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

• Market Cap: HK$1.42B
• Dividend Yield: N/A
• Average Volume (3M): 14.80M
• Price to Earnings (P/E): 3.9
• Beta (1Y): 1.17
• Revenue Growth: 6.04%
• EPS Growth: -36.91%
• Country: HK
• Employees: 14,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 8,673,937,000
• 10 Day Avg. Volume: 7,802,800
• 30 Day Avg. Volume: 14,800,511
• PEG Ratio: -0.04
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 3.77
• 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: 66 Neutral
• Price Target: HK$0.18 ▲(2.22% Upside)
• Action: Downgraded Date: 12/19/25
• Date: Action: Downgraded 12/19/25

The overall stock score of 66 reflects a combination of solid valuation with a low P/E ratio and stable financial performance, despite challenges in profitability and cash flow. Technical indicators suggest a neutral trend with potential overbought conditions, which investors should monitor closely.

Positive Factors

Recurring tuition-based revenue model

The company's core revenue comes from tuition and campus fees across its network of degree-oriented institutions. This tuition-driven model offers recurring, predictable revenue tied to enrollment and program cycles, providing a stable long-term cash base for operations and reinvestment.

Consistent revenue growth

Sustained revenue growth (~12.5% in the latest year) indicates expanding student intake or pricing power within its vocational and undergraduate programs. Durable top-line expansion supports scale benefits, absorption of fixed costs, and longer-term investments in curriculum and campus capacity.

Improved leverage and balanced capital structure

A lower debt-to-equity ratio improves financial flexibility and reduces refinancing and interest-rate vulnerability. The improved leverage position supports capital allocation for campus investments or strategic initiatives while maintaining a more resilient balance sheet through economic or regulatory cycles.

Negative Factors

Declining free cash flow

A steep 31.8% drop in free cash flow undermines the firm's ability to self-fund capex, expand programs, or shore up reserves. Low operating cash conversion (operating cash flow to net income ratio at 0.14) highlights weaker cash generation relative to reported earnings, constraining long-term financial flexibility.

Weak return on equity

ROE near 4% signals limited effectiveness in converting shareholder capital into profitable growth. Over time, persistently low ROE can constrain shareholder value creation and may reflect underutilized assets, suboptimal pricing, or operational inefficiencies that require strategic remediation.

Margin pressure and falling profitability

Material contraction in net and operating margins reduces retained earnings and reinvestment capacity. Sustained margin pressure may indicate rising costs, lower pricing power, or higher SG&A and can impair the firm's ability to fund growth initiatives and maintain competitive investment in curricula or facilities.

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 demonstrates solid revenue growth and stable gross margins, but faces challenges in profitability and cash flow generation. While leverage has improved, the low return on equity and declining free cash flow are areas of concern. The company needs to focus on enhancing operational efficiency and cash flow management to sustain its growth trajectory.

Income Statement

Hope Education Group has shown a consistent revenue growth rate of 12.49% in the latest year, indicating a positive trajectory. The gross profit margin is stable at around 42%, while the net profit margin has decreased to 9.72% from 16.33% the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins have also decreased, reflecting potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.48 from 0.61, indicating better leverage management. However, the return on equity has decreased to 3.97%, which is relatively low, suggesting inefficiencies in generating returns from equity. The equity ratio remains stable, reflecting a balanced capital structure.

