Address Shareholder Concerns

Hope Education Group Co., Ltd. has announced a revision to its proposed rights issue, initially set forth on July 10, 2025. The company, responding to shareholder concerns about potential dilution, has terminated the original rights issue agreements and introduced a new proposal. This revised rights issue aims to raise approximately HK$137.08 million by offering one rights share for every twelve existing shares held, exclusively to qualifying shareholders. The move reflects the company’s commitment to balancing shareholder interests while securing necessary capital.