Scholar Education Group (1769) AI Stock Analysis

• Market Cap: HK$2.13B
• Dividend Yield: N/A
• Average Volume (3M): 2.84M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.03
• Revenue Growth: 46.88%
• EPS Growth: 67.94%
• Country: HK
• Employees: 2,973
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Education & Training Services
• EPS (TTM): 0.29
• Shares Outstanding: 564,869,100
• 10 Day Avg. Volume: 2,675,800
• 30 Day Avg. Volume: 2,836,640
• PEG Ratio: 1.05
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -169.78
• 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: 64 Neutral
• Price Target: HK$4.00 ▲(6.10%Upside)

Scholar Education Group's strong financial performance is a major positive, supported by solid revenue and profit growth. However, the technical analysis indicates bearish momentum, which could impact short-term stock performance. The valuation is decent but does not offer a compelling income opportunity due to the lack of a dividend yield. Investors should weigh the financial health against current market sentiment before making decisions.

Scholar Education Group Business Overview & Revenue Model

Company Description

Scholar Education Group (1769) is a leading provider of after-school education services in China. The company primarily focuses on offering tutoring services for students from kindergarten to 12th grade, covering a wide range of subjects, including mathematics, English, and science. Scholar Education Group is committed to enhancing students' academic performance and overall development through high-quality educational programs and experienced teaching staff.

How the Company Makes Money

Scholar Education Group generates revenue primarily through tuition fees collected from students enrolled in its after-school tutoring programs. The company operates a network of learning centers across various regions, providing both in-person and online classes to accommodate different learning preferences and needs. In addition to traditional classroom settings, Scholar Education Group leverages digital platforms to deliver remote learning services, thus expanding its reach and accessibility. Key revenue streams include fees for subject-specific courses, supplementary educational materials, and premium personalized tutoring sessions. Significant partnerships with local schools or educational institutions may also contribute to its earnings by facilitating student referrals and co-branded programs.

Scholar Education Group Financial Statement Overview

Summary

Scholar Education Group is demonstrating a robust growth trajectory with strong revenue and profit growth, underpinned by effective cost management. The balance sheet is stable with a healthy equity position, although liabilities require careful monitoring. Cash flow generation remains positive but with recent inconsistencies that need attention. Overall, the company is financially sound with areas to watch.

Income Statement

Scholar Education Group shows a strong revenue growth trend, with a substantial increase from 2022 to 2024. Gross profit margin and net profit margin are solid, indicating effective cost management and profitability. However, there is some volatility in EBIT and EBITDA margins, suggesting fluctuating operational efficiency.

Balance Sheet

The balance sheet reflects a healthy equity position with a strong equity ratio and a manageable debt-to-equity ratio. The company's return on equity has improved significantly in recent years, pointing to effective use of shareholder funds. However, the presence of significant liabilities warrants caution.

Cash Flow

The company's free cash flow has shown variability, although the overall trend is positive. The operating cash flow to net income ratio indicates solid cash generation from operations. However, zero reported cash flow in the latest year raises some concerns about cash flow stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	852.33M	570.61M	402.08M	831.73M	749.09M
Gross Profit	333.39M	238.55M	137.38M	312.68M	247.09M
EBITDA	187.27M	178.82M	49.73M	144.24M	59.87M
Net Income	145.65M	85.99M	54.41M	-26.61M	48.94M
Balance Sheet
Total Assets	1.33B	1.03B	754.92M	760.57M	1.67B
Cash, Cash Equivalents and Short-Term Investments	502.52M	473.63M	416.03M	391.77M	741.53M
Total Debt	326.99M	175.09M	116.93M	182.40M	656.81M
Total Liabilities	692.58M	579.87M	383.52M	443.02M	1.13B
Stockholders Equity	635.11M	454.82M	371.40M	317.95M	538.04M
Cash Flow
Free Cash Flow	114.92M	169.14M	117.81M	40.44M	188.95M
Operating Cash Flow	216.28M	205.22M	125.75M	92.79M	271.45M
Investing Cash Flow	-17.73M	-186.15M	18.69M	47.11M	132.38M
Financing Cash Flow	-63.87M	-62.09M	-82.07M	-344.63M	-198.04M

Scholar Education Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1769, the sentiment is Negative. The current price of 3.77 is below the 20-day moving average (MA) of 3.98, below the 50-day MA of 4.35, and below the 200-day MA of 4.70, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 62.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1769.

Scholar Education Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0382	75 Outperform	HK$1.80B	2.62	15.41%	13.07%	9.66%	-8.34%
2001	73 Outperform	HK$1.76B	2.05	18.95%	0.57%	9.07%	5.93%
2175	64 Neutral	HK$1.31B	12.12	5.09%	―	-0.48%	-26.92%
1769	64 Neutral	HK$2.13B	13.04	26.84%	―	46.88%	67.94%
6169	62 Neutral	HK$1.90B	2.49	7.75%	―	1.32%	-20.13%
Sector *	56 Neutral	HK$23.98B	4.08	-1.57%	6.81%	0.06%	-64.88%

Scholar Education Group Corporate Events

Scholar Education Group Chairman Increases Shareholding

Scholar Education Group announced that its chairman and controlling shareholder, Mr. Chen Qiyuan, has increased his shareholding by acquiring 263,000 shares through the open market. This acquisition, valued at approximately HK$1 million, reflects Mr. Chen’s confidence in the company’s strategy and future prospects, and his commitment to supporting the company and its shareholders. The company maintains sufficient public float following this transaction.

Scholar Education Group Announces AGM Results and Board Changes

Scholar Education Group held its Annual General Meeting on May 20, 2025, where all proposed resolutions were passed. Key decisions included the re-election of directors, appointment of a new director, and approval of a final dividend. These changes in the board’s composition and financial decisions are expected to impact the company’s governance and shareholder returns.

Scholar Education Group Forms Nomination Committee to Enhance Board Governance

Scholar Education Group has established a Nomination Committee to oversee the structure, size, and composition of its Board. The committee is tasked with identifying qualified individuals for board membership, ensuring diversity, and aligning board composition with the company’s corporate strategy. This move is intended to enhance governance and strategic alignment within the company.

Scholar Education Group Announces AGM with Key Resolutions

Scholar Education Group has announced its upcoming Annual General Meeting (AGM) scheduled for May 20, 2025, in Shenzhen, China. Key agenda items include the consideration of audited financial statements, re-election of directors, appointment of a new director, and re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, the meeting will address resolutions concerning the repurchase of shares and the issuance of new shares, which could impact the company’s market operations and shareholder value.