Cash Flow

The free cash flow has decreased significantly by 31.83%, which is a concern for liquidity. The operating cash flow to net income ratio is 0.14, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.31, showing some ability to convert earnings into cash, but the decline in free cash flow growth is a risk.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	3.81B	3.92B	3.73B	3.58B	3.04B	2.32B
Gross Profit	1.60B	1.65B	1.57B	1.68B	1.40B	1.18B
EBITDA	1.23B	1.31B	1.61B	1.56B	1.33B	509.56M
Net Income	693.19M	380.60M	609.56M	210.10M	444.64M	605.50M
Balance Sheet
Total Assets	20.72B	21.99B	22.28B	22.30B	22.31B	19.87B
Cash, Cash Equivalents and Short-Term Investments	1.67B	3.29B	2.65B	2.83B	2.77B	4.44B
Total Debt	4.52B	4.58B	5.56B	5.84B	6.43B	5.17B
Total Liabilities	11.27B	12.41B	13.13B	13.86B	14.27B	12.06B
Stockholders Equity	9.45B	9.58B	9.15B	8.44B	8.05B	7.81B
Cash Flow
Free Cash Flow	630.55M	393.20M	187.75M	232.03M	-969.04M	57.54M
Operating Cash Flow	1.81B	1.25B	1.49B	1.79B	1.41B	1.91B
Investing Cash Flow	-1.06B	-916.00M	-972.45M	-181.06M	-2.85B	-3.71B
Financing Cash Flow	-1.71B	78.34M	-864.12M	-1.51B	-169.05M	3.29B

Hope 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: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1765, the sentiment is Negative. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.18, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.28 is Neutral, neither overbought nor oversold. The STOCH value of 16.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2001	81 Outperform	HK$1.64B	2.11	17.52%	10.76%	7.71%	11.65%
0382	72 Outperform	HK$1.72B	3.38	11.86%	11.69%	7.59%	-30.36%
1765	66 Neutral	HK$1.42B	3.89	4.28%	―	6.04%	-36.91%
1935	66 Neutral	HK$1.76B	1.26	9.04%	―	4.79%	-36.61%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2175	56 Neutral	HK$1.41B	11.85	4.06%	―	-0.48%	-29.65%

Hope Education Group Co., Ltd. Corporate Events

XJ International Revamps Company Secretariat and Secures Listing Rules Waiver

XJ International Holdings announced that joint company secretaries Tan Li and Chan Yin Wah will resign effective 6 March 2026, with Chan also stepping down as the firm’s authorized representative and process agent in Hong Kong, though both reported no disagreements with the board. The company has appointed long‑serving executive Liu Xiaoyang and corporate governance professional Wong Ka Chi as joint company secretaries from the same date, with Wong also assuming the roles of authorized representative and process agent.

Because Liu does not yet meet the Stock Exchange’s professional secretary requirements, the company obtained a three‑year waiver from strict compliance with the relevant Listing Rules on condition that she is assisted by Wong and that the waiver can be revoked in case of material rule breaches. XJ International also disclosed a change in its principal place of business address in Hong Kong, signaling an administrative reshaping of its governance, compliance and operating footprint rather than a shift in core business strategy.

The most recent analyst rating on (HK:1765) stock is a Buy with a HK$0.20 price target. To see the full list of analyst forecasts on Hope Education Group Co., Ltd. stock, see the HK:1765 Stock Forecast page.

XJ International Wins Strong Shareholder Backing at AGM, Doubles Authorised Share Capital

Shareholders of XJ International Holdings Co., Ltd. approved all resolutions at the annual general meeting held on 27 February 2026, with votes cast entirely by poll and no shareholders required to abstain. The audited financial statements for the year ended 31 August 2025 and the directors’ and auditor’s reports were received and adopted, reflecting broad investor support.

The meeting confirmed the re-election of executive director Wang Huiwu and independent non-executive directors Liu Zhonghui and Xiang Chuan, and authorised the board to set directors’ remuneration. Ernst & Young was reappointed as auditor, and directors received mandates to issue up to 20% new shares, repurchase up to 10% of shares, and extend the issuance mandate, while shareholders also approved a doubling of authorised share capital to 20 billion shares, enhancing the company’s financial and capital-raising flexibility.

The most recent analyst rating on (HK:1765) stock is a Buy with a HK$0.20 price target. To see the full list of analyst forecasts on Hope Education Group Co., Ltd. stock, see the HK:1765 Stock Forecast page.

XJ International Appoints Veteran Educator Wang Shunhong as Independent Director

XJ International Holdings Co., Ltd. has strengthened its board by appointing veteran educator Mr. Wang Shunhong as an independent non-executive director, effective 27 February 2026. Mr. Wang, a professor and doctoral supervisor at Southwest Jiaotong University and president of Deyang College of Urban Rail Transit, brings over 40 years of experience in the education sector and holds numerous influential academic and advisory roles in Sichuan and at the national level.

Under a three-year appointment, Mr. Wang will receive an annual director’s fee of HK$180,000, with his term subject to rotation and re-election under Hong Kong listing rules and the company’s articles. The board has confirmed his independence against Listing Rules criteria and disclosed that he holds no other roles in the Group, no recent listed-company directorships, and no ties to major shareholders or management, signalling an effort to reinforce governance standards and independent oversight for stakeholders.

The most recent analyst rating on (HK:1765) stock is a Buy with a HK$0.20 price target. To see the full list of analyst forecasts on Hope Education Group Co., Ltd. stock, see the HK:1765 Stock Forecast page.

XJ International Details Board Composition and Governance Committees

XJ International Holdings Co., Ltd. has disclosed the current composition of its board of directors, naming four executive directors, two non-executive directors, and four independent non-executive directors, with Zhang Bing serving as chairman and Wang Huiwu as chief executive officer. The company also detailed the membership and leadership of its Audit Committee, Nomination and Remuneration Committee, and Strategy and Development Committee, clarifying governance responsibilities and reinforcing transparency for investors and other stakeholders.

The announcement specifies which directors chair and sit on the three key board committees, indicating a separation of oversight roles between independent and non-executive members and the executive team. This delineation of functions is likely intended to strengthen corporate governance, improve strategic oversight, and provide clearer accountability lines in compliance with Hong Kong listing requirements, which may reassure the market about the robustness of the company’s board structure.

The most recent analyst rating on (HK:1765) stock is a Buy with a HK$0.20 price target. To see the full list of analyst forecasts on Hope Education Group Co., Ltd. stock, see the HK:1765 Stock Forecast page.

XJ International Sets 2026 AGM to Approve Accounts, Board Changes and Share Issuance Mandate

XJ International Holdings Co., Ltd. has convened its annual general meeting for 27 February 2026 in Chengdu, Sichuan, where shareholders will vote on routine but significant corporate matters. The agenda includes adoption of the audited financial statements for the year ended 31 August 2025, re-election of one executive and two independent non-executive directors, approval for the board to set director and auditor remuneration, re-appointment of Ernst & Young as auditor, and a mandate allowing directors to issue new shares or convertible securities up to 20% of the company’s issued share capital, excluding treasury shares, which could provide flexibility for future fundraising and capital management while potentially diluting existing shareholders if fully exercised.

The most recent analyst rating on (HK:1765) stock is a Buy with a HK$0.20 price target. To see the full list of analyst forecasts on Hope Education Group Co., Ltd. stock, see the HK:1765 Stock Forecast page.

XJ International Plans Capital Expansion and Virtual Meeting Reforms Ahead of 2026 AGM

XJ International Holdings Co., Ltd. plans to double its authorised share capital from US$100,000 to US$200,000, increasing the number of authorised shares from 10 billion to 20 billion, while keeping around 8.67 billion shares currently in issue. The move is intended to give the company greater flexibility for future fundraising to support business growth and is subject to shareholder approval at the 2026 annual general meeting. Concurrently, the board is proposing amendments to its memorandum and articles of association to allow virtual participation and electronic voting at general meetings, align with Hong Kong’s expanded paperless listing regime, and implement related housekeeping changes, with the revised constitutional documents also requiring shareholder approval at the AGM.

The most recent analyst rating on (HK:1765) stock is a Buy with a HK$0.20 price target. To see the full list of analyst forecasts on Hope Education Group Co., Ltd. stock, see the HK:1765 Stock Forecast page.